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113-hjres-76

IA 113th CONGRESS 1st Session H. J. RES. 76 IN THE HOUSE OF REPRESENTATIVES October 3, 2013 Mr. Frelinghuysen introduced the following joint resolution; which was referred to the Committee on Appropriations JOINT RESOLUTION Making continuing appropriations for the National Nuclear Security Administration for fiscal year 2014, and for other purposes. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the National Nuclear Security Administration for fiscal year 2014, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at a rate for operations as provided in the Full-Year Continuing Appropriations Act, 2013 (division F of Public Law 113–6 ) and under the authority and conditions provided in such Act, for continuing projects or activities (including the costs of direct loans and loan guarantees) of the National Nuclear Security Administration that are not otherwise specifically provided for in this joint resolution or in the Pay Our Military Act of September 30, 2013, that were conducted in fiscal year 2013, and for which appropriations, funds, or other authority were made available by such Act under the following headings: (1) Weapons Activities . (2) Defense Nuclear Nonproliferation . (3) Naval Reactors . (4) Office of the Administrator . (b) The rate for operations provided by subsection (a) for each account shall be calculated to reflect the full amount of any reduction required in fiscal year 2013 pursuant to— (1) any provision of division G of the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ), including section 3004; and (2) the Presidential sequestration order dated March 1, 2013, except as attributable to budget authority made available by the Disaster Relief Appropriations Act, 2013 ( Public Law 113–2 ). 102. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 103. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act for fiscal year 2014, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until whichever of the following first occurs: (1) the enactment into law of an appropriation for any project or activity provided for in this joint resolution; (2) the enactment into law of the applicable appropriations Act for fiscal year 2014 without any provision for such project or activity; or (3) December 15, 2013. 104. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 105. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities. 106. Amounts made available under section 101 for civilian personnel compensation and benefits in each department and agency may be apportioned up to the rate for operations necessary to avoid furloughs within such department or agency, consistent with the applicable appropriations Act for fiscal year 2013, except that such authority provided under this section shall not be used until after the department or agency has taken all necessary actions to reduce or defer non-personnel-related administrative expenses. 107. It is the sense of Congress that this joint resolution may also be referred to as the Nuclear Weapon Security & Non-Proliferation Act . This joint resolution may be cited as the National Nuclear Security Administration Continuing Appropriations Resolution, 2014 .

https://www.govinfo.gov/content/pkg/BILLS-113hjres76ih/xml/BILLS-113hjres76ih.xml

113-hjres-77

IA 113th CONGRESS 1st Session H. J. RES. 77 IN THE HOUSE OF REPRESENTATIVES JOINT RESOLUTION Making continuing appropriations for the Food and Drug Administration for fiscal year 2014, and for other purposes. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the Food and Drug Administration for fiscal year 2014, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at a rate for operations as provided in the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2013 (division A of Public Law 113–6 ) and under the authority and conditions provided in such Act, for continuing projects or activities (including the costs of direct loans and loan guarantees) that are not otherwise specifically provided for in this joint resolution, that were conducted in fiscal year 2013, and for which appropriations, funds, or other authority were made available by such Act under the heading Department of Health and Human Services—Food and Drug Administration . (b) The rate for operations provided by subsection (a) for each account shall be calculated to reflect the full amount of any reduction required in fiscal year 2013 pursuant to— (1) any provision of division G of the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ), including section 3004; and (2) the Presidential sequestration order dated March 1, 2013, except as attributable to budget authority made available by the Disaster Relief Appropriations Act, 2013 ( Public Law 113–2 ). 102. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 103. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act for fiscal year 2014, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until whichever of the following first occurs: (1) the enactment into law of an appropriation for any project or activity provided for in this joint resolution; (2) the enactment into law of the applicable appropriations Act for fiscal year 2014 without any provision for such project or activity; or (3) December 15, 2013. 104. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 105. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities. 106. Amounts made available under section 101 for civilian personnel compensation and benefits in each department and agency may be apportioned up to the rate for operations necessary to avoid furloughs within such department or agency, consistent with the applicable appropriations Act for fiscal year 2013, except that such authority provided under this section shall not be used until after the department or agency has taken all necessary actions to reduce or defer non-personnel-related administrative expenses. 107. It is the sense of the Congress that this joint resolution may also be referred to as the Food and Drug Safety Act . This joint resolution may be cited as the Food and Drug Administration Continuing Appropriations Resolution, 2014 . Passed the House of Representatives October 7, 2013. Karen L. Haas, Clerk.

https://www.govinfo.gov/content/pkg/BILLS-113hjres77eh/xml/BILLS-113hjres77eh.xml

113-hjres-78

IA 113th CONGRESS 1st Session H. J. RES. 78 IN THE HOUSE OF REPRESENTATIVES October 3, 2013 Mr. Young of Florida introduced the following joint resolution; which was referred to the Committee on Appropriations JOINT RESOLUTION Making continuing appropriations for national intelligence program operations for fiscal year 2014, and for other purposes. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, for national intelligence program operations for fiscal year 2014, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at a rate for operations as provided for in the Department of Defense Appropriations Act, 2013 (division C of Public Law 113–6 ), and under the authority and conditions provided in such Act, for continuing the following projects or activities, conducted in fiscal year 2013, for which appropriations, funds, or other authority were made available under such Act, as set forth under the heading National Intelligence Program in the classified annex accompanying such Act: (1) Payment of personnel compensation and benefits for civilian employees whom the Director of National Intelligence determines necessary to continue— (A) producing finished intelligence for the President or senior military or civilian officials of the Federal government; (B) collecting human, signals, or technical intelligence; (C) conducting a covert action (as defined in section 503(e) of the National Security Act of 1947 ( 50 U.S.C. 3093(e) )), as directed by the President; (D) providing analytic support to critical ongoing intelligence operations and military combat operations; and (E) maintaining the capability to provide warnings of counterterrorism and international terrorist threats to protect the life, safety, and security of the United States interests. (2) Payments under continuing contracts for compensation of a contract employee or employees whom the Director of National Intelligence determines necessary to support a function described in any subparagraph of paragraph (1). (b) The rate for operations provided by subsection (a) for each project or activity shall be calculated to reflect the full amount of any reduction required in fiscal year 2013 pursuant to— (1) any provision of division G of the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ), including section 3004; and (2) the Presidential sequestration order dated March 1, 2013, except as attributable to budget authority made available by the Disaster Relief Appropriations Act, 2013 ( Public Law 113–2 ). 102. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 103. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act for fiscal year 2014, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until whichever of the following first occurs: (1) the enactment into law of an appropriation for any project or activity provided for in this joint resolution; (2) the enactment into law of the applicable appropriations Act for fiscal year 2014 without any provision for such project or activity; or (3) December 15, 2013. 104. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 105. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities. 106. It is the sense of Congress that this joint resolution may also be referred to as the Preserving Our Intelligence Capabilities Act . This joint resolution may be cited as the National Intelligence Program Operations Continuing Appropriations Resolution, 2014 .

https://www.govinfo.gov/content/pkg/BILLS-113hjres78ih/xml/BILLS-113hjres78ih.xml

113-hjres-79

IA 113th CONGRESS 1st Session H. J. RES. 79 IN THE HOUSE OF REPRESENTATIVES JOINT RESOLUTION Making continuing appropriations for certain components of the Department of Homeland Security for fiscal year 2014, and for other purposes. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for certain components of the Department of Homeland Security for fiscal year 2014, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at a rate for operations as provided in the Department of Homeland Security Appropriations Act, 2013 (division D of Public Law 113–6 ) and under the authority and conditions provided in such Act, for continuing projects or activities that are not otherwise specifically provided for in this joint resolution or in the Pay Our Military Act of September 30, 2013, that were conducted in fiscal year 2013, and for which appropriations, funds, or other authority were made available by the Department of Homeland Security Appropriations Act, 2013 (division D of Public Law 113–6 ) under the headings Security, Enforcement, and Investigations—U.S. Customs and Border Protection , Security, Enforcement, and Investigations—U.S. Immigration and Customs Enforcement , Security, Enforcement, and Investigations—Coast Guard , Protection, Preparedness, Response, and Recovery—National Protection and Programs Directorate—Office of Biometric Identity Management , and Research and Development, Training, and Services—United States Citizenship and Immigration Services . (b) The rate for operations provided by subsection (a) for each account shall be calculated to reflect the full amount of any reduction required in fiscal year 2013 pursuant to— (1) any provision of division G of the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ), including section 3004; and (2) the Presidential sequestration order dated March 1, 2013, except as attributable to budget authority made available by the Disaster Relief Appropriations Act, 2013 ( Public Law 113–2 ). 102. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 103. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act for fiscal year 2014, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until whichever of the following first occurs: (1) the enactment into law of an appropriation for any project or activity provided for in this joint resolution; (2) the enactment into law of the applicable appropriations Act for fiscal year 2014 without any provision for such project or activity; or (3) December 15, 2013. 104. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 105. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities. 106. Amounts made available under section 101 for civilian personnel compensation and benefits in each department and agency may be apportioned up to the rate for operations necessary to avoid furloughs within such department or agency, consistent with the applicable appropriations Act for fiscal year 2013, except that such authority provided under this section shall not be used until after the department or agency has taken all necessary actions to reduce or defer non-personnel-related administrative expenses. 107. It is the sense of Congress that this joint resolution may also be referred to as the Border Safety & Security Act . This joint resolution may be cited as the Border Security and Enforcement Continuing Appropriations Resolution, 2014 . Passed the House of Representatives October 10, 2013. Karen L. Haas, Clerk.

https://www.govinfo.gov/content/pkg/BILLS-113hjres79eh/xml/BILLS-113hjres79eh.xml

113-hjres-80

IA 113th CONGRESS 1st Session H. J. RES. 80 IN THE HOUSE OF REPRESENTATIVES JOINT RESOLUTION Making continuing appropriations for the Bureau of Indian Affairs, the Bureau of Indian Education, and the Indian Health Service for fiscal year 2014, and for other purposes. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the Bureau of Indian Affairs, the Bureau of Indian Education, and the Indian Health Service, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at a rate for operations as provided in the Full-Year Continuing Appropriations Act, 2013 (division F of Public Law 113–6 ) and under the authority and conditions provided in such Act, for continuing projects or activities (including the costs of direct loans and loan guarantees) that are not otherwise specifically provided for in this joint resolution, that were conducted in fiscal year 2013, and for which appropriations, funds, or other authority were made available by such Act under the following headings: (1) Department of the Interior—Bureau of Indian Affairs and Bureau of Indian Education . (2) Department of Health and Human Services—Indian Health Service . (b) The rate for operations provided by subsection (a) for each account shall be calculated to reflect the full amount of any reduction required in fiscal year 2013 pursuant to— (1) any provision of division G of the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ), including section 3004; and (2) the Presidential sequestration order dated March 1, 2013, except as attributable to budget authority made available by the Disaster Relief Appropriations Act, 2013 ( Public Law 113–2 ). 102. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 103. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act for fiscal year 2014, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until whichever of the following first occurs: (1) the enactment into law of an appropriation for any project or activity provided for in this joint resolution; (2) the enactment into law of the applicable appropriations Act for fiscal year 2014 without any provision for such project or activity; or (3) December 15, 2013. 104. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 105. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities. 106. Amounts made available under section 101 for civilian personnel compensation and benefits in each department and agency may be apportioned up to the rate for operations necessary to avoid furloughs within such department or agency, consistent with the applicable appropriations Act for fiscal year 2013, except that such authority provided under this section shall not be used until after the department or agency has taken all necessary actions to reduce or defer non-personnel-related administrative expenses. 107. It is the sense of Congress that this joint resolution may also be referred to as the American Indian and Alaska Native, Health, Education, and Safety Act . This joint resolution may be cited as the Bureau of Indian Affairs, Bureau of Indian Education, and Indian Health Service Continuing Appropriations Resolution, 2014 . Passed the House of Representatives October 14, 2013. Karen L. Haas, Clerk.

https://www.govinfo.gov/content/pkg/BILLS-113hjres80eh/xml/BILLS-113hjres80eh.xml

113-hjres-81

IA 113th CONGRESS 1st Session H. J. RES. 81 IN THE HOUSE OF REPRESENTATIVES October 3, 2013 Mr. Wilson of South Carolina introduced the following joint resolution; which was referred to the Committee on Appropriations JOINT RESOLUTION Making continuing appropriations for the National Nuclear Security Administration and the Office of Environmental Management of the Department of Energy for fiscal year 2014, and for other purposes. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the National Nuclear Security Administration and the Office of Environmental Management of the Department of Energy for fiscal year 2014, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at a rate for operations as provided in the Full-Year Continuing Appropriations Act, 2013 (division F of Public Law 113–6 ) and under the authority and conditions provided in such Act, for continuing projects or activities (including the costs of direct loans and loan guarantees) that are not otherwise specifically provided for in this joint resolution, that were conducted in fiscal year 2013, and for which appropriations, funds, or other authority were made available by such Act for the following: (1) Energy Programs—Non-defense Environmental Cleanup . (2) Energy Programs—Uranium Enrichment Decontamination and Decommissioning Fund . (3) Atomic Energy Defense Activities—National Nuclear Security Administration . (4) Atomic Energy Defense Activities—Environmental and Other Defense Activities—Defense Environmental Cleanup . (b) The rate for operations provided by subsection (a) for each account shall be calculated to reflect the full amount of any reduction required in fiscal year 2013 pursuant to— (1) any provision of division G of the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ), including section 3004; and (2) the Presidential sequestration order dated March 1, 2013, except as attributable to budget authority made available by the Disaster Relief Appropriations Act, 2013 ( Public Law 113–2 ). 102. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 103. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act for fiscal year 2014, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until whichever of the following first occurs: (1) The enactment into law of an appropriation for any project or activity provided for in this joint resolution. (2) The enactment into law of the applicable appropriations Act for fiscal year 2014 without any provision for such project or activity. (3) December 15, 2013. 104. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 105. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities. 106. Amounts made available under section 101 for civilian personnel compensation and benefits in each department and agency may be apportioned up to the rate for operations necessary to avoid furloughs within such department or agency, consistent with the applicable appropriations Act for fiscal year 2013, except that such authority provided under this section shall not be used until after the department or agency has taken all necessary actions to reduce or defer non-personnel-related administrative expenses.

https://www.govinfo.gov/content/pkg/BILLS-113hjres81ih/xml/BILLS-113hjres81ih.xml

113-hjres-82

IA 113th CONGRESS 1st Session H. J. RES. 82 IN THE HOUSE OF REPRESENTATIVES October 3, 2013 Mr. Rogers of Kentucky introduced the following joint resolution; which was referred to the Committee on Appropriations JOINT RESOLUTION Making continuing appropriations for the National Weather Service for fiscal year 2014, and for other purposes. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the National Weather Service for fiscal year 2014, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at a rate for operations as provided in the Commerce, Justice, Science, and Related Agencies Appropriations Act, 2013 (division B of Public Law 113–6 ) and under the authority and conditions provided in such Act, for continuing projects or activities of the National Weather Service that are not otherwise specifically provided for in this joint resolution, that were conducted in fiscal year 2013, and for which appropriations, funds, or other authority were made available by such Act under the headings National Oceanic and Atmospheric Administration, Operations, Research, and Facilities and National Oceanic and Atmospheric Administration, Procurement, Acquisition and Construction . (b) The rate for operations provided by subsection (a) for each account shall be calculated to reflect the full amount of any reduction required in fiscal year 2013 pursuant to— (1) any provision of division G of the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ), including section 3004; and (2) the Presidential sequestration order dated March 1, 2013, except as attributable to budget authority made available by the Disaster Relief Appropriations Act, 2013 ( Public Law 113–2 ). 102. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 103. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act for fiscal year 2014, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until whichever of the following first occurs: (1) the enactment into law of an appropriation for any project or activity provided for in this joint resolution; (2) the enactment into law of the applicable appropriations Act for fiscal year 2014 without any provision for such project or activity; or (3) December 15, 2013. 104. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 105. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities. 106. Amounts made available under section 101 for personnel compensation and benefits in each department and agency may be apportioned up to the rate for operations necessary to avoid furloughs within such department or agency, consistent with the applicable appropriations Act for fiscal year 2013, except that such authority provided under this section shall not be used until after the department or agency has taken all necessary actions to reduce or defer non-personnel-related administrative expenses. 107. It is the sense of Congress that this joint resolution may also be referred to as the National Weather Monitoring Act . This joint resolution may be cited as the National Weather Service Continuing Appropriations Resolution, 2014 .

https://www.govinfo.gov/content/pkg/BILLS-113hjres82ih/xml/BILLS-113hjres82ih.xml

113-hjres-83

IA 113th CONGRESS 1st Session H. J. RES. 83 IN THE HOUSE OF REPRESENTATIVES October 3, 2013 Mr. Rogers of Kentucky introduced the following joint resolution; which was referred to the Committee on Appropriations JOINT RESOLUTION Making continuing appropriations for the Impact Aid program of the Department of Education for fiscal year 2014, and for other purposes. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the Impact Aid program of the Department of Education for fiscal year 2014, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at a rate for operations as provided in the Full-Year Continuing Appropriations Act, 2013 (division F of Public Law 113–6 ) and under the authority and conditions provided in such Act, for continuing projects or activities (including the costs of direct loans and loan guarantees) that are not otherwise specifically provided for in this joint resolution, that were conducted in fiscal year 2013, and for which appropriations, funds, or other authority were made available by such Act under the heading Department of Education—Impact Aid . (b) The rate for operations provided by subsection (a) for each account shall be calculated to reflect the full amount of any reduction required in fiscal year 2013 pursuant to— (1) any provision of division G of the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ), including section 3004; and (2) the Presidential sequestration order dated March 1, 2013, except as attributable to budget authority made available by the Disaster Relief Appropriations Act, 2013 ( Public Law 113–2 ). 102. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 103. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act for fiscal year 2014, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until whichever of the following first occurs: (1) the enactment into law of an appropriation for any project or activity provided for in this joint resolution; (2) the enactment into law of the applicable appropriations Act for fiscal year 2014 without any provision for such project or activity; or (3) December 15, 2013. 104. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 105. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities. 106. Amounts made available under section 101 for civilian personnel compensation and benefits in each department and agency may be apportioned up to the rate for operations necessary to avoid furloughs within such department or agency, consistent with the applicable appropriations Act for fiscal year 2013, except that such authority provided under this section shall not be used until after the department or agency has taken all necessary actions to reduce or defer non-personnel-related administrative expenses. 107. It is the sense of Congress that this joint resolution may also be referred to as the Impact Aid for Local Schools Act . This joint resolution may be cited as the Impact Aid Continuing Appropriations Resolution, 2014 .

https://www.govinfo.gov/content/pkg/BILLS-113hjres83ih/xml/BILLS-113hjres83ih.xml

113-hjres-84

IA 113th CONGRESS 1st Session H. J. RES. 84 IN THE HOUSE OF REPRESENTATIVES October 3, 2013 Mr. Rogers of Kentucky introduced the following joint resolution; which was referred to the Committee on Appropriations JOINT RESOLUTION Making continuing appropriations for Head Start for fiscal year 2014, and for other purposes. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for Head Start for fiscal year 2014, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at a rate for operations as provided in the Full-Year Continuing Appropriations Act, 2013 (division F of Public Law 113–6 ) and under the authority and conditions provided in such Act, for continuing all projects or activities under the Head Start Act (including the costs of direct loans and loan guarantees) that are not otherwise specifically provided for in this joint resolution, that were conducted in fiscal year 2013, and for which appropriations, funds, or other authority were made available by such Act under the heading Department of Health and Human Services—Administration for Children and Families, Children and Families Services Programs . (b) The rate for operations provided by subsection (a) for each project or activity shall be calculated to reflect the full amount of any reduction required in fiscal year 2013 pursuant to— (1) any provision of division G of the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ), including section 3004; and (2) the Presidential sequestration order dated March 1, 2013, except as attributable to budget authority made available by the Disaster Relief Appropriations Act, 2013 ( Public Law 113–2 ). 102. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 103. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act for fiscal year 2014, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until whichever of the following first occurs: (1) the enactment into law of an appropriation for any project or activity provided for in this joint resolution; (2) the enactment into law of the applicable appropriations Act for fiscal year 2014 without any provision for such project or activity; or (3) December 15, 2013. 104. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 105. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities. 106. Amounts made available under section 101 for civilian personnel compensation and benefits in each department and agency may be apportioned up to the rate for operations necessary to avoid furloughs within such department or agency, consistent with the applicable appropriations Act for fiscal year 2013, except that such authority provided under this section shall not be used until after the department or agency has taken all necessary actions to reduce or defer non-personnel-related administrative expenses. 107. It is the sense of Congress that this joint resolution may also be referred to as the Head Start for Low-Income Children Act . This joint resolution may be cited as the Head Start Continuing Appropriations Resolution, 2014 .

https://www.govinfo.gov/content/pkg/BILLS-113hjres84ih/xml/BILLS-113hjres84ih.xml

113-hjres-85

IA 113th CONGRESS 1st Session H. J. RES. 85 IN THE HOUSE OF REPRESENTATIVES JOINT RESOLUTION Making continuing appropriations for the Federal Emergency Management Agency for fiscal year 2014, and for other purposes. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the Federal Emergency Management Agency for fiscal year 2014, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at a rate for operations as provided in the Department of Homeland Security Appropriations Act, 2013 (division D of Public Law 113–6 ) and under the authority and conditions provided in such Act, for continuing projects or activities that are not otherwise specifically provided for in this joint resolution, that were conducted in fiscal year 2013, and for which appropriations, funds, or other authority were made available by such Act under the heading Protection, Preparedness, Response, and Recovery—Federal Emergency Management Agency . (b) The rate for operations provided by subsection (a) for each account shall be calculated to reflect the full amount of any reduction required in fiscal year 2013 pursuant to— (1) any provision of division G of the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ), including section 3004; and (2) the Presidential sequestration order dated March 1, 2013, except as attributable to budget authority made available by the Disaster Relief Appropriations Act, 2013 ( Public Law 113–2 ). 102. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 103. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act for fiscal year 2014, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until whichever of the following first occurs: (1) the enactment into law of an appropriation for any project or activity provided for in this joint resolution; (2) the enactment into law of the applicable appropriations Act for fiscal year 2014 without any provision for such project or activity; or (3) December 15, 2013. 104. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 105. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities. 106. Amounts made available under section 101 for civilian personnel compensation and benefits in each department and agency may be apportioned up to the rate for operations necessary to avoid furloughs within such department or agency, consistent with the applicable appropriations Act for fiscal year 2013, except that such authority provided under this section shall not be used until after the department or agency has taken all necessary actions to reduce or defer non-personnel-related administrative expenses. 107. It is the sense of Congress that this joint resolution may also be referred to as the National Emergency and Disaster Recovery Act . This joint resolution may be cited as the Federal Emergency Management Agency Continuing Appropriations Resolution, 2014 . Passed the House of Representatives October 4, 2013. Karen L. Haas, Clerk.

https://www.govinfo.gov/content/pkg/BILLS-113hjres85eh/xml/BILLS-113hjres85eh.xml

113-hjres-86

IA 113th CONGRESS 1st Session H. J. RES. 86 IN THE HOUSE OF REPRESENTATIVES October 3, 2013 Mr. Terry introduced the following joint resolution; which was referred to the Committee on Appropriations JOINT RESOLUTION Making continuing appropriations for the Consumer Product Safety Commission for continuing projects or activities of the Office of Compliance and Field Operations. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the Consumer Product Safety Commission for fiscal year 2014, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at a rate for operations as provided in the Military Construction and Veterans Affairs, and Related Agencies Appropriations Act, 2012 (division C of Public Law 112–74 ) and under the authority and conditions provided in such Act, for continuing projects or activities of the Office of Compliance and Field Operations (including the costs of direct loans and loan guarantees) that are not otherwise specifically provided for in this joint resolution, that were conducted in fiscal year 2013, and for which appropriations, funds, or other authority were made available by such Act under the heading Consumer Product Safety Commission—Salaries and Expenses . (b) The rate for operations provided by subsection (a) for each account shall be calculated to reflect the full amount of any reduction required in fiscal year 2013 pursuant to— (1) any provision of division G of the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ), including section 3004; and (2) the Presidential sequestration order dated March 1, 2013, except as attributable to budget authority made available by the Disaster Relief Appropriations Act, 2013 ( Public Law 113–2 ). 102. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 103. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act for fiscal year 2014, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until whichever of the following first occurs: (1) the enactment into law of an appropriation for any project or activity provided for in this joint resolution; (2) the enactment into law of the applicable appropriations Act for fiscal year 2014 without any provision for such project or activity; or (3) December 15, 2013. 104. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 105. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities. 106. Amounts made available under section 101 for civilian personnel compensation and benefits in each department and agency may be apportioned up to the rate for operations necessary to avoid furloughs within such department or agency, consistent with the applicable appropriations Act for fiscal year 2013, except that such authority provided under this section shall not be used until after the department or agency has taken all necessary actions to reduce or defer non-personnel-related administrative expenses. This joint resolution may be cited as the Consumer Product Safety Commission Continuing Appropriations Resolution, 2014 .

https://www.govinfo.gov/content/pkg/BILLS-113hjres86ih/xml/BILLS-113hjres86ih.xml

113-hjres-87

IA 113th CONGRESS 1st Session H. J. RES. 87 IN THE HOUSE OF REPRESENTATIVES October 3, 2013 Mr. Terry introduced the following joint resolution; which was referred to the Committee on Appropriations JOINT RESOLUTION Making continuing appropriations for the National Highway Traffic Safety Administration for fiscal year 2014, and for other purposes. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the National Highway Traffic Safety Administration for fiscal year 2014, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at a rate for operations as provided in the Full-Year Continuing Appropriations Act, 2013 (division F of Public Law 113–6 ) and under the authority and conditions provided in such Act, for continuing projects or activities (including the costs of direct loans and loan guarantees) that are not otherwise specifically provided for in this joint resolution, that were conducted in fiscal year 2013, and for which appropriations, funds, or other authority were made available by such Act under the heading National Highway Traffic Safety Administration—Operations and Research . (b) The rate for operations provided by subsection (a) for each account shall be calculated to reflect the full amount of any reduction required in fiscal year 2013 pursuant to— (1) any provision of division G of the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ), including section 3004; and (2) the Presidential sequestration order dated March 1, 2013, except as attributable to budget authority made available by the Disaster Relief Appropriations Act, 2013 ( Public Law 113–2 ). 102. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 103. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act for fiscal year 2014, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until whichever of the following first occurs: (1) the enactment into law of an appropriation for any project or activity provided for in this joint resolution; (2) the enactment into law of the applicable appropriations Act for fiscal year 2014 without any provision for such project or activity; or (3) December 15, 2013. 104. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 105. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities. 106. Amounts made available under section 101 for civilian personnel compensation and benefits in each department and agency may be apportioned up to the rate for operations necessary to avoid furloughs within such department or agency, consistent with the applicable appropriations Act for fiscal year 2013, except that such authority provided under this section shall not be used until after the department or agency has taken all necessary actions to reduce or defer non-personnel-related administrative expenses. This joint resolution may be cited as the National Highway Traffic Safety Administration Continuing Appropriations Resolution, 2014 .

https://www.govinfo.gov/content/pkg/BILLS-113hjres87ih/xml/BILLS-113hjres87ih.xml

113-hjres-88

IA 113th CONGRESS 1st Session H. J. RES. 88 IN THE HOUSE OF REPRESENTATIVES October 4, 2013 Mr. Terry introduced the following joint resolution; which was referred to the Committee on Appropriations JOINT RESOLUTION Making continuing appropriations for operations of the United States Military Academy, the United States Naval Academy, the United States Air Force Academy, the Coast Guard Academy, and the United States Merchant Marine Academy for fiscal year 2014. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, for operations of the United States Military Academy, the United States Naval Academy, the United States Air Force Academy, the Coast Guard Academy, and the United States Merchant Marine Academy for fiscal year 2014, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at a rate for operations as provided for in the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ) and under the authority and conditions provided in the applicable divisions of such Act, for projects or activities for the continuing operations of the United States Military Academy, the United States Naval Academy, the United States Air Force Academy, the Coast Guard Academy, and the United States Merchant Marine Academy that are not otherwise specifically provided for in the Pay Our Military Act, that were conducted in fiscal year 2013, and for which appropriations, funds, or other authority were made available by the Consolidated and Further Continuing Appropriations Act, 2013, in the specified accounts: (1) The United States Military Academy, Department of Defense—Operation and Maintenance, Army . (2) The United States Naval Academy, Department of Defense—Operation and Maintenance, Navy . (3) The United States Air Force Academy, Department of Defense—Operation and Maintenance, Air Force . (4) The Coast Guard Academy, Department of Homeland Security—Coast Guard—Operating Expenses . (5) The United States Merchant Marine Academy, Department of Transportation—Maritime Administration—Operations and Training . (b) The rate for operations provided by subsection (a) for each project or activity shall be calculated to reflect the full amount of any reduction required in fiscal year 2013 pursuant to— (1) any provision of division G of the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ), including section 3004; and (2) the Presidential sequestration order dated March 1, 2013, except as attributable to budget authority made available by the Disaster Relief Appropriations Act, 2013 ( Public Law 113–2 ). 102. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 103. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act for fiscal year 2014, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until whichever of the following first occurs: (1) the enactment into law of an appropriation for any project or activity provided for in this joint resolution; (2) the enactment into law of the applicable appropriations Act for fiscal year 2014 without any provision for such project or activity; or (3) December 15, 2013. 104. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 105. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities. This joint resolution may be cited as the United States Service Academies Continuing Appropriations Resolution, 2014 .

https://www.govinfo.gov/content/pkg/BILLS-113hjres88ih/xml/BILLS-113hjres88ih.xml

113-hjres-89

IV 113th CONGRESS 1st Session H. J. RES. 89 IN THE HOUSE OF REPRESENTATIVES JOINT RESOLUTION Making appropriations for the salaries and related expenses of certain Federal employees during a lapse in funding authority for fiscal year 2014, to establish a bicameral working group on deficit reduction and economic growth, and for other purposes. I Federal Worker Pay Fairness Act That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the salaries and related expenses of certain Federal employees for fiscal year 2014, and for other purposes, namely: 101. Such amounts as may be necessary for paying salaries and related expenses of Federal employees excepted from the provisions of the Antideficiency Act ( 31 U.S.C. 1341 et seq. ) who work during the period beginning October 1, 2013, and ending December 15, 2013, when there is otherwise no funding authority for such salaries and related expenses: Provided , That not later than December 20, 2013, the Director of the Office of Management and Budget shall provide to the Committees on Appropriations of the House of Representatives and the Senate a report specifying the use of funds made available to the Executive Branch by this joint resolution. 102. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 103. It is the sense of Congress that this joint resolution may also be referred to as the Federal Worker Pay Fairness Act . This title may be cited as the Excepted Employees’ Pay Continuing Appropriations Resolution, 2014 . II Deficit Reduction and Economic Growth Working Group Act 201. Short title This title may be cited as the Deficit Reduction and Economic Growth Working Group Act of 2013 . 202. Bicameral working group on deficit reduction and economic growth (a) Establishment There is hereby established a bicameral working group to be known as the Bicameral Working Group on Deficit Reduction and Economic Growth (hereinafter referred to as the working group ). (b) Purpose The working group shall recommend to the House of Representatives and the Senate— (1) overall levels of discretionary spending, including for the fiscal year ending on September 30, 2014; (2) changes in the statutory limit on the public debt; and (3) reforms in direct spending programs. (c) Membership (1) The working group shall be comprised of 20 members to be appointed as follows: (A) The Speaker shall appoint 10 Members of the House of Representatives, of which one shall be designated as House co-chair and 4 shall be on the recommendation of the minority leader of the House of Representatives. (B) The majority leader of the Senate shall appoint 10 Senators, of which one shall be designated as Senate co-chair and 4 shall be on the recommendation of the minority leader of the Senate. (2) Any vacancy occurring in the membership of the working group shall be filled in the same manner as the original designation was made. (3) Each appointment under this subsection shall be made not later than one calendar day after enactment of this Act. (d) Meetings The members of the working group shall meet not later than one calendar day after their appointment pursuant to subsection (c) and shall meet on each calendar day thereafter unless both co-chairs jointly determine that there is good cause to dispense with such meeting. (e) Adoption of recommendations The working group may not report any recommendation unless it receives the support of a majority of the members appointed by both the Speaker of the House of Representatives and the majority leader of the Senate. (f) Report (1) The working group shall report its recommendations, including any legislative language required to implement those recommendations, to the House of Representatives and the Senate within 3 calendar days after their adoption. (2) The report shall be referred in the House of Representatives by the Speaker in accordance with clause 2 of rule XIV. (3) The report shall include any supplemental, minority, or additional views submitted to the co-chairs prior to its transmission pursuant to paragraph (1). (g) Termination The working group shall terminate immediately after transmission of the report under subsection (f). (h) Rulemaking The provisions of this section are enacted by Congress— (1) as an exercise of the rulemaking power of the House of Representatives and the Senate, respectively, and as such they shall be considered as part of the rules of each House, respectively, or of that House to which they specifically apply, and such rules shall supercede other rules only to the extent that they are inconsistent therewith; and (2) with full recognition of the constitutional right of either House to change such rules (so far as relating to such House) at any time, in the same manner, and to the same extent as in the case of any other rule of such House. Passed the House of Representatives October 8, 2013. Karen L. Haas, Clerk.

https://www.govinfo.gov/content/pkg/BILLS-113hjres89eh/xml/BILLS-113hjres89eh.xml

113-hjres-90

IA 113th CONGRESS 1st Session H. J. RES. 90 IN THE HOUSE OF REPRESENTATIVES October 8, 2013 Mr. Rogers of Kentucky introduced the following joint resolution; which was referred to the Committee on Appropriations JOINT RESOLUTION Making continuing appropriations for the Federal Aviation Administration for fiscal year 2014, and for other purposes. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the Federal Aviation Administration for fiscal year 2014, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at a rate for operations as provided in the Further Continuing Appropriations Act, 2013 (division F of Public Law 113–6 ) and under the authority and conditions provided in such Act, for continuing projects or activities (including the costs of direct loans and loan guarantees) that are not otherwise specifically provided for in this joint resolution, that were conducted in fiscal year 2013, and for which appropriations, funds, or other authority were made available by such Act under the heading Department of Transportation—Federal Aviation Administration . (b) The rate for operations provided by subsection (a) for each account shall be calculated to reflect the full amount of any reduction required in fiscal year 2013 pursuant to— (1) any provision of division G of the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ), including section 3004; and (2) the Presidential sequestration order dated March 1, 2013, except as attributable to budget authority made available by the Disaster Relief Appropriations Act, 2013 ( Public Law 113–2 ). 102. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 103. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act for fiscal year 2014, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until whichever of the following first occurs: (1) the enactment into law of an appropriation for any project or activity provided for in this joint resolution; (2) the enactment into law of the applicable appropriations Act for fiscal year 2014 without any provision for such project or activity; or (3) December 15, 2013. 104. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 105. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities. 106. Amounts made available under section 101 for civilian personnel compensation and benefits in each department and agency may be apportioned up to the rate for operations necessary to avoid furloughs within such department or agency, consistent with the applicable appropriations Act for fiscal year 2013, except that such authority provided under this section shall not be used until after the department or agency has taken all necessary actions to reduce or defer non-personnel-related administrative expenses. 107. It is the sense of Congress that this joint resolution may also be referred to as the Flight Safety Act . This joint resolution may be cited as the Federal Aviation Administration Continuing Appropriations Resolution, 2014 .

https://www.govinfo.gov/content/pkg/BILLS-113hjres90ih/xml/BILLS-113hjres90ih.xml

113-hjres-91

IA 113th CONGRESS 1st Session H. J. RES. 91 IN THE HOUSE OF REPRESENTATIVES JOINT RESOLUTION Making continuing appropriations for death gratuities and related survivor benefits for survivors of deceased military service members of the Department of Defense for fiscal year 2014, and for other purposes. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, for death gratuities and related benefits for survivors of deceased military service members of the Department of Defense for fiscal year 2014, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at a rate for operations as provided for fiscal year 2013 in the Department of Defense Appropriations Act, 2013 (division C of Public Law 113–6 ) and under the authority and conditions provided in such Act, for Operation and Maintenance and Military Personnel accounts for continuing the following projects and activities that are not otherwise specifically provided for in this joint resolution or the Pay Our Military Act ( Public Law 113–39 ), and for which appropriations, funds, or other authority were made available by the Department of Defense Appropriations Act, 2013: (1) The payment of a death gratuity under sections 1475–1477 and 1489 of title 10, United States Code. (2) The payment or reimbursement for funeral and burial expenses authorized under sections 1481 and 1482 of title 10, United States Code. (3) The payment or reimbursement of authorized funeral travel and travel related to the dignified transfer of remains and unit memorial services under section 481f of title 37, United States Code. (4) The temporary continuation of a basic allowance of housing for dependents of members dying on active duty, as authorized by section 403(l) of title 37, United States Code. (b) The rate for operations provided by subsection (a) for each program or activity shall be calculated to reflect the full amount of any reduction required in fiscal year 2013 pursuant to— (1) any provision of division G of the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ), including section 3004; and (2) the Presidential sequestration order dated March 1, 2013, except as attributable to budget authority made available by the Disaster Relief Appropriations Act, 2013 ( Public Law 113–2 ). 102. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 103. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act for fiscal year 2014, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until whichever of the following first occurs: (1) the enactment into law of an appropriation for any project or activity provided for in this joint resolution; (2) the enactment into law of the applicable appropriations Act for fiscal year 2014 without any provision for such project or activity; or (3) December 15, 2013. 104. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 105. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities. 106. It is the sense of Congress that this joint resolution may also be referred to as the Honoring the Families of Fallen Soldiers Act . This joint resolution may be cited as the Department of Defense Survivor Benefits Continuing Appropriations Resolution, 2014 . Passed the House of Representatives October 9, 2013. Karen L. Haas, Clerk.

https://www.govinfo.gov/content/pkg/BILLS-113hjres91eh/xml/BILLS-113hjres91eh.xml

113-hjres-92

IA 113th CONGRESS 1st Session H. J. RES. 92 IN THE HOUSE OF REPRESENTATIVES October 9, 2013 Mr. Kingston introduced the following joint resolution; which was referred to the Committee on Appropriations JOINT RESOLUTION Making continuing appropriations for the Centers for Disease Control and Prevention for fiscal year 2014, and for other purposes. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the Centers for Disease Control and Prevention for fiscal year 2014, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at a rate for operations as provided in the Full-Year Continuing Appropriations Act, 2013 (division F of Public Law 113–6 ) and under the authority and conditions provided in such Act, for continuing projects or activities (including the costs of direct loans and loan guarantees) that are not otherwise specifically provided for in this joint resolution, that were conducted in fiscal year 2013, and for which appropriations, funds, or other authority were made available by such Act under the heading Department of Health and Human Services—Centers for Disease Control and Prevention . (b) The rate for operations provided by subsection (a) for each account shall be calculated to reflect the full amount of any reduction required in fiscal year 2013 pursuant to— (1) any provision of division G of the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ), including section 3004; and (2) the Presidential sequestration order dated March 1, 2013, except as attributable to budget authority made available by the Disaster Relief Appropriations Act, 2013 ( Public Law 113–2 ). 102. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 103. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act for fiscal year 2014, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until whichever of the following first occurs: (1) the enactment into law of an appropriation for any project or activity provided for in this joint resolution; (2) the enactment into law of the applicable appropriations Act for fiscal year 2014 without any provision for such project or activity; or (3) December 15, 2013. 104. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 105. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities. 106. Amounts made available under section 101 for civilian personnel compensation and benefits in each department and agency may be apportioned up to the rate for operations necessary to avoid furloughs within such department or agency, consistent with the applicable appropriations Act for fiscal year 2013, except that such authority provided under this section shall not be used until after the department or agency has taken all necessary actions to reduce or defer non-personnel-related administrative expenses. 107. It is the sense of Congress that this joint resolution may also be referred to as the Open Public Health to Support Americans Act . This joint resolution may be cited as the Centers for Disease Control and Prevention Continuing Appropriations Resolution, 2014 .

https://www.govinfo.gov/content/pkg/BILLS-113hjres92ih/xml/BILLS-113hjres92ih.xml

113-hjres-93

IA 113th CONGRESS 1st Session H. J. RES. 93 IN THE HOUSE OF REPRESENTATIVES October 10, 2013 Mrs. Capito (for herself, Mr. McKinley , and Mr. Rahall ) introduced the following joint resolution; which was referred to the Committee on Appropriations JOINT RESOLUTION Making continuing appropriations for the Mine Safety and Health Administration for fiscal year 2014, and for other purposes. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the Mine Safety and Health Administration for fiscal year 2014, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at a rate for operations as provided in the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2012 (division F of Public Law 112–74 ) as amended by the Further Continuing Appropriations Act, 2013 (division F of Public Law 113–6 ) and under the authority and conditions provided in such Acts, for continuing projects or activities of the Mine Safety and Health Administration that are not otherwise specifically provided for in this joint resolution, that were conducted in fiscal year 2013, and for which appropriations, funds, or other authority were made available by the Consolidated Appropriations Act, 2012 under the heading Mine Safety and Health Administration . (b) The rate for operations provided by subsection (a) for each account shall be calculated to reflect the full amount of any reduction required in fiscal year 2013 pursuant to— (1) any provision of division G of the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ), including section 3004; and (2) the Presidential sequestration order dated March 1, 2013, except as attributable to budget authority made available by the Disaster Relief Appropriations Act, 2013 ( Public Law 113–2 ). 102. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 103. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act for fiscal year 2014, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until whichever of the following first occurs: (1) the enactment into law of an appropriation for any project or activity provided for in this joint resolution; (2) the enactment into law of the applicable appropriations Act for fiscal year 2014 without any provision for such project or activity; or (3) December 15, 2013. 104. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 105. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities. 106. Amounts made available under section 101 for personnel compensation and benefits in each department and agency may be apportioned up to the rate for operations necessary to avoid furloughs within such department or agency, consistent with the applicable appropriations Act for fiscal year 2013, except that such authority provided under this section shall not be used until after the department or agency has taken all necessary actions to reduce or defer non-personnel-related administrative expenses. This joint resolution may be cited as the Mine Safety and Health Continuing Appropriations Resolution, 2014 .

https://www.govinfo.gov/content/pkg/BILLS-113hjres93ih/xml/BILLS-113hjres93ih.xml

113-hjres-94

IA 113th CONGRESS 1st Session H. J. RES. 94 IN THE HOUSE OF REPRESENTATIVES October 15, 2013 Mr. Brooks of Alabama (for himself, Mr. Rogers of Alabama , Mr. Rohrabacher , Mr. Palazzo , Mr. Stockman , Mr. Bridenstine , Mr. Hall , Mr. McCaul , Mr. Weber of Texas , Mr. Stewart , Mr. Bishop of Utah , Mr. Poe of Texas , Mr. McKinley , Mr. McCarthy of California , and Mr. Bachus ) introduced the following joint resolution; which was referred to the Committee on Appropriations JOINT RESOLUTION Making continuing appropriations for the National Aeronautics and Space Administration for fiscal year 2014, and for other purposes. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the National Aeronautics and Space Administration for fiscal year 2014, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at a rate for operations as provided for fiscal year 2013 under the Science Appropriations Act, 2013 (division B of Public Law 113–6 ) and under the authority and conditions provided in such Act, for continuing projects or activities (including the costs of direct loans and loan guarantees) that are not otherwise specifically provided for in this joint resolution, that were conducted in fiscal year 2013, and for which appropriations, funds, or other authority were made available by such Act under the heading National Aeronautics and Space Administration . (b) The rate for operations provided by subsection (a) for each account shall be calculated to reflect the full amount of any reduction required in fiscal year 2013 pursuant to— (1) any provision of division G of the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ), including section 3004; and (2) the Presidential sequestration order dated March 1, 2013, except as attributable to budget authority made available by the Disaster Relief Appropriations Act, 2013 ( Public Law 113–2 ). 102. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 103. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act for fiscal year 2014, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until whichever of the following first occurs: (1) the enactment into law of an appropriation for any project or activity provided for in this joint resolution; (2) the enactment into law of the applicable appropriations Act for fiscal year 2014 without any provision for such project or activity; or (3) September 30, 2014. 104. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 105. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities. 106. Amounts made available under section 101 for civilian personnel compensation and benefits in each department and agency may be apportioned up to the rate for operations necessary to avoid furloughs within such department or agency, consistent with the applicable appropriations Act for fiscal year 2013, except that such authority provided under this section shall not be used until after the department or agency has taken all necessary actions to reduce or defer non-personnel-related administrative expenses.

https://www.govinfo.gov/content/pkg/BILLS-113hjres94ih/xml/BILLS-113hjres94ih.xml

113-hjres-95

IA 113th CONGRESS 1st Session H. J. RES. 95 IN THE HOUSE OF REPRESENTATIVES October 15, 2013 Mr. Kinzinger of Illinois introduced the following joint resolution; which was referred to the Committee on Appropriations JOINT RESOLUTION Making continuing appropriations for the Nuclear Regulatory Commission for fiscal year 2014, and for other purposes. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the Nuclear Regulatory Commission for fiscal year 2014, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at a rate for operations as provided for fiscal year 2013 under the Full-Year Continuing Appropriations Act, 2013 (division F of Public Law 113–6 ) and under the authority and conditions provided in such Act, for continuing projects or activities (including the costs of direct loans and loan guarantees) that are not otherwise specifically provided for in this joint resolution, that were conducted in fiscal year 2013, and for which appropriations, funds, or other authority were made available by such Act under the heading Nuclear Regulatory Commission . (b) The rate for operations provided by subsection (a) for each account shall be calculated to reflect the full amount of any reduction required in fiscal year 2013 pursuant to— (1) any provision of division G of the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ), including section 3004; and (2) the Presidential sequestration order dated March 1, 2013, except as attributable to budget authority made available by the Disaster Relief Appropriations Act, 2013 ( Public Law 113–2 ). 102. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 103. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act for fiscal year 2014, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until whichever of the following first occurs: (1) the enactment into law of an appropriation for any project or activity provided for in this joint resolution; (2) the enactment into law of the applicable appropriations Act for fiscal year 2014 without any provision for such project or activity; or (3) December 15, 2013. 104. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 105. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities. 106. Amounts made available under section 101 for civilian personnel compensation and benefits in each department and agency may be apportioned up to the rate for operations necessary to avoid furloughs within such department or agency, consistent with the applicable appropriations Act for fiscal year 2013, except that such authority provided under this section shall not be used until after the department or agency has taken all necessary actions to reduce or defer non-personnel-related administrative expenses. This joint resolution may be cited as the Nuclear Regulatory Commission Continuing Appropriations Resolution, 2014 .

https://www.govinfo.gov/content/pkg/BILLS-113hjres95ih/xml/BILLS-113hjres95ih.xml

113-hjres-96

IA 113th CONGRESS 1st Session H. J. RES. 96 IN THE HOUSE OF REPRESENTATIVES October 15, 2013 Mr. McKinley (for himself, Mr. Rahall , Mrs. Capito , and Mr. Johnson of Ohio ) introduced the following joint resolution; which was referred to the Committee on Appropriations JOINT RESOLUTION Making continuing appropriations for fossil energy research and development of the Department of Energy for fiscal year 2014, and for other purposes. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the Department of Energy for fiscal year 2014, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at a rate for operations as provided for fiscal year 2013 under the Energy and Water Development and Related Agencies Appropriations Act, 2012 (division B of Public Law 112–74 ) and under the authority and conditions provided in such Act, for continuing projects or activities (including the costs of direct loans and loan guarantees) that are not otherwise specifically provided for in this joint resolution, that were conducted in fiscal year 2013, and for which appropriations, funds, or other authority were made available by such Act under the heading Fossil Energy Research and Development . (b) The rate for operations provided by subsection (a) for each account shall be calculated to reflect the full amount of any reduction required in fiscal year 2013 pursuant to— (1) any provision of division G of the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ), including section 3004; and (2) the Presidential sequestration order dated March 1, 2013, except as attributable to budget authority made available by the Disaster Relief Appropriations Act, 2013 ( Public Law 113–2 ). 102. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 103. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act for fiscal year 2014, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until whichever of the following first occurs: (1) the enactment into law of an appropriation for any project or activity provided for in this joint resolution; (2) the enactment into law of the applicable appropriations Act for fiscal year 2014 without any provision for such project or activity; or (3) September 30, 2014. 104. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 105. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities. 106. Amounts made available under section 101 for civilian personnel compensation and benefits in each department and agency may be apportioned up to the rate for operations necessary to avoid furloughs within such department or agency, consistent with the applicable appropriations Act for fiscal year 2013, except that such authority provided under this section shall not be used until after the department or agency has taken all necessary actions to reduce or defer non-personnel-related administrative expenses.

https://www.govinfo.gov/content/pkg/BILLS-113hjres96ih/xml/BILLS-113hjres96ih.xml

113-hjres-97

IA 113th CONGRESS 1st Session H. J. RES. 97 IN THE HOUSE OF REPRESENTATIVES October 22, 2013 Ms. Jenkins introduced the following joint resolution; which was referred to the Committee on the Judiciary JOINT RESOLUTION Proposing an amendment to the Constitution of the United States relative to applying laws equally to the citizens of the United States and the Federal Government. That the following article is proposed as an amendment to the Constitution of the United States, which shall be valid to all intents and purposes as part of the Constitution when ratified by the legislatures of three-fourths of the several States within seven years after the date of its submission for ratification:  — 1. Congress shall make no law applicable to a citizen of the United States that is not equally applicable to Congress. 2. Congress shall make no law applicable to a citizen of the United States that is not equally applicable to the executive branch of Government, including the President, Vice President, ambassadors, other public ministers and consuls, and all other officers of the United States, including those provided for under this Constitution and by law, and inferior officers to the President established by law. 3. Congress shall make no law applicable to a citizen of the United States that is not equally applicable to judges of the Supreme Court of the United States, including the Chief Justice, and judges of such inferior courts as Congress may from time to time ordain and establish. 4. Nothing in this article shall preempt any specific provision of this Constitution. .

https://www.govinfo.gov/content/pkg/BILLS-113hjres97ih/xml/BILLS-113hjres97ih.xml

113-hjres-98

IA 113th CONGRESS 1st Session H. J. RES. 98 IN THE HOUSE OF REPRESENTATIVES October 23, 2013 Mr. Duncan of South Carolina (for himself, Mr. Daines , Mr. DeSantis , Mr. Salmon , Mr. Schweikert , Mr. Collins of Georgia , and Mr. Barr ) introduced the following joint resolution; which was referred to the Committee on the Judiciary JOINT RESOLUTION Proposing an amendment to the Constitution of the United States relative to applying laws equally to the citizens of the United States and the Federal Government. That the following article is proposed as an amendment to the Constitution of the United States, which shall be valid to all intents and purposes as part of the Constitution when ratified by the legislatures of three-fourths of the several States:  — 1. Congress shall make no law applicable to a citizen of the United States that is not equally applicable to Congress. 2. Congress shall make no law applicable to a citizen of the United States that is not equally applicable to the executive branch of Government, including the President, Vice President, ambassadors, other public ministers and consuls, and all other officers of the United States, including those provided for under this Constitution and by law, and inferior officers to the President established by law. 3. Congress shall make no law applicable to a citizen of the United States that is not equally applicable to judges of the Supreme Court of the United States, including the Chief Justice, and judges of such inferior courts as Congress may from time to time ordain and establish. 4. Nothing in this article shall preempt any specific provision of this Constitution. .

https://www.govinfo.gov/content/pkg/BILLS-113hjres98ih/xml/BILLS-113hjres98ih.xml

113-hjres-99

IA 113th CONGRESS 1st Session H. J. RES. 99 IN THE HOUSE OF REPRESENTATIVES JOINT RESOLUTION Relating to the disapproval of the President’s exercise of authority to suspend the debt limit, as submitted under section 1002(b) of the Continuing Appropriations Act, 2014 on October 17, 2013. That Congress disapproves of the President’s exercise of authority to suspend the debt limit, as exercised pursuant to the certification under section 1002(b) of the Continuing Appropriations Act, 2014. Passed the House of Representatives October 30, 2013. Karen L. Haas, Clerk.

https://www.govinfo.gov/content/pkg/BILLS-113hjres99eh/xml/BILLS-113hjres99eh.xml

113-hjres-100

IA 113th CONGRESS 1st Session H. J. RES. 100 IN THE HOUSE OF REPRESENTATIVES October 30, 2013 Mr. George Miller of California introduced the following joint resolution; which was referred to the Committee on Appropriations , and in addition to the Committee on the Budget , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned JOINT RESOLUTION Making further continuing appropriations for the fiscal year ending September 30, 2014, and for other purposes. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the several departments, agencies, corporations, and other organizational units of Government for fiscal year 2014, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at the level specified in subsection (c) and under the authority and conditions provided in applicable appropriations Acts for fiscal year 2013, for projects or activities (including the costs of direct loans and loan guarantees) that are not otherwise specifically provided for, and for which appropriations, funds, or other authority were made available in the following appropriations Acts: (1) The Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2013 (division A of Public Law 113–6 ), except section 735. (2) The Commerce, Justice, Science, and Related Agencies Appropriations Act, 2013 (division B of Public Law 113–6 ). (3) The Department of Defense Appropriations Act, 2013 (division C of Public Law 113–6 ). (4) The Department of Homeland Security Appropriations Act, 2013 (division D of Public Law 113–6 ). (5) The Military Construction and Veterans Affairs, and Related Agencies Appropriations Act, 2013 (division E of Public Law 113–6 ). (6) The Full-Year Continuing Appropriations Act, 2013 (division F of Public Law 113–6 ). (b) For purposes of this joint resolution, the term level means an amount. (c) The level referred to in subsection (a) shall be the amounts appropriated in the appropriations Acts referred to in such subsection, including transfers and obligation limitations, except that such level shall be calculated— (1) except as provided in paragraph (2), to reflect the full amount of any reduction required in fiscal year 2013 pursuant to any provision of division G of the Consolidated and Further Continuing Appropriations Act, 2013 ( Public Law 113–6 ), including section 3004; and (2) without regard to any reduction required in fiscal year 2013 pursuant to the Presidential sequestration order dated March 1, 2013. (d) (1) If the total level provided in subsections (a) and (b) is less than $1,058,000,000,000, then there is provided an additional amount so that the total amounts made available by such subsections equals $1,058,000,000,000. (2) Any increase made pursuant to paragraph (1) shall be applied proportionately— (A) to each discretionary account; and (B) within each such account, to each program, project, and activity (with programs, projects, and activities as delineated in the appropriation Act or accompanying reports for the relevant fiscal year covering such account or item, or for accounts and items not included in appropriation Acts, as delineated in the most recently submitted President's budget). 102. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 103. Appropriations provided by this joint resolution that, in the applicable appropriations Act for fiscal year 2013, carried a multiple-year or no-year period of availability shall retain a comparable period of availability. 104. No appropriation or funds made available or authority granted pursuant to section 101 shall be used to initiate or resume any project or activity for which appropriations, funds, or other authority were not available during fiscal year 2013. 105. Except as otherwise expressly provided in this joint resolution, the requirements, authorities, conditions, limitations, and other provisions of the appropriations Acts referred to in section 101 shall continue in effect through the date specified in section 106. 106. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available through September 30, 2014. 107. Expenditures made pursuant to the Continuing Appropriations Act, 2014 ( Public Law 113–46 ) shall be charged to the applicable appropriation, fund, or authorization provided by this joint resolution. 108. Funds appropriated by this joint resolution may be obligated and expended notwithstanding section 10 of Public Law 91–672 ( 22 U.S.C. 2412 ), section 15 of the State Department Basic Authorities Act of 1956 ( 22 U.S.C. 2680 ), section 313 of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 ( 22 U.S.C. 6212 ), and section 504(a)(1) of the National Security Act of 1947 ( 50 U.S.C. 3094(a)(1) ). 109. (a) For entitlements and other mandatory payments whose budget authority was provided in appropriations Acts for fiscal year 2013, and for activities under the Food and Nutrition Act of 2008, the levels established by section 101 shall be the amounts necessary to maintain program levels under current law and under the authority and conditions provided in the applicable appropriations Acts for fiscal year 2013. (b) In addition to the amounts otherwise provided by section 101, the following amounts shall be available for the following accounts for advance payments for the first quarter of fiscal year 2015: (1) Department of Labor, Office of Workers’ Compensation Programs, Special Benefits for Disabled Coal Miners , for benefit payments under title IV of the Federal Mine Safety and Health Act of 1977, $40,000,000, to remain available until expended. (2) Department of Health and Human Services, Centers for Medicare and Medicaid Services, Grants to States for Medicaid , for payments to States or in the case of section 1928 on behalf of States under title XIX of the Social Security Act, $106,335,631,000, to remain available until expended. (3) Department of Health and Human Services, Administration for Children and Families, Payments to States for Child Support Enforcement and Family Support Programs , for payments to States or other non-Federal entities under titles I, IV–D, X, XI, XIV, and XVI of the Social Security Act and the Act of July 5, 1960 (24 U.S.C. ch. 9), $1,100,000,000, to remain available until expended. (4) Department of Health and Human Services, Administration for Children and Families, Payments for Foster Care and Permanency , for payments to States or other non-Federal entities under title IV–E of the Social Security Act, $2,200,000,000. (5) Social Security Administration, Supplemental Security Income Program , for benefit payments under title XVI of the Social Security Act, $19,300,000,000, to remain available until expended. 110. (a) Each amount incorporated by reference in this joint resolution that was previously designated by the Congress for Overseas Contingency Operations/Global War on Terrorism pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 1985 or as being for disaster relief pursuant to section 251(b)(2)(D) of such Act is designated by the Congress for Overseas Contingency Operations/Global War on Terrorism pursuant to section 251(b)(2)(A) of such Act or as being for disaster relief pursuant to section 251(b)(2)(D) of such Act, respectively. (b) Of the amounts made available by section 101 for Social Security Administration, Limitation on Administrative Expenses for the cost associated with continuing disability reviews under titles II and XVI of the Social Security Act and for the cost associated with conducting redeterminations of eligibility under title XVI of the Social Security Act, $273,000,000 is provided to meet the terms of section 251(b)(2)(B)(ii)(III) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, and $469,639,000 is additional new budget authority specified for purposes of section 251(b)(2)(B) of such Act. (c) Section 5 of Public Law 113–6 shall apply to amounts designated in subsection (a) for Overseas Contingency Operations/Global War on Terrorism. 111. With respect to any discretionary account for which advance appropriations were provided for fiscal year 2014 or 2015 in an appropriations Act for fiscal year 2013, in addition to amounts otherwise made available by this joint resolution, advance appropriations are provided in the same amount for fiscal year 2015 or 2016, respectively, with a comparable period of availability. 112. Section 3003 of division G of Public Law 113–6 shall be applied to funds appropriated by this joint resolution by substituting fiscal year 2014 for fiscal year 2013 each place it appears. 113. Section 408 of the Food for Peace Act ( 7 U.S.C. 1736b ) shall be applied by substituting the date specified in section 106 of this joint resolution for December 31, 2012 . 114. The authority provided by sections 1205 and 1206 of the National Defense Authorization Act for Fiscal Year 2012 ( Public Law 112–81 ) shall continue in effect, notwithstanding subsection (h) of section 1206, through the earlier of the date specified in section 106 of this joint resolution or the date of the enactment of an Act authorizing appropriations for fiscal year 2014 for military activities of the Department of Defense. 115. Section 14704 of title 40, United States Code, shall be applied to amounts made available by this joint resolution by substituting the date specified in section 106 of this joint resolution for October 1, 2012 . 116. Notwithstanding section 101, the level for The Judiciary, Courts of Appeals, District Courts, and Other Judicial Services, Salaries and Expenses shall be $4,820,181,000: Provided , That notwithstanding section 302 of Division C, of Public Law 112–74 as continued by Public Law 113–6 , not to exceed $25,000,000 shall be available for transfer between accounts to maintain minimum operating levels. 117. Notwithstanding section 101, the level for The Judiciary, Courts of Appeals, District Courts, and Other Judicial Services, Defender Services shall be $1,012,000,000. 118. Section 302 of the Universal Service Anti-deficiency Temporary Suspension Act is amended by striking January 15, 2014 , each place it appears and inserting September 30, 2014 . 119. Notwithstanding section 101, the level for the Privacy and Civil Liberties Oversight Board shall be $3,100,000. 120. For the period covered by this joint resolution, section 550(b) of Public Law 109–295 ( 6 U.S.C. 121 note) shall be applied by substituting the date specified in section 106 of this joint resolution for October 4, 2013 . 121. The authority provided by section 532 of Public Law 109–295 shall continue in effect through the date specified in section 106 of this joint resolution. 122. The authority provided by section 831 of the Homeland Security Act of 2002 ( 6 U.S.C. 391 ) shall continue in effect through the date specified in section 106 of this joint resolution. 123. Section 810 of the Federal Lands Recreation Enhancement Act ( 16 U.S.C. 6809 ) shall be applied by substituting 11 years for 10 years . 124. The authority provided by section 347 of the Department of the Interior and Related Agencies Appropriations Act, 1999 (as contained in section 101(e) of division A of Public Law 105–277 ; 16 U.S.C. 2104 note) shall continue in effect through the date specified in section 106 of this joint resolution. 125. (a) The authority provided by subsection (m)(3) of section 8162 of the Department of Defense Appropriations Act, 2000 ( 40 U.S.C. 8903 note; Public Law 106–79 ), as amended, shall continue in effect through the date specified in section 106 of this joint resolution. (b) For the period covered by this joint resolution, the authority provided by the provisos under the heading Dwight D. Eisenhower Memorial Commission, Capital Construction in division E of Public Law 112–74 shall not be in effect. 126. Activities authorized under part A of title IV and section 1108(b) of the Social Security Act (except for activities authorized in section 403(b)) shall continue through the date specified in section 106 of this joint resolution in the manner authorized for fiscal year 2013, and out of any money in the Treasury of the United States not otherwise appropriated, there are hereby appropriated such sums as may be necessary for such purpose. 127. Notwithstanding section 101, the matter under the heading Department of Labor, Mine Safety and Health Administration, Salaries and Expenses in division F of Public Law 112–74 shall be applied to funds appropriated by this joint resolution by substituting is authorized to collect and retain up to $2,499,000 for may retain up to $1,499,000 . 128. The first proviso under the heading Department of Health and Human Services, Administration for Children and Families, Low Income Home Energy Assistance in division F of Public Law 112–74 shall be applied to amounts made available by this joint resolution by substituting 2014 for 2012 . 129. During the period covered by this joint resolution, amounts provided under section 101 for Department of Health and Human Services, Office of the Secretary, Public Health and Social Services Emergency Fund may be obligated at a rate necessary to assure timely execution of planned advanced research and development contracts pursuant to section 319L of the Public Health Service Act, to remain available until expended, for expenses necessary to support advanced research and development pursuant to section 319L of the Public Health Service Act ( 42 U.S.C. 247d–7e ) and other administrative expenses of the Biomedical Advanced Research and Development Authority. 130. Notwithstanding section 101, the level for Department of Veterans Affairs, Departmental Administration, General Operating Expenses, Veterans Benefits Administration shall be $2,455,490,000. 131. The authority provided by the penultimate proviso under the heading Department of Housing and Urban Development, Rental Assistance Demonstration in division C of Public Law 112–55 shall continue in effect through the date specified in section 106 of this joint resolution. 132. Notwithstanding section 101, the level for Department of Transportation, Federal Aviation Administration, Operations shall be $9,248,418,000. 133. Section 601(e)(1)(B) of division B of Public Law 110–432 shall be applied by substituting the date specified in section 106 for 4 years after such date . 134. Notwithstanding section 101, the level for Maritime Administration, Maritime Security Program shall be $186,000,000. 135. Section 44302(f) of title 49, United States Code, is amended by striking the date specified in section 106(3) of the Continuing Appropriations Act, 2014 and inserting the date specified in section 106 of the Full-Year Continuing Appropriations Resolution, 2014 . 136. Section 44303(b) of title 49, United States Code, is amended by striking the date specified in section 106(3) of the Continuing Appropriations Act, 2014 and inserting the date specified in section 106 of the Full-Year Continuing Appropriations Resolution, 2014 . 137. Section 44310 of title 49, United States Code, is amended by striking the date specified in section 106(3) of the Continuing Appropriations Act, 2014 and inserting the date specified in section 106 of the Full-Year Continuing Appropriations Resolution, 2014 . 138. Not later than March 1, 2014, the head of each department and agency of the Federal Government shall prepare, and submit to the committee of the United States House of Representatives with primary jurisdiction, a report that specifies the top legislative and policy priorities of the department or agency for fiscal year 2014 and includes proposals for legislation consistent with such priorities. This joint resolution may be cited as the Full-Year Continuing Appropriations Resolution, 2014 .

https://www.govinfo.gov/content/pkg/BILLS-113hjres100ih/xml/BILLS-113hjres100ih.xml

113-hjres-101

IA 113th CONGRESS 1st Session H. J. RES. 101 IN THE HOUSE OF REPRESENTATIVES October 30, 2013 Mr. Palazzo introduced the following joint resolution; which was referred to the Committee on the Judiciary JOINT RESOLUTION Proposing an amendment to the Constitution of the United States to limit the number of consecutive terms that a Member of Congress may serve. That the following article is proposed as an amendment to the Constitution of the United States, which shall be valid to all intents and purposes as part of the Constitution when ratified by the legislatures of three-fourths of the several States within seven years after the date of its submission for ratification:  — 1. No person who has been a Senator for two consecutive terms shall again be eligible for election or appointment to the Senate until the date that is one year after the end of such second consecutive term. 2. No person who has been a Representative for six consecutive terms shall again be eligible for election to the House of Representatives until the date that is one year after the end of the sixth consecutive term. 3. For purposes of this article, any term a person serves as a Senator or Representative to fill a vacancy shall not be included in determining the number of consecutive terms that the person has been a Senator or Representative unless the period of time for which the person fills the vacancy is greater than three years in the case of a Senator or greater than one year in the case of a Representative. 4. For the purposes of this article, any term that began before the date of the ratification of this article shall not be included in determining the number of consecutive terms that a person has been a Senator or Representative. .

https://www.govinfo.gov/content/pkg/BILLS-113hjres101ih/xml/BILLS-113hjres101ih.xml

113-hjres-102

IA 113th CONGRESS 1st Session H. J. RES. 102 IN THE HOUSE OF REPRESENTATIVES November 13, 2013 Mr. Sam Johnson of Texas (for himself, Mr. Becerra , and Mr. Cole ) introduced the following joint resolution; which was referred to the Committee on House Administration JOINT RESOLUTION Providing for the appointment of Risa Lavizzo-Mourey as a citizen regent of the Board of Regents of the Smithsonian Institution. That, in accordance with section 5581 of the Revised Statutes ( 20 U.S.C. 43 ), the vacancy on the Board of Regents of the Smithsonian Institution, in the class other than Members of Congress, occurring by reason of the expiration of the term of Patricia Q. Stonesifer of Washington on December 22, 2013, is filled by the appointment of Risa Lavizzo-Mourey of Pennsylvania. The appointment is for a term of 6 years, beginning on the later of December 22, 2013, or the date of the enactment of this joint resolution.

https://www.govinfo.gov/content/pkg/BILLS-113hjres102ih/xml/BILLS-113hjres102ih.xml

113-hjres-103

IA 113th CONGRESS 1st Session H. J. RES. 103 IN THE HOUSE OF REPRESENTATIVES November 13, 2013 Mr. Sam Johnson of Texas (for himself, Mr. Becerra , and Mr. Cole ) introduced the following joint resolution; which was referred to the Committee on House Administration JOINT RESOLUTION Providing for the appointment of John Fahey as a citizen regent of the Board of Regents of the Smithsonian Institution. That, in accordance with section 5581 of the Revised Statutes ( 20 U.S.C. 43 ), the vacancy on the Board of Regents of the Smithsonian Institution, in the class other than Members of Congress, occurring by reason of the expiration of the term of Roger W. Sant of the District of Columbia on October 24, 2013, is filled by the appointment of John Fahey of the District of Columbia. The appointment is for a term of 6 years, beginning on the date of the enactment of this joint resolution.

https://www.govinfo.gov/content/pkg/BILLS-113hjres103ih/xml/BILLS-113hjres103ih.xml

113-hjres-104

IA 113th CONGRESS 1st Session H. J. RES. 104 IN THE HOUSE OF REPRESENTATIVES November 15, 2013 Mr. Bridenstine (for himself, Mr. Massie , and Mr. DeSantis ) introduced the following joint resolution; which was referred to the Committee on the Judiciary JOINT RESOLUTION Proposing an amendment to the Constitution of the United States to repeal the sixteenth article of amendment. 1. The following article is proposed as an amendment to the Constitution of the United States, which shall be valid to all intents and purposes as part of the Constitution when ratified by the legislatures of three-fourths of the several States within seven years after the date of its submission for ratification:  — Effective 2 years after the ratification of this article of amendment, the sixteenth article of amendment to the Constitution of the United States is repealed, and the Congress shall have no power to lay and collect taxes on incomes, from whatever source derived, except in time of war declared by the Congress. . 2. Not later than 180 days after the ratification of the article of amendment in section 1, the Secretary of the Treasury shall submit a report to Congress containing recommendations for any legislation that may be necessary to implement such article.

https://www.govinfo.gov/content/pkg/BILLS-113hjres104ih/xml/BILLS-113hjres104ih.xml

113-hjres-105

IA 113th CONGRESS 2d Session H. J. RES. 105 IN THE HOUSE OF REPRESENTATIVES January 9, 2014 Mr. Miller of Florida (for himself, Mr. Southerland , Mr. Yoho , Mr. Crenshaw , Ms. Brown of Florida , Mr. DeSantis , Mr. Mica , Mr. Posey , Mr. Grayson , Mr. Webster of Florida , Mr. Nugent , Mr. Bilirakis , Ms. Castor of Florida , Mr. Ross , Mr. Buchanan , Mr. Rooney , Mr. Murphy of Florida , Mr. Radel , Mr. Hastings of Florida , Mr. Deutch , Ms. Frankel of Florida , Ms. Wasserman Schultz , Ms. Wilson of Florida , Mr. Diaz-Balart , Mr. Garcia , Ms. Ros-Lehtinen , and Mr. Pierluisi ) introduced the following joint resolution; which was referred to the Committee on the Judiciary JOINT RESOLUTION Conferring honorary citizenship of the United States on Bernardo de Gálvez y Madrid, Viscount of Galveston and Count of Gálvez. Whereas the United States has conferred honorary citizenship on 7 other occasions during its history, and honorary citizenship is and should remain an extraordinary honor not lightly conferred nor frequently granted; Whereas Bernardo de Gálvez y Madrid, Viscount of Galveston and Count of Gálvez, was a hero of the Revolutionary War who risked his life for the freedom of the United States people and provided supplies, intelligence, and strong military support to the war effort; Whereas Bernardo de Gálvez recruited an army of 7,500 men made up of Spanish, French, African-American, Mexican, Cuban, and Anglo-American forces and led the effort of Spain to aid the United States’ colonists against Great Britain; Whereas during the Revolutionary War, Bernardo de Gálvez and his troops seized the Port of New Orleans and successfully defeated the British at battles in Baton Rouge, Louisiana, Natchez, Mississippi, and Mobile, Alabama; Whereas Bernardo de Gálvez led the successful 2-month Siege of Pensacola, Florida, where his troops captured the capital of British West Florida and left the British with no naval bases in the Gulf of Mexico; Whereas Bernardo de Gálvez was wounded during the Siege of Pensacola, demonstrating bravery that forever endeared him to the United States soldiers; Whereas Bernardo de Gálvez’s victories against the British were recognized by George Washington as a deciding factor in the outcome of the Revolutionary War; Whereas Bernardo de Gálvez helped draft the terms of treaty that ended the Revolutionary War; Whereas the United States Continental Congress declared, on October 31, 1778, their gratitude and favorable sentiments to Bernardo de Gálvez for his conduct towards the United States; Whereas after the war, Bernardo de Gálvez served as viceroy of New Spain and led the effort to chart the Gulf of Mexico, including Galveston Bay, the largest bay on the Texas coast; Whereas several geographic locations, including Galveston Bay, Galveston, Texas, Galveston County, Texas, Galvez, Louisiana, and St. Bernard Parish, Louisiana, are named after Bernardo de Gálvez; Whereas the State of Florida has honored Bernardo de Gálvez with the designation of Great Floridian; and Whereas Bernardo de Gálvez played an integral role in the Revolutionary War and helped secure the independence of the United States: Now, therefore, be it That Bernardo de Gálvez y Madrid, Viscount of Galveston and Count of Gálvez, is proclaimed posthumously to be an honorary citizen of the United States.

https://www.govinfo.gov/content/pkg/BILLS-113hjres105ih/xml/BILLS-113hjres105ih.xml

113-hjres-106

IV 113th CONGRESS 2d Session H. J. RES. 106 IN THE HOUSE OF REPRESENTATIVES JOINT RESOLUTION Making further continuing appropriations for fiscal year 2014, and for other purposes. That the Continuing Appropriations Act, 2014 (Public Law 113–46) is amended by striking the date specified in section 106(3) and inserting January 18, 2014 . Passed the House of Representatives January 14, 2014. Karen L. Haas, Clerk.

https://www.govinfo.gov/content/pkg/BILLS-113hjres106eh/xml/BILLS-113hjres106eh.xml

113-hjres-107

IA 113th CONGRESS 2d Session H. J. RES. 107 IN THE HOUSE OF REPRESENTATIVES January 16, 2014 Mr. Yarmuth (for himself, Ms. Lee of California , Mr. Sarbanes , and Mr. Cohen ) introduced the following joint resolution; which was referred to the Committee on the Judiciary JOINT RESOLUTION Proposing an amendment to the Constitution of the United States relating to contributions and expenditures with respect to Federal elections. That the following article is proposed as an amendment to the Constitution of the United States, which shall be valid to all intents and purposes as part of the Constitution when ratified by the legislatures of three-fourths of the several States within seven years after the date of its submission for ratification:   — 1. Financial expenditures, or in-kind equivalents, with respect to a candidate for Federal office, without regard to whether or not a communication expressly advocates the election or defeat of a specified candidate in the election, shall not constitute protected speech, as guaranteed by this Constitution or any amendment to this Constitution. 2. Congress shall have the power to enact a mandatory public financing system to provide funds to qualified candidates in elections for Federal office, which shall be the sole source of funds raised or spent with respect to Federal elections. 3. Congress shall have power to enforce the provisions of this article by appropriate legislation. .

https://www.govinfo.gov/content/pkg/BILLS-113hjres107ih/xml/BILLS-113hjres107ih.xml

113-hjres-108

IA 113th CONGRESS 2d Session H. J. RES. 108 IN THE HOUSE OF REPRESENTATIVES February 4, 2014 Mr. Mulvaney (for himself, Mr. Scalise , Mr. Ribble , and Mr. Palazzo ) introduced the following joint resolution; which was referred to the Committee on the Judiciary JOINT RESOLUTION Proposing an amendment to the Constitution of the United States to limit the number of terms that a Member of Congress may serve. That the following article is proposed as an amendment to the Constitution of the United States, which shall be valid to all intents and purposes as part of the Constitution when ratified by the legislatures of three-fourths of the several States within seven years after the date of its submission for ratification:   — 1. No person who has been a Senator for two terms shall again be eligible for election or appointment to the Senate. 2. No person who has been a Representative for six terms shall again be eligible for election to the House of Representatives. 3. For purposes of this article, any term a person serves as a Senator or Representative to fill a vacancy shall not be included in determining the number of terms that the person has been a Senator or Representative unless the period of time for which the person fills the vacancy is greater than three years in the case of a Senator or greater than one year in the case of a Representative. 4. For the purposes of this article, any term that began before the date of the ratification of this article shall not be included in determining the number of terms that a person has been a Senator or Representative. .

https://www.govinfo.gov/content/pkg/BILLS-113hjres108ih/xml/BILLS-113hjres108ih.xml

113-hjres-109

IA 113th CONGRESS 2d Session H. J. RES. 109 IN THE HOUSE OF REPRESENTATIVES February 10, 2014 Mr. Royce (for himself and Mr. Engel ) introduced the following joint resolution; which was referred to the Committee on Foreign Affairs JOINT RESOLUTION Providing for the approval of the Congress of the proposed agreement for cooperation between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States concerning peaceful uses of nuclear energy pursuant to the Atomic Energy Act of 1954. That the Congress does favor the proposed agreement for cooperation transmitted to the Congress by the President on January 7, 2014.

https://www.govinfo.gov/content/pkg/BILLS-113hjres109ih/xml/BILLS-113hjres109ih.xml

113-hjres-110

IA 113th CONGRESS 2d Session H. J. RES. 110 IN THE HOUSE OF REPRESENTATIVES February 11, 2014 Mr. Lankford introduced the following joint resolution; which was referred to the Committee on the Judiciary JOINT RESOLUTION Granting the consent of Congress to the Health Care Compact. 1. Congressional Consent Except as provided in section 2, Congress hereby consents to the Health Care Compact. The Compact reads as follows: 1. Definitions As used in this Compact, unless the context clearly indicates otherwise: (1) Commission means the Interstate Advisory Health Care Commission. (2) Effective Date means the date upon which this Compact shall become effective for purposes of the operation of State and Federal law in a Member State, which shall be the later of— (A) the date upon which this Compact shall be adopted under the laws of the Member State; or (B) the date upon which this Compact receives the consent of Congress pursuant to Article I, Section 10, of the United States Constitution, after at least two Member States adopt this Compact. (3) Health Care means care, services, supplies, or plans related to the health of an individual and includes but is not limited to— (A) preventive, diagnostic, therapeutic, rehabilitative, maintenance, or palliative care and counseling, service, assessment, or procedure with respect to the physical or mental condition or functional status of an individual or that affects the structure or function of the body; (B) sale or dispensing of a drug, device, equipment, or other item in accordance with a prescription; and (C) an individual or group plan that provides, or pays the cost of, care, services, or supplies related to the health of an individual, except any care, services, supplies, or plans provided by the United States Department of Defense and United States Department of Veterans Affairs, or provided to Native Americans. (4) Member State means a State that is signatory to this Compact and has adopted it under the laws of that State. (5) Member State Base Funding Level means a number equal to the total Federal spending on Health Care in the Member State during Federal fiscal year 2010. On or before the Effective Date, each Member State shall determine the Member State Base Funding Level for its State, and that number shall be binding upon that Member State. (6) Member State Current Year Funding Level means the Member State Base Funding Level multiplied by the Member State Current Year Population Adjustment Factor multiplied by the Current Year Inflation Adjustment Factor. (7) Member State Current Year Population Adjustment Factor means the average population of the Member State in the current year less the average population of the Member State in Federal fiscal year 2010, divided by the average population of the Member State in Federal fiscal year 2010, plus 1. Average population in a Member State shall be determined by the United States Census Bureau. (8) Current Year Inflation Adjustment Factor means the Total Gross Domestic Product Deflator in the current year divided by the Total Gross Domestic Product Deflator in Federal fiscal year 2010. Total Gross Domestic Product Deflator shall be determined by the Bureau of Economic Analysis of the United States Department of Commerce. 2. Pledge The Member States shall take joint and separate action to secure the consent of the United States Congress to this Compact in order to return the authority to regulate Health Care to the Member States consistent with the goals and principles articulated in this Compact, the Member States shall improve Health Care policy within their respective jurisdictions and according to the judgment and discretion of each Member State. 3. Legislative Power The legislatures of the Member States have the primary responsibility to regulate Health Care in their respective States. 4. State control Each Member State, within its State, may suspend by legislation the operation of all Federal laws, rules, regulations, and orders regarding Health Care that are inconsistent with the laws and regulations adopted by the Member State pursuant to this Compact. Federal and State laws, rules, regulations, and orders regarding Health Care will remain in effect unless a Member State expressly suspends them pursuant to its authority under this Compact. For any Federal law, rule, regulation, or order that remains in effect in a Member State after the Effective Date, that Member State shall be responsible for the associated funding obligations in its State. 5. Funding (a) Each Federal fiscal year, each Member State shall have the right to Federal monies up to an amount equal to its Member State Current Year Funding Level for that Federal fiscal year, funded by Congress as mandatory spending and not subject to annual appropriation, to support the exercise of Member State authority under this Compact. This funding shall not be conditional on any action of or regulation, policy, law, or rule being adopted by the Member State. (b) By the start of each Federal fiscal year, Congress shall establish an initial Member State Current Year Funding Level for each Member State, based upon reasonable estimates. The final Member State Current Year Funding Level shall be calculated, and funding shall be reconciled by the United States Congress based upon information provided by each Member State and audited by the United States Government Accountability Office. 6. Interstate Advisory Health Care Commission (a) The Interstate Advisory Health Care Commission is established. The Commission consists of members appointed by each Member State through a process to be determined by each Member State. A Member State may not appoint more than two members to the Commission and may withdraw membership from the Commission at any time. Each Commission member is entitled to one vote. The Commission shall not act unless a majority of the members are present, and no action shall be binding unless approved by a majority of the Commission's total membership. (b) The Commission may elect from among its membership a Chairperson. The Commission may adopt and publish bylaws and policies that are not inconsistent with this Compact. The Commission shall meet at least once a year, and may meet more frequently. (c) The Commission may study issues of Health Care regulation that are of particular concern to the Member States. The Commission may make non-binding recommendations to the Member States. The legislatures of the Member States may consider these recommendations in determining the appropriate Health Care policies in their respective States. (d) The Commission shall collect information and data to assist the Member States in their regulation of Health Care, including assessing the performance of various State Health Care programs and compiling information on the prices of Health Care. The Commission shall make this information and data available to the legislatures of the Member States. Notwithstanding any other provision in this Compact, no Member State shall disclose to the Commission the health information of any individual, nor shall the Commission disclose the health information of any individual. (e) The Commission shall be funded by the Member States as agreed to by the Member States. The Commission shall have the responsibilities and duties as may be conferred upon it by subsequent action of the respective legislatures of the Member States in accordance with the terms of this Compact. (f) The Commission shall not take any action within a Member State that contravenes any State law of that Member State. 7. Congressional Consent This Compact shall be effective on its adoption by at least two Member States and consent of the United States Congress. This Compact shall be effective unless the United States Congress, in consenting to this Compact, alters the fundamental purposes of this Compact, which are— (1) to secure the right of the Member States to regulate Health Care in their respective States pursuant to this Compact and to suspend the operation of any conflicting Federal laws, rules, regulations, and orders within their States; and (2) to secure Federal funding for Member States that choose to invoke their authority under this Compact, as prescribed by Section 5 above. 8. Amendments The Member States, by unanimous agreement, may amend this Compact from time to time without the prior consent or approval of Congress and any amendment shall be effective unless, within one year, the Congress disapproves that amendment. Any State may join this Compact after the date on which Congress consents to the Compact by adoption into law under its State Constitution. 9. Withdrawal; Dissolution Any Member State may withdraw from this Compact by adopting a law to that effect, but no such withdrawal shall take effect until six months after the Governor of the withdrawing Member State has given notice of the withdrawal to the other Member States. A withdrawing State shall be liable for any obligations that it may have incurred prior to the date on which its withdrawal becomes effective. This Compact shall be dissolved upon the withdrawal of all but one of the Member States. . 2. Agencies for which consent is not granted (a) In general Notwithstanding the consent to the Health Care Compact granted under section 1, the powers granted to Member States under sections 3, 4, and 5 of the Health Care Compact shall not apply with regard to the agencies listed under subsection (b), and the Member State Base Funding Level and Member State Current Year Funding Level shall not include funds spent by such agencies. (b) Excluded agencies The agencies to which subsection (a) applies are as follows: (1) The National Institutes for Health. (2) The Centers for Disease Control and Prevention. (3) The Food and Drug Administration.

https://www.govinfo.gov/content/pkg/BILLS-113hjres110ih/xml/BILLS-113hjres110ih.xml

113-hjres-111

IA 113th CONGRESS 2d Session H. J. RES. 111 IN THE HOUSE OF REPRESENTATIVES March 4, 2014 Mr. Sam Johnson of Texas (for himself, Mr. Cole , and Mr. Becerra ) introduced the following joint resolution; which was referred to the Committee on House Administration JOINT RESOLUTION Providing for the reappointment of John W. McCarter as a citizen regent of the Board of Regents of the Smithsonian Institution. That, in accordance with section 5581 of the Revised Statutes of the United States ( 20 U.S.C. 43 ), the vacancy on the Board of Regents of the Smithsonian Institution, in the class other than Members of Congress, occurring by reason of the expiration of the term of John W. McCarter of Illinois on March 14, 2014, is filled by the reappointment of the incumbent. The appointment is for a term of 6 years, beginning on the later of March 15, 2014, or the date of the enactment of this joint resolution.

https://www.govinfo.gov/content/pkg/BILLS-113hjres111ih/xml/BILLS-113hjres111ih.xml

113-hjres-112

IA 113th CONGRESS 2d Session H. J. RES. 112 IN THE HOUSE OF REPRESENTATIVES March 5, 2014 Mr. Royce (for himself and Mr. Engel ) introduced the following joint resolution; which was referred to the Committee on Foreign Affairs JOINT RESOLUTION Providing for the approval of the Congress of the proposed Third Amendment to the Agreement for Co-operation Between the United States of America and the International Atomic Energy Agency that was transmitted to Congress on January 29, 2014. That the Congress does favor the proposed agreement for cooperation transmitted to the Congress by the President on January 29, 2014.

https://www.govinfo.gov/content/pkg/BILLS-113hjres112ih/xml/BILLS-113hjres112ih.xml

113-hjres-113

IA 113th CONGRESS 2d Session H. J. RES. 113 IN THE HOUSE OF REPRESENTATIVES March 27, 2014 Ms. Speier (for herself, Mr. Barber , Ms. Bass , Mrs. Beatty , Mr. Bishop of New York , Mr. Heck of Washington , Ms. Clark of Massachusetts , Mr. Blumenauer , Ms. Bonamici , Mr. Braley of Iowa , Ms. Brownley of California , Mr. Cárdenas , Mr. Carney , Mr. Cartwright , Ms. Castor of Florida , Ms. Chu , Mr. Cicilline , Mr. Clay , Mr. Cohen , Mr. Connolly , Mr. Conyers , Mr. Cummings , Mrs. Davis of California , Mr. DeFazio , Ms. DeGette , Mr. Delaney , Ms. DeLauro , Mr. Deutch , Mr. Dingell , Mr. Doggett , Ms. Edwards , Mr. Ellison , Ms. Eshoo , Mr. Farr , Ms. Frankel of Florida , Mr. Garamendi , Mr. Grayson , Mr. Grijalva , Ms. Hahn , Mr. Hastings of Florida , Mr. Higgins , Mr. Himes , Mr. Holt , Mr. Honda , Mr. Hoyer , Mr. Huffman , Mr. Israel , Mr. Johnson of Georgia , Mr. Kennedy , Mr. Kildee , Mr. Kind , Mr. Langevin , Ms. Lee of California , Mr. Levin , Mr. Lowenthal , Ms. Michelle Lujan Grisham of New Mexico , Mrs. Carolyn B. Maloney of New York , Ms. McCollum , Mr. McDermott , Mr. McGovern , Mr. Michaud , Mr. George Miller of California , Ms. Moore , Mr. Moran , Mr. Murphy of Florida , Mrs. Napolitano , Mr. Nolan , Ms. Norton , Mr. Peters of California , Ms. Pingree of Maine , Mr. Pocan , Ms. Roybal-Allard , Mr. Ruppersberger , Ms. Linda T. Sánchez of California , Mr. Sarbanes , Ms. Schakowsky , Mr. Schiff , Mr. Scott of Virginia , Ms. Shea-Porter , Mr. Sherman , Mr. Sires , Ms. Slaughter , Mr. Smith of Washington , Mr. Swalwell of California , Mr. Takano , Mr. Thompson of California , Mr. Tierney , Ms. Titus , Ms. Tsongas , Mr. Van Hollen , Mr. Veasey , Ms. Wasserman Schultz , Mr. Waxman , Mr. Welch , Mr. Yarmuth , Mr. Peterson , Mr. Pascrell , Ms. Hanabusa , Mr. Sean Patrick Maloney of New York , Mr. Brady of Pennsylvania , Mr. Richmond , Ms. Wilson of Florida , Mr. Gutiérrez , Mr. Peters of Michigan , Mrs. Negrete McLeod , Ms. Kaptur , Mr. Ryan of Ohio , Mr. Pallone , Mrs. McCarthy of New York , and Ms. Matsui ) introduced the following joint resolution; which was referred to the Committee on the Judiciary JOINT RESOLUTION Removing the deadline for the ratification of the equal rights amendment. That notwithstanding any time limit contained in House Joint Resolution 208, 92d Congress, as agreed to in the Senate on March 22, 1972, the article of amendment proposed to the States in that joint resolution shall be valid to all intents and purposes as part of the Constitution whenever ratified by the legislatures of three-fourths of the several States.

https://www.govinfo.gov/content/pkg/BILLS-113hjres113ih/xml/BILLS-113hjres113ih.xml

113-hjres-114

IA 113th CONGRESS 2d Session H. J. RES. 114 IN THE HOUSE OF REPRESENTATIVES April 10, 2014 Mr. Larson of Connecticut introduced the following joint resolution; which was referred to the Committee on the Judiciary JOINT RESOLUTION Proposing an amendment to the Constitution of the United States concerning the election of the Members of the House of Representatives. That the following article is proposed as an amendment to the Constitution of the United States, which shall be valid to all intents and purposes as part of the Constitution when ratified by the legislatures of three-fourths of the several States within seven years after the date of its submission for ratification:  — 1. The House of Representatives shall be composed of Members chosen every fourth year by the people of the several States. Immediately after the first election, they shall be assembled and divided as equally as may be into two classes. The seats of the Representatives of the first class shall be vacated at the expiration of the second year and the second class at the expiration of the fourth year, so that one half may be chosen every second year. 2. This article shall not be so construed as to affect the election or term of any Representative chosen before it becomes valid as part of the Constitution. 3. This article shall apply to the first election of Representatives which occurs after ratification but no earlier than 2018. 4. The Congress shall have power to enforce this article by appropriate legislation. .

https://www.govinfo.gov/content/pkg/BILLS-113hjres114ih/xml/BILLS-113hjres114ih.xml

113-hjres-115

IA 113th CONGRESS 2d Session H. J. RES. 115 IN THE HOUSE OF REPRESENTATIVES May 21, 2014 Mr. Bishop of Utah (for himself, Mr. Walberg , Mrs. Lummis , Mr. Lamborn , Mr. Chaffetz , Mr. Campbell , Mr. Broun of Georgia , Mr. Duncan of South Carolina , Mr. Weber of Texas , Mr. Huizenga of Michigan , Mrs. Blackburn , Mr. Schweikert , Mr. Jordan , Mr. Mulvaney , Mr. Yoho , Mr. Gohmert , Mr. Griffith of Virginia , Mr. Stewart , Mr. McClintock , Mr. Salmon , and Mr. Graves of Georgia ) introduced the following joint resolution; which was referred to the Committee on the Judiciary JOINT RESOLUTION Proposing an amendment to the Constitution of the United States to give States the right to repeal Federal laws and regulations when ratified by the legislatures of two-thirds of the several States. That the following article is proposed as an amendment to the Constitution of the United States, which shall be valid to all intents and purposes as part of the Constitution when ratified by the legislatures of three-fourths of the several States within seven years after the date of its submission for ratification:  — Any provision of law or regulation of the United States may be repealed by the several States, and such repeal shall be effective when the legislatures of two-thirds of the several States approve resolutions for this purpose that particularly describe the same provision or provisions of law or regulation to be repealed. .

https://www.govinfo.gov/content/pkg/BILLS-113hjres115ih/xml/BILLS-113hjres115ih.xml

113-hjres-116

IA 113th CONGRESS 2d Session H. J. RES. 116 IN THE HOUSE OF REPRESENTATIVES June 9, 2014 Mr. Kinzinger of Illinois (for himself and Mr. Engel ) introduced the following joint resolution; which was referred to the Committee on Foreign Affairs JOINT RESOLUTION Providing for the approval of the Congress of the proposed Agreement for Cooperation Between the Government of the United States of America and the Government of the Socialist Republic of Vietnam Concerning Peaceful Uses of Nuclear Energy transmitted on May 8, 2014. That the Congress does favor the proposed agreement for cooperation transmitted to the Congress by the President on May 8, 2014.

https://www.govinfo.gov/content/pkg/BILLS-113hjres116ih/xml/BILLS-113hjres116ih.xml

113-hjres-117

IA 113th CONGRESS 2d Session H. J. RES. 117 IN THE HOUSE OF REPRESENTATIVES July 9, 2014 Mr. Sam Johnson of Texas (for himself, Mr. Cole , and Mr. Becerra ) introduced the following joint resolution; which was referred to the Committee on House Administration JOINT RESOLUTION Providing for the appointment of Michael Lynton as a citizen regent of the Board of Regents of the Smithsonian Institution. That, in accordance with section 5581 of the Revised Statutes of the United States ( 20 U.S.C. 43 ), the vacancy on the Board of Regents of the Smithsonian Institution, in the class other than Members of Congress, occurring by reason of the resignation of France A. Córdova of Indiana on March 13, 2014 is filled by the appointment of Michael M. Lynton of California. The appointment is for a term of 6 years, beginning on the date of the enactment of this joint resolution.

https://www.govinfo.gov/content/pkg/BILLS-113hjres117ih/xml/BILLS-113hjres117ih.xml

113-hjres-118

IA 113th CONGRESS 2d Session H. J. RES. 118 IN THE HOUSE OF REPRESENTATIVES July 10, 2014 Mr. McKinley (for himself, Mr. Goodlatte , Mr. McClintock , Mr. Young of Alaska , Mr. Jones , Mr. Gibbs , Mr. Harper , Mr. Cotton , Mr. Cassidy , Mr. Flores , Mr. Carter , Mr. Barr , Mr. Salmon , Mrs. Lummis , Mr. Jordan , Mrs. Blackburn , Mr. Crawford , Mr. Rodney Davis of Illinois , Mr. Hall , Mrs. Ellmers , Mrs. Capito , and Mrs. Walorski ) introduced the following joint resolution; which was referred to the Committee on the Judiciary JOINT RESOLUTION Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Environmental Protection Agency relating to the garnishment of non-Federal wages to collect delinquent non-tax debts owed to the United States without first obtaining a court order. That Congress disapproves the rule submitted by the Environmental Protection Agency relating to the garnishment of non-Federal wages to collect delinquent non-tax debts owed to the United States without first obtaining a court order (published at 79 Fed. Reg. 37644 (July 2, 2014)), and such rule shall have no force or effect.

https://www.govinfo.gov/content/pkg/BILLS-113hjres118ih/xml/BILLS-113hjres118ih.xml

113-hjres-119

IA 113th CONGRESS 2d Session H. J. RES. 119 IN THE HOUSE OF REPRESENTATIVES July 14, 2014 Mr. Deutch (for himself, Ms. Edwards , Mr. McGovern , Mr. Larson of Connecticut , Mr. Rangel , Mr. George Miller of California , Ms. Kaptur , Ms. Slaughter , Mr. McDermott , Ms. DeLauro , Ms. Norton , Mr. Hastings of Florida , Ms. Lee of California , Mr. Holt , Ms. Schakowsky , Mr. Thompson of California , Mr. Honda , Mr. Larsen of Washington , Mr. Grijalva , Mr. Ryan of Ohio , Mr. Van Hollen , Ms. Moore , Mr. Cohen , Mr. Sarbanes , Mr. Welch , Mr. Nolan , Mr. Ben Ray Luján of New Mexico , Mr. Schrader , Mr. Tonko , Mr. Cicilline , Ms. DelBene , Ms. Titus , Ms. Brownley of California , Mr. Heck of Washington , Mr. Kilmer , Ms. Michelle Lujan Grisham of New Mexico , Mr. Swalwell of California , Mr. Payne , Ms. Kuster , Mr. Doggett , Mr. Pascrell , Mr. Grayson , Mr. Conyers , Mr. Blumenauer , Mr. Gene Green of Texas , Mr. Fattah , Mr. Sherman , Mr. Huffman , Mr. Himes , Mr. Ruppersberger , Mr. Pocan , Mr. Garamendi , Mr. DeFazio , Ms. Eshoo , Mr. Price of North Carolina , Mr. Johnson of Georgia , Mr. Brady of Pennsylvania , Mr. Farr , Ms. Clark of Massachusetts , Mr. Israel , Mr. Serrano , Ms. Speier , Mr. Lewis , Mr. Butterfield , Mr. Doyle , Mr. Capuano , Mr. Bishop of New York , Mr. Kennedy , Ms. Gabbard , Ms. Lofgren , Ms. Matsui , Ms. Hahn , Mr. Langevin , Ms. Jackson Lee , Ms. Sewell of Alabama , Mr. Foster , Ms. Pelosi , Mr. Pallone , Mr. Meeks , Ms. Fudge , Mr. Richmond , Mr. Ellison , Ms. Waters , and Mr. Engel ) introduced the following joint resolution; which was referred to the Committee on the Judiciary JOINT RESOLUTION Proposing an amendment to the Constitution of the United States relating to contributions and expenditures intended to affect elections. That the following article is proposed as an amendment to the Constitution of the United States, which shall be valid to all intents and purposes as part of the Constitution when ratified by the legislatures of three-fourths of the several States within seven years after the date of its submission for ratification:  — 1. To advance democratic self-government and political equality, and to protect the integrity of government and the electoral process, Congress and the States may regulate and set reasonable limits on the raising and spending of money by candidates and others to influence elections. 2. Congress and the States shall have power to implement and enforce this article by appropriate legislation, and may distinguish between natural persons and corporations or other artificial entities created by law, including by prohibiting such entities from spending money to influence elections. 3. Nothing in this article shall be construed to grant Congress or the States the power to abridge the freedom of the press. .

https://www.govinfo.gov/content/pkg/BILLS-113hjres119ih/xml/BILLS-113hjres119ih.xml

113-hjres-120

IA 113th CONGRESS 2d Session H. J. RES. 120 IN THE HOUSE OF REPRESENTATIVES July 23, 2014 Mr. Butterfield introduced the following joint resolution; which was referred to the Committee on Natural Resources JOINT RESOLUTION Approving the location of a memorial to commemorate the more than 5,000 slaves and free Black persons who fought for independence in the American Revolution. Whereas section 8908(b)(1) of title 40, United States Code, provides that the location of a commemorative work in Area I, as depicted on the map entitled Commemorative Areas Washington, DC and Environs , numbered 869/86501 B, and dated June 24, 2003, shall be deemed to be authorized only if a recommendation for that location is approved by law not later than 150 calendar days after Congress is notified of the recommendation; Whereas section 2860 of Public Law 112–239 ( 40 U.S.C. 8903 note) authorized the National Mall Liberty Fund D.C. to establish a memorial on Federal land in Area I or Area II, as depicted on such map, to honor the more than 5,000 slaves and free Black persons who fought for American independence in the Revolutionary War; and Whereas the Administrator of General Services has notified Congress of the Administrator’s determination that such memorial should be located in Area I: Now, therefore, be it That the location of a commemorative work to honor the more than 5,000 slaves and free Black persons who fought in the American Revolution, authorized by section 2860 of division B of Public Law 112–239 ( 40 U.S.C. 8903 note), within Area I as described on the map entitled Commemorative Areas Washington, DC and Environs , numbered 869/86501 B and dated June 24, 2003, is approved.

https://www.govinfo.gov/content/pkg/BILLS-113hjres120ih/xml/BILLS-113hjres120ih.xml

113-hjres-121

IA 113th CONGRESS 2d Session H. J. RES. 121 IN THE HOUSE OF REPRESENTATIVES July 29, 2014 Mr. Carney introduced the following joint resolution; which was referred to the Committee on the Judiciary JOINT RESOLUTION Proposing an amendment to the Constitution of the United States relating to the authority of Congress and the States to regulate political campaign contributions and expenditures, including independent expenditures. That the following article is proposed as an amendment to the Constitution of the United States, which shall be valid to all intents and purposes as part of the Constitution when ratified by the legislatures of three-fourths of the several States within seven years after the date of its submission for ratification:  — 1. Nothing in this Constitution shall be construed to prohibit Congress or any State from imposing content-neutral limitations on contributions or expenditures which are used to refer to a candidate for election for Federal office, including contributions or expenditures which are made independently from a candidate or a candidate’s campaign during such period as Congress or the State may establish which is proximate to the date of the election in which the candidate is running. 2. Nothing contained in this article shall be construed to abridge the freedom of the press. .

https://www.govinfo.gov/content/pkg/BILLS-113hjres121ih/xml/BILLS-113hjres121ih.xml

113-hjres-122

IA 113th CONGRESS 2d Session H. J. RES. 122 IN THE HOUSE OF REPRESENTATIVES July 31, 2014 Mr. Marino introduced the following joint resolution; which was referred to the Committee on the Judiciary JOINT RESOLUTION Proposing an amendment to the Constitution of the United States to end the practice of including more than one subject in a single law by requiring that each law enacted by Congress be limited to only one subject and that the subject be clearly and descriptively expressed in the title of the law. That the following article is proposed as an amendment to the Constitution of the United States, which shall be valid to all intents and purposes as part of the Constitution when ratified by the legislatures of three-fourths of the several States within seven years after the date of its submission for ratification:  — Each bill, order, resolution, or vote which must be submitted to the President under section 7 of article I of this Constitution shall embrace no more than one subject and that subject shall be clearly and descriptively expressed in the title of the bill, order, resolution or vote. .

https://www.govinfo.gov/content/pkg/BILLS-113hjres122ih/xml/BILLS-113hjres122ih.xml

113-hjres-123

IA 113th CONGRESS 2d Session H. J. RES. 123 IN THE HOUSE OF REPRESENTATIVES September 8, 2014 Mr. Issa (for himself, Mr. Ross , Mr. Jolly , Mr. Byrne , Mr. Bentivolio , Mr. LaMalfa , Mr. Williams , Mr. Gowdy , and Mr. Sam Johnson of Texas ) introduced the following joint resolution; which was referred to the Committee on Foreign Affairs JOINT RESOLUTION To authorize the use of United States Armed Forces against the Islamic State of Iraq and the Levant (ISIL). Whereas the Islamic State of Iraq and the Levant (ISIL) has committed acts of terrorism and crimes against humanity and continues to train and equip jihadists to further commit humanitarian atrocities in the region; Whereas ISIL jihadists have directly threatened the United States and its allies; Whereas ISIL poses a direct threat to United States personnel in Iraq and to the immediate security and stability of the Middle East region; Whereas, on August 8, 2014, United States Armed Forces conducted airstrikes in Iraq as authorized by the President, consistent with the requirements of the War Powers Resolution ( Public Law 93–148 ); Whereas the War Powers Resolution requires the President to obtain congressional authorization for the continued use of United States Armed Forces after the limitations specified in section 5(b) of such Resolution have been met; Whereas Congress, in order to determine the actions necessary and appropriate to protect the national security interests of the United States, must receive a strategic outlook on the role of United States Armed Forces in combating ISIL; Whereas the President has authority under the Constitution to take action in order to deter and prevent acts of international terrorism against the United States, as Congress recognized in the Authorization for Use of Military Force (Public Law 107–40); and Whereas it is in the national security interest of the United States to restore international peace and security to the Middle East region: Now, therefore, be it 1. Short title This joint resolution may be cited as the Authorization for the Use of Military Force Against the Islamic State of Iraq and the Levant (ISIL) . 2. Authorization for limited use of United States Armed Forces (a) Authorization The President is authorized to use the Armed Forces of the United States as the President determines to be necessary and appropriate in order to defend the national security of the United States against the continuing threat posed by the Islamic State of Iraq and the Levant (ISIL). (b) Termination The authority of subsection (a) shall terminate at the close of the date that is 120 days after the date of the enactment of this joint resolution. (c) War powers resolution requirements (1) Specific statutory authorization Consistent with section 8(a)(1) of the War Powers Resolution, Congress declares that this section is intended to constitute specific statutory authorization within the meaning of section 5(b) of the War Powers Resolution. (2) Applicability of other requirements Nothing in this joint resolution supersedes any requirement of the War Powers Resolution. 3. Repeal of prior authorization for use of United States Armed Forces The Authorization for Use of Military Force Against Iraq Resolution of 2002 ( Public Law 107–243 ; 50 U.S.C. 1541 note) is hereby repealed. 4. Reports to Congress (a) Report (1) In general Not later than 60 days after the date of the enactment of this joint resolution, the President shall submit to the Speaker of the House of Representatives, the President pro tempore of the Senate, and the committees of Congress specified in subsection (c) a report on the following: (A) The status of all actions taken pursuant to the exercise of the authority under section 2. (B) A description of all proposed actions that the President determines may be necessary and appropriate to combat the Islamic State of Iraq and the Levant’s (ISIL) threats to the United States and Middle East region. (C) The status of engagement of allies of the United States and international coalitions in combating ISIL’s threats. (2) Consolidation To the extent that the submission of any report described in this subsection coincides with the submission of any other report on matters relevant to this joint resolution otherwise required to be submitted to Congress pursuant to the reporting requirements of the War Powers Resolution, all such reports may be submitted as a single consolidated report to the Speaker of the House of Representatives, the President pro tempore of the Senate, and the committees of Congress specified in subsection (c). (b) Budgetary effects Not later than 60 days after the date of the enactment of this joint resolution, the President shall submit to the Speaker of the House of Representatives, the President pro tempore of the Senate, and the committees of Congress specified in subsection (c) the estimated budgetary effects of actions proposed under the reporting requirements of subsection (a). (c) Committees of Congress The committees of Congress specified in this subsection are— (1) the Committee on Foreign Affairs, the Committee on Armed Services, and the Committee on Oversight and Government Reform of the House of Representatives; and (2) the Committee on Foreign Relations, the Committee on Armed Services, and the Committee on Homeland Security and Governmental Affairs of the Senate.

https://www.govinfo.gov/content/pkg/BILLS-113hjres123ih/xml/BILLS-113hjres123ih.xml

113-hjres-124

IA One Hundred Thirteenth Congress of the United States of America At the Second Session Begun and held at the City of Washington on Friday, the third day of January, two thousand and fourteen H. J. RES. 124 JOINT RESOLUTION Making continuing appropriations for fiscal year 2015, and for other purposes. That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the several departments, agencies, corporations, and other organizational units of Government for fiscal year 2015, and for other purposes, namely: 101. (a) Such amounts as may be necessary, at a rate for operations as provided in the applicable appropriations Acts for fiscal year 2014 and under the authority and conditions provided in such Acts, for continuing projects or activities (including the costs of direct loans and loan guarantees) that are not otherwise specifically provided for in this joint resolution, that were conducted in fiscal year 2014, and for which appropriations, funds, or other authority were made available in the following appropriations Acts: (1) The Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2014 (division A of Public Law 113–76 ). (2) The Commerce, Justice, Science, and Related Agencies Appropriations Act, 2014 (division B of Public Law 113–76 ). (3) The Department of Defense Appropriations Act, 2014 (division C of Public Law 113–76 ). (4) The Energy and Water Development and Related Agencies Appropriations Act, 2014 (division D of Public Law 113–76 ). (5) The Financial Services and General Government Appropriations Act, 2014 (division E of Public Law 113–76 ). (6) The Department of Homeland Security Appropriations Act, 2014 (division F of Public Law 113–76 ). (7) The Department of the Interior, Environment, and Related Agencies Appropriations Act, 2014 (division G of Public Law 113–76 ). (8) The Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2014 (division H of Public Law 113–76 ). (9) The Legislative Branch Appropriations Act, 2014 (division I of Public Law 113–76 ). (10) The Military Construction and Veterans Affairs, and Related Agencies Appropriations Act, 2014 (division J of Public Law 113–76 ). (11) The Department of State, Foreign Operations, and Related Programs Appropriations Act, 2014 (division K of Public Law 113–76 ). (12) The Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2014 (division L of Public Law 113–76 ). (b) The rate for operations provided by subsection (a) is hereby reduced by 0.0554 percent. 102. (a) No appropriation or funds made available or authority granted pursuant to section 101 for the Department of Defense shall be used for: (1) the new production of items not funded for production in fiscal year 2014 or prior years; (2) the increase in production rates above those sustained with fiscal year 2014 funds; or (3) the initiation, resumption, or continuation of any project, activity, operation, or organization (defined as any project, subproject, activity, budget activity, program element, and subprogram within a program element, and for any investment items defined as a P–1 line item in a budget activity within an appropriation account and an R–1 line item that includes a program element and subprogram element within an appropriation account) for which appropriations, funds, or other authority were not available during fiscal year 2014. (b) No appropriation or funds made available or authority granted pursuant to section 101 for the Department of Defense shall be used to initiate multi-year procurements utilizing advance procurement funding for economic order quantity procurement unless specifically appropriated later. 103. Appropriations made by section 101 shall be available to the extent and in the manner that would be provided by the pertinent appropriations Act. 104. Except as otherwise provided in section 102, no appropriation or funds made available or authority granted pursuant to section 101 shall be used to initiate or resume any project or activity for which appropriations, funds, or other authority were not available during fiscal year 2014. 105. Appropriations made and authority granted pursuant to this joint resolution shall cover all obligations or expenditures incurred for any project or activity during the period for which funds or authority for such project or activity are available under this joint resolution. 106. Unless otherwise provided for in this joint resolution or in the applicable appropriations Act for fiscal year 2015, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until whichever of the following first occurs: (1) the enactment into law of an appropriation for any project or activity provided for in this joint resolution; (2) the enactment into law of the applicable appropriations Act for fiscal year 2015 without any provision for such project or activity; or (3) December 11, 2014. 107. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law. 108. Appropriations made and funds made available by or authority granted pursuant to this joint resolution may be used without regard to the time limitations for submission and approval of apportionments set forth in section 1513 of title 31, United States Code, but nothing in this joint resolution may be construed to waive any other provision of law governing the apportionment of funds. 109. Notwithstanding any other provision of this joint resolution, except section 106, for those programs that would otherwise have high initial rates of operation or complete distribution of appropriations at the beginning of fiscal year 2015 because of distributions of funding to States, foreign countries, grantees, or others, such high initial rates of operation or complete distribution shall not be made, and no grants shall be awarded for such programs funded by this joint resolution that would impinge on final funding prerogatives. 110. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities. 111. (a) For entitlements and other mandatory payments whose budget authority was provided in appropriations Acts for fiscal year 2014, and for activities under the Food and Nutrition Act of 2008, activities shall be continued at the rate to maintain program levels under current law, under the authority and conditions provided in the applicable appropriations Act for fiscal year 2014, to be continued through the date specified in section 106(3). (b) Notwithstanding section 106, obligations for mandatory payments due on or about the first day of any month that begins after October 2014 but not later than 30 days after the date specified in section 106(3) may continue to be made, and funds shall be available for such payments. 112. Amounts made available under section 101 for civilian personnel compensation and benefits in each department and agency may be apportioned up to the rate for operations necessary to avoid furloughs within such department or agency, consistent with the applicable appropriations Act for fiscal year 2014, except that such authority provided under this section shall not be used until after the department or agency has taken all necessary actions to reduce or defer non-personnel-related administrative expenses. 113. Funds appropriated by this joint resolution may be obligated and expended notwithstanding section 10 of Public Law 91–672 ( 22 U.S.C. 2412 ), section 15 of the State Department Basic Authorities Act of 1956 ( 22 U.S.C. 2680 ), section 313 of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 ( 22 U.S.C. 6212 ), and section 504(a)(1) of the National Security Act of 1947 ( 50 U.S.C. 3094(a)(1) ). 114. (a) Each amount incorporated by reference in this joint resolution that was previously designated by the Congress for Overseas Contingency Operations/Global War on Terrorism pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 1985 or as being for disaster relief pursuant to section 251(b)(2)(D) of such Act is designated by the Congress for Overseas Contingency Operations/Global War on Terrorism pursuant to section 251(b)(2)(A) of such Act or as being for disaster relief pursuant to section 251(b)(2)(D) of such Act, respectively. (b) The reduction in section 101(b) of this joint resolution shall not apply to— (1) amounts designated under subsection (a) of this section; or (2) amounts made available by section 101(a) by reference to the second paragraph under the heading Social Security Administration—Limitation on Administrative Expenses in division H of Public Law 113–76 . (c) Section 6 of Public Law 113–76 shall apply to amounts designated in subsection (a) for Overseas Contingency Operations/Global War on Terrorism. 115. During the period covered by this joint resolution, discretionary amounts appropriated for fiscal year 2015 that were provided in advance by appropriations Acts shall be available in the amounts provided in such Acts, reduced by the percentage in section 101(b). 116. Notwithstanding section 101, amounts are provided for Department of Agriculture—Domestic Food Programs—Food and Nutrition Service—Commodity Assistance Program at a rate for operations of $275,701,000, of which $208,682,000 shall be for the Commodity Supplemental Food Program. 117. For Department of Health and Human Services—Food and Drug Administration—Salaries and Expenses , amounts shall be made available by this joint resolution as if outsourcing facility fees authorized by 21 U.S.C. 379j–62 , were included after 21 U.S.C. 381, in the second paragraph under such heading in division A of Public Law 113–76 . 118. Amounts made available by section 101 for Department of Commerce—National Oceanic and Atmospheric Administration—Procurement, Acquisition and Construction may be apportioned up to the rate for operations necessary to maintain the planned launch schedules for the Joint Polar Satellite System and the Geostationary Operational Environmental Satellite system. 119. Notwithstanding any other provision of law, except sections 106 and 107 of this joint resolution, for Department of Defense—Overseas Contingency Operations—Operation and Maintenance—Operation and Maintenance, Army , up to $50,000,000, to be derived by reducing the amount otherwise made available by section 101 for such account, may be used to conduct surface and subsurface clearance of unexploded ordnance at closed training ranges used by the Armed Forces of the United States in Afghanistan: Provided , That such funds may only be used if the training ranges are not transferred to the Islamic Republic of Afghanistan for use by its armed forces: Provided further , That the authority provided by this section shall continue in effect through the earlier of the date specified in section 106(3) of this joint resolution or the date of the enactment of an Act authorizing appropriations for fiscal year 2015 for military activities of the Department of Defense: Provided further , That such amount is designated as provided under section 114 for such account. 120. The following authorities shall continue in effect through the earlier of the date specified in section 106(3) of this joint resolution or the date of the enactment of an Act authorizing appropriations for fiscal year 2015 for military activities of the Department of Defense: (1) Section 1004 of the National Defense Authorization Act for Fiscal Year 1991 ( Public Law 101–510 ; 10 U.S.C. 374 note). (2) Section 1215 of the National Defense Authorization Act for Fiscal Year 2012 ( Public Law 112–81 ; 10 U.S.C. 113 note). (3) Section 127b of title 10, United States Code, notwithstanding subsection (c)(3)(C) of such section. (4) Subsection (b) of section 572 of the National Defense Authorization Act for Fiscal Year 2006 ( 20 U.S.C. 7703b(b) ), notwithstanding paragraph (4) of such subsection. 121. (a) Funds made available by section 101 for Department of Energy—Energy Programs—Uranium Enrichment Decontamination and Decommissioning Fund may be apportioned up to the rate for operations necessary to avoid disruption of continuing projects or activities funded in this appropriation. (b) The Secretary of Energy shall notify the Committees on Appropriations of the House of Representatives and the Senate not later than 3 days after each use of the authority provided in subsection (a). 122. (a) Funds made available by section 101 for Department of Energy—Environmental and Other Defense Activities—Defense Environmental Cleanup for the Waste Isolation Pilot Plant may be obligated at a rate for operations necessary to assure timely execution of activities necessary to restore and upgrade the repository. (b) The Secretary of Energy shall notify the Committees on Appropriations of the House of Representatives and the Senate on each use of the spending rate authority provided in this section that exceeds customary apportionment allocations. 123. Notwithstanding any other provision of this joint resolution, except section 106, the District of Columbia may expend local funds under the heading District of Columbia Funds for such programs and activities under title IV of H.R. 5016 (113th Congress), as passed by the House of Representatives on July 16, 2014, at the rate set forth under District of Columbia Funds—Summary of Expenses as included in the Fiscal Year 2015 Budget Request Act of 2014 (D.C. Act 20–370), as modified as of the date of the enactment of this joint resolution. 124. Notwithstanding section 101, amounts are provided for Office of Special Counsel—Salaries and Expenses at a rate for operations of $22,939,000. 125. The third proviso under the heading Small Business Administration—Business Loans Program Account in division E of Public Law 113–76 is amended by striking $17,500,000,000 and inserting $18,500,000,000 : Provided , That amounts made available by section 101 for such proviso under such heading may be apportioned up to the rate for operations necessary to accommodate increased demand for commitments to general business loans under section 7(a) of the Small Business Act: Provided further , That this section shall become effective upon enactment of this joint resolution. 126. Sections 1101(a) and 1104(a)(2)(A) of the Internet Tax Freedom Act (title XI of division C of Public Law 105–277 ; 47 U.S.C. 151 note) shall be applied by substituting the date specified in section 106(3) of this joint resolution for November 1, 2014 . 127. Section 550(b) of Public Law 109–295 ( 6 U.S.C. 121 note) shall be applied by substituting the date specified in section 106(3) of this joint resolution for October 4, 2014 . 128. The authority provided by section 831 of the Homeland Security Act of 2002 ( 6 U.S.C. 391 ) shall continue in effect through the date specified in section 106(3) of this joint resolution. 129. (a) Amounts made available by section 101 for the Department of Homeland Security for U.S. Customs and Border Protection—Salaries and Expenses , U.S. Customs and Border Protection—Border Security Fencing, Infrastructure, and Technology , U.S. Customs and Border Protection—Air and Marine Operations , U.S. Customs and Border Protection—Construction and Facilities Management , and U.S. Immigration and Customs Enforcement—Salaries and Expenses shall be obligated at a rate for operations as necessary to respectively— (1) sustain the staffing levels of U.S. Customs and Border Protection officers and Border Patrol agents in accordance with the provisos under the heading U.S. Customs and Border Protection—Salaries and Expenses in division F of Public Law 113–76 ; (2) sustain border security and immigration enforcement operations; (3) sustain necessary Air and Marine operations; and (4) sustain the staffing levels of U.S. Immigration and Customs Enforcement agents, equivalent to the staffing levels achieved on September 30, 2014, and comply with the fifth proviso under the heading U.S. Immigration and Customs Enforcement—Salaries and Expenses in division F of Public Law 113–76 . (b) The Secretary of Homeland Security shall notify the Committees on Appropriations of the House of Representatives and the Senate on each use of the authority provided in this section. 130. Section 810 of the Federal Lands Recreation Enhancement Act ( 16 U.S.C. 6809 ) shall be applied by substituting on the date that is 1 year after the date specified in section 106(3) of the Continuing Appropriations Resolution, 2015 for 10 years after the date of the enactment of this Act . 131. (a) The authority provided by subsection (m)(3) of section 8162 of the Department of Defense Appropriations Act, 2000 ( 40 U.S.C. 8903 note; Public Law 106–79 ) shall continue in effect through the date specified in section 106(3) of this joint resolution. (b) For the period covered by this joint resolution, the authority provided by the provisos under the heading Dwight D. Eisenhower Memorial Commission—Capital Construction in division E of Public Law 112–74 shall not be in effect. 132. Activities authorized under part A of title IV and section 1108(b) of the Social Security Act (other than under section 413(h) of such Act) shall continue through the date specified in section 106(3) of this joint resolution, in the manner authorized for fiscal year 2014 (except that the amount appropriated for section 403(b) of such Act shall be $598,000,000, and the requirement to reserve funds provided for in section 403(b)(2) of such Act shall not apply with respect to this section), and out of any money in the Treasury of the United States not otherwise appropriated, there are hereby appropriated such sums as may be necessary for such purpose. Grants and payments may be made pursuant to this authority through the applicable portion of the first quarter of fiscal year 2015 at the pro rata portion of the level provided for such activities through the first quarter of fiscal year 2014. 133. Amounts allocated to Head Start grantees from amounts identified in the seventh proviso under the heading Department of Health and Human Services—Administration for Children and Families—Children and Families Services Programs in Public Law 113–76 shall not be included in the calculation of the base grant in fiscal year 2015, as such term is used in section 640(a)(7)(A) of the Head Start Act ( 42 U.S.C. 9835(a)(7)(A) ). 134. The first proviso under the heading Department of Health and Human Services—Administration for Children and Families—Low Income Home Energy Assistance in division H of Public Law 113–76 shall be applied to amounts made available by this joint resolution by substituting 2015 for 2014 . 135. Amounts provided by this joint resolution for Department of Health and Human Services—Administration for Children and Families—Refugee and Entrant Assistance may be apportioned up to the rate for operations necessary to maintain program operations at the level provided in fiscal year 2014. 136. In addition to the amount otherwise provided by this joint resolution for Department of Health and Human Services—Office of the Secretary—Public Health and Social Services Emergency Fund , there is appropriated $58,000,000 for an additional amount for fiscal year 2015, to remain available until September 30, 2015, for expenses necessary to support acceleration of countermeasure and product advanced research and development pursuant to section 319L of the Public Health Service Act for addressing Ebola. 137. In addition to the amount otherwise provided by this joint resolution for Department of Health and Human Services—Centers for Disease Control and Prevention—Global Health , there is appropriated $30,000,000 for an additional amount for fiscal year 2015, to remain available until September 30, 2015, for expenses necessary to support the responses of the Centers for Disease Control and Prevention (referred to in this section as the CDC ) to the outbreak of Ebola virus in Africa: Provided , That such funds shall be available for transfer by the Director of the CDC to other accounts of the CDC for such support: Provided further , That the Director of the CDC shall notify the Committees on Appropriations of the House of Representatives and the Senate not later than 30 days after the date of any transfer under the preceding proviso. 138. Amounts made available by this joint resolution for Department of Education—Rehabilitation Services and Disability Research , Department of Education—Departmental Management—Program Administration , and Department of Health and Human Services—Administration for Community Living—Aging and Disability Services Programs may be obligated in the account and budget structure set forth in section 491 of the Workforce Innovation and Opportunity Act ( 42 U.S.C. 3515e ). 139. Of the unobligated balance of amounts provided by section 108 of Public Law 111–3 , $4,549,000,000 is rescinded. 140. Section 113 of division H of Public Law 113–76 shall be applied by substituting the date specified in section 106(3) for September 30, 2014 . 141. (a) Notwithstanding section 101, amounts are made available for accounts in title I of division J of Public Law 113–76 at an aggregate rate for operations of $6,558,223,500. (b) Not later than 30 days after the date of enactment of this joint resolution, the Secretary of Defense shall submit to the Committees on Appropriations of the House of Representatives and the Senate a report delineating the allocation of budget authority in subsection (a) by account and project. 142. Notwithstanding section 101, amounts are provided for Department of Veterans Affairs—Departmental Administration—General Operating Expenses, Veterans Benefits Administration at a rate for operations of $2,524,254,000. 143. Notwithstanding section 101, amounts are provided for Department of Veterans Affairs—Departmental Administration—Office of Inspector General at a rate for operations of $126,411,000. 144. Section 209 of the International Religious Freedom Act of 1998 ( 22 U.S.C. 6436 ) shall be applied by substituting the date specified in section 106(3) of this joint resolution for September 30, 2014 . 145. Amounts made available by section 101 for Broadcasting Board of Governors—International Broadcasting Operations , Bilateral Economic Assistance—Funds Appropriated to the President—Economic Support Fund , International Security Assistance—Department of State—International Narcotics Control and Law Enforcement , International Security Assistance—Department of State—Nonproliferation, Anti-terrorism, Demining and Related Programs , and International Security Assistance—Funds Appropriated to the President—Foreign Military Financing Program shall be obligated at a rate for operations as necessary to sustain assistance for Ukraine and independent states of the Former Soviet Union and Central and Eastern Europe to counter external, regional aggression and influence. 146. Section 7081(4) of division K of Public Law 113–76 shall be applied to amounts made available by this joint resolution by substituting the date specified in section 106(3) of this joint resolution for September 30, 2014 . 147. The Export-Import Bank Act of 1945 ( 12 U.S.C. 635 et seq. ) shall be applied through June 30, 2015, by substituting such date for September 30, 2014 in section 7 of such Act. 148. (a) Section 44302(f) of title 49, United States Code, is amended by striking September 30, 2014 and inserting the date specified in section 106(3) of the Continuing Appropriations Resolution, 2015 . (b) Section 44303(b) of title 49, United States Code, is amended by striking September 30, 2014 and inserting the date specified in section 106(3) of the Continuing Appropriations Resolution, 2015 . (c) Section 44310(a) of title 49, United States Code, is amended by striking September 30, 2014 and inserting the date specified in section 106(3) of the Continuing Appropriations Resolution, 2015 . 149. (a) The Secretary of Defense is authorized, in coordination with the Secretary of State, to provide assistance, including training, equipment, supplies, and sustainment, to appropriately vetted elements of the Syrian opposition and other appropriately vetted Syrian groups and individuals for the following purposes: (1) Defending the Syrian people from attacks by the Islamic State of Iraq and the Levant (ISIL), and securing territory controlled by the Syrian opposition. (2) Protecting the United States, its friends and allies, and the Syrian people from the threats posed by terrorists in Syria. (3) Promoting the conditions for a negotiated settlement to end the conflict in Syria. (b) Not later than 15 days prior to providing assistance authorized under subsection (a) to vetted recipients for the first time— (1) the Secretary of Defense, in coordination with the Secretary of State, shall submit to the appropriate congressional committees and leadership of the House of Representatives and Senate a report, in unclassified form with a classified annex as appropriate, that contains a description of— (A) the plan for providing such assistance; (B) the requirements and process used to determine appropriately vetted recipients; and (C) the mechanisms and procedures that will be used to monitor and report to the appropriate congressional committees and leadership of the House of Representatives and Senate on unauthorized end-use of provided training and equipment and other violations of relevant law by recipients; and (2) the President shall submit to the appropriate congressional committees and leadership of the House of Representatives and Senate a report, in unclassified form with a classified annex as appropriate, that contains a description of how such assistance fits within a larger regional strategy. (c) The plan required in subsection (b)(1) shall include a description of— (1) the goals and objectives of assistance authorized under subsection (a); (2) the concept of operations, timelines, and types of training, equipment, and supplies to be provided; (3) the roles and contributions of partner nations; (4) the number of United States Armed Forces personnel involved; (5) any additional military support and sustainment activities; and (6) any other relevant details. (d) Not later than 90 days after the Secretary of Defense submits the report required in subsection (b)(1), and every 90 days thereafter, the Secretary of Defense, in coordination with the Secretary of State, shall provide the appropriate congressional committees and leadership of the House of Representatives and the Senate with a progress report. Such progress report shall include a description of— (1) any updates to or changes in the plan, strategy, vetting requirements and process, and end-use monitoring mechanisms and procedures, as required in subsection (b)(1); (2) statistics on green-on-blue attacks and how such attacks are being mitigated; (3) the groups receiving assistance authorized under subsection (a); (4) the recruitment, throughput, and retention rates of recipients and equipment; (5) any misuse or loss of provided training and equipment and how such misuse or loss is being mitigated; and (6) an assessment of the effectiveness of the assistance authorized under subsection (a) as measured against subsections (b) and (c). (e) For purposes of this section, the following definitions shall apply: (1) The term appropriately vetted means, with respect to elements of the Syrian opposition and other Syrian groups and individuals, at a minimum, assessments of such elements, groups, and individuals for associations with terrorist groups, Shia militias aligned with or supporting the Government of Syria, and groups associated with the Government of Iran. Such groups include, but are not limited to, the Islamic State of Iraq and the Levant (ISIL), Jabhat al Nusrah, Ahrar al Sham, other al-Qaeda related groups, and Hezbollah. (2) The term appropriate congressional committees means— (A) the Committee on Armed Services, the Committee on Foreign Affairs, the Committee on Appropriations, and the Permanent Select Committee on Intelligence of the House of Representatives; and (B) the Committee on Armed Services, the Committee on Foreign Relations, the Committee on Appropriations, and the Select Committee on Intelligence of the Senate. (f) The Department of Defense may submit a reprogramming or transfer request to the congressional defense committees for funds made available by section 101(a)(3) of this joint resolution and designated in section 114 of this joint resolution to carry out activities authorized under this section notwithstanding sections 102 and 104 of this joint resolution. (g) The Secretary of Defense may accept and retain contributions, including assistance in-kind, from foreign governments to carry out activities as authorized by this section which shall be credited to appropriations made available by this joint resolution for the appropriate operation and maintenance accounts, except that any funds so accepted by the Secretary shall not be available for obligation until a reprogramming action is submitted to the congressional defense committees: Provided , That amounts made available by this subsection are designated by the Congress for Overseas Contingency Operations/Global War on Terrorism pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 1985: Provided further , That such amounts shall be available only if the President so designates such amounts and transmits such designations to the Congress. (h) The authority provided in this section shall continue in effect through the earlier of the date specified in section 106(3) of this joint resolution or the date of the enactment of an Act authorizing appropriations for fiscal year 2015 for military activities of the Department of Defense. (i) Nothing in this section shall be construed to constitute a specific statutory authorization for the introduction of United States Armed Forces into hostilities or into situations wherein hostilities are clearly indicated by the circumstances. (j) Nothing in this section supersedes or alters the continuing obligations of the President to report to Congress pursuant to section 4 of the War Powers Resolution ( 50 U.S.C. 1543 ) regarding the use of United States Armed Forces abroad. This joint resolution may be cited as the Continuing Appropriations Resolution, 2015 . Speaker of the House of Representatives. Vice President of the United States and President of the Senate.

https://www.govinfo.gov/content/pkg/BILLS-113hjres124enr/xml/BILLS-113hjres124enr.xml

113-hjres-125

IA 113th CONGRESS 2d Session H. J. RES. 125 IN THE HOUSE OF REPRESENTATIVES September 16, 2014 Mr. Schiff introduced the following joint resolution; which was referred to the Committee on Foreign Affairs JOINT RESOLUTION To authorize the use of United States Armed Forces against the terrorist organization Islamic State of Iraq and the Levant ( ISIL ). Whereas for months Islamic State of Iraq and the Levant ( ISIL ) has been engaged in an almost unchecked campaign of murder and mayhem across a broad swath of Iraq and Syria that has killed thousands of innocent people and terrorized millions; Whereas ISIL has brought under its control large areas of Iraq and Syria and announced on June 29, 2014, the establishment of a new caliphate; Whereas in its conduct of military operations, its treatment of personnel captured on the battlefield, and its behavior towards civilians in areas under its control, ISIL has shown a level of brutality and depravity that shocks the conscience; Whereas ISIL brutally murdered two American journalists and a British aid worker and has threatened the lives of other western hostages; Whereas the threat posed by the recruitment of ISIL fighters in the United States and Europe and the prospect of these fighters returning to the United States or allied countries jeopardizes the security of the United States and its allies; Whereas ISIL poses an unusual and extraordinary threat to the national security and foreign policy of the United States and if left unchecked will be the locus of plots to attack our homeland; Whereas the rise of ISIL, the continuing threat posed by al Qaeda, and the pending redeployment of United States combat troops from Afghanistan highlight the need to re-examine and harmonize the legal authorities under which the President is authorized to take offensive military action; and Whereas the President has authority under the Constitution to take action to protect the United States and its citizens from imminent threat or attack but Congress alone holds the power to declare war: Now, therefore, be it 1. Short title This joint resolution may be cited as the Authorization for Use of Military Force Against ISIL Resolution . 2. Authorization for use of United States Armed Forces (a) In general The President is authorized to use the Armed Forces of the United States against the Islamic State of Iraq and the Levant ( ISIL ). (b) Geographical limitation The authority granted in subsection (a) shall be confined to the territory of the Republic of Iraq and the Syrian Arab Republic. The limitation of this subsection shall not apply to the Armed Forces of the United States engaged in training of indigenous Syrian or regional military forces for the purpose of combating ISIL. (c) No authorization for use of ground forces in combat The authority granted in subsection (a) does not include the authority for the deployment of ground forces in a combat role. For purposes of this subsection, ground forces in a combat role does not include special operations forces or other forces that may be deployed in a training, advisory, or intelligence capacity. (d) Termination The authority granted in subsection (a) shall terminate on the date that is 18 months after the date of the enactment of this joint resolution. (e) War powers resolution requirements (1) Specific statutory authorization Consistent with section 8(a)(1) of the War Powers Resolution, the Congress declares that this section is intended to constitute specific statutory authorization within the meaning of section 5(b) of the War Powers Resolution. (2) Applicability of other requirements Nothing in this joint resolution supersedes any requirement of the War Powers Resolution. 3. Repeal of prior authorizations for use of United States Armed Forces (a) Repeal The following provisions of law are hereby repealed: (1) The Authorization for Use of Military Force Against Iraq Resolution of 2002 ( Public Law 107–243 ; 50 U.S.C. 1541 note). (2) The Authorization for Use of Military Force ( Public Law 107–40 ; 50 U.S.C. 1541 note). (b) Effective date The repeal made by subsection (a)(2) shall be effective as of the date that is 18 months after the date of the enactment of this joint resolution. 4. Reports to Congress (a) In general The President shall, at least once every 60 days after the date of the enactment of this joint resolution, submit to the Speaker of the House of Representatives and the President pro tempore of the Senate a report on matters relevant to this joint resolution, including actions taken pursuant to the exercise of authority granted in section 2 and the status of planning for efforts that are expected to be required over the next 60 days. (b) Consolidation To the extent that the submission of any report required in subsection (a) coincides with the submissions of any other report on matters relevant to this joint resolution otherwise required to be submitted to Congress pursuant to the reporting requirements of the War Powers Resolution, all such reports may be submitted as a single consolidated report to the Speaker of the House of Representatives and the President pro tempore of the Senate.

https://www.govinfo.gov/content/pkg/BILLS-113hjres125ih/xml/BILLS-113hjres125ih.xml

113-hjres-126

IA 113th CONGRESS 2d Session H. J. RES. 126 IN THE HOUSE OF REPRESENTATIVES September 18, 2014 Mr. Crawford (for himself, Mr. Griffin of Arkansas , Mr. Meadows , Mr. Cotton , Mr. Scalise , Mrs. Noem , Mr. Graves of Georgia , Mr. Rodney Davis of Illinois , Mr. Harris , Mr. Collins of New York , Mr. Mulvaney , Mr. Ross , Mr. Schock , Mrs. Wagner , Mr. McHenry , Mr. Calvert , Mr. Cramer , Mr. Culberson , Mr. Aderholt , and Mr. Yoder ) introduced the following joint resolution; which was referred to the Committee on the Judiciary JOINT RESOLUTION Proposing an amendment to the Constitution of the United States to control entitlement spending. That the following article is proposed as an amendment to the Constitution of the United States, which shall be valid to all intents and purposes as part of the Constitution when ratified by the legislatures of three-fourths of the several States within seven years after the date of its submission for ratification:  — 1. No bill that increases the amount spent under an entitlement program or creates a new entitlement program shall become law unless the bill is approved by a two-thirds majority of each House or provides that such increase or program shall terminate after not more than seven years. 2. No bill that increases the amount spent under an entitlement program or creates a new entitlement program shall become law unless the bill is spending neutral or creates a net savings to the Government. After enactment, if the bill is not spending neutral or does not create a net savings to the Government when averaged over the previous two fiscal years, the President shall implement spending reductions within the program, which Congress should prescribe, sufficient to offset the actual increase in spending by the end of the fiscal year so that it is either spending neutral or creates a net savings to the Government. 3. For purposes of this article, the term entitlement program means a program under which the United States is obligated to make such payments to any person or government who meets the requirements established by that law regardless of whether the funding for such program is provided for in advance by an appropriation Act. 4. Congress shall have the power to enforce and implement this article by appropriate legislation. .

https://www.govinfo.gov/content/pkg/BILLS-113hjres126ih/xml/BILLS-113hjres126ih.xml

113-hjres-127

IA 113th CONGRESS 2d Session H. J. RES. 127 IN THE HOUSE OF REPRESENTATIVES September 18, 2014 Mr. Gohmert (for himself, Mrs. Bachmann , Mr. Salmon , Mr. Gosar , Mr. Barton , Mr. Harris , and Mr. Weber of Texas ) introduced the following joint resolution; which was referred to the Committee on Foreign Affairs JOINT RESOLUTION Declaring that a state of war exists between the self-described Islamic State and its direct affiliates and subsidiaries, and the Government and the people of the United States and making provisions to prosecute the same. Whereas the self-described Islamic State has committed unprovoked acts of war against the Government and the people of the United States of America: Now, therefore, be it That the state of war between the United States and the self-described Islamic State and its direct affiliates and subsidiaries, which has thus been thrust upon the United States, is hereby formally declared; and the President is hereby authorized and directed to use all necessary and appropriate force to carry on war against the self-described Islamic State and its direct affiliates and subsidiaries; and all the resources of the country are hereby pledged by the Congress of the United States.

https://www.govinfo.gov/content/pkg/BILLS-113hjres127ih/xml/BILLS-113hjres127ih.xml

113-hjres-128

IA 113th CONGRESS 2d Session H. J. RES. 128 IN THE HOUSE OF REPRESENTATIVES September 19, 2014 Mr. Larson of Connecticut introduced the following joint resolution; which was referred to the Committee on Foreign Affairs , and in addition to the Committee on Rules , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned JOINT RESOLUTION To authorize the use of United States Armed Forces against the Islamic State of Iraq and the Levant. Whereas the Islamic State of Iraq and the Levant (ISIL) has committed gruesome atrocities in Iraq and Syria; Whereas ISIL has been instigating sectarian violence that threatens the stability of the Middle East region and the national security interest of the United States; Whereas ISIL has directly threatened the United States and has kidnapped and killed United States citizens in Syria; Whereas such acts continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States; Whereas such acts render it both necessary and appropriate that the United States exercise its rights to self-defense and to protect United States citizens both at home and abroad; Whereas consistent with the War Powers Resolution ( Public Law 93–148 ), the President authorized a series of limited airstrikes in Iraq to protect United States personnel and support certain humanitarian operations; and Whereas continued use of the United States Armed Forces after the time limitations specified in section 5(b) of the War Powers Act requires authorization by the United States Congress: Now, therefore, be it 1. Short title This joint resolution may be cited as the Authorization for Use of Military Force Against ISIL Resolution . 2. Sense of Congress It is the sense of Congress that— (1) the President has rightly committed limited forces in Iraq to protect United States diplomatic and military personnel against the threat of the Islamic State of Iraq and the Levant ( ISIL ); (2) the President should be commended for authorizing military operations to protect ethnic and religious minorities from slaughter at the hands of ISIL and for providing assistance to prevent a humanitarian disaster; (3) the President should be commended for working with North Atlantic Treaty Organization allies to form a coordinated world response to the threat of ISIL; (4) if the President determines that it is necessary to use the United States Armed Forces against ISIL, the President— (A) should seek consensus in the United Nations Security Council prior to pursuing a multilateral military campaign against ISIL; (B) should endeavor to form a coalition of allies as broadly based as practicable to support and participate with the United States Armed Forces; and (C) should seek equal participation and assistance from members of the Arab League; and (5) although military intervention might be necessary to significantly disrupt and degrade ISIL’s activities and operational capabilities in Iraq and Syria, a negotiated political solution among ethnic groups is the only sure solution to end sectarian violence and reach permanent peace. 3. Authorization for use of United States Armed Forces in accordance with United Nations Security Council resolution (a) Authorization The President is authorized to use the United States Armed Forces as the President determines to be necessary and appropriate in order to— (1) defend the national security of the United States against the Islamic State of Iraq and the Levant ( ISIL ); and (2) enforce a United Nations Security Council resolution adopted on or after the date of the enactment of this joint resolution that— (A) provides for multilateral action against ISIL, including sanctions, humanitarian assistance to those affected by the violence, and the protection of civilians, refugees, nongovernmental organization workers and journalists; and (B) authorizes a military force, formed by a coalition of nations, including members of the Arab League, under the auspices of the United Nations Security Council for the individual and collective self-defense against ISIL and to degrade its capacities to commit terrorist acts, destabilize peaceful governments, and perpetuate further attacks. (b) Rule of construction Nothing in subsection (a) shall be construed to prevent or otherwise limit the authority of the Armed Forces to use all appropriate force for self-defense and enforcement purposes. 4. Authorization for use of United States Armed Forces in absence of United Nations Security Council resolution (a) Authorization The President is authorized to use the United States Armed Forces as the President determines to be necessary and appropriate to defend the national security of the United States against the Islamic State of Iraq and the Levant ( ISIL ), other than the use of such Armed Forces in direct ground combat operations, if— (1) the President submits to the Speaker of the House of Representatives and the President pro tempore of the Senate— (A) a certification described in subsection (b); and (B) a strategy for the use of military force against ISIL; and (2) a joint resolution that meets the requirements of a qualifying resolution under section 5 is enacted into law. (b) Certification described A certification described in this subsection is a certification that— (1) (A) the United States has sought adoption by the United Nations Security Council of a resolution described in section 2(4), and the Security Council has failed to adopt such a resolution, and no other action taken by the United Nations Security Council has been sufficient to compel action against ISIL; or (B) the United Nations Security Council has passed a resolution that does not sanction the use of force, and— (i) the United Nations Security Council is unlikely to take further action that will result in authorizing military action; and (ii) the use of military force against ISIL is necessary to combat its threat; and (2) the United States is in the process of establishing, or has established, a coalition of other countries as broadly based as practicable to support and participate with the United States in any action that is taken against ISIL. 5. Expedited congressional consideration of joint resolution authorizing use of force under section 4 (a) Qualifying resolution (1) This section applies with respect to a joint resolution of the Senate or House of Representatives— (A) that is a qualifying resolution; and (B) that is introduced (by request) by a qualifying Member as described in paragraph (2) not later than the next legislative day after the date of submission of a certification described in section 4(b) by the Speaker of the House of Representatives and the President pro tempore of the Senate; and (C) the text of which is as follows: The President is authorized to use the United States Armed Forces as the President determines to be necessary and appropriate to defend the national security of the United States against the Islamic State of Iraq and the Levant ( ISIL ), other than the use of such Armed Forces in direct ground combat operations. . (2) For purposes of this subsection, a qualifying Member is— (A) in the case of the House of Representatives, the majority leader or minority leader of the House of Representatives; and (B) in the case of the Senate, the majority leader or minority leader of the Senate. (b) Placement on calendar Upon introduction in either House of a resolution described in subsection (a), the resolution shall be placed on the appropriate calendar of the House involved. (c) Consideration in the house of representatives (1) A resolution described in subsection (a) shall be considered in the House of Representatives in accordance with the provisions of this subsection. (2) On or after the first legislative day after the day on which such a resolution is introduced, it is in order (even though a previous motion to the same effect has been disagreed to) for any Member of the House of Representatives to move to proceed to the consideration of the resolution. All points of order against the resolution (and against consideration of the resolution) are waived. Such a motion is privileged and is not debatable. An amendment to the motion is not in order. It shall not be in order to move to postpone the motion or to proceed to the consideration of other business. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the resolution is agreed to, the House of Representatives shall immediately proceed to consideration of the resolution without intervening motion, and the resolution shall remain the unfinished business of the House of Representatives until disposed of. (3) Debate on the resolution shall be limited to not more than a total of 20 hours, which shall be divided equally between the majority leader and the minority leader or their designees. A motion to further limit debate is not debatable. An amendment to, or motion to recommit, the resolution is not in order. (4) Immediately following the conclusion of the debate on the resolution, the vote on final passage of the resolution shall occur. (5) A motion to reconsider the vote by which the resolution is agreed to or disagreed to is not in order. (d) Consideration in senate (1) A resolution described in subsection (a) shall be considered in the Senate in accordance with the provisions of this subsection. (2) On or after the first legislative day after the day on which such a resolution is introduced, it is in order (even though a previous motion to the same effect has been disagreed to) for any Member of the Senate to move to proceed to the consideration of the resolution. All points of order against the resolution (and against consideration of the resolution) are waived. The motion is privileged and is not debatable. The motion is not subject to amendment, or to a motion to postpone, or to a motion to proceed to the consideration of other business. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the resolution is agreed to, the Senate shall immediately proceed to consideration of the resolution without intervening motion, order, or other business, and the resolution shall remain the unfinished business of the Senate until disposed of. (3) Debate on the resolution, and on all debatable motions and appeals in connection therewith, shall be limited to not more than a total of 20 hours, which shall be divided equally between the majority leader and the minority leader or their designees. A motion to further limit debate is not debatable. An amendment to, or motion to recommit, the resolution is not in order. (4) Immediately following the conclusion of the debate on a resolution and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the Senate, the vote on final passage of the resolution shall occur. (5) A motion to reconsider the vote by which the resolution is agreed to or disagreed to is not in order. (6) Appeals from the decisions of the Chair relating to the application of the rules of the Senate to the procedure relating to a resolution described in subsection (a) shall be decided without debate. (e) Action on measure from other house (1) If, before the passage by one House of a resolution of that House described in subsection (a), that House receives from the other House a resolution described in subsection (a), then the following procedures shall apply: (A) The resolution of the other House shall not be referred to a committee and may not be considered in the House receiving it except as provided in subparagraph (B)(ii). (B) With respect to a resolution described in subsection (a) of the House receiving the resolution— (i) the procedure in that House shall be the same as if no resolution had been received from the other House; but (ii) the vote on final passage shall be on the resolution of the other House. (2) Upon disposition pursuant to paragraph (1)(B)(ii) of a resolution described in subsection (a) that is received by one House from the other House, it shall no longer be in order to consider such a resolution that was introduced in the receiving House. (f) Legislative day defined For the purposes of this section, with respect to either House of Congress, a legislative day is a calendar day on which that House is in session. (g) Section enacted as exercise of rulemaking power of the two houses The provisions of this section (other than subsection (h)) are enacted by the Congress— (1) as an exercise of the rulemaking power of the House of Representatives and the Senate, respectively, and, as such, shall be considered as part of the rules of either House and shall supersede other rules only to the extent they are inconsistent therewith; and (2) with full recognition of the constitutional right of either House to change the rules (so far as they relate to the procedures of that House) at any time, in the same manner, and to the same extent as in the case of any other rule of that House. (h) Presidential recall of congress In the event that Congress is not in session upon submission of a Presidential certification under section 4, the President is authorized to convene a special session of the Congress to allow consideration of a joint resolution under this section. 6. Reports to Congress (a) In general At least once every 60 days after the date of the enactment of this joint resolution, the President shall transmit to Congress a report on matters relevant to this joint resolution. The President shall include in such report when, where, and under what circumstances lethal force has been used pursuant to the authorization for use of the United States Armed Forces under section 3 or 4 (as the case may be), and how many civilian casualties have resulted from those actions as well as an estimate of expenditures by the United States and allied nations to combat the Islamic State of Iraq and the Levant ( ISIL ). The President shall include in such report the status of planning for efforts that are expected to be required for the redeployment of United States Armed Forces after actions taken pursuant to this joint resolution are completed. (b) Consultation The President shall consult on a regular basis with the congressional committees of jurisdiction to provide updated information on actions being taken pursuant to this joint resolution in either public or closed sessions. 7. War powers resolution requirements (a) Specific statutory authorization Consistent with section 8(a)(1) of the War Powers Resolution, the Congress declares that section 3 or 4 (as the case may be) is intended to constitute specific authorization within the meaning of section 5(b) of the War Powers Resolution. (b) Applicability of other requirements Nothing in this resolution supersedes any requirement of the War Powers Resolution. 8. Inherent right to self-defense Nothing in this joint resolution is intended to derogate or otherwise limit the authority of the President to use military force in self-defense pursuant to the Constitution of the United States and the War Powers Resolution. 9. Repeals (a) In general Subject to subsection (b), the following provisions of law are hereby repealed: (1) The Authorization for Use of Military Force Against Iraq Resolution of 2002 ( Public Law 107–243 ). (2) The Authorization for Use of Military Force ( Public Law 107–40 ). (b) Effective date The repeal made by subsection (a)(2) shall be effective as of the date that is two years after the date of the enactment of this joint resolution. 10. Sunset This joint resolution and the authorities under this joint resolution (other than section 9) shall expire on the date that is two years after the date of the enactment of this joint resolution.

https://www.govinfo.gov/content/pkg/BILLS-113hjres128ih/xml/BILLS-113hjres128ih.xml

113-hjres-129

IV 113th CONGRESS 2d Session H. J. RES. 129 IN THE HOUSE OF REPRESENTATIVES JOINT RESOLUTION Appointing the day for the convening of the first session of the One Hundred Fourteenth Congress. That the first regular session of the One Hundred Four- teenth Congress shall begin at noon on Tuesday, January 6, 2015. Passed the House of Representatives November 14, 2014. Karen L. Haas, Clerk.

https://www.govinfo.gov/content/pkg/BILLS-113hjres129eh/xml/BILLS-113hjres129eh.xml

113-hjres-130

IA 113th CONGRESS 2d Session H. J. RES. 130 IN THE HOUSE OF REPRESENTATIVES JOINT RESOLUTION Making further continuing appropriations for fiscal year 2015, and for other purposes. That the Continuing Appropriations Resolution, 2015 ( Public Law 113–164 ) is amended by striking the date specified in section 106(3) and inserting December 13, 2014 . Passed the House of Representatives December 11, 2014. Karen L. Haas, Clerk.

https://www.govinfo.gov/content/pkg/BILLS-113hjres130eh/xml/BILLS-113hjres130eh.xml

113-hjres-131

IA One Hundred Thirteenth Congress of the United States of America At the Second Session Begun and held at the City of Washington on Friday, the third day of January, two thousand and fourteen H. J. RES. 131 JOINT RESOLUTION Making further continuing appropriations for fiscal year 2015, and for other purposes. That the Continuing Appropriations Resolution, 2015 ( Public Law 113–164 ) is further amended by striking the date specified in section 106(3) and inserting December 17, 2014 . Speaker of the House of Representatives. Vice President of the United States and President of the Senate.

https://www.govinfo.gov/content/pkg/BILLS-113hjres131enr/xml/BILLS-113hjres131enr.xml

113-hr-1

I 113th CONGRESS 2d Session H. R. 1 IN THE HOUSE OF REPRESENTATIVES December 10, 2014 Mr. Camp introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to provide for comprehensive tax reform. 1. Short title; etc (a) Short title This Act may be cited as the Tax Reform Act of 2014 . (b) Amendment of 1986 Code Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (c) Table of contents The table of contents of this Act is as follows: Sec. 1. Short title; etc. Title I—Tax Reform for Individuals Subtitle A—Individual income tax rate reform Sec. 1001. Simplification of individual income tax rates. Sec. 1002. Deduction for adjusted net capital gain. Sec. 1003. Conforming amendments related to simplification of individual income tax rates. Subtitle B—Simplification of tax benefits for families Sec. 1101. Standard deduction. Sec. 1102. Increase and expansion of child tax credit. Sec. 1103. Modification of earned income tax credit. Sec. 1104. Repeal of deduction for personal exemptions. Subtitle C—Simplification of education incentives Sec. 1201. American opportunity tax credit. Sec. 1202. Expansion of Pell Grant exclusion from gross income. Sec. 1203. Repeal of exclusion of income from United States savings bonds used to pay higher education tuition and fees. Sec. 1204. Repeal of deduction for interest on education loans. Sec. 1205. Repeal of deduction for qualified tuition and related expenses. Sec. 1206. No new contributions to Coverdell education savings accounts. Sec. 1207. Repeal of exclusion for discharge of student loan indebtedness. Sec. 1208. Repeal of exclusion for qualified tuition reductions. Sec. 1209. Repeal of exclusion for education assistance programs. Sec. 1210. Repeal of exception to 10-percent penalty for higher education expenses. Subtitle D—Repeal of certain credits for individuals Sec. 1301. Repeal of dependent care credit. Sec. 1302. Repeal of credit for adoption expenses. Sec. 1303. Repeal of credit for nonbusiness energy property. Sec. 1304. Repeal of credit for residential energy efficient property. Sec. 1305. Repeal of credit for qualified electric vehicles. Sec. 1306. Repeal of alternative motor vehicle credit. Sec. 1307. Repeal of alternative fuel vehicle refueling property credit. Sec. 1308. Repeal of credit for new qualified plug-in electric drive motor vehicles. Sec. 1309. Repeal of credit for health insurance costs of eligible individuals. Sec. 1310. Repeal of first-time homebuyer credit. Subtitle E—Deductions, exclusions, and certain other provisions Sec. 1401. Exclusion of gain from sale of a principal residence. Sec. 1402. Mortgage interest. Sec. 1403. Charitable contributions. Sec. 1404. Denial of deduction for expenses attributable to the trade or business of being an employee. Sec. 1405. Repeal of deduction for taxes not paid or accrued in a trade or business. Sec. 1406. Repeal of deduction for personal casualty losses. Sec. 1407. Limitation on wagering losses. Sec. 1408. Repeal of deduction for tax preparation expenses. Sec. 1409. Repeal of deduction for medical expenses. Sec. 1410. Repeal of disqualification of expenses for over-the-counter drugs under certain accounts and arrangements. Sec. 1411. Repeal of deduction for alimony payments and corresponding inclusion in gross income. Sec. 1412. Repeal of deduction for moving expenses. Sec. 1413. Termination of deduction and exclusions for contributions to medical savings accounts. Sec. 1414. Repeal of 2-percent floor on miscellaneous itemized deductions. Sec. 1415. Repeal of overall limitation on itemized deductions. Sec. 1416. Deduction for amortizable bond premium allowed in determining adjusted gross income. Sec. 1417. Repeal of exclusion, etc., for employee achievement awards. Sec. 1418. Clarification of special rule for certain governmental plans. Sec. 1419. Limitation on exclusion for employer-provided housing. Sec. 1420. Fringe benefits. Sec. 1421. Repeal of exclusion of net unrealized appreciation in employer securities. Sec. 1422. Consistent basis reporting between estate and person acquiring property from decedent. Subtitle F—Employment tax modifications Sec. 1501. Modifications of deduction for Social Security taxes in computing net earnings from self-employment. Sec. 1502. Determination of net earnings from self-employment. Sec. 1503. Repeal of exemption from FICA taxes for certain foreign workers. Sec. 1504. Repeal of exemption from FICA taxes for certain students. Sec. 1505. Override of Treasury guidance providing that certain employer-provided supplemental unemployment benefits are not subject to employment taxes. Sec. 1506. Certified professional employer organizations. Subtitle G—Pensions and Retirement Part 1—Individual Retirement Plans Sec. 1601. Elimination of income limits on contributions to Roth IRA s . Sec. 1602. No new contributions to traditional IRA s . Sec. 1603. Inflation adjustment for Roth IRA contributions. Sec. 1604. Repeal of special rule permitting recharacterization of Roth IRA contributions as traditional IRA contributions. Sec. 1605. Repeal of exception to 10-percent penalty for first home purchases. Part 2—Employer-Provided Plans Sec. 1611. Termination for new SEPs. Sec. 1612. Termination for new SIMPLE 401(k)s . Sec. 1613. Rules related to designated Roth contributions. Sec. 1614. Modifications of required distribution rules for pension plans. Sec. 1615. Reduction in minimum age for allowable in-service distributions. Sec. 1616. Modification of rules governing hardship distributions. Sec. 1617. Extended rollover period for the rollover of plan loan offset amounts in certain cases. Sec. 1618. Coordination of contribution limitations for 403(b) plans and governmental 457(b) plans. Sec. 1619. Application of 10-percent early distribution tax to governmental 457 plans. Sec. 1620. Inflation adjustments for qualified plan benefit and contribution limitations. Sec. 1621. Inflation adjustments for qualified plan elective deferral limitations. Sec. 1622. Inflation adjustments for SIMPLE retirement accounts. Sec. 1623. Inflation adjustments for catch-up contributions for certain employer plans. Sec. 1624. Inflation adjustments for governmental and tax-exempt organization plans. Subtitle H—Certain provisions related to members of Indian tribes Sec. 1701. Indian general welfare benefits. Sec. 1702. Tribal Advisory Committee. Sec. 1703. Other relief for Indian tribes. Title II—Alternative Minimum Tax Repeal Sec. 2001. Repeal of alternative minimum tax. Title III—Business Tax Reform Subtitle A—Tax Rates Sec. 3001. 25-percent corporate tax rate. Subtitle B—Reform of business-Related exclusions and deductions Sec. 3101. Revision of treatment of contributions to capital. Sec. 3102. Repeal of deduction for local lobbying expenses. Sec. 3103. Expenditures for repairs in connection with casualty losses. Sec. 3104. Reform of accelerated cost recovery system. Sec. 3105. Repeal of amortization of pollution control facilities. Sec. 3106. Net operating loss deduction. Sec. 3107. Circulation expenditures. Sec. 3108. Amortization of research and experimental expenditures. Sec. 3109. Repeal of deductions for soil and water conservation expenditures and endangered species recovery expenditures. Sec. 3110. Amortization of certain advertising expenses. Sec. 3111. Expensing certain depreciable business assets for small business. Sec. 3112. Repeal of election to expense certain refineries. Sec. 3113. Repeal of deduction for energy efficient commercial buildings. Sec. 3114. Repeal of election to expense advanced mine safety equipment. Sec. 3115. Repeal of deduction for expenditures by farmers for fertilizer, etc. Sec. 3116. Repeal of special treatment of certain qualified film and television productions. Sec. 3117. Repeal of special rules for recoveries of damages of antitrust violations, etc. Sec. 3118. Treatment of reforestation expenditures. Sec. 3119. 20-year amortization of goodwill and certain other intangibles. Sec. 3120. Treatment of environmental remediation costs. Sec. 3121. Repeal of expensing of qualified disaster expenses. Sec. 3122. Phaseout and repeal of deduction for income attributable to domestic production activities. Sec. 3123. Unification of deduction for organizational expenditures. Sec. 3124. Prevention of arbitrage of deductible interest expense and tax-exempt interest income. Sec. 3125. Prevention of transfer of certain losses from tax indifferent parties. Sec. 3126. Entertainment, etc. expenses. Sec. 3127. Repeal of limitation on corporate acquisition indebtedness. Sec. 3128. Denial of deductions and credits for expenditures in illegal businesses. Sec. 3129. Limitation on deduction for FDIC premiums. Sec. 3130. Repeal of percentage depletion. Sec. 3131. Repeal of passive activity exception for working interests in oil and gas property. Sec. 3132. Repeal of special rules for gain or loss on timber, coal, or domestic iron ore. Sec. 3133. Repeal of like-kind exchanges. Sec. 3134. Restriction on trade or business property treated as similar or related in service to involuntarily converted property in disaster areas. Sec. 3135. Repeal of rollover of publicly traded securities gain into specialized small business investment companies. Sec. 3136. Termination of special rules for gain from certain small business stock. Sec. 3137. Certain self-created property not treated as a capital asset. Sec. 3138. Repeal of special rule for sale or exchange of patents. Sec. 3139. Depreciation recapture on gain from disposition of certain depreciable realty. Sec. 3140. Common deduction conforming amendments. Subtitle C—Reform of business credits Sec. 3201. Repeal of credit for alcohol, etc., used as fuel. Sec. 3202. Repeal of credit for biodiesel and renewable diesel used as fuel. Sec. 3203. Research credit modified and made permanent. Sec. 3204. Low-income housing tax credit. Sec. 3205. Repeal of enhanced oil recovery credit. Sec. 3206. Phaseout and repeal of credit for electricity produced from certain renewable resources. Sec. 3207. Repeal of Indian employment credit. Sec. 3208. Repeal of credit for portion of employer Social Security taxes paid with respect to employee cash tips. Sec. 3209. Repeal of credit for clinical testing expenses for certain drugs for rare diseases or conditions. Sec. 3210. Repeal of credit for small employer pension plan startup costs. Sec. 3211. Repeal of employer-provided child care credit. Sec. 3212. Repeal of railroad track maintenance credit. Sec. 3213. Repeal of credit for production of low sulfur diesel fuel. Sec. 3214. Repeal of credit for producing oil and gas from marginal wells. Sec. 3215. Repeal of credit for production from advanced nuclear power facilities. Sec. 3216. Repeal of credit for producing fuel from a nonconventional source. Sec. 3217. Repeal of new energy efficient home credit. Sec. 3218. Repeal of energy efficient appliance credit. Sec. 3219. Repeal of mine rescue team training credit. Sec. 3220. Repeal of agricultural chemicals security credit. Sec. 3221. Repeal of credit for carbon dioxide sequestration. Sec. 3222. Repeal of credit for employee health insurance expenses of small employers. Sec. 3223. Repeal of rehabilitation credit. Sec. 3224. Repeal of energy credit. Sec. 3225. Repeal of qualifying advanced coal project credit. Sec. 3226. Repeal of qualifying gasification project credit. Sec. 3227. Repeal of qualifying advanced energy project credit. Sec. 3228. Repeal of qualifying therapeutic discovery project credit. Sec. 3229. Repeal of work opportunity tax credit. Sec. 3230. Repeal of deduction for certain unused business credits. Subtitle D—Accounting methods Sec. 3301. Limitation on use of cash method of accounting. Sec. 3302. Rules for determining whether taxpayer has adopted a method of accounting. Sec. 3303. Certain special rules for taxable year of inclusion. Sec. 3304. Installment sales. Sec. 3305. Repeal of special rule for prepaid subscription income. Sec. 3306. Repeal of special rule for prepaid dues income of certain membership organizations. Sec. 3307. Repeal of special rule for magazines, paperbacks, and records returned after close of the taxable year. Sec. 3308. Modification of rules for long-term contracts. Sec. 3309. Nuclear decommissioning reserve funds. Sec. 3310. Repeal of last-in, first-out method of inventory. Sec. 3311. Repeal of lower of cost or market method of inventory. Sec. 3312. Modification of rules for capitalization and inclusion in inventory costs of certain expenses. Sec. 3313. Modification of income forecast method. Sec. 3314. Repeal of averaging of farm income. Sec. 3315. Treatment of patent or trademark infringement awards. Sec. 3316. Repeal of redundant rules with respect to carrying charges. Sec. 3317. Repeal of recurring item exception for spudding of oil or gas wells. Subtitle E—Financial Instruments Part 1—Derivatives and hedges Sec. 3401. Treatment of certain derivatives. Sec. 3402. Modification of certain rules related to hedges. Part 2—Treatment of debt instruments Sec. 3411. Current inclusion in income of market discount. Sec. 3412. Treatment of certain exchanges of debt instruments. Sec. 3413. Coordination with rules for inclusion not later than for financial accounting purposes. Sec. 3414. Rules regarding certain government debt. Part 3—Certain rules for determining gain and loss Sec. 3421. Cost basis of specified securities determined without regard to identification. Sec. 3422. Wash sales by related parties. Sec. 3423. Nonrecognition for derivative transactions by a corporation with respect to its stock. Part 4—Tax favored bonds Sec. 3431. Termination of private activity bonds. Sec. 3432. Termination of credit for interest on certain home mortgages. Sec. 3433. Repeal of advance refunding bonds. Sec. 3434. Repeal of tax credit bond rules. Subtitle F—Insurance reforms Sec. 3501. Exception to pro rata interest expense disallowance for corporate-owned life insurance restricted to 20-percent owners. Sec. 3502. Net operating losses of life insurance companies. Sec. 3503. Repeal of small life insurance company deduction. Sec. 3504. Computation of life insurance tax reserves. Sec. 3505. Adjustment for change in computing reserves. Sec. 3506. Modification of rules for life insurance proration for purposes of determining the dividends received deduction. Sec. 3507. Repeal of special rule for distributions to shareholders from pre-1984 policyholders surplus account. Sec. 3508. Modification of proration rules for property and casualty insurance companies. Sec. 3509. Repeal of special treatment of Blue Cross and Blue Shield organizations, etc. Sec. 3510. Modification of discounting rules for property and casualty insurance companies. Sec. 3511. Repeal of special estimated tax payments. Sec. 3512. Capitalization of certain policy acquisition expenses. Sec. 3513. Tax reporting for life settlement transactions. Sec. 3514. Clarification of tax basis of life insurance contracts. Sec. 3515. Exception to transfer for valuable consideration rules. Subtitle G—Pass-Thru and certain other entities Part 1—S Corporations Sec. 3601. Reduced recognition period for built-in gains made permanent. Sec. 3602. Modifications to S corporation passive investment income rules. Sec. 3603. Expansion of qualifying beneficiaries of an electing small business trust. Sec. 3604. Charitable contribution deduction for electing small business trusts. Sec. 3605. Permanent rule regarding basis adjustment to stock of S corporations making charitable contributions of property. Sec. 3606. Extension of time for making S corporation elections. Sec. 3607. Relocation of C corporation definition. Part 2—Partnerships Sec. 3611. Repeal of rules relating to guaranteed payments and liquidating distributions. Sec. 3612. Mandatory adjustments to basis of partnership property in case of transfer of partnership interests. Sec. 3613. Mandatory adjustments to basis of undistributed partnership property. Sec. 3614. Corresponding adjustments to basis of properties held by partnership where partnership basis adjusted. Sec. 3615. Charitable contributions and foreign taxes taken into account in determining limitation on allowance of partner’s share of loss. Sec. 3616. Revisions related to unrealized receivables and inventory items. Sec. 3617. Repeal of time limitation on taxing precontribution gain. Sec. 3618. Partnership interests created by gift. Sec. 3619. Repeal of technical termination. Sec. 3620. Publicly traded partnership exception restricted to mining and natural resources partnerships. Sec. 3621. Ordinary income treatment in the case of partnership interests held in connection with performance of services. Sec. 3622. Partnership audits and adjustments. Part 3—REITs and RICs Sec. 3631. Prevention of tax-free spinoffs involving REITs. Sec. 3632. Extension of period for prevention of REIT election following revocation or termination. Sec. 3633. Certain short-life property not treated as real property for purposes of REIT provisions. Sec. 3634. Repeal of special rules for timber held by REITs. Sec. 3635. Limitation on fixed percentage rent and interest exceptions for REIT income tests. Sec. 3636. Repeal of preferential dividend rule for publicly offered REITs. Sec. 3637. Authority for alternative remedies to address certain REIT distribution failures. Sec. 3638. Limitations on designation of dividends by REITs. Sec. 3639. Non-REIT earnings and profits required to be distributed by REIT in cash. Sec. 3640. Debt instruments of publicly offered REITs and mortgages treated as real estate assets. Sec. 3641. Asset and income test clarification regarding ancillary personal property. Sec. 3642. Hedging provisions. Sec. 3643. Modification of REIT earnings and profits calculation to avoid duplicate taxation. Sec. 3644. Reduction in percentage limitation on assets of REIT which may be taxable REIT subsidiaries. Sec. 3645. Treatment of certain services provided by taxable REIT subsidiaries. Sec. 3646. Study relating to taxable REIT subsidiaries. Sec. 3647. C corporation election to become, or transfer assets to, a RIC or REIT. Sec. 3648. Interests in RICs and REITs not excluded from definition of United States real property interests. Sec. 3649. Dividends derived from RICs and REITs ineligible for deduction for United States source portion of dividends from certain foreign corporations. Part 4—Personal holding companies Sec. 3661. Exclusion of dividends from controlled foreign corporations from the definition of personal holding company income for purposes of the personal holding company rules. Subtitle H—Taxation of foreign persons Sec. 3701. Prevention of avoidance of tax through reinsurance with non-taxed affiliates. Sec. 3702. Taxation of passenger cruise gross income of foreign corporations and nonresident alien individuals. Sec. 3703. Restriction on insurance business exception to passive foreign investment company rules. Sec. 3704. Modification of limitation on earnings stripping. Sec. 3705. Limitation on treaty benefits for certain deductible payments. Subtitle I—Provisions related to compensation Part 1—Executive compensation Sec. 3801. Nonqualified deferred compensation. Sec. 3802. Modification of limitation on excessive employee remuneration. Sec. 3803. Excise tax on excess tax-exempt organization executive compensation. Sec. 3804. Denial of deduction as research expenditure for stock transferred pursuant to an incentive stock option. Part 2—Worker classification Sec. 3811. Determination of worker classification. Subtitle J—Zones and Short-Term Regional Benefits Sec. 3821. Repeal of provisions relating to Empowerment Zones and Enterprise Communities. Sec. 3822. Repeal of DC Zone provisions. Sec. 3823. Repeal of provisions relating to renewal communities. Sec. 3824. Repeal of various short-term regional benefits. Title IV—Participation exemption system for the taxation of foreign income Subtitle A—Establishment of exemption system Sec. 4001. Deduction for dividends received by domestic corporations from certain foreign corporations. Sec. 4002. Limitation on losses with respect to specified 10-percent owned foreign corporations. Sec. 4003. Treatment of deferred foreign income upon transition to participation exemption system of taxation. Sec. 4004. Look-thru rule for related controlled foreign corporations made permanent. Subtitle B—Modifications related to foreign tax credit system Sec. 4101. Repeal of section 902 indirect foreign tax credits; determination of section 960 credit on current year basis. Sec. 4102. Foreign tax credit limitation applied by allocating only directly allocable deductions to foreign source income. Sec. 4103. Passive category income expanded to include other mobile income. Sec. 4104. Source of income from sales of inventory determined solely on basis of production activities. Subtitle C—Rules related to passive and mobile income Part 1—Modification of subpart F provisions Sec. 4201. Subpart F income to only include low-taxed foreign income. Sec. 4202. Foreign base company sales income. Sec. 4203. Inflation adjustment of de minimis exception for foreign base company income. Sec. 4204. Active financing exception extended with limitation for low-taxed foreign income. Sec. 4205. Repeal of inclusion based on withdrawal of previously excluded subpart F income from qualified investment. Part 2—Prevention of base erosion Sec. 4211. Foreign intangible income subject to taxation at reduced rate; intangible income treated as subpart F income. Sec. 4212. Denial of deduction for interest expense of United States shareholders which are members of worldwide affiliated groups with excess domestic indebtedness. Title V—Tax Exempt Entities Subtitle A—Unrelated Business Income Tax Sec. 5001. Clarification of unrelated business income tax treatment of entities treated as exempt from taxation under section 501(a) . Sec. 5002. Name and logo royalties treated as unrelated business taxable income. Sec. 5003. Unrelated business taxable income separately computed for each trade or business activity. Sec. 5004. Exclusion of research income limited to publicly available research. Sec. 5005. Parity of charitable contribution limitation between trusts and corporations. Sec. 5006. Increased specific deduction. Sec. 5007. Repeal of exclusion of gain or loss from disposition of distressed property. Sec. 5008. Qualified sponsorship payments. Subtitle B—Penalties Sec. 5101. Increase in information return penalties. Sec. 5102. Manager-level accuracy-related penalty on underpayment of unrelated business income tax. Subtitle C—Excise Taxes Sec. 5201. Modification of intermediate sanctions. Sec. 5202. Modification of taxes on self-dealing. Sec. 5203. Excise tax on failure to distribute within 5 years contribution to donor advised fund. Sec. 5204. Simplification of excise tax on private foundation investment income. Sec. 5205. Repeal of exception for private operating foundation failure to distribute income. Sec. 5206. Excise tax based on investment income of private colleges and universities. Subtitle D—Requirements for Organizations Exempt From Tax Sec. 5301. Repeal of tax-exempt status for professional sports leagues. Sec. 5302. Repeal of exemption from tax for certain insurance companies and co-op health insurance issuers. Sec. 5303. In-State requirement for workmen’s compensation insurance organization. Sec. 5304. Repeal of Type II and Type III supporting organizations. Title VI—Tax administration and compliance Subtitle A—IRS Investigation-Related Reforms Sec. 6001. Organizations required to notify Secretary of intent to operate as 501(c)(4) . Sec. 6002. Declaratory judgments for 501(c)(4) organizations. Sec. 6003. Restriction on donation reporting for certain 501(c)(4) organizations. Sec. 6004. Mandatory electronic filing for annual returns of exempt organizations. Sec. 6005. Duty to ensure that IRS employees are familiar with and act in accord with certain taxpayer rights. Sec. 6006. Termination of employment of IRS employees for taking official actions for political purposes. Sec. 6007. Release of information regarding the status of certain investigations. Sec. 6008. Review of IRS examination selection procedures. Sec. 6009. IRS employees prohibited from using personal email accounts for official business. Sec. 6010. Moratorium on IRS conferences. Sec. 6011. Applicable standard for determinations of whether an organization is operated exclusively for the promotion of social welfare. Subtitle B—Taxpayer Protection and Service Reforms Sec. 6101. Extension of IRS authority to require truncated Social Security numbers on Form W–2. Sec. 6102. Free electronic filing. Sec. 6103. Pre-populated returns prohibited. Sec. 6104. Form 1040SR for seniors. Sec. 6105. Increased refund and credit threshold for Joint Committee on Taxation review of C corporation return. Subtitle C—Tax return due date simplification Sec. 6201. Due dates for returns of partnerships, S corporations, and C corporations. Sec. 6202. Modification of due dates by regulation. Sec. 6203. Corporations permitted statutory automatic 6-month extension of income tax returns. Subtitle D—Compliance Reforms Sec. 6301. Penalty for failure to file. Sec. 6302. Penalty for failure to file correct information returns and provide payee statements. Sec. 6303. Clarification of 6-year statute of limitations in case of overstatement of basis. Sec. 6304. Reform of rules related to qualified tax collection contracts. Sec. 6305. 100 percent continuous levy on payments to Medicare providers and suppliers. Sec. 6306. Treatment of refundable credits for purposes of certain penalties. Title VII—Excise taxes Sec. 7001. Repeal of medical device excise tax. Sec. 7002. Modifications relating to oil spill liability trust fund. Sec. 7003. Modification relating to inland waterways trust fund financing rate. Sec. 7004. Excise tax on systemically important financial institutions. Sec. 7005. Clarification of orphan drug exception to annual fee on branded prescription pharmaceutical manufacturers and importers. Title VIII—Deadwood and technical provisions Subtitle A—Repeal of Deadwood Sec. 8001. Repeal of Puerto Rico economic activity credit. Sec. 8002. Repeal of making work pay credit. Sec. 8003. General business credit. Sec. 8004. Environmental tax. Sec. 8005. Annuities; certain proceeds of endowment and life insurance contracts. Sec. 8006. Unemployment compensation. Sec. 8007. Flexible spending arrangements. Sec. 8008. Certain combat zone compensation of members of the armed forces. Sec. 8009. Qualified group legal services plans. Sec. 8010. Certain reduced uniformed services retirement pay. Sec. 8011. Great plains conservation program. Sec. 8012. State legislators’ travel expenses away from home. Sec. 8013. Treble damage payments under the antitrust law. Sec. 8014. Phase-in of limitation on investment interest. Sec. 8015. Charitable, etc., contributions and gifts. Sec. 8016. Amortizable bond premium. Sec. 8017. Repeal of deduction for clean-fuel vehicles and certain refueling property. Sec. 8018. Repeal of deduction for capital costs incurred in complying with environmental protection agency sulfur regulations. Sec. 8019. Activities not engaged in for profit. Sec. 8020. Dividends received on certain preferred stock; and dividends paid on certain preferred stock of public utilities. Sec. 8021. Acquisitions made to evade or avoid income tax. Sec. 8022. Distributions of property. Sec. 8023. Effect on earnings and profits. Sec. 8024. Basis to corporations. Sec. 8025. Tax credit employee stock ownership plans. Sec. 8026. Employee stock purchase plans. Sec. 8027. Transition rules. Sec. 8028. Limitation on deductions for certain farming. Sec. 8029. Deductions limited to amount at risk. Sec. 8030. Passive activity losses and credits limited. Sec. 8031. Adjustments required by changes in method of accounting. Sec. 8032. Exemption from tax on corporations, certain trusts, etc. Sec. 8033. Requirements for exemption. Sec. 8034. Repeal of special treatment for religious broadcasting company. Sec. 8035. Repeal of exclusion of gain or loss from disposition of brownfield property. Sec. 8036. Accumulated taxable income. Sec. 8037. Certain provisions related to depletion. Sec. 8038. Amounts received by surviving annuitant under joint and survivor annuity contract. Sec. 8039. Income taxes of members of armed forces on death. Sec. 8040. Special rules for computing reserves. Sec. 8041. Insurance company taxable income. Sec. 8042. Capitalization of certain policy acquisition expenses. Sec. 8043. Repeal of provision on expatriation to avoid tax. Sec. 8044. Repeal of certain transition rules on income from sources without United States. Sec. 8045. Repeal of Puerto Rico and possession tax credit. Sec. 8046. Basis of property acquired from decedent. Sec. 8047. Property on which lessee has made improvements. Sec. 8048. Involuntary conversion. Sec. 8049. Property acquired during affiliation. Sec. 8050. Repeal of special holding period rules for certain commodity futures transactions. Sec. 8051. Holding period of property. Sec. 8052. Property used in the trade or business and involuntary conversions. Sec. 8053. Sale of patents. Sec. 8054. Gain from disposition of farmland. Sec. 8055. Transition rules related to the treatment of amounts received on retirement or sale or exchange of debt instruments. Sec. 8056. Certain rules with respect to debt instruments issued before July 2, 1982. Sec. 8057. Certain rules with respect to stripped bonds purchased before July 2, 1982. Sec. 8058. Amount and method of adjustment. Sec. 8059. Old-age, survivors, and disability insurance. Sec. 8060. Hospital insurance. Sec. 8061. Ministers, members of religious orders, and christian science practitioners. Sec. 8062. Affiliated group defined. Sec. 8063. Credit for state death taxes. Sec. 8064. Family-owned business interest. Sec. 8065. Property within the united states. Sec. 8066. Repeal of deadwood provisions relating to employment taxes. Sec. 8067. Luxury passenger automobiles. Sec. 8068. Transportation by air. Sec. 8069. Taxes on failure to distribute income. Sec. 8070. Taxes on taxable expenditures. Sec. 8071. Definitions and special rules. Sec. 8072. Returns. Sec. 8073. Information returns. Sec. 8074. Abatements. Sec. 8075. Failure by corporation to pay estimated income tax. Sec. 8076. Repeal of 2008 recovery rebates. Sec. 8077. Repeal of advance payment of portion of increased child credit for 2003. Sec. 8078. Repeal of provisions related to COBRA premium assistance. Sec. 8079. Retirement. Sec. 8080. Annuities to surviving spouses and dependent children of judges. Sec. 8081. Merchant marine capital construction funds. Sec. 8082. Valuation tables. Sec. 8083. Definition of employee. Sec. 8084. Effective date. Subtitle B—Conforming Amendments Related to Multiple Sections Sec. 8101. Conforming amendments related to multiple sections. I Tax Reform for Individuals A Individual income tax rate reform 1001. Simplification of individual income tax rates (a) In general Section 1 is amended to read as follows: 1. Tax imposed (a) In general There is hereby imposed on the income of every individual a tax equal to the sum of— (1) 10 percent bracket 10 percent of so much of the taxable income as does not exceed the 25-percent bracket threshold amount, (2) 25 percent bracket 25 percent of so much of the taxable income as exceeds the 25-percent bracket threshold amount, plus (3) 35 percent bracket 10 percent of so much of the modified adjusted gross income (as defined in section 2) as exceeds the 35-percent bracket threshold amount. (b) Bracket threshold amounts For purposes of this section— (1) 25-percent bracket threshold amount The term 25-percent bracket threshold amount means— (A) in the case of a joint return or surviving spouse, $71,200, (B) in the case of any other individual (other than an estate or trust), one-half of the dollar amount in effect under subparagraph (A), and (C) in the case of an estate or trust, zero. (2) 35-percent bracket threshold amount The term 35-percent bracket threshold amount means— (A) in the case of a joint return or surviving spouse, $450,000, (B) in the case of any other individual (other than an estate or trust), $400,000, and (C) in the case of an estate or trust, $12,000. (c) Inflation adjustment (1) In general In the case of any taxable year beginning after 2014, each dollar amount in subsections (b)(1)(A), (b)(2)(A), (b)(2)(B), (b)(2)(C), (e)(3)(A), and (e)(3)(B) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under this subsection for the calendar year in which the taxable year begins. If any increase determined under the preceding sentence is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100. (2) Cost-of-living adjustment For purposes of this subsection— (A) In general The cost-of-living adjustment for any calendar year is the percentage (if any) by which— (i) the C-CPI-U for the preceding calendar year, exceeds (ii) the normalized CPI for calendar year 2012. (B) Special rule for adjustments with a base year after 2012 For purposes of any provision which provides for the substitution of a year after 2012 for 2012 in subparagraph (A)(ii), subparagraph (A) shall be applied by substituting C-CPI-U for normalized CPI in clause (ii). (3) Normalized CPI For purposes of this subsection, the normalized CPI for any calendar year is the product of— (A) the CPI for such calendar year, multiplied by (B) the C-CPI-U transition multiple. (4) C-CPI-U transition multiple For purposes of this subsection, the term C-CPI-U transition multiple means the amount obtained by dividing— (A) the C-CPI-U for calendar year 2013, by (B) the CPI for calendar year 2013. (5) C-CPI-U For purposes of this subsection— (A) In general The term C-CPI-U means the Chained Consumer Price Index for All Urban Consumers (as published by the Bureau of Labor Statistics of the Department of Labor). The values of the Chained Consumer Price Index for All Urban Consumers taken into account for purposes of determining the cost-of-living adjustment for any calendar year under this subsection shall be the latest values so published as of the date on which such Bureau publishes the initial value of the Chained Consumer Price Index for All Urban Consumers for the month of August for the preceding calendar year. (B) Determination for calendar year The C-CPI-U for any calendar year is the average of the C-CPI-U as of the close of the 12-month period ending on August 31 of such calendar year. (6) CPI For purposes of this subsection— (A) In general The term Consumer Price Index means the last Consumer Price Index for All Urban Consumers published by the Department of Labor. For purposes of the preceding sentence, the revision of the Consumer Price Index which is most consistent with the Consumer Price Index for calendar year 1986 shall be used. (B) Determination for calendar year The CPI for any calendar year is the average of the Consumer Price Index as of the close of the 12-month period ending on August 31 of such calendar year. (d) Special rules for certain children with unearned income (1) In general In the case of any child to whom this subsection applies for any taxable year— (A) the 25-percent bracket threshold amount shall not be more than the taxable income of such child for the taxable year reduced by the net unearned income of such child, and (B) the 35-percent bracket threshold amount shall not be more than the sum of— (i) the taxable income of such child for the taxable year reduced by the net unearned income of such child, plus (ii) the dollar amount in effect under subsection (b)(2)(C) for the taxable year. (2) Child to whom subsection applies This subsection shall apply to any child for any taxable year if— (A) such child— (i) has not attained age 18 before the close of the taxable year, or (ii) has attained age 18 before the close of the taxable year and is described in paragraph (3), (B) either parent of such child is alive at the close of the taxable year, and (C) such child does not file a joint return for the taxable year. (3) Certain children whose earned income does not exceed one-half of individual’s support A child is described in this paragraph if— (A) such child— (i) has not attained age 19 before the close of the taxable year, or (ii) is a student (within the meaning of section 7705(f)(2)) who has not attained age 24 before the close of the taxable year, and (B) such child’s earned income (as defined in section 911(d)(2)) for such taxable year does not exceed one-half of the amount of the individual’s support (within the meaning of section 7705(c)(1)(D) after the application of section 7705(f)(5) (without regard to subparagraph (A) thereof)) for such taxable year. (4) Net unearned income For purposes of this subsection— (A) In general The term net unearned income means the excess of— (i) the portion of the adjusted gross income for the taxable year which is not attributable to earned income (as defined in section 911(d)(2)), over (ii) the sum of— (I) the amount in effect for the taxable year under section 63(c)(4)(A) (relating to limitation on standard deduction in the case of certain dependents), plus (II) the greater of the amount described in subclause (I) or, if the child itemizes his deductions for the taxable year, the amount of the itemized deductions allowed by this chapter for the taxable year which are directly connected with the production of the portion of adjusted gross income referred to in clause (i). (B) Limitation based on taxable income The amount of the net unearned income for any taxable year shall not exceed the individual’s taxable income for such taxable year. (e) Phaseout of 10-Percent rate (1) In general The amount of tax imposed by this section (determined without regard to this subsection) shall be increased by 5 percent of the excess (if any) of— (A) modified adjusted gross income, over (B) the applicable dollar amount. (2) Limitation The increase determined under paragraph (1) with respect to any taxpayer for any taxable year shall not exceed 15 percent of the lesser of— (A) the taxpayer’s taxable income for such taxable year, or (B) the 25-percent bracket threshold amount in effect with respect to the taxpayer for such taxable year. (3) Applicable dollar amount For purposes of this subsection, the term applicable dollar amount means— (A) in the case of a joint return or a surviving spouse, $300,000, (B) in the case of any other individual, $250,000. (4) Estates and trusts Paragraph (1) shall not apply in the case of an estate or trust. (f) Determination of highest rate For purposes of any provision of law which refers to the highest rate of tax specified in this section (or any subsection of this section), such highest rate shall be treated as being 35 percent. . (b) Modified adjusted gross income Section 2 is amended by striking subsection (b), by redesignating subsections (c), (d), and (e), as subsections (d), (e), and (f), respectively, and by inserting after subsection (a) the following new subsections: (b) Modified adjusted gross income For purposes of section 1— (1) In general The term modified adjusted gross income means adjusted gross income— (A) increased by— (i) any amount excluded from gross income under sections 911, 931, and 933, (ii) the excess (if any) of— (I) amounts of interest received or accrued by the taxpayer during the taxable year which are exempt from tax, over (II) amounts disallowed as a deduction by reason of section 163(d)(1)(A) or 171(a)(2), (iii) any exclusion from gross income with respect to the cost described in section 6051(a)(14) (without regard to subparagraphs (A) and (B) thereof), (iv) any deduction allowable under section 162(l) (relating to special rules for health insurance costs of self-employed individuals), (v) any annual addition (as defined in section 415(c)(2)) to a defined contribution plan which is not includible in, or which is deductible from, the gross income of the individual for the taxable year, (vi) any deduction allowable under section 223, and (vii) the excess (if any) of— (I) the social security benefits of the individual for the taxable year (as defined in section 86(d)), over (II) the amount included in the gross income of such individual for such taxable year under section 86, and (B) decreased by— (i) any deduction allowed under section 170 (and in the case of an estate or trust, any deduction allowed under section 642(c)), and (ii) qualified domestic manufacturing income. (2) Determination of adjusted gross income in case of estates and trusts For purposes of this subsection, the adjusted gross income of an estate or trust shall be computed in the same manner as in the case of an individual, except that— (A) the deductions for costs which are paid or incurred in connection with the administration of the estate or trust and which would not have been incurred if the property were not held in such trust or estate, and (B) the deductions allowable under sections 642(b), 651, and 661, shall be treated as allowable in arriving at adjusted gross income. Under regulations, appropriate adjustments shall be made in the application of part I of subchapter J of this chapter to take into account the application of this paragraph. (c) Qualified domestic manufacturing income (1) In general For purposes of subsection (b), the term qualified domestic manufacturing income for any taxable year means an amount equal to the excess (if any) of— (A) the taxpayer’s domestic manufacturing gross receipts for such taxable year, over (B) the sum of— (i) the cost of goods sold that are allocable to such receipts, and (ii) other expenses, losses, or deductions, which are properly allocable to such receipts. (2) Allocation method The Secretary shall prescribe rules for the proper allocation of items described in paragraph (1) for purposes of determining qualified domestic manufacturing income. Such rules shall provide for the proper allocation of items whether or not such items are directly allocable to domestic manufacturing gross receipts. (3) Special rules for determining costs (A) In general For purposes of determining costs under clause (i) of paragraph (1)(B), any item or service brought into the United States shall be treated as acquired by purchase, and its cost shall be treated as not less than its value immediately after it entered the United States. A similar rule shall apply in determining the adjusted basis of leased or rented property where the lease or rental gives rise to domestic manufacturing gross receipts. (B) Exports for further manufacture In the case of any property described in subparagraph (A) that had been exported by the taxpayer for further manufacture, the increase in cost or adjusted basis under subparagraph (A) shall not exceed the difference between the value of the property when exported and the value of the property when brought back into the United States after the further manufacture. (4) Domestic manufacturing gross receipts For purposes of this subsection— (A) In general The term domestic manufacturing gross receipts means the gross receipts of the taxpayer which are derived from— (i) any lease, rental, license, sale, exchange, or other disposition of tangible personal property which was manufactured, produced, grown, or extracted by the taxpayer in whole or in significant part within the United States, or (ii) in the case of a taxpayer engaged in the active conduct of a construction trade or business, construction of real property performed in the United States by the taxpayer in the ordinary course of such trade or business if such real property is placed in service after December 31, 2014. (B) Exceptions Such term shall not include gross receipts of the taxpayer which are derived from— (i) the sale of food and beverages prepared by the taxpayer at a retail establishment, (ii) the transmission or distribution of electricity, natural gas, or potable water, and (iii) the lease, rental, license, sale, exchange, or other disposition of land. (C) Special rule for certain government contracts Gross receipts derived from the manufacture or production of any property described in subparagraph (A)(i) shall be treated as meeting the requirements of subparagraph (A)(i) if— (i) such property is manufactured or produced by the taxpayer pursuant to a contract with the Federal Government, and (ii) the Federal Acquisition Regulation requires that title or risk of loss with respect to such property be transferred to the Federal Government before the manufacture or production of such property is complete. (D) Treatment of activities in Puerto Rico In the case of any taxpayer with gross receipts for any taxable year from sources within the Commonwealth of Puerto Rico, if all of such receipts are taxable under section 1 for such taxable year, then this paragraph shall be applied by treating each reference in subparagraph (A) to the United States as including the Commonwealth of Puerto Rico. (E) Tangible personal property The term tangible personal property shall not include computer software or any property described in paragraph (3) or (4) of section 168(f). (F) Related persons (i) In general The term domestic manufacturing gross receipts shall not include any gross receipts of the taxpayer derived from property leased, licensed, or rented by the taxpayer for use by any related person. (ii) Related person For purposes of clause (i), a person shall be treated as related to another person if such persons are treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414, except that determinations under subsections (a) and (b) of section 52 shall be made without regard to section 1563(b). (5) Certain income not qualified (A) Net earnings from self employment Domestic manufacturing gross receipts shall not include any amount which is properly allocable to the taxpayer’s net earnings from self employment (determined after any reduction provided under section 1402(m)). (B) Certain accounting method adjustments Domestic manufacturing gross receipts shall not include any amount attributable to— (i) a qualified change in method of accounting (as defined in section 3301(d)(2) of the Tax Reform Act of 2014 ), or (ii) any other change in method of accounting which is required by the amendments made by such Act. (6) Application of section to pass-through entities (A) Partnerships and s corporations Except as provided in subparagraph (B), in the case of a partnership or S corporation, each partner or shareholder shall take into account such person’s allocable share of each item described in subparagraph (A) or (B) of paragraph (1) (determined without regard to whether the items described in such subparagraph (A) exceed the items described in such subparagraph (B)). (B) Publicly traded partnerships In the case of a publicly traded partnership described in section 7704(c), each partner shall not take into account any allocable share of any item referred to in subparagraph (A). (C) Trusts and estates In the case of a trust or estate, the items referred to in subparagraph (A) (as determined therein) shall be apportioned between the beneficiaries and the fiduciary (and among the beneficiaries) under regulations prescribed by the Secretary. (7) Regulations The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance— (A) which prevent more than 1 taxpayer from taking into account the same qualified domestic manufacturing income, and (B) which require or restrict the allocation of items under paragraph (6) and require such reporting for purposes of carrying out such paragraph as the Secretary determines appropriate. (8) Phase-in of exclusion In the case of any taxable year beginning before January 1, 2017, the term qualified domestic manufacturing income shall be an amount equal to the product of the qualified domestic manufacturing income determined without regard to this paragraph, multiplied by— (A) in the case of any taxable year beginning in 2015, 33 percent, and (B) in the case of any taxable year beginning in 2016, 67 percent. . (c) Application of section 15 (1) In general Subsection (a) of section 15 is amended by striking this chapter and inserting section 11 . (2) Conforming amendments (A) Section 15 is amended by striking subsections (d) and (f) and by redesignating subsection (e) as subsection (d). (B) Section 15(d), as redesignated by subparagraph (A), is amended by striking section 1 or 11(b) and inserting section 11(b) . (C) Subchapter A of chapter 1 is amended— (i) by redesignating section 12 as section 13, (ii) by redesignating section 15 (as amended by this subsection) as section 12 and moving such section from part III of such subchapter to after section 11 in part II of such subchapter, (iii) by striking part III, and (iv) by amending the table of sections for part II of such subchapter by redesignating the item relating to section 12 as an item relating to section 13 and by inserting after the item relating to section 11 the following new item: Sec. 12. Effect of changes. . (D) Section 6013(c) is amended by striking sections 15, 443, and 7851(a)(1)(A) and inserting sections 443 and 7851(a)(1)(A) . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1002. Deduction for adjusted net capital gain (a) In general Part VI of subchapter B of chapter 1, as amended by section 3105, is amended by inserting after section 168 the following new section: 169. Adjusted net capital gain (a) In general If for any taxable year a taxpayer other than a corporation has an adjusted net capital gain, 40 percent of the amount of the adjusted net capital gain shall be allowed as a deduction from gross income. (b) Adjusted net capital gain For purposes of this section, the term adjusted net capital gain means the sum of— (1) net capital gain reduced (but not below zero) by the net collectibles gain, plus (2) qualified dividend income. (c) Net capital gain reduced by amounts taken into account as investment income For purposes of this section, the net capital gain for any taxable year shall be reduced (but not below zero) by the amount which the taxpayer takes into account as investment income under section 163(d)(4)(B)(iii). (d) Net collectibles gain For purposes of this section— (1) In general The term net collectibles gain means the excess (if any) of— (A) collectibles gain, over (B) collectibles loss. (2) Collectibles gain and loss The terms collectibles gain and collectibles loss mean gain or loss (respectively) from the sale or exchange of a collectible (as defined in section 408(m) without regard to paragraph (3) thereof) which is a capital asset held for more than 1 year but only to the extent such gain is taken into account in computing gross income and such loss is taken into account in computing taxable income. (3) Partnerships, etc For purposes of paragraph (2), any gain from the sale of an interest in a partnership, S corporation, or trust which is attributable to unrealized appreciation in the value of collectibles shall be treated as gain from the sale or exchange of a collectible. Rules similar to the rules of section 751 shall apply for purposes of the preceding sentence. (e) Qualified dividend income For purposes of this section— (1) In general The term qualified dividend income means dividends received during the taxable year from— (A) domestic corporations, and (B) qualified foreign corporations. (2) Certain dividends excluded Such term shall not include— (A) any dividend from a corporation which for the taxable year of the corporation in which the distribution is made, or the preceding taxable year, is a corporation exempt from tax under section 501 or 521, (B) any amount allowed as a deduction under section 591 (relating to deduction for dividends paid by mutual savings banks, etc.), and (C) any dividend described in section 404(k). (3) Coordination with section 246(c) Such term shall not include any dividend on any share of stock— (A) with respect to which the holding period requirements of section 246(c) are not met (determined without regard to paragraph (5) of section 246(c) and by substituting in section 246(c) 60 days for 45 days each place it appears and by substituting 121-day period for 91-day period ), or (B) to the extent that the taxpayer is under an obligation (whether pursuant to a short sale or otherwise) to make related payments with respect to positions in substantially similar or related property. (4) Qualified foreign corporations (A) In general Except as otherwise provided in this subparagraph, the term qualified foreign corporation means any foreign corporation if— (i) such corporation is incorporated in a possession of the United States, or (ii) such corporation is eligible as a qualified resident for all of the benefits provided under a comprehensive income tax treaty with the United States which the Secretary determines is satisfactory for purposes of this paragraph and which includes an exchange of information program. (B) Dividends on stock readily tradable on United States securities market A foreign corporation not otherwise treated as a qualified foreign corporation under subparagraph (A) shall be so treated with respect to any dividend paid by such corporation if the stock with respect to which such dividend is paid is readily tradable on an established securities market in the United States. (C) Exclusion of dividends of certain foreign corporations The term qualified foreign corporation shall not include any foreign corporation which for the taxable year of the corporation in which the dividend was paid, or the preceding taxable year, is a passive foreign investment company (as defined in section 1297). (5) Treatment of dividends from regulated investment companies and real estate investment trusts A dividend received from a regulated investment company or a real estate investment trust shall be subject to the limitations prescribed in sections 854 and 857. . (b) Deduction allowed whether or not individual itemizes deductions Section 62(a) is amended by inserting after paragraph (7) the following new paragraph: (8) Adjusted net capital gain The deduction allowed by section 169. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1003. Conforming amendments related to simplification of individual income tax rates (a) Amendments related to modification of inflation adjustment (1) Section 25B(b)(3)(B) is amended by striking section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2005 for calendar year 1992 in subparagraph (B) thereof and inserting section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting calendar year 2005 for calendar year 2012 in clause (ii) thereof . (2) Subclause (II) of section 36B(b)(3)(A)(ii) is amended by striking consumer price index and inserting C-CPI-U (as defined in section 1(c)) . (3) Section 41(e)(5)(C) is amended to read as follows: (C) Cost-of-living adjustment defined (i) In general The cost-of-living adjustment for any calendar year is the cost-of-living adjustment for such calendar year determined under section 1(c)(2)(A), by substituting calendar year 1987 for calendar year 2012 in clause (ii) thereof. (ii) Special rule where base period ends in a calendar year other than 1983 or 1984 If the base period of any taxpayer does not end in 1983 or 1984, clause (i) shall be applied by substituting the calendar year in which such base period ends for 1987. . (4) Section 125(i)(2) is amended— (A) by striking section 1(f)(3) for the calendar year in which the taxable year begins by substituting calendar year 2012 for calendar year 1992 in subparagraph (B) thereof in subparagraph (B) and inserting section 1(c)(2)(A) for the calendar year in which the taxable year begins , and (B) by striking $50 both places it appears in the last sentence and inserting $100 . (5) Section 137(f) is amended— (A) by striking section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2001 for calendar year 1992 in subparagraph (B) thereof in paragraph (2) and inserting section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting calendar year 2001 for calendar year 2012 in clause (ii) thereof , and (B) in the last sentence thereof— (i) by striking $10 the first place it appears and inserting $100 , and (ii) by striking nearest multiple of $10 and inserting next lowest multiple of $100 . (6) Section 162(o)(3) is amended by inserting as in effect before enactment of the Tax Reform Act of 2014 after section 1(f)(5) . (7) Section 220(g)(2) is amended by striking section 1(f)(3) for the calendar year in which the taxable year begins by substituting calendar year 1997 for calendar year 1992 in subparagraph (B) thereof and inserting section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting calendar year 1997 for calendar year 2012 in clause (ii) thereof . (8) Section 223(g)(1) is amended by striking all that follows subparagraph (A) and inserting the following: (B) the cost-of-living adjustment determined under section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined— (i) by substituting for calendar year 2012 in clause (ii) thereof— (I) except as provided in clause (ii), calendar year 1997 , and (II) in the case of each dollar amount in subsection (c)(2)(A), calendar year 2003 , and (ii) by substituting March 31 for August 31 in paragraphs (5)(B) and (6)(B) of section 1(c). The Secretary shall publish the dollar amounts as adjusted under this subsection for taxable years beginning in any calendar year no later than June 1 of the preceding calendar year. . (9) Section 430(c)(7)(D)(vii)(II) is amended by striking section 1(f)(3) for the calendar year, determined by substituting calendar year 2009 for calendar year 1992 in subparagraph (B) thereof and inserting section 1(c)(2)(A) for the calendar year, determined by substituting calendar year 2009 for calendar year 2012 in clause (ii) thereof . (10) Section 512(d)(2)(B) is amended by striking section 1(f)(3) for the calendar year in which the taxable year begins, by substituting calendar year 1994 for calendar year 1992 in subparagraph (B) thereof and inserting section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting calendar year 1994 for calendar year 2012 in clause (ii) thereof . (11) Section 513(h)(2)(C)(ii) is amended by striking section 1(f)(3) for the calendar year in which the taxable year begins by substituting calendar year 1987 for calendar year 1992 in subparagraph (B) thereof and inserting section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting calendar year 1987 for calendar year 2012 in clause (ii) thereof . (12) Section 877A(a)(3)(B)(i)(II) is amended by striking section 1(f)(3) for the calendar year in which the taxable year begins, by substituting calendar year 2007 for calendar year 1992 in subparagraph (B) thereof and inserting section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting calendar year 2007 for calendar year 2012 in clause (ii) thereof . (13) Section 911(b)(2)(D)(ii)(II) is amended by striking section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting 2004 for 1992 in subparagraph (B) thereof and inserting section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting calendar year 2004 for calendar year 2012 in clause (ii) thereof . (14) Section 1274A(d)(2) is amended to read as follows: (2) Inflation adjustment (A) In general In the case of any debt instrument arising out of a sale or exchange during any calendar year after 2014, each adjusted dollar amount shall be increased by an amount equal to— (i) such adjusted dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(c)(2)(A) for such calendar year, determined by substituting calendar year 2013 for calendar year 2012 in clause (ii) thereof. (B) Adjusted dollar amounts For purposes of this paragraph, the term adjusted dollar amount means the dollar amounts in subsections (b) and (c), in each case as in effect for calendar year 2014. (C) Rounding Any increase under subparagraph (A) shall be rounded to the nearest multiple of $100. . (15) Section 2010(c)(3)(B)(ii) is amended by striking section 1(f)(3) for such calendar year by substituting calendar year 2010 for calendar year 1992 in subparagraph (B) thereof and inserting section 1(c)(2)(A) for such calendar year, determined by substituting calendar year 2010 for calendar year 2012 in clause (ii) thereof . (16) Section 2032A(a)(3)(B) is amended by striking section 1(f)(3) for such calendar year by substituting calendar year 1997 for calendar year 1992 in subparagraph (B) thereof and inserting section 1(c)(2)(A) for such calendar year, determined by substituting calendar year 1997 for calendar year 2012 in clause (ii) thereof . (17) Section 2503(b)(2)(B) is amended by striking section 1(f)(3) for such calendar year by substituting calendar year 1997 for calendar year 1992 in subparagraph (B) thereof and inserting section 1(c)(2)(A) for the calendar year, determined by substituting calendar year 1997 for calendar year 2012 in clause (ii) thereof . (18) Section 4161(b)(2)(C)(i)(II) is amended by striking section 1(f)(3) for such calendar year, determined by substituting 2004 for 1992 in subparagraph (B) thereof and inserting section 1(c)(2)(A) for such calendar year, determined by substituting calendar year 2004 for calendar year 2012 in clause (ii) thereof . (19) Section 4261(e)(4)(A)(ii) is amended by striking section 1(f)(3) for such calendar year by substituting the year before the last nonindexed year for calendar year 1992 in subparagraph (B) thereof and inserting section 1(c)(2)(A) for such calendar year, determined by substituting the year before the last nonindexed year for calendar year 2012 in clause (ii) thereof . (20) Section 4980I(b)(3)(C)(v)(II) is amended (A) by striking section 1(f)(3) and inserting section 1(c)(2)(A) , (B) by striking subparagraph (B) and inserting clause (ii) , and (C) by striking 1992 and inserting 2012 . (21) Section 5000A(c)(3)(D)(ii) is amended— (A) by striking section 1(f)(3) and inserting section 1(c)(2)(A) , (B) by striking subparagraph (B) and inserting clause (ii) , and (C) by striking 1992 and inserting 2012 . (22) Section 6039F(d) is amended by striking section 1(f)(3), except that subparagraph (B) thereof and inserting section 1(c)(2)(A), except that clause (ii) thereof . (23) Section 6323(i)(4)(B) is amended by striking section 1(f)(3) for the calendar year, determined by substituting calendar year 1996 for calendar year 1992 in subparagraph (B) thereof and inserting section 1(c)(2)(A) for the calendar year, determined by substituting calendar year 1996 for calendar year 2012 in clause (ii) thereof . (24) Section 6334(g)(1)(B) is amended by striking section 1(f)(3) for such calendar year, by substituting calendar year 1998 for calendar year 1992 in subparagraph (B) thereof and inserting section 1(c)(2)(A) for such calendar year, determined by substituting calendar year 1999 for calendar year 2012 in clause (ii) thereof . (25) Section 6721(f)(1) is amended— (A) by striking section 1(f)(3) and inserting section 1(c)(2)(A) , (B) by striking subparagraph (B) and inserting clause (ii) , and (C) by striking 1992 and inserting 2012 . (26) Section 6722(f)(1) is amended— (A) by striking section 1(f)(3) and inserting section 1(c)(2)(A) , (B) by striking subparagraph (B) and inserting clause (ii) , and (C) by striking 1992 and inserting 2012 . (27) Section 7430(c)(1) is amended by striking section 1(f)(3) for such calendar year, by substituting calendar year 1995 for calendar year 1992 in subparagraph (B) thereof in the flush text at the end and inserting section 1(c)(2)(A) for such calendar year, determined by substituting calendar year 1995 for calendar year 2012 in clause (ii) thereof . (28) Section 7872(g)(5) is amended to read as follows: (5) Inflation adjustment (A) In general In the case of any loan made during any calendar year after 2014 to which paragraph (1) applies, the adjusted dollar amount shall be increased by an amount equal to— (i) such adjusted dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(c)(2)(A) for such calendar year, determined by substituting calendar year 2013 for calendar year 2012 in clause (ii) thereof. (B) Adjusted dollar amount For purposes of this paragraph, the term adjusted dollar amount means the dollar amount in paragraph (2) as in effect for calendar year 2014. (C) Rounding Any increase under subparagraph (A) shall be rounded to the nearest multiple of $100. . (b) Amendments related to deduction for adjusted net capital gain (1) Section 163(d)(4)(B) is amended by striking section 1(h)(11)(B) and inserting section 169(e) . (2) Section 172(d)(2)(B) is amended by inserting the deduction allowable under section 169 and before the exclusion . (3) Section 301(f)(4) is amended by striking section 1(h)(11) and inserting section 169(e) . (4) Section 306(a)(1)(D) is amended by striking section 1(h)(11) and inserting section 169(e) . (5) The last sentence of section 453A(c)(3) is amended by striking capital gain and all that follows and inserting capital gain, the deduction under section 169 shall be taken into account. . (6) Sections 531 and 541 are each amended by striking 20 percent and inserting 21 percent . (7) Section 584(c) is amended by striking and to which section 1(h)(11) applies in the last sentence and inserting which is qualified dividend income (as defined in section 169(e)) in the hands of such common trust fund . (8) Section 641(c)(2)(C) (prior to redesignation by title II) is amended by adding at the end the following new clause: (v) The deduction allowed by section 169. . (9) The first sentence of section 642(c)(4) is amended by striking consists of and all that follows and inserting consists of long-term capital gain or gain described in section 1202(a), proper adjustments shall be made for any deduction allowable to the trust or estate under section 169 and for any exclusion allowable under section 1202. . (10) The last sentence of section 643(a)(3) is amended to read as follows: The deduction under section 169 and the exclusion under section 1202 shall not be taken into account. . (11) Section 691(c)(4) is amended by striking 1(h) and inserting 169 . (12) Section 702(a)(5) is amended by striking section 1(h)(11) and inserting section 169 . (13) Section 854 is amended— (A) by striking section 1(h)(11) (relating to maximum rate of tax on dividends) in subsection (a) and inserting section 169 (relating to adjusted net capital gain) , (B) by striking Maximum rate under section 1(h) in the heading of subsection (b)(1)(B) and inserting Determination of adjusted net capital gain , and (C) by striking section 1(h)(11)(B) in subsection (b)(4) and inserting section 169(e) . (14) Section 857(c)(2) is amended— (A) by striking section 1(h)(11)(B) in subparagraph (D) and inserting section 169(e) , and (B) by striking Section 1(h)(11) in the heading and inserting Section 169(e) . (15) Section 904(b) is amended— (A) by amending paragraph (2) to read as follows: (2) Capital gains For purposes of this section, taxable income from sources outside the United States shall include gain from the sale or exchange of capital assets (including gain so treated under section 1231) only to the extent of the lesser of— (A) capital gain net income from sources without the United States, or (B) capital gain net income. , and (B) by striking paragraph (3). (16) Section 1260(a) is amended by striking long-term capital gain the first place such term appears and all that follows and inserting long-term capital gain, such gain shall be treated as ordinary income to the extent such gain exceeds the net underlying long-term capital gain. . (17) Section 1411(c)(1)(B) is amended by inserting (other than section 169) after this subtitle . (18) Section 4985(a)(1) is amended by striking the rate of tax specified in section 1(h)(1)(C) and inserting 21 percent . (19) Section 7518(g)(6)(A) is amended by striking all that follows clause (i) and inserting the following: (ii) by increasing the tax imposed by chapter 1 by the product of the amount of such withdrawal, multiplied by— (I) in the case of a taxpayer other than a corporation, 60 percent of the highest rate of tax specified in section 1, and (II) in the case of a corporation, the highest rate of tax specified in section 11. . (20) Section 53511(f) of title 46, United States Code, is amended by— (A) by amending paragraph (1)(B) to read as follows: (B) increasing the tax imposed by chapter 1 of such Code by the product of the amount of such withdrawal, multiplied by— (i) in the case of a taxpayer other than a corporation, the highest rate of tax specified in section 1 (60 percent of such highest rate in the case of so much of such withdrawal as is made from the capital gain account), and (ii) in the case of a corporation, the highest rate of tax specified in section 11. , and (B) by striking paragraph (2) and by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively. (21) The table of sections for part VI of subchapter B of chapter 1 is amended by inserting after the item relating to section 168 the following new item: Sec. 169. Adjusted net capital gain. . (c) Other conforming amendments (1) Section 25B(b)(2) is amended by striking In the case of— and all that follows through any taxpayer not described in paragraph (1) or subparagraph (A), and inserting In the case of any taxpayer not described in paragraph (1), . (2) Section 36B(b)(3)(B)(ii)(I)(aa) is amended to read as follows: (aa) who is described in section 1(b)(1)(B) and who does not have any dependents for the taxable year, . (3) Section 486B(b)(1) is amended— (A) by striking maximum rate in effect and inserting highest rate specified , and (B) by striking section 1(e) and inserting section 1 . (4) Section 511(b)(1) is amended to read as follows: (1) Imposition of tax There is hereby imposed for each taxable year on the unrelated business taxable income of every trust described in paragraph (2) a tax computed as provided in section 1. In making such computation for purposes of this section, the terms taxable income and modified adjusted gross income as used in section 1 shall both be read as unrelated business taxable income as defined in section 512. . (5) Section 641(a) is amended by striking section 1(e) shall apply to the taxable income and inserting section 1 shall apply to the income . (6) Section 641(c)(2)(A) is amended to read as follows: (A) The dollar amount in effect under section 1(b)(2)(C) shall be treated as being zero. . (7) Section 646(b) is amended to read as follows: (b) Taxation of income of trust Except as provided in subsection (f)(1)(B)(ii), there is hereby imposed on the taxable income of an electing Settlement Trust a tax at the rate specified in section 1(a)(1). Such tax shall be in lieu of the income tax otherwise imposed by this chapter on such income. . (8) Section 685(c) is amended by striking Section 1(e) and inserting Section 1 . (9) Section 1398(c) is amended by striking paragraphs (1) and (2), by redesignating paragraph (3) as paragraph (2), and by inserting before paragraph (2) as so redesignated the following new paragraph: (1) Computation and payment of tax Except as otherwise provided in this section or part I of subchapter A, the taxable income and modified adjusted gross income of the estate shall be computed in the same manner as for an individual. The tax shall be computed under section 1 and shall be paid by the trustee. . (10) Section 3402(p)(1)(B) is amended by striking any percentage applicable to any of the 3 lowest income brackets in the table under section 1(c), and inserting 10 percent, 25 percent, 35 percent, . (11) Section 3402(q)(1) is amended by striking the third lowest rate of tax applicable under section 1(c) and inserting the highest rate of tax specified in section 1 . (12) Section 3402(r)(3) is amended by striking the amount of tax which would be imposed by section 1(c) (determined without regard to any rate of tax in excess of the fourth lowest rate of tax applicable under section 1(c)) on an amount of taxable income equal to and inserting an amount equal to the product of the highest rate of tax specified in section 1 multiplied by . (13) Section 3406(a)(1) is amended by striking the fourth lowest rate of tax applicable under section 1(c) and inserting the highest rate of tax specified in section 1 . (14) Section 6103(e)(1)(A)(iii) is amended by striking section 1(g) and inserting section 1(d) . (d) Withholding from supplemental wage payments (1) In general If an employer elects under Treasury Regulation section 31.3402(g)–1 to determine the amount to be deducted and withheld from any supplemental wage payment by using a flat percentage rate, the rate to be used in determining such amount shall not be less than 35 percent. (2) Repeal of superceded provision The American Jobs Creation Act of 2004 is amended by striking section 904. (e) Effective date (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2014. (2) Withholding from supplemental wage payments The provisions of, and amendments made by, subsection (d) shall apply to payments made after December 31, 2014. B Simplification of tax benefits for families 1101. Standard deduction (a) Increase in standard deduction Subsection (c) of section 63 is amended to read as follows: (c) Standard deduction For purposes of this subtitle— (1) In general Except as otherwise provided in this subsection, the term standard deduction means— (A) $22,000, in the case of a joint return, and (B) one-half of the amount in effect under subparagraph (A) for the taxable year, in any other case. (2) Phaseout of standard deduction The amount of the standard deduction determined under this subsection (without regard to this paragraph and after the application of paragraph (4)) shall be reduced (but not below zero) by an amount equal to 20 percent of the excess (if any) of— (A) the taxpayer’s modified adjusted gross income (as defined in section 2(b)) for the taxable year, over (B) (i) the joint return standard deduction phaseout threshold for the taxable year, in the case of a taxpayer described in paragraph (1)(A), and (ii) the non-joint return standard deduction phaseout threshold for the taxable year, in any other case. (3) Standard deduction phaseout thresholds (A) Joint return standard deduction phaseout threshold The term joint return standard deduction phaseout threshold means, with respect to any taxable year— (i) the dollar amount in effect under section 1(e)(3)(A) for such taxable year, plus (ii) the product of— (I) the dollar amount in effect under section 1(b)(1)(A) for such taxable year, multiplied by (II) 3. (B) Non-joint return standard deduction phaseout threshold The term non-joint return standard deduction phaseout threshold means, with respect to any taxable year— (i) the dollar amount in effect under section 1(e)(3)(B) for such taxable year, plus (ii) the product of— (I) the dollar amount in effect under section 1(b)(1)(B) for such taxable year, multiplied by (II) 3. (4) Limitation on standard deduction in the case of certain dependents In the case of an individual who is a dependent of another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, the standard deduction applicable to such individual for such individual’s taxable year shall not exceed the greater of— (A) $500, or (B) the sum of $250 and such individual’s earned income (as defined in section 24(d)(2)). (5) Certain individuals, etc., not eligible for standard deduction In the case of— (A) a married individual filing a separate return where such individual’s spouse elects to itemize deductions, (B) a nonresident alien individual, (C) an individual making a return under section 443(a)(1) for a period of less than 12 months on account of a change in his annual accounting period, or (D) an estate or trust, common trust fund, or partnership, the standard deduction shall be zero. (6) Inflation adjustments In the case of any taxable year beginning after 2014, each of the dollar amounts in paragraphs (1)(A) and (4) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined— (i) in the case of the dollar amount in paragraph (1)(A), under section 1(c)(2)(A) for the calendar year in which the taxable year begins, (ii) in the case of the dollar amount in paragraph (4)(A), under section 1(c)(2)(A) for the calendar year in which the taxable year begins determined by substituting calendar year 1987 for calendar year 2012 in clause (ii) thereof, and (iii) in the case of the dollar amount in paragraph (4)(B), under section 1(c)(2)(A) for the calendar year in which the taxable year begins determined by substituting calendar year 1997 for calendar year 2012 in clause (ii) thereof. If any increase determined under the preceding sentence is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100. . (b) Additional deduction for unmarried individuals with at least one qualifying child (1) In general Part VII of subchapter B of chapter 1 is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section: 224. Deduction for unmarried individuals with at least one qualifying child (a) In general In the case of an unmarried individual with at least one qualifying child (within the meaning of section 7705), there shall be allowed as a deduction an amount equal to $5,500. (b) Phaseout of deduction The amount of the deduction determined under subsection (a) (without regard to this subsection) shall be reduced (but not below zero) by an amount equal to the excess (if any) of— (1) the taxpayer’s adjusted gross income (determined without regard to this section) for the taxable year, over (2) $30,000. (c) Unmarried individual For purposes of this section, the term unmarried individual means any individual who— (1) is not married as of the close of the taxable year (as determined by applying section 7703), (2) is not a surviving spouse (as defined in section 2(a)) for the taxable year, and (3) is not a dependent of another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins. (d) Inflation adjustments (1) Deduction amount In the case of any taxable year beginning after 2014, the dollar amount in subsection (a) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(c)(2)(A) for the calendar year in which the taxable year begins. (2) Phaseout threshold In the case of any taxable year beginning after 2015, the dollar amount in subsection (b)(2) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(c)(2)(A) for the calendar year in which the taxable year begins determined by substituting calendar year 2014 for calendar year 2012 in clause (ii) thereof. (3) Rounding If any increase determined under paragraph (1) or (2) is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100. . (2) Deduction allowed whether or not taxpayer itemizes deductions Section 62(a) is amended by adding at the end the following new paragraph: (22) Deduction for unmarried individuals with at least one qualifying child The deduction allowed by section 224. . (c) Application of standard deduction phaseout to itemized deductions Subsection (f) of section 63 is amended to read as follows: (f) Application of phaseout of standard deduction to itemized deductions (1) In general In the case of an individual whose modified adjusted gross income (as defined in section 2(b)) exceeds the amount in effect under subsection (c)(2)(B) with respect to the taxpayer for the taxable year, the amount of the itemized deductions otherwise allowable for the taxable year shall be reduced by the lesser of— (A) 20 percent of the excess described in subsection (c)(2) with respect to such taxpayer for such taxable year, or (B) the amount of the taxpayer’s standard deduction for such taxable year (determined without regard to subsection (c)(2) and without regard to any election to itemize deductions). (2) Coordination with other limitations This subsection shall be applied after the application of any other limitation on the allowance of any itemized deduction. (3) Exception for estates and trusts This subsection shall not apply to any estate or trust. . (d) Conforming amendments (1) Sections 86(b)(2)(A) and 137(b)(3)(A) are each amended by inserting 224, before 911, . (2) Section 199(d)(2)(B) is amended by inserting section 224 and before this section . (3) Section 469(i)(3)(F)(iii) is amended by inserting and 224 after 219, . (4) Section 1398(c), as amended by section 1003(c), is amended— (A) by striking Basic in the heading thereof, (B) by striking Basic standard in the heading of paragraph (2) and inserting Standard , and (C) by striking basic in paragraph (2). (5) Section 3402(m)(3) is amended by striking (including the additional standard deduction under section 63(c)(3) for the aged and blind) . (6) Section 6014(b)(4) is amended by striking section 63(c)(5) and inserting section 63(c)(4) . (7) The table of sections for part VII of subchapter B of chapter 1 is amended by redesignating the item relating to section 224 as an item relating to section 225 and by inserting after the item relating to section 223 the following new item: Sec. 224. Deduction for unmarried individuals with at least one qualifying child. . (e) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2014. 1102. Increase and expansion of child tax credit (a) In general Section 24 is amended to read as follows: 24. Child and dependent tax credit (a) Allowance of credit There shall be allowed as a credit against the tax imposed by this chapter for the taxable year with respect to each dependent of the taxpayer an amount equal to $500 ($1,500 in the case of a qualifying child). (b) Phaseout of credit (1) In general The credit allowed under subsection (a) (determined without regard to this subsection) shall be reduced (but not below zero) by 5 percent of the excess (if any) of— (A) the taxpayer’s modified adjusted gross income (as defined in section 2(b)), over (B) (i) the joint return child credit phaseout threshold, in the case of a joint return or a surviving spouse (as defined in section 2(a)), or (ii) the non-joint return child credit phaseout threshold, in any other case. (2) Joint return child credit phaseout threshold For purposes of this section, the term joint return child credit phaseout threshold means, with respect to any taxable year, the sum of— (A) the joint return standard deduction phaseout threshold (as defined in section 63(c)(3)(A)), plus (B) an amount equal to— (i) the dollar amount in effect under section 63(c)(1)(A) for such taxable year, divided by (ii) 0.2. (3) Non-joint return child credit phaseout threshold For purposes of this section, the term non-joint return child credit phaseout threshold means, with respect to any taxable year, the sum of— (A) the non-joint return standard deduction phaseout threshold (as defined in section 63(c)(3)(B)), plus (B) an amount equal to— (i) the dollar amount in effect under section 63(c)(1)(B) for such taxable year, divided by (ii) 0.2. (c) Qualifying child For purposes of this section— (1) In general Except as provided in paragraph (2), the term qualifying child has the meaning given such term by section 7705. (2) Exception for certain noncitizens The term qualifying child shall not include any individual who would not be a dependent if subparagraph (A) of section 7705(b)(3) were applied without regard to all that follows resident of the United States . (d) Portion of credit refundable (1) In general The aggregate credits allowed under subpart C shall be increased by the lesser of— (A) the credit which would be allowed under this section without regard to this subsection and the limitation under section 26(a), or (B) the amount by which the aggregate amount of credits allowed under the subpart (determined without regard to this subsection) would increase if the limitation under section 26(a) were increased by 25 percent of the taxpayer’s earned income for the taxable year. The amount of the credit allowed under this subsection shall not be treated as a credit allowed under this subpart and shall reduce the amount of credit otherwise allowable under subsection (a) without regard to section 26(a). (2) Earned income For purposes of this subsection— (A) In general The term earned income means— (i) the taxpayer’s wages, salaries, tips, and other employee compensation, but only if such amounts are includible in gross income for the taxable year, plus (ii) the taxpayer’s net earnings from self-employment for the taxable year (within the meaning of section 1402(a)) determined with regard to the deduction allowed to the taxpayer by section 164(f). (B) Special rules For purposes of subparagraph (A)— (i) the earned income of an individual shall be computed without regard to any community property laws, (ii) no amount received as a pension or annuity shall be taken into account, (iii) no amount to which section 871(a) applies (relating to income of nonresident alien individuals not connected with United States business) shall be taken into account, (iv) no amount received for services provided by an individual while the individual is an inmate at a penal institution shall be taken into account, (v) no amount described in subparagraph (A) received for service performed in work activities as defined in paragraph (4) or (7) of section 407(d) of the Social Security Act to which the taxpayer is assigned under any State program under part A of title IV of such Act shall be taken into account, but only to the extent such amount is subsidized under such State program, and (vi) amounts excluded from gross income by reason of section 112 shall be taken into account as earned income. (C) Special rule for taxable years beginning before 2018 In the case of any taxable year beginning before January 1, 2018, the earned income of the taxpayer taken into account under paragraph (1) shall be reduced (but not below zero) by $3,000. (3) Exception for taxpayers excluding foreign earned income Paragraph (1) shall not apply to any taxpayer for any taxable year if such taxpayer elects to exclude any amount from gross income under section 911 for such taxable year. (e) Inflation adjustment In the case of any taxable year beginning after 2014, each dollar amount in subsection (a) shall be increased by an amount equal to— (1) such dollar amount, multiplied by (2) the cost-of-living adjustment determined under section 1(c)(2)(A) for the calendar year in which the taxable year begins. If any increase determined under the preceding sentence is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100. (f) Identification requirements (1) In general No credit shall be allowed under this section to a taxpayer with respect to any dependent unless the taxpayer includes the name and taxpayer identification number of such dependent on the return of tax for the taxable year. (2) Additional identification requirement with respect to refundable credit (A) In general Subsection (d) shall not apply to any taxpayer for any taxable year unless the taxpayer includes the taxpayer’s Social Security number on the return of tax for such taxable year. (B) Joint returns In the case of a joint return, the requirement of subparagraph (A) shall be treated as met if the Social Security number of either spouse is included on such return. (g) Taxable year must be full taxable year Except in the case of a taxable year closed by reason of the death of the taxpayer, no credit shall be allowable under this section in the case of a taxable year covering a period of less than 12 months. . (b) Omission of identification information treated as mathematical or clerical error Subparagraph (I) of section 6213(g)(2) of such Code is amended to read as follows: (I) an omission of a correct TIN under section 24(f)(1) (relating to the child and dependent tax credit), or a correct Social Security number under section 24(f)(2) (relating to the refundable portion of child and dependent tax credit), to be included on a return, . (c) Application of rule for short taxable years Section 443(c) is amended to read as follows: (c) Adjustment in child and dependent tax credit If a return is made for a short period by reason of subsection (a)(1) and if the tax is not computed under subsection (b)(2), then the credit allowed under section 24 shall be reduced to an amount which bears the same ratio to the full amount of such credit as the number of months in the short period bears to 12. . (d) Clerical amendment The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 24 and inserting the following new item: Sec. 24. Child and dependent tax credit. . (e) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1103. Modification of earned income tax credit (a) In general Section 32 is amended to read as follows: 32. Earned income (a) In general In the case of an individual who is an eligible individual for any taxable year, there shall be allowed as a credit against the tax imposed by this subtitle for such taxable year an amount equal to the taxpayer’s employment-related taxes for such taxable year. (b) Limitations (1) Dollar limitation The credit allowed under subsection (a) shall not exceed— (A) in the case of a taxpayer with 2 or more qualifying children, $3,000 ($4,000 in the case of a joint return), and (B) in the case of a taxpayer with 1 qualifying child, $2,400. (2) Phase-out of credit The credit allowed under subsection (a) (determined after application of paragraph (1)) shall be reduced (but not below zero) by the sum of— (A) 19 percent of so much of the taxpayer’s adjusted gross income (reduced by the amount of any excess described in subparagraph (B)) as exceeds $20,000 ($27,000 in the case of a joint return), plus (B) so much of the taxpayer’s investment income for the taxable year as exceeds $3,300. (c) Definitions For purposes of this section— (1) Eligible individual (A) In general The term eligible individual means any individual who has a qualifying child for the taxable year. (B) Qualifying child ineligible If an individual is the qualifying child of a taxpayer for any taxable year of such taxpayer beginning in a calendar year, such individual shall not be treated as an eligible individual for any taxable year of such individual beginning in such calendar year. (C) Exception for individual claiming benefits under section 911 The term eligible individual does not include any individual who claims the benefits of section 911 (relating to citizens or residents living abroad) for the taxable year. (D) Limitation on eligibility of nonresident aliens The term eligible individual shall not include any individual who is a nonresident alien individual for any portion of the taxable year unless such individual is treated for such taxable year as a resident of the United States for purposes of this chapter by reason of an election under subsection (g) or (h) of section 6013. (2) Employment-related taxes The term employment-related taxes means, with respect to any taxpayer for any taxable year, the sum of— (A) any tax imposed under sections 3101 or 3111 on the wages (as defined in section 3121(a)) received by the taxpayer during the calendar year in which the taxable year begins, (B) any tax imposed under sections 3201(a), 3211(a), or 3221(a) on the compensation (as defined in section 3231(e)) received by the taxpayer during the calendar year in which the taxable year begins, and (C) any tax imposed under section 1401 on the self-employment income of the taxpayer for the taxable year. (3) Qualifying child (A) In general The term qualifying child means a qualifying child of the taxpayer (within the meaning of section 7705, determined without regard to subsections (c)(1)(D) and (e) thereof). (B) Place of abode For purposes of subparagraph (A), the requirements of section 7705(c)(1)(B) shall be met only if the principal place of abode is in the United States. (C) Treatment of military personnel stationed outside the United States For purposes of subparagraph (B), the principal place of abode of a member of the Armed Forces of the United States shall be treated as in the United States during any period during which such member is stationed outside the United States while serving on extended active duty with the Armed Forces of the United States. For purposes of the preceding sentence, the term extended active duty means any period of active duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period. (4) Investment income For purposes of paragraph (1), the term investment income means— (A) interest or dividends to the extent includible in gross income for the taxable year, (B) interest received or accrued during the taxable year which is exempt from tax imposed by this chapter, (C) the excess (if any) of— (i) gross income from rents or royalties not derived in the ordinary course of a trade or business, over (ii) the sum of— (I) the deductions (other than interest) which are clearly and directly allocable to such gross income, plus (II) interest deductions properly allocable to such gross income, (D) the capital gain net income (as defined in section 1222) of the taxpayer for such taxable year, and (E) the excess (if any) of— (i) the aggregate income from all passive activities for the taxable year (determined without regard to any amount with respect to which a tax described in subsection (c)(2) is imposed or an amount described in a preceding subparagraph), over (ii) the aggregate losses from all passive activities for the taxable year (as so determined). For purposes of subparagraph (E), the term passive activity has the meaning given such term by section 469. (d) Identification requirements (1) In general No credit shall be allowed under this section unless the taxpayer includes on the return of tax for the taxable year— (A) the taxpayer’s Social Security number, and (B) the name, age, and Social Security number of each qualifying child taken into account under subsection (b)(1). (2) Joint returns In the case of a joint return, the requirement of paragraph (1)(A) shall be treated as met if the Social Security number of either spouse is included on such return. (3) Other methods of providing children’s information The Secretary may prescribe other methods for providing the information described in paragraph (1)(B). (e) Restrictions on taxpayers who improperly claimed credit in prior year (1) Taxpayers making prior fraudulent or reckless claims (A) In general No credit shall be allowed under this section for any taxable year in the disallowance period. (B) Disallowance period For purposes of paragraph (1), the disallowance period is— (i) the period of 10 taxable years after the most recent taxable year for which there was a final determination that the taxpayer’s claim of credit under this section was due to fraud, and (ii) the period of 2 taxable years after the most recent taxable year for which there was a final determination that the taxpayer’s claim of credit under this section was due to reckless or intentional disregard of rules and regulations (but not due to fraud). (2) Taxpayers making improper prior claims In the case of a taxpayer who is denied credit under this section for any taxable year as a result of the deficiency procedures under subchapter B of chapter 63, no credit shall be allowed under this section for any subsequent taxable year unless the taxpayer provides such information as the Secretary may require to demonstrate eligibility for such credit. (f) Other special rules For purposes of this section— (1) Married individuals In the case of an individual who is married (within the meaning of section 7703), this section shall apply only if a joint return is filed for the taxable year under section 6013. (2) Taxable year must be full taxable year Except in the case of a taxable year closed by reason of the death of the taxpayer, no credit shall be allowable under this section in the case of a taxable year covering a period of less than 12 months. (3) Coordination with certain means-tested programs For purposes of— (A) the United States Housing Act of 1937, (B) title V of the Housing Act of 1949, (C) section 101 of the Housing and Urban Development Act of 1965, (D) sections 221(d)(3), 235, and 236 of the National Housing Act, and (E) the Food and Nutrition Act of 2008, any refund made to an individual (or the spouse of an individual) by reason of this section, and any payment made to such individual (or such spouse) by an employer under section 3507, shall not be treated as income (and shall not be taken into account in determining resources for the month of its receipt and the following month). (4) Coordination with payroll tax credits The credit allowed under subsection (a) with respect to any taxpayer for any taxable year shall be reduced by the sum of the credits allowed under sections 3103 and 3203 with respect to such taxpayer for such taxable year. (g) Application to certain individuals without qualifying children For purposes of this section and sections 3103 and 3203— (1) In general In the case of an individual described in paragraph (2)— (A) such individual shall be treated as an eligible individual, (B) notwithstanding subsection (i), the dollar limitation applicable to such individual under subsection (b)(1) shall be $100 (twice such amount in the case of a joint return), (C) subsection (b)(2)(A) shall be applied by substituting $8,000 ($13,000 for $20,000 ($27,000 , and (D) subsection (i)(1) shall not apply and the employment-related taxes with respect to such individual for any taxable year shall not exceed the sum of— (i) any tax imposed under section 3101 on the wages (as defined in section 3121(a)) received by the taxpayer during the calendar year in which the taxable year begins, (ii) any tax imposed under sections 3201(a) (and so much of the tax imposed by section 3211(a) as is attributable to the rates of tax under subsections (a) and (b) of section 3101) on the compensation (as defined in section 3231(e)) received by the taxpayer during the calendar year in which the taxable year begins, and (iii) 50 percent of any tax imposed under section 1401 on the self-employment income of the taxpayer for the taxable year. (2) Individual to whom subsection applies An individual is described in this paragraph for any taxable year if— (A) such individual does not have a qualifying child for the taxable year, (B) such individual’s principal place of abode is in the United States for more than one-half of such taxable year, (C) such individual (or, if the individual is married (within the meaning of section 7703), either the individual or the individual’s spouse) has attained age 25 but not attained age 65 before the close of the taxable year, and (D) such individual is not a dependent of another taxpayer for any taxable year beginning in the same calendar year as such taxable year. (h) Inflation adjustment In the case of any taxable year beginning after 2014, both dollar amounts in subsection (b)(1)(A), the dollar amount in subsection (b)(1)(B), both dollar amounts in subsection (b)(2)(A), the dollar amount in subsection (b)(2)(B), the $100 amount in subsection (g)(1)(B), the $8,000 and $13,000 amounts in subsection (g)(1)(C), the $4,000 amount in subsection (i)(2), and the $3,000 amount in subsection (i)(3), shall each be increased by an amount equal to— (1) such dollar amount, multiplied by (2) the cost-of-living adjustment determined under section 1(c)(2)(A) for the calendar year in which the taxable year begins. If any increase determined under the preceding sentence is not a multiple of $100 ($10 in the case of the $100 amount in subsection (g)(1)(B)), such increase shall be rounded to the next lowest multiple of $100 ($10 in the case of the $100 amount in subsection (g)(1)(B)). (i) Special rules for taxable years beginning before 2018 In the case of any taxable year beginning before January 1, 2018— (1) subsection (a) shall be applied by substituting 200 percent of the taxpayer’s employment-related taxes for the taxpayer’s employment-related taxes , (2) subsection (b)(1)(A) shall be applied by substituting $4,000 for $3,000 ($4,000 in the case of a joint return) , and (3) subsection (b)(1)(B) shall be applied by substituting $3,000 for $2,400 . . (b) Credit allowed against payroll taxes (1) FICA tax Subchapter A of chapter 21 is amended by adding at the end the following new section: 3103. Credit against tax (a) In general In the case of an individual who is allowed a credit under section 32 (determined without regard to subsection (f)(4) thereof) for a taxable year, there shall be allowed as a credit against the tax imposed by section 3101 with respect to wages received by such individual during the calendar year ending with or within such taxable year the lesser of— (1) the amount of tax so imposed, or (2) the amount of the credit allowed under section 32 (as so determined) for such taxable year. (b) Application of credit The credit determined under subsection (a) shall be taken into account under this title in the same manner as a credit or refund to which the taxpayer is entitled under section 6413(c)(1). Such credit shall not be taken into account for purposes of determining any amount deducted and withheld under section 3102. . (2) Railroad retirement tax Subchapter A of chapter 22 is amended by adding at the end the following new section: 3203. Credit against tax (a) In general In the case of an individual who is allowed a credit under section 32 (determined without regard to subsection (f)(4) thereof) for a taxable year, there shall be allowed as a credit against the tax imposed by section 3201(a) (and so much of the tax imposed by section 3211(a) as is attributable to the rates of tax under subsections (a) and (b) of section 3101) with respect to compensation received by such individual during the calendar year ending with or within such taxable year the lesser of— (1) the amount of tax so imposed, or (2) the excess of— (A) the amount of the credit allowed under section 32 (as so determined) for such taxable year, over (B) the amount of the credit allowed under section 3103. (b) Application of credit The credit determined under subsection (a) shall be taken into account under this title in the same manner as a credit or refund to which the taxpayer is entitled under section 6413(c)(1). Such credit shall not be taken into account for purposes of determining any amount deducted and withheld under section 3202. . (c) Conforming amendments (1) Section 86(f)(2) is amended by striking section 32(c)(2) and inserting section 24(d)(2) . (2) Section 129(e)(2) is amended by striking section 32(c)(2) and inserting section 24(d)(2) (3) Section 6051(a)(10) is amended by striking for purposes of section 32 (relating to earned income credit) and inserting under section 24(d)(2) . (4) Section 6211(b)(4)(A) is amended by inserting (determined without regard to subsection (f)(4) thereof) after 32 . (5) Section 6213(g)(2)(F) is amended by striking taxpayer identification number and inserting Social Security number . (6) Section 6213(g)(2)(G) is amended by striking with respect to and all that follows and inserting with respect to the tax imposed under section 1401 (relating to self-employment tax) to the extent such tax has not been paid, . (7) Section 6213(g)(2)(K) is amended by striking section 32(k)(2) and inserting section 32(e)(2) . (8) Section 7705(f)(6)(B), as redesignated by this Act, is amended by striking clause (iv), by striking , and at the end of clause (iii) and inserting a period, and by inserting and at the end of clause (ii). (9) The table of sections for subchapter A of chapter 21 is amended by adding at the end the following new item: Sec. 3103. Credit against tax. . (10) The table of sections for subchapter A of chapter 22 is amended by adding at the end the following new item: Sec. 3203. Credit against tax. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. (e) Treatment of taxpayers who improperly claimed credit in prior years A claim of credit under section 32 of the Internal Revenue Code of 1986 (as in effect before the amendments made by this section) shall not fail to be taken into account under subsection (e) of such section (as amended by this section) merely because such claim is for a taxable year beginning before January 1, 2015. (f) Treasury report on making credit advanceable Not later than the date which is 180 days after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary’s designee) shall submit a report to Congress making recommendations regarding the best method for providing for advance payment of the credits established by the amendments made by this section. The recommendations in such report shall seek to— (1) provide for the payment of such credits to taxpayers as promptly as is feasible, including on a weekly, biweekly, or monthly basis, and (2) minimize any administrative burdens on employers and the Internal Revenue Service. 1104. Repeal of deduction for personal exemptions (a) In general Part V of subchapter B of chapter 1 is hereby repealed. (b) Definition of dependent retained (1) In general Section 152, prior to repeal by subsection (a), is hereby redesignated as section 7705 and moved to the end of chapter 79. (2) Modification of age requirements Section 7705(c)(3)(A), as redesignated by paragraph (1), is amended by striking as a qualifying child and— and all that follows and inserting is a qualifying child and has not attained the age of 18 as of the close of the calendar year in which the taxable year of the taxpayer begins. . (c) Application to estates and trusts Subsection (b) of section 642 is amended— (1) by striking paragraph (2)(C), (2) by striking paragraph (3), and (3) by striking Deduction for personal exemption in the heading thereof and inserting Basic deduction . (d) Application to nonresident aliens Section 873(b) is amended by striking paragraph (3). (e) Modification of wage withholding rules (1) In general Section 3402(a)(2) is amended by striking the amount of one personal exemption provided in section 151(b) and inserting $3,900 . (2) Inflation adjustment Section 3402(a) is amended by adding at the end the following new paragraph: (3) Inflation adjustment In the case of any calendar year beginning after 2014, the $3,900 amount in paragraph (2) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(c)(2)(A) for such calendar year. If any increase determined under the preceding sentence is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100. . (3) Number of exemptions Section 3402(f)(1) is amended— (A) in subparagraph (A), by striking an individual described in section 151(d)(2) and inserting a dependent of any other taxpayer , and (B) in subparagraph (C), by striking with respect to whom, on the basis of facts existing at the beginning of such day, there may reasonably be expected to be allowable an exemption under section 151(c) and inserting who, on the basis of facts existing at the beginning of such day, is reasonably expected to be a dependent of the employee . (f) Modification of return requirement (1) In general Paragraph (1) of section 6012(a) is amended to read as follows: (1) Every individual who has gross income for the taxable year, except that a return shall not be required of— (A) an individual who is not married (determined by applying section 7703) and who has gross income for the taxable year which does not exceed the standard deduction applicable to such individual for such taxable year under section 63, or (B) an individual entitled to make a joint return if— (i) the gross income of such individual, when combined with the gross income of such individual’s spouse, for the taxable year does not exceed the standard deduction which would be applicable to the taxpayer for such taxable year under section 63 if such individual and such individual’s spouse made a joint return, (ii) such individual and such individual’s spouse have the same household as their home at the close of the taxable year, (iii) such individual’s spouse does not make a separate return, and (iv) neither such individual nor such individual’s spouse is an individual described in section 63(c)(4) who has income (other than earned income) in excess of the amount in effect under section 63(c)(4)(A). . (2) Bankruptcy estates Paragraph (8) of section 6012(a) is amended by striking the sum of the exemption amount plus the basic standard deduction under section 63(c)(2)(D) and inserting the standard deduction in effect under section 63(c)(1)(B) . (g) Conforming amendments (1) Section 2(a)(1)(B) is amended by striking a dependent and all that follows through section 151 and inserting a dependent who (within the meaning of section 7705, determined without regard to subsections (b)(1), (b)(2) and (d)(1)(B) thereof) is a son, stepson, daughter, or stepdaughter of the taxpayer . (2) Section 36B(b)(2)(A) is amended by striking section 152 and inserting section 7705 . (3) Section 36B(b)(3)(B) is amended by striking unless a deduction is allowed under section 151 for the taxable year with respect to a dependent in the flush matter at the end and inserting unless the taxpayer has a dependent for the taxable year . (4) Section 36B(c)(1)(D) is amended by striking with respect to whom a deduction under section 151 is allowable to another taxpayer and inserting who is a dependent of another taxpayer . (5) Section 36B(d)(1) is amended by striking equal to the number of individuals for whom the taxpayer is allowed a deduction under section 151 (relating to allowance of deduction for personal exemptions) for the taxable year and inserting the sum of 1 (2 in the case of a joint return) plus the number of the taxpayer’s dependents for the taxable year . (6) Section 36B(e)(1) is amended by striking 1 or more individuals for whom a taxpayer is allowed a deduction under section 151 (relating to allowance of deduction for personal exemptions) for the taxable year (including the taxpayer or his spouse) and inserting 1 or more of the taxpayer, the taxpayer’s spouse, or any dependent of the taxpayer . (7) Section 42(i)(3)(D)(ii)(I) is amended— (A) by striking section 152 and inserting section 7705 , and (B) by striking the period at the end and inserting a comma. (8) Section 63(b) is amended by striking minus— and all that follows and inserting minus the standard deduction. . (9) Section 63(d) is amended by striking other than— and all that follows and inserting other than the deductions allowable in arriving at adjusted gross income. . (10) Section 72(t)(2)(D)(i)(III) is amended by striking section 152 and inserting section 7705 . (11) Section 72(t)(7)(A)(iii) is amended by striking section 152(f)(1) and inserting section 7705(f)(1) . (12) Section 105(b) is amended— (A) by striking as defined in section 152 and inserting as defined in section 7705 , (B) by striking section 152(f)(1) and inserting section 7705(f)(1) and (C) by striking section 152(e) and inserting section 7705(e) . (13) Section 105(c)(1) is amended by striking section 152 and inserting section 7705 . (14) Section 125(e)(1)(D) is amended by striking section 152 and inserting section 7705 . (15) Section 129(c) is amended— (A) by striking with respect to whom, for such taxable year, a deduction is allowable under section 151(c) (relating to personal exemptions for dependents) to in paragraph (1) and inserting who is a dependent of , and (B) by striking section 152(f)(1) in paragraph (2) and inserting section 7705(f)(1) . (16) Section 132(h)(2)(B) is amended— (A) by striking section 152(f)(1) and inserting section 7705(f)(1) , and (B) by striking section 152(e) and inserting section 7705(e) . (17) Section 139D(c)(5) is amended by striking section 152 and inserting section 7705 . (18) Section 162(l)(1)(D) is amended by striking section 152(f)(1) and inserting section 7705(f)(1) . (19) Section 170(g)(1) is amended by striking section 152 and inserting section 7705 . (20) Section 170(g)(3) is amended by striking section 152(d)(2) and inserting section 7705(d)(2) . (21) Section 172(d) is amended by striking paragraph (3). (22) Section 220(b)(6) is amended by striking with respect to whom a deduction under section 151 is allowable to and inserting who is a dependent of . (23) Section 220(d)(2)(A) is amended by striking section 152 and inserting section 7705 . (24) Section 223(b)(6) is amended by striking with respect to whom a deduction under section 151 is allowable to and inserting who is a dependent of . (25) Section 223(d)(2)(A) is amended by striking section 152 and inserting section 7705 . (26) Section 401(h) is amended by striking section 152(f)(1) in the last sentence and inserting section 7705(f)(1) . (27) Section 402(l)(4)(D) is amended by striking section 152 and inserting section 7705 . (28) Section 409A(a)(2)(B)(ii)(I) is amended by striking section 152(a) and inserting section 7705(a) . (29) Section 501(c)(9) is amended by striking section 152(f)(1) and inserting section 7705(f)(1) . (30) Section 529(e)(2)(B) is amended by striking section 152(d)(2) and inserting section 7705(d)(2) . (31) Section 703(a)(2) is amended by striking subparagraph (A) and by redesignating subparagraphs (B) through (F) as subparagraphs (A) through (E), respectively. (32) Section 874 is amended by striking subsection (b) and by redesignating subsection (c) as subsection (b). (33) Section 891 is amended by striking under section 151 and . (34) Section 904(b) is amended by striking paragraph (1). (35) Section 931(b)(1) is amended by striking (other than the deduction under section 151, relating to personal exemptions) . (36) Section 933 is amended— (A) by striking (other than the deduction under section 151, relating to personal exemptions) in paragraph (1), and (B) by striking (other than the deduction for personal exemptions under section 151) in paragraph (2). (37) Section 1212(b)(2)(B)(ii) is amended to read as follows: (ii) in the case of an estate or trust, the deduction allowed for such year under section 642(b). . (38) Section 1361(c)(1)(C) is amended by striking section 152(f)(1)(C) and inserting section 7705(f)(1)(C) . (39) Section 1402(a) is amended by striking paragraph (7). (40) Section 2032A(c)(7)(D) is amended by striking section 152(f)(2) and inserting section 7705(f)(2) . (41) Section 3402(m)(1) is amended by striking other than the deductions referred to in section 151 and . (42) Section 3402(r)(2) is amended by striking the sum of— and all that follows and inserting the standard deduction in effect under section 63(c)(1)(B). . (43) Section 5000A(b)(3)(A) is amended by striking section 152 and inserting section 7705 . (44) Section 5000A(c)(4)(A) is amended by striking the number of individuals for whom the taxpayer is allowed a deduction under section 151 (relating to allowance of deduction for personal exemptions) for the taxable year and inserting the sum of 1 (2 in the case of a joint return) plus the number of the taxpayer’s dependents for the taxable year . (45) Section 6013(b)(3)(A) is amended— (A) by striking had less than the exemption amount of gross income in clause (ii) and inserting had no gross income , (B) by striking had gross income of the exemption amount or more in clause (iii) and inserting had any gross income , and (C) by striking the flush language following clause (iii). (46) Section 6103(l)(21)(A)(iii) is amended to read as follows: (iii) the number of the taxpayer’s dependents, . (47) Section 6213(g)(2) is amended by striking subparagraph (H). (48) Section 6334(d)(2) is amended to read as follows: (2) Exempt amount (A) In general For purposes of paragraph (1), the term exempt amount means an amount equal to— (i) the sum of the standard deduction and the personal exemption amount, divided by (ii) 52. (B) Personal exemption amount For purposes of subparagraph (A), the personal exemption amount is $3,900 multiplied by the number of the taxpayer’s dependents for the taxable year in which the levy occurs. (C) Inflation adjustment In the case of any taxable year beginning after 2014, the $3,900 amount in subparagraph (B) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(c)(2)(A) for the calendar year in which the taxable year begins. If any increase determined under the preceding sentence is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100. (D) Verified statement Unless the taxpayer submits to the Secretary a written and properly verified statement specifying the facts necessary to determine the proper amount under subparagraph (A), subparagraph (A) shall be applied as if the taxpayer were a married individual filing a separate return with no dependents. . (49) Section 7702B(f)(2)(C)(iii) is amended by striking section 152(d)(2) and inserting section 7705(d)(2) . (50) Section 7703(a) is amended by striking part V of subchapter B of chapter 1 and . (51) Section 7703(b)(1) is amended by striking section 152(f)(1) and all that follows and inserting section 7705(f)(1), . (52) Section 7705(a), as redesignated by this section, is amended by striking this subtitle and inserting subtitle A . (53) (A) Section 7705(d)(1)(B), as redesignated by this section, is amended by striking the exemption amount (as defined in section 151(d)) and inserting $3,900 . (B) Section 7705(d), as redesignated by this section, is amended by adding at the end the following new paragraph: (6) Inflation adjustment In the case of any calendar year beginning after 2014, the $3,900 amount in paragraph (1)(B) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(c)(2)(A) for such calendar year. If any increase determined under the preceding sentence is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100. . (54) The table of sections for chapter 79 is amended by adding at the end the following new item: Sec. 7705. Dependent defined. . (h) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. C Simplification of education incentives 1201. American opportunity tax credit (a) In general Section 25A is amended to read as follows: 25A. American opportunity tax credit (a) In general In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of— (1) 100 percent of so much of the qualified tuition and related expenses paid by the taxpayer during the taxable year (for education furnished to any eligible student for whom an election is in effect under this section for such taxable year during any academic period beginning in such taxable year) as does not exceed $2,000, plus (2) 25 percent of so much of such expenses so paid as exceeds the dollar amount in effect under paragraph (1) but does not exceed twice such dollar amount. (b) Portion of credit refundable So much of the credit allowable under subsection (a) (determined without regard to this subsection and section 26(a) and after application of all other provisions of this section) as does not exceed $1,500 shall be treated as a credit allowable under subpart C (and not under this part). The preceding sentence shall not apply to any taxpayer for any taxable year if such taxpayer is a child to whom section 1(d) applies for such taxable year. (c) Limitation based on modified adjusted gross income (1) In general The amount allowable as a credit under subsection (a) for any taxable year shall be reduced (but not below zero) by an amount which bears the same ratio to the amount so allowable (determined without regard to this subsection and subsection (b) but after application of all other provisions of this section) as— (A) the excess of— (i) the taxpayer’s modified adjusted gross income for such taxable year, over (ii) $43,000 (twice such amount in the case of a joint return), bears to (B) $20,000 (twice such amount in the case of a joint return). (2) Modified adjusted gross income For purposes of this subsection, the term modified adjusted gross income means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. (d) Other limitations (1) Credit allowed only for 4 taxable years An election to have this section apply may not be made for any taxable year if such an election (by the taxpayer or any other individual) is in effect with respect to such student for any 4 prior taxable years. (2) Credit allowed only for first 4 years of postsecondary education No credit shall be allowed under subsection (a) for a taxable year with respect to the qualified tuition and related expenses of an eligible student if the student has completed (before the beginning of such taxable year) the first 4 years of postsecondary education at an eligible educational institution. (e) Definitions For purposes of this section— (1) Eligible student The term eligible student means, with respect to any academic period, a student who— (A) meets the requirements of section 484(a)(1) of the Higher Education Act of 1965 (20 U.S.C. 1091(a)(1)), as in effect on August 5, 1997, and (B) is carrying at least 1/2 the normal full-time work load for the course of study the student is pursuing. (2) Qualified tuition and related expenses (A) In general The term qualified tuition and related expenses means tuition, fees, and course materials, required for enrollment or attendance of— (i) the taxpayer, (ii) the taxpayer’s spouse, or (iii) any dependent of the taxpayer, at an eligible educational institution for courses of instruction of such individual at such institution. (B) Exception for education involving sports, etc Such term does not include expenses with respect to any course or other education involving sports, games, or hobbies, unless such course or other education is part of the individual’s degree program. (C) Exception for nonacademic fees Such term does not include student activity fees, athletic fees, insurance expenses, or other expenses unrelated to an individual's academic course of instruction. (3) Eligible educational institution The term eligible educational institution means an institution— (A) which is described in section 481 of the Higher Education Act of 1965 ( 20 U.S.C. 1088 ), as in effect on August 5, 1997, and (B) which is eligible to participate in a program under title IV of such Act. (f) Special rules (1) Identification requirement No credit shall be allowed under subsection (a) to a taxpayer with respect to the qualified tuition and related expenses of an individual unless the taxpayer includes the name and taxpayer identification number of such individual, and the employer identification number of any institution to which such expenses were paid, on the return of tax for the taxable year. (2) Adjustment for certain scholarships, etc (A) In general The amount of qualified tuition and related expenses otherwise taken into account under subsection (a) with respect to an individual for an academic period shall be reduced (before the application of subsection (c)) by the sum of any amounts paid for the benefit of such individual which are allocable to such period as— (i) a qualified scholarship which is excludable from gross income under section 117, (ii) an educational assistance allowance under chapter 30, 31, 32, 34, or 35 of title 38, United States Code, or under chapter 1606 of title 10, United States Code, and (iii) a payment (other than a gift, bequest, devise, or inheritance within the meaning of section 102(a)) for such individual's educational expenses, or attributable to such individual's enrollment at an eligible educational institution, which is excludable from gross income under any law of the United States. (B) Coordination with Pell Grants not used for qualified tuition and related expenses For purposes of subparagraph (A), the amount of any Federal Pell Grant under section 401 of the Higher Education Act of 1965 ( 20 U.S.C. 1070a ) shall be reduced (but not below zero) by the amount of expenses (other than qualified tuition and related expenses) which are taken into account in determining the cost of attendance (as defined in section 472 of the Higher Education Act of 1965, as in effect on the date of the enactment of this paragraph) of such individual at an eligible educational institution for the academic period for which the credit under this section is being determined. (3) Treatment of expenses paid by dependent If an individual is a dependent of another taxpayer for a taxable year beginning in the calendar year in which such individuals taxable year begins— (A) no credit shall be allowed under subsection (a) to such individual for such individual’s taxable year, and (B) qualified tuition and related expenses paid by such individual during such individual’s taxable year shall be treated for purposes of this section as paid by such other taxpayer. (4) Treatment of certain prepayments If qualified tuition and related expenses are paid by the taxpayer during a taxable year for an academic period which begins during the first 3 months following such taxable year, such academic period shall be treated for purposes of this section as beginning during such taxable year. (5) Denial of double benefit No credit shall be allowed under this section for any amount for which a deduction is allowed under any other provision of this chapter. (6) No credit for married individuals filing separate returns If the taxpayer is a married individual (within the meaning of section 7703), this section shall apply only if the taxpayer and the taxpayer’s spouse file a joint return for the taxable year. (7) Nonresident aliens If the taxpayer is a nonresident alien individual for any portion of the taxable year, this section shall apply only if such individual is treated as a resident alien of the United States for purposes of this chapter by reason of an election under subsection (g) or (h) of section 6013. (g) Inflation adjustment (1) In general In the case of a taxable year beginning after 2018, the $2,000 amount in subsection (a)(1), the $1,500 amount in subsection (b), and the $43,000 amount in subsection (c)(1)(A)(ii) shall each be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting calendar year 2017 for calendar year 2012 in clause (ii) thereof. (2) Rounding If any amount as adjusted under paragraph (1) is not a multiple of $100 ($1,000 in the case of the amount in subsection (c)(1)(A)(ii)), such amount shall be rounded to the next lowest multiple of $100 ($1,000 in the case of the amount in subsection (c)(1)(A)(ii)). (h) Regulations The Secretary may prescribe such regulations or other guidance as may be necessary or appropriate to carry out this section, including regulations providing for a recapture of the credit allowed under this section in cases where there is a refund in a subsequent taxable year of any amount which was taken into account in determining the amount of such credit. . (b) Requirement To report tuition paid rather than tuition billed Section 6050S(b)(2)(B)(i) is amended by striking or the aggregate amount billed . (c) Conforming amendments (1) Section 72(t)(7)(B) of such Code is amended by striking section 25A(g)(2) and inserting section 25A(f)(2) . (2) Section 529(c)(3)(B)(v)(I) of such Code is amended by striking section 25A(g)(2) and inserting section 25A(f)(2) . (3) Section 529(e)(3)(B)(i) of such Code is amended by striking section 25A(b)(3) and inserting section 25A(d) . (4) Section 530(d)(2)(C) of such Code is amended— (A) by striking section 25A(g)(2) in clause (i)(I) and inserting section 25A(f)(2) , and (B) by striking Hope and Lifetime Learning credits in the heading and inserting American opportunity tax credit . (5) Section 530(d)(4)(B)(iii) of such Code is amended by striking section 25A(g)(2) and inserting section 25A(d)(4)(B) . (6) Section 6050S(e) of such Code is amended by striking subsection (g)(2) and inserting subsection (f)(2) . (7) Section 6211(b)(4)(A) of such Code is amended by striking subsection (i)(6) and inserting subsection (b) . (8) Section 6213(g)(2)(J) of such Code is amended by striking TIN required under section 25A(g)(1) and inserting TIN, and employer identification number, required under section 25A(f)(1) . (9) Section 1004(c) of division B of the American Recovery and Reinvestment Tax Act of 2009 is amended— (A) in paragraph (1)— (i) by striking section 25A(i)(6) each place it appears and inserting section 25A(b) , and (ii) by striking with respect to taxable years beginning after 2008 and before 2018 each place it appears and inserting with respect to each taxable year , (B) in paragraph (2), by striking Section 25A(i)(6) and inserting Section 25A(b) , and (C) in paragraph (3)(C), by striking subsection (i)(6) and inserting subsection (b) . (10) The table of sections for subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by striking the item relating to section 25A and inserting the following new item: Sec. 25A. American opportunity tax credit. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1202. Expansion of Pell Grant exclusion from gross income (a) In general Paragraph (1) of section 117(b) of the Internal Revenue Code of 1986 is amended— (1) by striking the period at the end and inserting , or , (2) by striking received by an individual as a scholarship and inserting the following: received by an individual— (A) as a scholarship , and (3) by adding at the end the following new subparagraph: (B) as a Federal Pell Grant under section 401 of the Higher Education Act of 1965 ( 20 U.S.C. 1070a ). . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1203. Repeal of exclusion of income from United States savings bonds used to pay higher education tuition and fees (a) In general Part III of subchapter B of chapter 1 is amended by striking section 135 (and by striking the item relating to such section in the table of sections for such part). (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1204. Repeal of deduction for interest on education loans (a) In general Part VII of subchapter B of chapter 1 is amended by striking section 221 (and by striking the item relating to such section in the table of sections for such part). (b) Conforming amendment Section 62(a) is amended by striking paragraph (17). (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1205. Repeal of deduction for qualified tuition and related expenses (a) In general Part VII of subchapter B of chapter 1 is amended by striking section 222 (and by striking the item relating to such section in the table of sections for such part). (b) Conforming amendment Section 62(a) is amended by striking paragraph (18). (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2013. 1206. No new contributions to Coverdell education savings accounts (a) In general Section 530(b)(1)(A) is amended to read as follows: (A) Except in the case of rollover contributions, no contribution will be accepted after December 31, 2014. . (b) Rollovers to qualified tuition programs permitted Section 530(d)(5) is amended by inserting , or into (by purchase or contribution) a qualified tuition program (as defined in section 529), after into another Coverdell education savings account . (c) Effective dates (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall apply to contributions made after December 31, 2014. (2) Rollovers to qualified tuition programs The amendments made by subsection (b) shall apply to distributions after December 31, 2014. 1207. Repeal of exclusion for discharge of student loan indebtedness (a) In general Section 108 is amended by striking subsection (f). (b) Conforming amendments (1) Section 3121(a)(20) is amended by striking 108(f)(4), . (2) Section 209(a)(17) of the Social Security Act is amended by striking 108(f)(4), . (3) Section 3231(e)(5) is amended by striking 108(f)(4), . (4) Section 3306(b)(16) is amended by striking 108(f)(4), . (5) Section 3401(a)(19) is amended by striking 108(f)(4), . (c) Effective date The amendments made by this section shall apply to amounts discharged after December 31, 2014. 1208. Repeal of exclusion for qualified tuition reductions (a) In general Section 117 is amended by striking subsection (d). (b) Conforming amendments (1) Section 117(c)(1) is amended— (A) by striking subsections (a) and (d) and inserting subsection (a) , and (B) by striking or qualified tuition reduction . (2) Section 414(n)(3)(C) is amended by striking 117(d), . (3) Section 414(t)(2) is amended by striking 117(d), . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1209. Repeal of exclusion for education assistance programs (a) In general Part III of subchapter B of chapter 1 is amended by striking section 127 (and by striking the item relating to such section in the table of sections for such part). (b) Conforming amendments (1) Section 125(f)(1) is amended by striking 127, . (2) Section 132(j)(8) is amended by striking which are not excludable from gross income under section 127 . (3) Section 137(c) is amended to read as follows: (c) Adoption assistance program (1) In general For purposes of this section, an adoption assistance program is a separate written plan of an employer for the exclusive benefit of such employer’s employees under which the employer provides such employees with adoption assistance. Except as provided in paragraph (6), such program must meet the requirements of paragraphs (2), (3), and (4). (2) Eligibility The program shall benefit employees who qualify under a classification set up by the employer and found by the Secretary not to be discriminatory in favor of employees who are highly compensated employees (within the meaning of section 414(q)) or their dependents. For purposes of this paragraph, there shall be excluded from consideration employees not included in the program who are included in a unit of employees covered by an agreement which the Secretary of Labor finds to be a collective bargaining agreement between employee representatives and one or more employers, if there is evidence that adoption assistance benefits were the subject of good faith bargaining between such employee representatives and such employer or employers. (3) Principal shareholders or owners Not more than 5 percent of the amounts paid or incurred by the employer for adoption assistance during the year may be provided for the class of individuals who are shareholders or owners (or their spouses or dependents), each of whom (on any day of the year) owns more than 5 percent of the stock or of the capital or profits interest in the employer. (4) Notification of employees Reasonable notification of the availability and terms of the program must be provided to eligible employees. (5) No funding required A program referred to in paragraph (1) is not required to be funded. (6) Certain Federal programs An adoption reimbursement program operated under section 1052 of title 10, United States Code (relating to armed forces) or section 514 of title 14, United States Code (relating to members of the Coast Guard) shall be treated as an adoption assistance program for purposes of this section. . (4) Section 414(n)(3)(C) is amended by striking 127, . (5) Section 414(t)(2) is amended by striking 127, . (6) Section 3121(a)(18) is amended by striking 127, . (7) Section 209(a)(15) of the Social Security Act is amended by striking 127 or . (8) Section 3231(e) is amended by striking paragraph (6). (9) Section 3306(b)(13) is amended by striking 127, . (10) Section 3401(a)(18) is amended by striking 127, . (11) Section 6039D(d)(1) is amended by striking 127, . (c) Effective date The amendments made by this section shall apply to amounts paid or incurred after December 31, 2014. 1210. Repeal of exception to 10-percent penalty for higher education expenses (a) In general Section 72(t)(2) is amended by striking subparagraph (E). (b) Conforming amendment Section 72(t) is amended by striking paragraph (7). (c) Effective date The amendments made by this section shall apply to distributions after December 31, 2014. D Repeal of certain credits for individuals 1301. Repeal of dependent care credit (a) In general Subpart A of part IV of subchapter A of chapter 1 is amended by striking section 21 (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) (A) Section 129(a)(2) is amended by striking subparagraph (C). (B) Section 129(e) is amended by adding at the end the following new paragraph: (10) Marital status Rules similar to the rules of subsections (a) and (b) of section 7703 shall apply for purposes of this section. . (2) Section 129(e)(1) is amended to read as follows: (1) Dependent care assistance (A) In general The term dependent care assistance means employment-related expenses and the provision of services which constitute employment-related expenses. (B) Employment-related expenses The term employment-related expenses means amounts paid for the following expenses, but only if such expenses are incurred to enable the employee to be gainfully employed for any period for which there are 1 or more qualifying individuals with respect to the employee: (i) expenses for household services, and (ii) expenses for the care of a qualifying individual. Such term shall not include any amount paid for services outside the employee’s household at a camp where the qualifying individual stays overnight. (C) Exception Employment-related expenses described in subparagraph (A) which are incurred for services outside the employee’s household shall be taken into account only if incurred for the care of— (i) a qualifying individual described in subparagraph (D)(i), or (ii) a qualifying individual (not described in subparagraph (D)(i)) who regularly spends at least 8 hours each day in the employee’s household. (D) Qualifying individual The term qualifying individual means— (i) a dependent of the taxpayer (as defined in section 7705(a)(1)) who has not attained age 13, (ii) a dependent of the taxpayer (as defined in section 7705, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B)) who is physically or mentally incapable of caring for himself or herself and who has the same principal place of abode as the taxpayer for more than one-half of such taxable year, or (iii) the spouse of the taxpayer, if the spouse is physically or mentally incapable of caring for himself or herself and who has the same principal place of abode as the taxpayer for more than one-half of such taxable year. (E) Dependent care centers Employment-related expenses described in subparagraph (A) which are incurred for services provided outside the employee’s household by a dependent care center shall be taken into account only if— (i) such center complies with all applicable laws and regulations of a State or unit of local government, and (ii) the requirements of subparagraph (B) are met. (F) Dependent care center defined For purposes of this paragraph, the term dependent care center means any facility which— (i) provides care for more than six individuals (other than individuals who reside at the facility), and (ii) receives a fee, payment, or grant for providing services for any of the individuals (regardless of whether such facility is operated for profit). (G) Place of abode For purposes of this paragraph, an individual shall not be treated as having the same principal place of abode as the taxpayer if at any time during the taxable year of the taxpayer the relationship between the individual and the taxpayer is in violation of local law. (H) Special dependency test in case of divorced parents, etc. If— (i) section 7705(e) applies to any child with respect to any calendar year, and (ii) such child is under the age of 13 or is physically or mentally incapable of caring for himself, in the case of any taxable year beginning in such calendar year, such child shall be treated as a qualifying individual described in clause (i) or (ii) of subparagraph (D) (whichever is appropriate) with respect to the custodial parent (as defined in section 7705(e)(4)(A)), and shall not be treated as a qualifying individual with respect to the noncustodial parent. . (3) Section 6213(g)(2)(L) is amended by striking 21, . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1302. Repeal of credit for adoption expenses (a) In general Subpart A of part IV of subchapter A of chapter 1 is amended by striking section 23 (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 137 is amended by striking subsections (d) and (e). (2) Subsections (d) and (e) of section 23 (prior to being stricken by subsection (a)) are each moved to section 137 (after amendment by paragraph (1)) and inserted after subsection (c) as new subsections (d) and (e), respectively. (3) Section 137(d)(1)(D), as amended by paragraphs (1) and (2), is amended by inserting (determined without regard to reimbursements under this section) before the period at the end. (4) Section 137(e), as amended by paragraphs (1) and (2), is amended by striking (as defined in section 217(h)(3)) and inserting (or any possession of the United States) . (5) Section 137 is amended by redesignating subsection (f) as subsection (h), and by inserting before subsection (h) (as so redesignated) the following new subsections: (f) Filing requirements (1) Married couples must file joint return (A) In general If the taxpayer is married at the close of the taxable year, subsection (a) shall apply to the taxpayer only if the taxpayer and the taxpayer’s spouse file a joint return for the taxable year. (B) Marital status Rules similar to the rules of subsections (a) and (b) of section 7703 shall apply for purposes of this section. (2) Taxpayer must include TIN (A) In general Subsection (a) shall apply with respect to any child only if the taxpayer includes (if known) the name, age, and TIN of such child on the return of tax for the taxable year. (B) Other methods The Secretary may, in lieu of the information referred to in subparagraph (A), require other information meeting the purposes of subparagraph (A), including identification of an agent assisting with the adoption. (g) Basis adjustments For purposes of this subtitle, if the amount of any expenditure with respect to any property is excluded from gross income under this section, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of such expenditure which is so excluded. . (6) Section 1016(a)(26) is amended by striking sections 23(g) and 137(e) and inserting section 137(g) . (c) Effective date (1) In general The amendments made by this section shall apply to amounts paid or incurred after December 31, 2014. (2) Special needs adoptions For purposes of paragraph (1), any amount treated as paid by the taxpayer under section 23(a)(3) of the Internal Revenue Code of 1986 (as in effect before its repeal by subsection (a)) shall be treated as paid on the date that the adoption referred to in such section becomes final. 1303. Repeal of credit for nonbusiness energy property (a) In general Subpart A of part IV of subchapter A of chapter 1 is amended by striking section 25C (and by striking the item relating to such section in the table of sections of such subpart). (b) Conforming amendment Section 1016(a) is amended by striking paragraph (33). (c) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2013. 1304. Repeal of credit for residential energy efficient property (a) In general Subpart A of part IV of subchapter A of chapter 1 is amended by striking section 25D (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendment Section 1016(a) is amended by striking paragraph (34). (c) Effective date The amendment made by this section shall apply to property placed in service after December 31, 2014. 1305. Repeal of credit for qualified electric vehicles (a) In general Subpart B of part IV of subchapter A of chapter 1 is amended by striking section 30 (and by striking the item relating to such section in the table of sections of such subpart). (b) Conforming amendments (1) Section 1016(a) is amended by striking paragraph (25). (2) Section 6501(m) is amended by striking section 30(e)(6), . (c) Effective date The amendments made by this section shall apply to vehicles acquired after December 31, 2011. 1306. Repeal of alternative motor vehicle credit (a) In general Subpart B of part IV of subchapter A of chapter 1 is amended by striking section 30B (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(b) is amended by striking paragraph (25). (2) Section 1016(a) is amended by striking paragraph (35). (3) Section 6501(m) is amended by striking 30B(h)(9), . (c) Effective date The amendment made by this section shall apply to property purchased after December 31, 2014. 1307. Repeal of alternative fuel vehicle refueling property credit (a) In general Subpart B of part IV of subchapter A of chapter 1 is amended by striking section 30C (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(b) is amended by striking paragraph (26). (2) Section 1016(a) is amended by striking paragraph (36). (3) Section 6501(m) is amended by striking 30C(e)(5), . (c) Effective date The amendment made by this section shall apply to property placed in service after December 31, 2014. 1308. Repeal of credit for new qualified plug-in electric drive motor vehicles (a) In general Subpart B of part IV of subchapter A of chapter 1 is amended by striking section 30D (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(b) is amended by striking paragraph (35). (2) Section 1016(a) is amended by striking paragraph (37). (3) Section 6501(m) is amended by striking 30D(e)(4), . (c) Effective date The amendments made by this section shall apply to vehicles acquired after December 31, 2014. 1309. Repeal of credit for health insurance costs of eligible individuals (a) In general Subpart C of part IV of subchapter A of chapter 1 is amended by striking section 35 (and by striking the item relating to such section in the table of sections of such subpart). (b) Conforming amendments (1) Chapter 77 is amended by striking section 7527 (and by striking the item relating to such section in the table of sections of such chapter). (2) Section 4980B(f)(5)(C)(iv)(II) is amended by inserting as in effect before its repeal after section 35(c) . (3) Section 6211(b)(4)(A) is amended by striking 35, . (c) Effective date The amendments made by this section shall apply to months beginning after December 31, 2013. 1310. Repeal of first-time homebuyer credit (a) In general Subpart C of part IV of subchapter A of chapter 1 is amended by striking section 36 (and by striking the item relating to such section in the table of sections of such subpart). (b) Conforming amendments (1) Section 26(b)(2) is amended by striking subparagraph (W). (2) Section 1400C(e) is amended by striking paragraph (4). (3) Section 6211(b)(4)(A) is amended by striking 36, . (4) Section 6213(g)(2) is amended by striking subparagraphs (O) and (P). (c) Effective date The amendments made by this section shall apply to residences purchased after June 30, 2011. E Deductions, exclusions, and certain other provisions 1401. Exclusion of gain from sale of a principal residence (a) Requirement that residence be principal residence for 5 years during 8-Year period Subsection (a) of section 121 is amended— (1) by striking 5-year period and inserting 8-year period , and (2) by striking 2 years and inserting 5 years . (b) Application to only 1 sale or exchange every 5 years Paragraph (3) of section 121(b) is amended to read as follows: (3) Application to only 1 sale or exchange every 5 years Subsection (a) shall not apply to any sale or exchange by the taxpayer if, during the 5-year period ending on the date of such sale or exchange, there was any other sale or exchange by the taxpayer to which subsection (a) applied. . (c) Phaseout based on modified adjusted gross income Section 121 is amended by adding at the end the following new subsection: (h) Phaseout based on modified adjusted gross income (1) In general If the modified adjusted gross income of the taxpayer for the taxable year exceeds $250,000 (twice such amount in the case of a joint return), the amount which would (but for this subsection) be excluded from gross income under subsection (a) for such taxable year shall be reduced (but not below zero) by the amount of such excess. (2) Modified adjusted gross income For purposes of this subsection, the term modified adjusted gross income has the meaning given such term by section 2 determined after the application of this section but without regard to this subsection. . (d) Conforming amendments (1) The last paragraph of section 121(b) (relating to exclusion of gain allocated to nonqualified use) is redesignated as paragraph (5). (2) The following provisions of section 121 are each amended by striking 5-year period each place it appears therein and inserting 8-year period : (A) Subsection (b)(5)(C)(ii)(I) (as redesignated by paragraph (1)). (B) Subsection (c)(1)(B)(i)(I). (C) Subsection (d)(7)(B). (D) Subparagraphs (A) and (B) of subsection (d)(9). (E) Subsection (d)(10) (F) Subsection (d)(12)(A). (3) Section 121(c)(1)(B)(ii) is amended by striking 2 years and inserting 5 years : (e) Effective date The amendments made by this section shall apply to sales and exchanges after December 31, 2014. 1402. Mortgage interest (a) Modification of limitations (1) In general Paragraph (3) of section 163(h) is amended to read as follows: (3) Qualified residence interest For purposes of this subsection— (A) In general The term qualified residence interest means any interest which is paid or accrued during the taxable year on indebtedness which— (i) is incurred in acquiring, constructing, or substantially improving any qualified residence (determined as of the time the interest is accrued) of the taxpayer, and (ii) is secured by such residence. Such term also includes interest on any indebtedness secured by such residence resulting from the refinancing of indebtedness meeting the requirements of the preceding sentence (or this sentence); but only to the extent the amount of the indebtedness resulting from such refinancing does not exceed the amount of the refinanced indebtedness. (B) Limitation (i) In general The aggregate amount of indebtedness taken into account under subparagraph (A) for any period shall not exceed $500,000 (half of such amount in the case of a married individual filing a separate return). (ii) Phase-in of decreased limitation For purposes of applying clause (i) with respect to any indebtedness incurred during a calendar year after 2014 and before 2018, the $500,000 amount in clause (i) shall be increased by the phase-in amount determined in accordance with the following table: In the case of indebtedness incurred during: The phase-in amount is: 2015 $375,000 2016 $250,000 2017 $125,000 (iii) Treatment of refinancings of indebtedness incurred during phase-in period In the case of any indebtedness which is incurred to refinance indebtedness to which clause (ii) applies (or to which this clause applies), such refinanced indebtedness shall be treated for purposes of clause (ii) as incurred on the date that the original indebtedness was incurred to the extent the amount of the indebtedness resulting from such refinancing does not exceed the amount of the refinanced indebtedness. (C) Treatment of indebtedness incurred before January 1, 2015 (i) In general In the case of any pre-January 1, 2015, indebtedness, this paragraph shall apply as in effect immediately before the enactment of the Tax Reform Act of 2014 . (ii) Reduction in dollar limitation The limitation of subparagraph (B) (after application of clause (ii) thereof) shall be reduced (but not below zero) by the aggregate amount of outstanding pre-January 1, 2015, indebtedness of the taxpayer with respect to which interest is allowable as a deduction by reason of this subparagraph. (iii) Pre-January 1, 2015, indebtedness For purposes of this subparagraph, the term pre-January 1, 2015, indebtedness means— (I) any indebtedness incurred before January 1, 2015, and (II) any indebtedness incurred on or after such date to refinance indebtedness described in subclause (I) (or refinanced indebtedness meeting the requirements of this subclause) to the extent the amount of the indebtedness resulting from such refinancing does not exceed the amount of the refinanced indebtedness. (D) Limitation on period of refinancing Subparagraphs (B)(iii) and (C)(iii)(II) shall not apply to any indebtedness after— (i) the expiration of the term of the original indebtedness, or (ii) if the principal of such original indebtedness is not amortized over its term, the expiration of the term of the 1st refinancing of such indebtedness (or if earlier, the date which is 30 years after the date of such 1st refinancing). (E) Coordination with certain exclusions The amount otherwise treated as qualified residence interest (determined without regard to this subparagraph) with respect to any residence of the taxpayer for any taxable year shall be reduced by the sum of the amounts excludable from the gross income of such taxpayer under sections 107 and 119 with respect to such residence. . (2) Conforming amendments (A) Section 108(h)(2) is amended to read as follows: (2) Qualified principal residence indebtedness For purposes of this section, the term qualified principal residence indebtedness means indebtedness described in section 163(h)(3) applied without regard to clauses (ii) and (iii) of subparagraph (B) thereof and by substituting $2,000,000 for $500,000 in subparagraph (B)(i) thereof. . (B) Section 163(h) is amended— (i) by striking subparagraph (E) in paragraph (3), (ii) by striking subparagraphs (E) and (F) in paragraph (4), and (iii) by striking paragraph (5). (C) Section 265(a)(6) is amended— (i) by striking an amount as— and all that follows and inserting an amount as a military housing allowance. , and (ii) by striking parsonage and in the heading thereof. (b) Modification of reporting requirements (1) Information return requirements Paragraph (2) of section 6050H(b) is amended by striking and at the end of subparagraph (C), by redesignating subparagraph (D) as subparagraph (F) and by inserting after subparagraph (C) the following new subparagraphs: (D) the amount of outstanding principal on the mortgage as of the beginning of such calendar year, (E) the date of the origination of the mortgage, and . (2) Statements to individuals Paragraph (2) of section 6050H(d) is amended by striking subsection (b)(2)(C) and inserting subparagraphs (C), (D), and (E) of subsection (b)(2) . (c) Effective dates (1) Modification of limitations (A) In general The amendments made by subsection (a) shall apply to interest paid or accrued in taxable years beginning after December 31, 2014, with respect to indebtedness incurred before, on, or after such date. (B) Treatment of grandfathered indebtedness For application of the amendments made by subsection (a) to grandfathered indebtedness, see section 163(h)(3)(C) of the Internal Revenue Code of 1986 as amended by this section. (2) Modification of reporting requirements The amendments made by subsection (b) shall apply to returns and statements for calendar years after December 31, 2014. 1403. Charitable contributions (a) 2 percent floor on charitable deduction for individuals Paragraph (3) of section 170(b) is amended to read as follows: (3) 2 percent floor on charitable deduction for individuals The amount of charitable contributions taken into account under this section as made by any individual during a taxable year (determined without regard to subsection (d)) shall be reduced by 2 percent of the taxpayer’s contribution base for such taxable year. Such reduction shall apply— (A) first, to charitable contributions to which paragraph (1)(B) applies to the extent thereof, (B) second, to charitable contributions to which paragraph (1)(C) applies to the extent thereof, and (C) third, to charitable contributions to which paragraph (1)(A) applies to the extent thereof. . (b) Extension of time for making charitable contributions Subsection (a) of section 170 is amended by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively, and by inserting after paragraph (1) the following new paragraph: (2) Treatment of charitable contributions made by individuals before due date of return If any charitable contribution is made by an individual after the close of a taxable year but not later than the due date (determined without regard to extensions) for the return of tax for such taxable year, then the taxpayer may elect to treat such charitable contribution as made in such taxable year. Such election may be made only at the time of the filing of such return of tax and shall be signified in such manner as the Secretary may provide. . (c) Deduction for contributions of property generally limited to adjusted basis (1) In general Subsection (e) of section 170 is amended— (A) by striking paragraphs (1) and (6), (B) by redesignating paragraphs (2), (3), (4), and (5) as paragraphs (3), (4), (5), and (6), respectively, and (C) by inserting before paragraph (3) (as so redesignated) the following new paragraphs: (1) In general Except in the case of property to which paragraph (2) applies, the amount of any charitable contribution of property otherwise taken into account under this section shall be reduced by the amount of gain which would have been realized if the property contributed had been sold by the taxpayer for its fair market value (determined at the time of such contribution). (2) Special rule for certain property (A) In general In the case of property to which this paragraph applies, the amount of any charitable contribution of property otherwise taken into account under this section shall be reduced by the amount of gain which would not have been long-term capital gain if the property contributed had been sold by the taxpayer at its fair market value (determined at the time of such contribution). (B) Property to which this paragraph applies This paragraph shall apply to— (i) any contribution of tangible personal property if the use of such property by the donee is related to the purpose or function constituting the basis for its exemption under section 501 (or, in the case of a governmental unit, to any purpose or function described in subsection (c)), (ii) any qualified conservation contribution (as defined in subsection (h)(1)), (iii) any qualified contribution (as defined in paragraph (4)(A)), (iv) any qualified research contribution (as defined in paragraph (5)(B)), and (v) any qualified appreciated stock (as defined in subsection (e)(6)). (C) Special rules for determining long-term capital gain (i) In general For purposes of applying this paragraph (other than in the case of gain to which section 1245(a), 1250(a), 1252(a), or 1254(a) applies), property which is property used in the trade or business (as defined in section 1231(b)) shall be treated as a capital asset. (ii) Contributions of stock in S corporations For purposes of applying this paragraph in the case of a charitable contribution of stock in an S corporation, rules similar to the rules of section 751 shall apply in determining whether gain on such stock would have been long-term capital gain if such stock were sold by the taxpayer. . (2) Repeal of special rules for food and book inventory Paragraph (4) of section 170(e), as redesignated by paragraph (1), is amended by striking subparagraphs (C) and (D) and by redesignating subparagraph (E) as subparagraph (C). (3) Conforming amendments (A) Section 170(e)(3), as redesignated by paragraph (1), is amended by striking paragraph (1) and inserting paragraphs (1) and (2) . (B) Paragraphs (4) and (5) of section 170(e), as redesignated by paragraph (1), are each amended by striking paragraph (1)(A) each place it appears and inserting paragraph (2)(A) . (C) Section 170(e)(6), as redesignated by paragraph (1), is amended— (i) by striking all that precedes for purposes of this paragraph in subparagraph (B) and inserting the following: (6) Qualified appreciated stock (A) In general Except as provided in subparagraph (B), , (ii) by redesignating subparagraph (C) as subparagraph (B), and (iii) by striking in a contribution to which paragraph (1)(B)(ii) applies (determined without regard to this paragraph) in subparagraph (B) as so redesignated. (d) Modification of income based contribution limitations (1) In general Section 170(b)(1) is amended— (A) by striking 30 percent in subparagraph (B)(i) and inserting 25 percent , and (B) by striking 50 percent and inserting 40 percent in— (i) the flush matter at the end of subparagraph (A), (ii) subparagraph (B)(ii), and (iii) clauses (i), (iv)(I), and (v) of subparagraph (C) (as redesignated by paragraph (2)). (2) Repeal of special limitations for certain capital gain property (A) In general Paragraph (1) of section 170(b) is amended by striking subparagraphs (C) and (D) and by redesignating subparagraphs (E), (F), and (G) as subparagraphs (C), (D), and (E), respectively. (B) Conforming amendments (i) Section 170(b)(1)(A)(vii) is amended by striking subparagraph (F) and inserting subparagraph (D) (ii) Section 170(b)(1)(B)(ii) is amended by striking (determined without regard to subparagraph (C)) . (iii) Section 170(b)(1)(C)(iii), as redesignated by paragraph (1), is amended by striking subparagraph (A), (B), (C) or (D) and inserting subparagraph (A) or (B) . (iv) Section 170(b)(2)(B)(i)(I) is amended by striking paragraph (1)(E)(v) and inserting paragraph (1)(C)(v) . (v) Section 545(b)(2) is amended by striking (D), and (E) and inserting and (C) . (e) Qualified conservation contributions (1) Rules made permanent (A) In general Subparagraph (C) of section 170(b)(1), as redesignated by subsection (d), is amended by striking clause (vi). (B) Corporate farmers and ranchers Subparagraph (B) of section 170(b)(2) is amended by striking clause (iii). (2) Treatment of golf course easements Subsection (h) of section 170 is amended by adding at the end the following new paragraph: (7) Special rule with respect to golf courses An interest in real property shall not be treated as a qualified real property interest for purposes of this subsection if (at the time of the contribution of such interest) such property is, or is reasonably expected to be, used as a golf course. . (3) Conforming amendments (A) Section 170(b)(1)(C)(iv)(II), as redesignated by subsection (d), is amended by striking made after the date of the enactment of this subparagraph . (B) Section 170(b)(2)(B)(i)(II) is amended by striking , in the case of contributions made after the date of the enactment of this subparagraph, . (f) Repeal of special rule for college athletic event seating rights Section 170 is amended by striking subsection (l). (g) Repeal of special rule treating donee income from intellectual property as an additional charitable contribution (1) In general Section 170 is amended by striking subsection (m). (2) Conforming amendments Section 6050L is amended— (A) by striking subsection (b) and redesignating subsection (c) as subsection (b), and (B) by striking or (b) in subsection (b) (as redesignated by subparagraph (A)). (h) Effective date (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall apply to contributions made in taxable years beginning after December 31, 2014. (2) Qualified conservation contributions The amendments made by subsection (e) shall apply to contributions made in taxable years beginning after December 31, 2013. 1404. Denial of deduction for expenses attributable to the trade or business of being an employee (a) In general Part IX of subchapter B of chapter 1 is amended by inserting after the item relating to section 262 the following new item: 262A. Expenses attributable to being an employee (a) In general Except as otherwise provided in this section, no deduction shall be allowed with respect to any trade or business of the taxpayer which consists of the performance of services by the taxpayer as an employee. (b) Exception for above-the-Line deductions Subsection (a) shall not apply to any deduction allowable (determined without regard to subsection (a)) in determining adjusted gross income. . (b) Repeal of certain above-the-Line trade and business deductions of employees (1) In general Paragraph (2) of section 62(a) is amended— (A) by striking subparagraphs (B), (C), and (D), and (B) by redesignating subparagraph (E) as subparagraph (B). (2) Conforming amendments (A) Section 62 is amended by striking subsections (b) and (d) and by redesignating subsections (c) and (e) as subsections (b) and (c), respectively. (B) Section 62(a)(20) is amended by striking subsection (e) and inserting subsection (c) . (c) Continued exclusion of working condition fringe benefits Section 132(d) is amended by inserting (determined without regard to section 262A) after section 162 . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1405. Repeal of deduction for taxes not paid or accrued in a trade or business (a) In general Subsection (b) of section 164 is amended by striking paragraphs (5) and (6) and inserting the following new paragraph: (5) Limitation in case of individuals In the case of a taxpayer other than a corporation— (A) paragraphs (1) and (2) of subsection (a) shall only apply to taxes which are paid or accrued in carrying on a trade or business or an activity described in section 212, and (B) paragraph (3) of subsection (a) shall not apply to State and local taxes. . (b) Conforming amendments (1) Section 164(a) is amended by striking paragraph (6). (2) (A) Section 216(a) is amended by striking proportionate share of— and all that follows and inserting proportionate share of the interest allowable as a deduction to the corporation under section 163 which is paid or incurred by the corporation on its indebtedness contracted— (1) in the acquisition, construction, alteration, rehabilitation, or maintenance of the houses or apartment building, or (2) in the acquisition of the land on which the houses (or apartment building) are situated. . (B) Section 216(b)(3)(B)(i) is amended— (i) by striking a share of such corporation’s real estate taxes described in subsection (a)(1) or in subclause (I), and (ii) by striking of such taxes, or of such interest, in subclause (II) and inserting of such interest . (C) Section 216(d) is amended by striking subsections (a)(1) and (a)(2) and inserting subsection (a) . (3) Section 274(f) is amended by striking taxes, in the heading thereof. (4) Section 280A(b) is amended by striking taxes, in the heading thereof. (5) Section 911(c)(3)(A)(ii) is amended— (A) by striking and taxes , and (B) by striking or 164 . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1406. Repeal of deduction for personal casualty losses (a) In general Subsection (c) of section 165 is amended by inserting and at the end of paragraph (1), by striking ; and at the end of paragraph (2) and inserting a period, and by striking paragraph (3). (b) Conforming amendments (1) Section 165 is amended by striking subsections (h) and (k). (2) Subsection (i) of section 165 is amended— (A) in paragraph (1)— (i) by striking (as defined by clause (ii) of subsection (h)(3)(C)) , and (ii) by striking (as defined by clause (i) of such subsection) , (B) by striking (as defined by subsection (h)(3)(C)(i) in paragraph (4), and (C) by adding at the end the following new paragraph: (5) Federally declared disaster For purposes of this subsection— (A) Federally declared disaster The term federally declared disaster means any disaster subsequently determined by the President of the United States to warrant assistance by the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. (B) Disaster area The term disaster area means the area so determined to warrant such assistance. . (3) (A) Section 165(l)(1) is amended by striking a loss described in subsection (c)(3) and inserting an ordinary loss described in subsection (c)(2) . (B) Section 165(l) is amended— (i) by striking paragraph (5), (ii) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively, and (iii) by inserting after paragraph (1) the following new paragraph: (2) Limitations (A) Deposit may not be federally insured No election may be made under paragraph (1) with respect to any loss on a deposit in a qualified financial institution if part or all of such deposit is insured under Federal law. (B) Dollar limitation With respect to each financial institution, the aggregate amount of losses attributable to deposits in such financial institution to which an election under paragraph (1) may be made by the taxpayer for any taxable year shall not exceed $20,000 ($10,000 in the case of a separate return by a married individual). The limitation of the preceding sentence shall be reduced by the amount of any insurance proceeds under any State law which can reasonably be expected to be received with respect to losses on deposits in such institution. . (4) Section 172(b)(1)(F)(ii), prior to redesignation under title III, is amended— (A) by striking subclause (I) and by redesignating subclauses (II) and (III) as subclauses (I) and (II), respectively, and (B) by striking subsection (h)(3)(C)(i) and inserting section 165(i)(5) . (5) Section 172(d)(4)(C) is amended by striking paragraph (2) or (3) of section 165(c) and inserting section 165(c)(2) . (6) Section 274(f) is amended by striking casualty losses, in the heading thereof. (7) Section 280A(b) is amended by striking casualty losses, in the heading thereof. (8) Section 873(b), as amended by the preceding provisions of this Act, is amended by striking paragraph (1) and by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively. (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1407. Limitation on wagering losses (a) In general Section 165(d) is amended by adding at the end the following: For purposes of the preceding sentence, the term losses from wagering transactions includes any deduction otherwise allowable under this chapter incurred in carrying on any wagering transaction. . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1408. Repeal of deduction for tax preparation expenses (a) In general Section 212 is amended by adding or at the end of paragraph (1), by striking ; or at the end of paragraph (2) and inserting a period, and by striking paragraph (3). (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1409. Repeal of deduction for medical expenses (a) In general Part VII of subchapter B of chapter 1 is amended by striking section 213 (and by striking the item relating to such section in the table of sections for such part). (b) Conforming amendments (1) (A) Section 223 is amended by redesignating subsections (e), (f), (g), and (h) as subsections (f), (g), (h), and (i), respectively, and by inserting after subsection (d) the following new subsection: (e) Medical care For purposes of this section— (1) In general The term medical care means amounts paid— (A) for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body, (B) for transportation primarily for and essential to medical care referred to in subparagraph (A), (C) for qualified long-term care services (as defined in section 7702B(c)), or (D) for insurance (including amounts paid as premiums under part B of title XVIII of the Social Security Act, relating to supplementary medical insurance for the aged) covering medical care referred to in subparagraphs (A) and (B) or for any qualified long-term care insurance contract (as defined in section 7702B(b)). In the case of a qualified long-term care insurance contract (as defined in section 7702B(b)), only eligible long-term care premiums (as defined in paragraph (7)) shall be taken into account under subparagraph (D). (2) Amounts paid for certain lodging away from home treated as paid for medical care Amounts paid for lodging (not lavish or extravagant under the circumstances) while away from home primarily for and essential to medical care referred to in paragraph (1)(A) shall be treated as amounts paid for medical care if— (A) the medical care referred to in paragraph (1)(A) is provided by a physician in a licensed hospital (or in a medical care facility which is related to, or the equivalent of, a licensed hospital), and (B) there is no significant element of personal pleasure, recreation, or vacation in the travel away from home. The amount taken into account under the preceding sentence shall not exceed $50 for each night for each individual. (3) Physician The term physician has the meaning given to such term by section 1861(r) of the Social Security Act (42 U.S.C. 1395x(r)). (4) Contracts covering other than medical care In the case of an insurance contract under which amounts are payable for other than medical care referred to in subparagraphs (A), (B) and (C) of paragraph (1)— (A) no amount shall be treated as paid for insurance to which paragraph (1)(D) applies unless the charge for such insurance is either separately stated in the contract, or furnished to the policyholder by the insurance company in a separate statement, (B) the amount taken into account as the amount paid for such insurance shall not exceed such charge, and (C) no amount shall be treated as paid for such insurance if the amount specified in the contract (or furnished to the policyholder by the insurance company in a separate statement) as the charge for such insurance is unreasonably large in relation to the total charges under the contract. (5) Certain pre-paid contracts Subject to the limitations of paragraph (4), premiums paid during the taxable year by a taxpayer before he attains the age of 65 for insurance covering medical care (within the meaning of subparagraphs (A), (B), and (C) of paragraph (1)) for the taxpayer, his spouse, or a dependent after the taxpayer attains the age of 65 shall be treated as expenses paid during the taxable year for insurance which constitutes medical care if premiums for such insurance are payable (on a level payment basis) under the contract for a period of 10 years or more or until the year in which the taxpayer attains the age of 65 (but in no case for a period of less than 5 years). (6) Cosmetic surgery (A) In general The term medical care does not include cosmetic surgery or other similar procedures, unless the surgery or procedure is necessary to ameliorate a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or disfiguring disease. (B) Cosmetic surgery defined For purposes of this paragraph, the term cosmetic surgery means any procedure which is directed at improving the patient's appearance and does not meaningfully promote the proper function of the body or prevent or treat illness or disease. (7) Eligible long-term care premiums (A) In general For purposes of this section, the term eligible long-term care premiums means the amount paid during a taxable year for any qualified long-term care insurance contract (as defined in section 7702B(b)) covering an individual, to the extent such amount does not exceed the limitation determined under the following table: In the case of an individual with an attained age before the close of the taxable year of: The limitation is: 40 or less $200 More than 40 but not more than 50 $375 More than 50 but not more than 60 $750 More than 60 but not more than 70 $2,000 More than 70 $2,500 (B) Indexing (i) In general In the case of any taxable year beginning after 1997, each dollar amount in subparagraph (A) shall be increased by the medical care cost adjustment of such amount for such calendar year. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $10. (ii) Medical care cost adjustment For purposes of clause (i), the medical care cost adjustment for any calendar year is the adjustment prescribed by the Secretary, in consultation with the Secretary of Health and Human Services, for purposes of such clause. To the extent that CPI (as defined section 1(c)), or any component thereof, is taken into account in determining such adjustment, such adjustment shall be determined by taking into account C-CPI-U (as so defined), or the corresponding component thereof, in lieu of such CPI (or component thereof), but only with respect to the portion of such adjustment which relates to periods after December 31, 2014. (8) Certain payments to relatives treated as not paid for medical care An amount paid for a qualified long-term care service (as defined in section 7702B(c)) provided to an individual shall be treated as not paid for medical care if such service is provided— (A) by the spouse of the individual or by a relative (directly or through a partnership, corporation, or other entity) unless the service is provided by a licensed professional with respect to such service, or (B) by a corporation or partnership which is related (within the meaning of section 267(b) or 707(b)) to the individual. For purposes of this paragraph, the term relative means an individual bearing a relationship to the individual which is described in any of subparagraphs (A) through (G) of section 7705(d)(2). This paragraph shall not apply for purposes of section 105(b) with respect to reimbursements through insurance. . (B) Section 72(t)(2)(D)(i)(III) is amended by striking section 213(d)(1)(D) and inserting section 223(e)(1)(D) . (C) Section 104(a) is amended by striking section 213(d)(1) in the last sentence and inserting section 223(e)(1) . (D) Section 105(b) is amended by striking section 213(d) and inserting section 223(e) . (E) Section 139D is amended by striking section 213 and inserting section 223 . (F) Section 162(l)(2) is amended by striking section 213(d)(10) and inserting section 223(e)(7) . (G) Section 220(d)(2)(A) is amended by striking section 213(d) and inserting section 223(e) . (H) Section 223(d)(2)(A) is amended by striking section 213(d) and inserting subsection (e)) . (I) Section 419A(f)(2) is amended by striking section 213(d) and inserting section 223(e) . (J) Section 501(c)(26)(A) is amended by striking section 213(d) and inserting section 223(e) . (K) Section 2503(e) is amended by striking section 213(d) and inserting section 223(e) . (L) Section 4980B(c)(4)(B)(i)(I) is amended by striking section 213(d) and inserting section 223(e) . (M) Section 6041(f) is amended by striking section 213(d) and inserting section 223(e) . (N) Section 7702B(a)(2) is amended by striking section 213(d) and inserting section 223(e) . (O) Section 7702B(a)(4) is amended by striking section 213(d)(1)(D) and inserting section 223(e)(1)(D) . (P) Section 7702B(d)(5) is amended by striking section 213(d)(10) and inserting section 223(e)(7) . (Q) Section 9832(d)(3) is amended by striking section 213(d) and inserting section 223(e) . (2) Section 72(t)(2)(B) is amended to read as follows: (B) Medical expenses Distributions made to an individual (other than distributions described in subparagraph (A), (C), or (D) to the extent such distributions do not exceed the excess of— (i) the expenses paid by the taxpayer during the taxable year, not compensated for by insurance or otherwise, for medical care (as defined in 223(e)) of the taxpayer, his spouse, or a dependent (as defined in section 7705, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof), over (ii) 10 percent of the taxpayer’s adjusted gross income. . (3) Section 105 is amended by striking subsection (f). (4) Section 162(l) is amended by striking paragraph (3). (5) Section 402(l) is amended by striking paragraph (7) and redesignating paragraph (8) as paragraph (7). (6) Section 220(f) is amended by striking paragraph (6). (7) Section 223(f) is amended by striking paragraph (6). (8) Section 7702B(e) is amended by striking paragraph (2). (9) Section 7705(f)(7), as redesignated by this Act, is amended by striking sections 105(b), 132(h)(2)(B), and 213(d)(5) and inserting sections 105(b) and 132(h)(2)(B) . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1410. Repeal of disqualification of expenses for over-the-counter drugs under certain accounts and arrangements (a) HSAs Subparagraph (A) of section 223(d)(2) is amended by striking the last sentence. (b) Archer MSAs Subparagraph (A) of section 220(d)(2) is amended by striking the last sentence. (c) Health flexible spending arrangements and health reimbursement arrangements Section 106 is amended by striking subsection (f). (d) Effective date The amendments made by this section shall apply to expenses incurred after December 31, 2014. 1411. Repeal of deduction for alimony payments and corresponding inclusion in gross income (a) In general Part VII of subchapter B of chapter 1 is amended by striking section 215 (and by striking the item relating to such section in the table of sections for such part). (b) Corresponding repeal of provisions providing for inclusion of alimony in gross income (1) Subsection (a) of section 61 is amended by striking paragraph (8) and by redesignating paragraphs (9) through (15) as paragraphs (8) through (14), respectively. (2) Part II of subchapter B of chapter 1 is amended by striking section 71 (and by striking the item relating to such section in the table of sections for such part). (3) Subpart F of part I of subchapter J of chapter 1 is amended by striking section 682 (and by striking the item relating to such section in the table of sections for such subpart). (c) Conforming amendments (1) Related to repeal of section 215 (A) Section 62(a) is amended by striking paragraph (10). (B) Section 3402(m)(1) is amended by striking (other than paragraph (10) thereof) . (2) Related to repeal of section 71 (A) Section 121(d)(3) is amended— (i) by striking (as defined in section 71(b)(2)) in subparagraph (B), and (ii) by adding at the end the following new subparagraph: (C) Divorce or separation instrument For purposes of this paragraph, the term divorce or separation instrument means— (i) a decree of divorce or separate maintenance or a written instrument incident to such a decree, (ii) a written separation agreement, or (iii) a decree (not described in clause (i)) requiring a spouse to make payments for the support or maintenance of the other spouse. . (B) Section 220(f)(7) is amended by striking subparagraph (A) of section 71(b)(2) and inserting clause (i) of section 121(d)(3)(C) . (C) Section 223(f)(7) is amended by striking subparagraph (A) of section 71(b)(2) and inserting clause (i) of section 121(d)(3)(C) . (D) Section 382(l)(3)(B)(iii) is amended by striking section 71(b)(2) and inserting section 121(d)(3)(C) . (E) Section 408(d)(6) is amended by striking subparagraph (A) of section 71(b)(2) and inserting clause (i) of section 121(d)(3)(C) . (d) Effective date The amendments made by this section shall apply to— (1) any divorce or separation instrument (as defined in section 71(b)(2) of the Internal Revenue Code of 1986 as in effect before the date of the enactment of this Act) executed after December 31, 2014, and (2) any divorce or separation instrument (as so defined) executed on or before such date and modified after such date if the modification expressly provides that the amendments made by this section apply to such modification. 1412. Repeal of deduction for moving expenses (a) In general Part VII of subchapter B of chapter 1 is amended by striking section 217 (and by striking the item relating to such section in the table of sections for such part). (b) Conforming amendments (1) Section 62(a) is amended by striking paragraph (15). (2) (A) Section 132(a) is amended by striking paragraph (6). (B) Section 82 is amended by striking Except as provided in section 132(a)(6), there and inserting There . (3) (A) Section 132 is amended by striking subsection (g). (B) Section 132(l) is amended by striking by striking subsections (e) and (g) and inserting subsection (e) . (4) Section 274(m)(3) is amended by striking (other than section 217) . (5) Section 3121(a) is amended by striking paragraph (11). (6) Section 209(a) of the Social Security Act is amended by striking paragraph (9). (7) Section 3306(b) is amended by striking paragraph (9). (8) Section 3401(a) is amended by striking paragraph (15). (9) Section 7872(f) is amended by striking paragraph (11). (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1413. Termination of deduction and exclusions for contributions to medical savings accounts (a) Termination of income tax deduction Section 220 is amended by adding at the end the following new subsection: (k) Termination No deduction shall be allowed under subsection (a) with respect to any taxable year beginning after December 31, 2014. . (b) Termination of exclusion for employer-Provided contributions Section 106 is amended by striking subsection (b). (c) Conforming amendments (1) Section 62(a) is amended by striking paragraph (16). (2) Section 106(d) is amended by striking paragraph (2), by redesignating paragraph (3) as paragraph (6), and by inserting after paragraph (1) the following new paragraphs: (2) No constructive receipt No amount shall be included in the gross income of any employee solely because the employee may choose between the contributions referred to in paragraph (1) and employer contributions to another health plan of the employer. (3) Special rule for deduction of employer contributions Any employer contribution to a health savings account (as so defined), if otherwise allowable as a deduction under this chapter, shall be allowed only for the taxable year in which paid. (4) Employer health savings account contribution required to be shown on return Every individual required to file a return under section 6012 for the taxable year shall include on such return the aggregate amount contributed by employers to the health savings accounts (as so defined) of such individual or such individual’s spouse for such taxable year. (5) Health savings account contributions not part of COBRA coverage Paragraph (1) shall not apply for purposes of section 4980B. . (3) Section 223(b)(4) is amended by striking subparagraph (A) and by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively. (4) Section 3231(e) is amended by striking paragraph (10) and by redesignating paragraphs (11) and (12) as paragraphs (10) and (11), respectively. (5) Section 3306(b) is amended by striking paragraph (17). (6) Section 3401(a) is amended by striking paragraph (21). (7) Chapter 43 is amended by striking section 4980E (and by striking the item relating to such section in the table of sections for such chapter). (8) Section 4980G is amended to read as follows: 4980G. Failure of employer to make comparable health savings account contributions (a) In general In the case of an employer who makes a contribution to the health savings account of any employee during a calendar year, there is hereby imposed a tax on the failure of such employer to meet the requirements of subsection (d) for such calendar year. (b) Amount of tax The amount of the tax imposed by subsection (a) on any failure for any calendar year is the amount equal to 35 percent of the aggregate amount contributed by the employer to health savings accounts of employees for taxable years of such employees ending with or within such calendar year. (c) Waiver by Secretary In the case of a failure which is due to reasonable cause and not to willful neglect, the Secretary may waive part or all of the tax imposed by subsection (a) to the extent that the payment of such tax would be excessive relative to the failure involved. (d) Employer required To make comparable health savings account contributions for all participating employees (1) In general An employer meets the requirements of this subsection for any calendar year if the employer makes available comparable contributions to the health savings accounts of all comparable participating employees for each coverage period during such calendar year. (2) Comparable contributions (A) In general For purposes of paragraph (1), the term comparable contributions means contributions— (i) which are the same amount, or (ii) which are the same percentage of the annual deductible limit under the high deductible health plan covering the employees. (B) Part-year employees In the case of an employee who is employed by the employer for only a portion of the calendar year, a contribution to the health savings account of such employee shall be treated as comparable if it is an amount which bears the same ratio to the comparable amount (determined without regard to this subparagraph) as such portion bears to the entire calendar year. (3) Comparable participating employees (A) In general For purposes of paragraph (1), the term comparable participating employees means all employees— (i) who are eligible individuals covered under any high deductible health plan of the employer, and (ii) who have the same category of coverage. (B) Categories of coverage For purposes of subparagraph (B), the categories of coverage are self-only and family coverage. (4) Part-time employees (A) In general Paragraph (3) shall be applied separately with respect to part-time employees and other employees. (B) Part-time employee For purposes of subparagraph (A), the term part-time employee means any employee who is customarily employed for fewer than 30 hours per week. (5) Special rule for non-highly compensated employees For purposes of applying this section to a contribution to a health savings account of an employee who is not a highly compensated employee (as defined in section 414(q)), highly compensated employees shall not be treated as comparable participating employees. (e) Controlled groups For purposes of this section, all persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as 1 employer. (f) Definitions Terms used in this section which are also used in section 223 have the respective meanings given such terms in section 223. (g) Regulations The Secretary shall issue regulations to carry out the purposes of this section. . (9) Section 6051(a) is amended by striking paragraph (11). (10) Section 6051(a)(14)(A) is amended by striking paragraphs (11) and (12) and inserting paragraph (12) . (d) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2014. 1414. Repeal of 2-percent floor on miscellaneous itemized deductions (a) In general Part 1 of subchapter B of chapter 1 is amended by striking section 67 (and the item relating to such section in the table of sections for such part). (b) Conforming amendments (1) Section 642(b)(2)(C)(i)(II) is amended to read as follows: (II) by determining the adjusted gross income of the trust under the rules of section 2(b)(2) (without the reference to section 642(b)). . (2) Section 162(o) is amended by striking paragraph (2). (3) Section 302(b)(5) is amended by striking section 67(c)(2)(B) and inserting section 562(c)(2) . (4) Section 562(c) is amended— (A) by striking (as defined in section 67(c)(2)(B)) , (B) by striking (as so defined) , (C) by striking Except in the case of and inserting the following: (1) In general Except in the case of , and (D) by adding at the end the following new paragraph: (2) Publicly offered regulated investment company For purposes of this subsection— (A) In general The term publicly offered regulated investment company means a regulated investment company the shares of which are— (i) continuously offered pursuant to a public offering (within the meaning of section 4 of the Securities Act of 1933, as amended (15 U.S.C. 77a to 77aa)), (ii) regularly traded on an established securities market, or (iii) held by or for no fewer than 500 persons at all times during the taxable year. (B) Secretary may reduce 500 person requirement The Secretary may by regulation decrease the minimum shareholder requirement of clause (i)(III) in the case of regulated investment companies which experience a loss of shareholders through net redemptions of their shares. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1415. Repeal of overall limitation on itemized deductions (a) In general Part 1 of subchapter B of chapter 1 is amended by striking section 68 (and the item relating to such section in the table of sections for such part). (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1416. Deduction for amortizable bond premium allowed in determining adjusted gross income (a) In general Subsection (a) of section 62, as amended by section 1411, is amended by inserting after paragraph (9) the following new paragraph: (10) Amortizable bond premium The deduction allowed under section 171(a)(1). . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1417. Repeal of exclusion, etc., for employee achievement awards (a) In general Section 74 is amended by striking subsection (c). (b) Repeal of limitation on deduction Section 274 is amended by striking subsection (j). (c) Conforming amendments (1) Section 102(c)(2) is amended by striking the first sentence. (2) Section 414(n)(3)(C) is amended by striking 274(j), . (3) Section 414(t)(2) is amended by striking 274(j), . (4) Section 3121(a)(20) is amended by striking 74(c), . (5) Section 209(a)(17) of the Social Security Act is amended by striking 74(c), . (6) Section 3231(e)(5) is amended by striking 74(c), . (7) Section 3306(b)(16) is amended by striking 74(c), . (8) Section 3401(a)(19) is amended by striking 74(c), . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1418. Clarification of special rule for certain governmental plans (a) Treatment of beneficiaries Section 105(j)(1) is amended— (1) by striking the taxpayer and inserting an employee, spouse, dependent (as defined for purposes of subsection (b)), or child (as so defined) , and (2) by striking deceased plan participant’s beneficiary and inserting deceased employee’s beneficiary who is not a surviving spouse, dependent (as so defined), or child (as so defined) . (b) Application to political subdivisions of States Section 105(j)(2) is amended— (1) by inserting or established by or on behalf of a State or political subdivision thereof after public retirement system , and (2) by inserting or 501(c)(9) after section 115 in subparagraph (B) thereof. (c) Effective date The amendments made by this section shall apply to payments after the date of the enactment of this Act. 1419. Limitation on exclusion for employer-provided housing (a) In general Section 119 is amended by adding at the end the following new subsection: (e) Limitation on exclusion of lodging (1) In general The aggregate amount excluded from gross income of the taxpayer under subsections (a) and (d) with respect to lodging for any taxable year shall not exceed $50,000 (half such amount in the case of a married individual filing a separate return). (2) Limitation to 1 home Subsections (a) and (d) (separately and in combination) shall not apply with respect to more than 1 residence of the taxpayer at any given time. In the case of a joint return, the preceding sentence shall apply separately to each spouse for any period during which each spouse resides separate from the other spouse in a residence which is provided in connection with the employment of each spouse, respectively. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2014. 1420. Fringe benefits (a) Repeal of special rule for air transportation by parent of employee Subsection (h) of section 132 is amended by striking paragraph (3). (b) Transportation and parking (1) Freeze at current levels (A) In general Paragraph (2) of section 132(f) is amended— (i) in subparagraph (A) by striking $100 and inserting $130 , and (ii) in subparagraph (B) by striking $175 and inserting $250 . (B) Inflation adjustment Subsection (f) of such section is amended by striking paragraph (6) and redesignating paragraph (7) as paragraph (6). (2) Repeal of bicycle benefit (A) In general Paragraph (1) of section 132(f) is amended by striking subparagraph (D). (B) Conforming amendments (i) Section 132(f)(2) is amended by inserting and at the end of subparagraph (A), by striking and at the end of subparagraph (B) and inserting a period, and by striking subparagraph (C). (ii) Section 132(f)(4) is amended by striking (other than a qualified bicycle commuting reimbursement) . (iii) Section 132(f)(5) is amended by striking subparagraph (F). (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1421. Repeal of exclusion of net unrealized appreciation in employer securities (a) In general Section 402(e) is amended by striking paragraph (4). (b) Conforming amendments (1) Section 401(k)(10) is amended by striking subparagraph (B) and inserting the following new subparagraphs: (B) Distributions must be lump sum distributions A termination shall not be treated as described in subparagraph (A) with respect to any employee unless the employee receives a lump sum distribution by reason of the termination. (C) Lump-sum distribution defined For purposes of this paragraph— (i) In general The term lump sum distribution means the distribution or payment within one taxable year of the recipient of the balance to the credit of an employee which becomes payable to the recipient from a trust which forms a part of a plan described in section 401(a) and which is exempt from tax under section 501 or from a plan described in section 403(a). Such term includes a distribution of an annuity contract from— (I) a trust which forms a part of a plan described in section 401(a) and which is exempt from tax under section 501(a), or (II) an annuity plan described in section 403(a). For purposes of this clause, a distribution to two or more trusts shall be treated as a distribution to one recipient. (ii) Aggregation of certain trusts and plans For purposes of determining the balance to the credit of an employee under clause (i)— (I) all trusts which are part of a plan shall be treated as a single trust, all pension plans maintained by the employer shall be treated as a single plan, all profit-sharing plans maintained by the employer shall be treated as a single plan, and all stock bonus plans maintained by the employer shall be treated as a single plan, and (II) trusts which are not qualified trusts under section 401(a) and annuity contracts which do not satisfy the requirements of section 404(a)(2) shall not be taken into account. (iii) Community property laws The provisions of this subparagraph shall be applied without regard to community property laws. (iv) Balance to credit of employee not to include amounts payable under qualified domestic relations order The balance to the credit of an employee shall not include any amount payable to an alternate payee under a qualified domestic relations order (within the meaning of section 414(p)). (v) Transfers to cost-of-living arrangement not treated as distribution The balance to the credit of an employee under a defined contribution plan shall not include any amount transferred from such defined contribution plan to a qualified cost-of-living arrangement (within the meaning of section 415(k)(2)) under a defined benefit plan. (vii) (vi) Lump-sum distributions of alternate payees If any distribution or payment of the balance to the credit of an employee would be treated as a lump-sum distribution, then, for purposes of this paragraph, the payment under a qualified domestic relations order (within the meaning of section 414(p)) of the balance to the credit of an alternate payee who is the spouse or former spouse of the employee shall be treated as a lump-sum distribution. For purposes of this clause, the balance to the credit of the alternate payee shall not include any amount payable to the employee. (vii) Exclusion of accumulate deductible employee contributions For purposes of this subparagraph, the balance to the credit of the employee does not include the accumulated deductible employee contributions under the plan (within the meaning of section 72(o)(5)). . (2) Section 3405(e) is amended by striking paragraph (8). (c) Effective date The amendments made by this section shall apply to distributions after December 31, 2014. 1422. Consistent basis reporting between estate and person acquiring property from decedent (a) Property acquired from a decedent Section 1014 is amended by adding at the end the following new subsection: (f) Basis must be consistent with estate tax return For purposes of this section— (1) In general The basis of any property to which subsection (a) applies shall not exceed— (A) in the case of property the final value of which has been determined for purposes of the tax imposed by chapter 11 on the estate of such decedent, such value, and (B) in the case of property not described in subparagraph (A) and with respect to which a statement has been furnished under section 6035(a) identifying the value of such property, such value. (2) Exception Paragraph (1) shall only apply to any property whose inclusion in the decedent’s estate increased the liability for the tax imposed by chapter 11 (reduced by credits allowable against such tax) on such estate. (3) Regulations The Secretary may by regulations provide exceptions to the application of this subsection. . (b) Information reporting (1) In general Subpart A of part III of subchapter A of chapter 61 is amended by inserting after section 6034A the following new section: 6035. Basis information to persons acquiring property from decedent (a) Information with respect to property acquired from decedents (1) In general The executor of any estate required to file a return under section 6018(a) shall furnish to the Secretary and to each person acquiring any interest in property included in the decedent’s gross estate for Federal estate tax purposes a statement identifying the value of each interest in such property as reported on such return and such other information with respect to such interest as the Secretary may prescribe. (2) Statements by beneficiaries Each person required to file a return under section 6018(b) shall furnish to the Secretary and to each other person who holds a legal or beneficial interest in the property to which such return relates a statement identifying the information described in paragraph (1). (3) Time for furnishing statement (A) In general Each statement required to be furnished under paragraph (1) or (2) shall be furnished at such time as the Secretary may prescribe, but in no case at a time later than the earlier of— (i) the date which is 30 days after the date on which the return under section 6018 was required to be filed (including extensions, if any), or (ii) the date which is 30 days after the date such return is filed. (B) Adjustments In any case in which there is an adjustment to the information required to be included on a statement filed under paragraph (1) or (2) after such statement has been filed, a supplemental statement under such paragraph shall be filed not later than the date which is 30 days after such adjustment is made. (b) Regulations The Secretary shall prescribe such regulations as necessary to carry out this section, including regulations relating to— (1) the application of this section to property with regard to which no estate tax return is required to be filed, and (2) situations in which the surviving joint tenant or other recipient may have better information than the executor regarding the basis or fair market value of the property. . (2) Penalty for failure to file (A) Return Section 6724(d)(1) is amended by striking and at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting , and , and by adding at the end the following new subparagraph: (D) any statement required to be filed with the Secretary under section 6035. . (B) Statement Section 6724(d)(2) is amended by striking or at the end of subparagraph (GG), by striking the period at the end of subparagraph (HH) and inserting , or , and by adding at the end the following new subparagraph: (II) section 6035 (other than a statement described in paragraph (1)(D)). . (3) Clerical amendment The table of sections for subpart A of part III of subchapter A of chapter 61 is amended by inserting after the item relating to section 6034A the following new item: Sec. 6035. Basis information to persons acquiring property from decedent. . (c) Penalty for inconsistent reporting (1) In general Subsection (b) of section 6662 is amended by inserting after paragraph (7) the following new paragraph: (8) Any inconsistent estate basis. . (2) Inconsistent basis reporting Section 6662 is amended by adding at the end the following new subsection: (k) Inconsistent estate basis reporting For purposes of this section, the term inconsistent estate basis means the portion of the understatement which is attributable to in the case of property acquired from a decedent, a basis determination with respect to such property which is not consistent with the value of such property as determined under section 1014(f). . (d) Effective date The amendments made by this section shall apply to transfers for which an estate tax return is filed after the date of the enactment of this Act. F Employment tax modifications 1501. Modifications of deduction for Social Security taxes in computing net earnings from self-employment (a) In general Paragraph (12) of section 1402(a) is amended to read as follows: (12) in lieu of the deduction allowable under section 164(f) (relating to deduction for one-half of self-employment taxes), there shall be allowed as a deduction an amount equal to the sum of— (A) 7.1064 percent of so much of the individual’s net earnings from self-employment for the taxable year (determined without regard to this paragraph) as does not exceed an amount equal to the product of 1.0765 and the excess (if any) of— (i) the contribution and benefit base (as determined under section 230 of the Social Security Act) in effect for the calendar year in which the taxable year begins, over (ii) the wages (within the meaning of subsection (b)(1)) paid to the individual during such taxable year, plus (B) 1.4293 percent of the excess (if any) of the individual’s net earnings from self-employment for the taxable year (determined without regard to this paragraph) over the amount of such net earnings taken into account under subparagraph (A); . (b) Coordination with benefits Paragraph (11) of section 211(a) of the Social Security Act is amended to read as follows: (11) in lieu of the deduction allowable under section 164(f) of the Internal Revenue Code of 1986 (relating to deduction for one-half of self-employment taxes), there shall be allowed as a deduction an amount equal to the sum of— (A) 7.1064 percent of so much of the individual's net-earnings from self-employment for the taxable year (determined without regard to this paragraph) as does not exceed an amount equal to the product of 1.0765 and the excess (if any) of— (i) the contribution and benefit base (as determined under section 230) in effect for the calendar year in which the taxable year begins, (ii) the wages (within the meaning of section 1402(b)(1) of the Internal Revenue Code of 1986) paid to the individual during such taxable year, plus (B) 1.4293 percent of the excess (if any) of such net earnings over the amount of such net earnings taken into account under subparagraph (A); . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1502. Determination of net earnings from self-employment (a) Pro rata share of S corporation items included as net earnings from self-Employment (1) In general Section 1402(a) is amended by inserting , plus (notwithstanding subsection (c)(2)) his pro rata share of nonseparately computed income or loss (as defined in section 1366(a)(2)) from any trade or business carried on by an S corporation in which he is a shareholder before ; except that in the matter preceding paragraph (1). (2) Application of adjustments Section 1402(a) is amended by inserting and such pro rata share of S corporation nonseparately computed income or loss after such distributive share of partnership ordinary income or loss in the matter preceding paragraph (1). (3) Conforming amendments Section 211(a) of the Social Security Act is amended in the matter preceding paragraph (1)— (A) by inserting , plus (notwithstanding subsection (c)(2)) his pro rata share of nonseparately computed income or loss (as defined in section 1366(a)(2) of the Internal Revenue Code of 1986)from any trade or business carried on by an S corporation in which he is a shareholder before ; except that , and (B) by inserting and such pro rata share of S corporation nonseparately computed income or loss after such distributive share of partnership ordinary income or loss . (b) Repeal of exception for limited partners (1) In general Section 1402(a) is amended by striking paragraph (13). (2) Conforming amendment Section 211(a) of the Social Security Act is amended by striking paragraph (12). (c) Deduction for return on invested capital (1) In general Section 1402 is amended by adding at the end the following new subsection: (m) Deduction for return on invested capital (1) In general An individual’s net earnings from self-employment shall be reduced (but not below zero) by the lesser of— (A) 30 percent of the sum of— (i) such individual’s pass-through net earnings from self-employment, and (ii) such individual’s wages (as defined in section 3121) paid with respect to any trade or business carried on by an S corporation in which he is a shareholder, or (B) such individual’s pass-through net earnings from self-employment. (2) Pass-through net earnings from self-employment For purposes of this subsection, the term pass-through net earnings from self-employment means net earnings from self-employment (as computed under subsection (a) without regard to this subsection) determined without regard to any trade or business carried on by the individual. (3) 100 percent deduction where no material participation (A) In general If an individual does not have material participation with respect to an entity (as determined under subparagraph (B)), in lieu of the reduction provided under paragraph (1) such individual’s net earnings from self-employment shall be reduced (but not below zero) by the sum of— (i) the reduction determined under paragraph (1) applied— (I) by substituting 100 percent for 30 percent in subparagraph (A) thereof, and (II) by determining pass-through net earnings from self-employment by only taking into account distributive and pro rata shares from non-participation entities, and (III) by only taking into account under subparagraph (A)(ii) thereof wages paid with respect to trades or businesses carried on by S corporations which are non-participation entities, plus (ii) the reduction determined under paragraph (1) applied— (I) by determining pass-through net earnings from self-employment by not taking into account any distributive or pro rata share from a non-participation entity, and (II) by not taking into account under subparagraph (A)(ii) thereof any wages paid with respect to trades or businesses carried on by an S corporation which is a non-participation entity. (B) Material participation For purposes of this paragraph— (i) In general An individual does not have material participation with respect to an entity (hereafter referred to as the top-tier entity) if such individual demonstrates to the satisfaction of the Secretary that such individual— (I) does not materially participate (as determined under section 469(h) without regard to paragraph (2) thereof) in any activity carried on by such top-tier entity, and (II) does not materially participate (as so determined) in any activity carried on by any entity in which such top-tier entity holds (directly or indirectly) any interest. (ii) Family attribution For purposes of applying clause (i), the participation of any individual in any activity shall also be treated as performed by such individual’s spouse and the lineal descendants of such individual and such individual’s spouse. (C) Non-participation entity For purposes of this paragraph, the term non-participation entity means, with respect to any individual, any entity with respect to which such individual does not have material participation (as determined under subparagraph (B)). . (2) Conforming amendment Section 211 of the Social Security Act is amended by adding at the end the following new subsection: (l) Deduction for return on invested capital (1) In general An individual’s net earnings from self-employment shall be reduced (but not below zero) by the lesser of— (A) 30 percent of the sum of— (i) such individual’s pass-through net earnings from self-employment, and (ii) such individual’s wages (as defined in section 209) paid with respect to any trade or business carried on by an S corporation in which he is a shareholder, or (B) such individual’s pass-through net earnings from self-employment. (2) Pass-through net earnings from self-employment For purposes of this subsection, the term pass-through net earnings from self-employment means net earnings from self-employment (as computed under subsection (a) without regard to this subsection) determined without regard to any trade or business carried on by the individual. (3) 100 percent deduction where no material participation (A) In general If an individual does not have material participation with respect to an entity (as determined under subparagraph (B)), in lieu of the reduction provided under paragraph (1) such individual’s net earnings from self-employment shall be reduced (but not below zero) by the sum of— (i) the reduction determined under paragraph (1) applied— (I) by substituting 100 percent for 30 percent in subparagraph (A) thereof, and (II) by determining pass-through net earnings from self-employment by only taking into account distributive and pro rata shares from non-participation entities, and (III) by only taking into account under subparagraph (A)(ii) thereof wages paid with respect to trades or businesses carried on by S corporations which are non-participation entities, plus (ii) the reduction determined under paragraph (1) applied— (I) by determining pass-through net earnings from self-employment by not taking into account any distributive or pro rata share from a nonparticipation entity, and (II) by not taking into account under subparagraph (A)(ii) thereof any wages paid with respect to trades or businesses carried on by an S corporation which is a nonparticipation entity. (B) Material participation For purposes of this paragraph— (i) In general An individual does not have material participation with respect to an entity (hereafter referred to as the top-tier entity) if such individual demonstrates to the satisfaction of the Secretary of the Treasury under section 1402(m) of the Internal Revenue Code of 1986 that such individual— (I) does not materially participate (as determined under section 469(h) of the Internal Revenue Code of 1986 without regard to paragraph (2) thereof) in any activity carried on by such top-tier entity, and (II) does not materially participate (as so determined) in any activity carried on by any entity in which such top-tier entity holds (directly or indirectly) any interest. (ii) Family attribution For purposes of applying clause (i), the participation of any individual in any activity shall also be treated as performed by such individual’s spouse and the lineal descendants of such individual and such individual’s spouse. (C) Nonparticipation entity For purposes of this paragraph, the term nonparticipation entity means, with respect to any individual, any entity with respect to which such individual does not have material participation (as determined under subparagraph (B)). . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1503. Repeal of exemption from FICA taxes for certain foreign workers (a) In general Subsection (b) of section 3121 is amended by striking paragraphs (1) and (19). (b) Coordination with benefits Subsection (a) of section 210 of the Social Security Act is amended by striking paragraphs (1) and (19). (c) Railroad retirement tax Paragraph (1) of section 3231(e) is amended by striking the third sentence. (d) Effective date The amendments made by this section shall apply to remuneration received for services performed after December 31, 2014. 1504. Repeal of exemption from FICA taxes for certain students (a) In general Paragraph (10) of section 3121(b) is amended— (1) by inserting during any calendar year after service performed in the matter preceding subparagraph (A), and (2) by inserting , and the remuneration paid by the employer with respect to such service during such calendar year is less than the dollar amount in effect under section 213(d) of the Social Security Act (relating to amount required for a quarter of coverage) with respect to such year before the semicolon at the end. (b) College clubs, fraternities, and sororities Paragraph (2) of section 3121(b) is amended— (1) by inserting during any calendar year after domestic service performed , and (2) by inserting , if the remuneration paid by the employer with respect to such service during such calendar year is less than the dollar amount in effect under section 213(d) of the Social Security Act (relating to amount required for a quarter of coverage) with respect to such year before the semicolon at the end. (c) Deduction of tax from wages Subsection (a) of section 3102 is amended by inserting ; and an employer who in any calendar year pays to an employee remuneration to which paragraph (2) or (10) of section 3121(b) is applicable may deduct an amount equivalent to such tax from any such payment of remuneration, even though at the time of payment the total amount of such remuneration paid to the employee by the employer in the calendar year is less than the dollar amount in effect under section 213(d) of the Social Security Act with respect to such year before the period at the end. (d) Coordination with benefits (1) Paragraph (10) of section 210(a) of the Social Security Act is amended— (A) by inserting during any calendar year after Service performed in the matter preceding subparagraph (A), and (B) by inserting , and the remuneration paid by the employer with respect to such service during such calendar year is less than the dollar amount in effect under section 213(d) (relating to amount required for a quarter of coverage) with respect to such year before the semicolon at the end. (2) Paragraph (2) of section 210(a) of the Social Security Act is amended— (A) by inserting during any calendar year after Domestic service performed , and (B) by inserting , if the remuneration paid by the employer with respect to such service during such calendar year is less than the dollar amount in effect under section 213(d) (relating to amount required for a quarter of coverage) with respect to such year before the semicolon at the end. (e) Effective date The amendments made by this section shall apply to remuneration received for services performed after December 31, 2014. 1505. Override of Treasury guidance providing that certain employer-provided supplemental unemployment benefits are not subject to employment taxes (a) In general Effective with respect to amounts paid after December 31, 2014— (1) Revenue Ruling 56–249, (2) Revenue Ruling 58–128, (3) Revenue Ruling 60–330, (4) so much of the holding of Revenue Ruling 77–347 as relates to Plan (1) and Plan (2), (5) Revenue Ruling 90–72, and (6) any other ruling, regulation, or other guidance provided by the Secretary of the Treasury, or his designee, to the extent that such ruling, regulation, or guidance provides that any payment made by an employer by reason of involuntary termination of employment shall not be treated as wages or compensation for purposes of any provision of the Internal Revenue Code of 1986, shall be null and void. The preceding sentence shall not apply to the extent a ruling, regulation, or other guidance implements a statutory exception to wages or compensation. (b) Repeal of withholding requirement (1) In general Section 3402(o)(1) is amended by striking subparagraph (A) and by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively. (2) Conforming amendments (A) Section 3402(o)(2) is amended by striking subparagraph (A) and by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively. (B) Section 3402(o)(5)(A) is amended by striking paragraph (1)(C) and inserting paragraph (1)(B) . (3) Effective date (A) In general The amendments made by this subsection shall apply to amounts paid after December 31, 2013. (B) No inference No amendment made by this subsection shall be construed to create any inference with respect to any amounts paid before January 1, 2014. 1506. Certified professional employer organizations (a) Employment taxes Chapter 25 is amended by adding at the end the following new section: 3511. Certified professional employer organizations (a) General rules For purposes of the taxes and other obligations imposed by this subtitle— (1) a certified professional employer organization shall be treated as the employer (and no other person shall be treated as the employer) of any work site employee performing services for any customer of such organization, but only with respect to remuneration remitted by such organization to such work site employee, and (2) the exemptions, exclusions, definitions, and other rules which are based on type of employer and which would (but for paragraph (1)) apply shall apply with respect to such taxes imposed on such remuneration. (b) Successor employer status For purposes of sections 3121(a)(1), 3231(e)(2)(C), and 3306(b)(1)— (1) a certified professional employer organization entering into a service contract with a customer with respect to a work site employee shall be treated as a successor employer and the customer shall be treated as a predecessor employer during the term of such service contract, and (2) a customer whose service contract with a certified professional employer organization is terminated with respect to a work site employee shall be treated as a successor employer and the certified professional employer organization shall be treated as a predecessor employer. (c) Liability of certified professional employer organization Solely for purposes of its liability for the taxes and other obligations imposed by this subtitle— (1) a certified professional employer organization shall be treated as the employer of any work site employee (other than a person described in subsection (e)) who is performing services covered by a contract meeting the requirements of section 7706(e)(2), but only with respect to remuneration remitted by such organization to such individual, and (2) exemptions, exclusions, definitions, and other rules which are based on type of employer and which would (but for paragraph (1)) apply shall apply with respect to such taxes imposed on such remuneration. (d) Special rule for related party This section shall not apply in the case of a customer which bears a relationship to a certified professional employer organization described in section 267(b) or 707(b). For purposes of the preceding sentence, such sections shall be applied by substituting 10 percent for 50 percent . (e) Special rule for certain individuals For purposes of the taxes imposed under this subtitle, an individual with net earnings from self-employment derived from the customer’s trade or business (including a partner in a partnership that is a customer), is not a work site employee with respect to remuneration paid by a certified professional employer organization. (f) Regulations The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section. . (b) Certified professional employer organization defined Chapter 79, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section: 7706. Certified professional employer organizations (a) In general For purposes of this title, the term certified professional employer organization means a person who applies to be treated as a certified professional employer organization for purposes of section 3511 and who has been certified by the Secretary as meeting the requirements of subsection (b). (b) Certification requirements A person meets the requirements of this subsection if such person— (1) demonstrates that such person (and any owner, officer, and such other persons as may be specified in regulations) meets such requirements as the Secretary shall establish with respect to tax status, background, experience, business location, and annual financial audits, (2) agrees that it will satisfy the bond and independent financial review requirements of subsections (c) on an ongoing basis, (3) agrees that it will satisfy such reporting obligations as may be imposed by the Secretary, (4) computes its taxable income using an accrual method of accounting unless the Secretary approves another method, (5) agrees to verify on such periodic basis as the Secretary may prescribe that it continues to meet the requirements of this subsection, and (6) agrees to notify the Secretary in writing, within such time as the of Secretary may prescribe, of any change that materially affects the continuing accuracy of any agreement or information which was previously made or provided. (c) Bond and independent financial review (1) In general An organization meets the requirements of this paragraph if such organization— (A) meets the bond requirements of paragraph (2), and (B) meets the independent financial review requirements of paragraph (3). (2) Bond (A) In general A certified professional employer organization meets the requirements of this paragraph if the organization has posted a bond for the payment of taxes under subtitle C (in a form acceptable to the Secretary) that is in an amount at least equal to the amount specified in subparagraph (B). (B) Amount of bond (i) In general For the period April 1 of any calendar year through March 31 of the following calendar year, the amount of the bond required is equal to the greater of— (I) 5 percent of the organization’s liability under section 3511 for taxes imposed by subtitle C during the preceding calendar year (but not to exceed $1,000,000), or (II) $50,000. (ii) Special rule for newly created professional employer organizations During the first three full calendar years that an organization is in existence, subclause (I) of clause (i) shall not apply. For this purpose— (I) under rules provided by the Secretary, an organization is treated as in existence as of the date that such organization began providing services to any customer which were comparable to the services being provided with respect to work site employees, regardless of whether such date occurred before or after the organization is certified under subsection (b), and (II) an organization with liability under section 3511 for taxes imposed by subtitle C during the preceding calendar year in excess of $5,000,000 shall no longer be described in this clause (ii) as of April 1 of the year following such calendar year. (3) Independent financial review requirements A certified professional employer organization meets the requirements of this paragraph if such organization— (A) has, as of the most recent audit date, caused to be prepared and provided to the Secretary (in such manner as the Secretary may prescribe) an opinion of an independent certified public accountant as to whether the certified professional employer organization’s financial statements are presented fairly in accordance with generally accepted accounting principles, and (B) provides to the Secretary an assertion regarding Federal employment tax payments and an examination level attestation on such assertion from an independent certified public accountant not later than the last day of the second month beginning after the end of each calendar quarter. Such assertion shall state that the organization has withheld and made deposits of all taxes imposed by chapters 21, 22, and 24 of the Internal Revenue Code in accordance with regulations imposed by the Secretary for such calendar quarter and such examination level attestation shall state that such assertion is fairly stated, in all material respects. (4) Controlled group rules For purposes of the requirements of paragraphs (2) and (3), all professional employer organizations that are members of a controlled group within the meaning of sections 414(b) and (c) shall be treated as a single organization. (5) Failure to file assertion and attestation If the certified professional employer organization fails to file the assertion and attestation required by paragraph (3) with respect to any calendar quarter, then the requirements of paragraph (3) with respect to such failure shall be treated as not satisfied for the period beginning on the due date for such attestation. (6) Audit date For purposes of paragraph (3)(A), the audit date shall be six months after the completion of the organization’s fiscal year. (d) Suspension and revocation authority The Secretary may suspend or revoke a certification of any person under subsection (b) for purposes of section 3511 if the Secretary determines that such person is not satisfying the agreements or requirements of subsections (b) or (c), or fails to satisfy applicable accounting, reporting, payment, or deposit requirements. (e) Work site employee For purposes of this title— (1) In general The term work site employee means, with respect to a certified professional employer organization, an individual who— (A) performs services for a customer pursuant to a contract which is between such customer and the certified professional employer organization and which meets the requirements of paragraph (2), and (B) performs services at a work site meeting the requirements of paragraph (3). (2) Service contract requirements A contract meets the requirements of this paragraph with respect to an individual performing services for a customer if such contract is in writing and provides that the certified professional employer organization shall— (A) assume responsibility for payment of wages to the individual, without regard to the receipt or adequacy of payment from the customer for such services, (B) assume responsibility for reporting, withholding, and paying any applicable taxes under subtitle C, with respect to the individual’s wages, without regard to the receipt or adequacy of payment from the customer for such services, (C) assume responsibility for any employee benefits which the service contract may require the certified professional employer organization to provide, without regard to the receipt or adequacy of payment from the customer for such services, (D) assume responsibility for hiring, firing and for recruiting workers in addition to the customer’s responsibility for recruiting, hiring, and firing workers, (E) maintain employee records relating to the individual, and (F) agree to be treated as a certified professional employer organization for purposes of section 3511 with respect to such individual. (3) Work site coverage requirement The requirements of this paragraph are met with respect to an individual if at least 85 percent of the individuals performing services for the customer at the work site where such individual performs services are subject to 1 or more contracts with the certified professional employer organization which meet the requirements of paragraph (2) (but not taking into account those individuals who are excluded employees within the meaning of section 414(q)(5)). (f) Determination of employment status Except to the extent necessary for purposes of section 3511, nothing in this section shall be construed to affect the determination of who is an employee or employer for purposes of this title. (g) Regulations The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section. . (c) Conforming amendments (1) Section 3302 is amended by adding at the end the following new subsection: (h) Treatment of certified professional employer organizations If a certified professional employer organization (as defined in section 7706), or a customer of such organization, makes a contribution to the State’s unemployment fund with respect to a work site employee, such organization shall be eligible for the credits available under this section with respect to such contribution. . (2) Section 3303(a) is amended— (A) by striking the period at the end of paragraph (3) and inserting ; and and by inserting after paragraph (3) the following new paragraph: (4) if the taxpayer is a certified professional employer organization (as defined in section 7706) that is treated as the employer under section 3511, such certified professional employer organization is permitted to collect and remit, in accordance with paragraphs (1), (2), and (3), contributions during the taxable year to the State unemployment fund with respect to a work site employee. , and (B) in the last sentence— (i) by striking paragraphs (1), (2), and (3) and inserting paragraphs (1), (2), (3), and (4) , and (ii) by striking paragraph (1), (2), or (3) and inserting paragraph (1), (2), (3), or (4) . (3) Section 6053(c) is amended by adding at the end the following new paragraph: (8) Certified professional employer organizations For purposes of any report required by this subsection, in the case of a certified professional employer organization that is treated, under section 3511, as the employer of a work site employee, the customer with respect to whom a work site employee performs services shall be the employer for purposes of reporting under this section and the certified professional employer organization shall furnish to the customer any information necessary to complete such reporting no later than such time as the Secretary shall prescribe. . (d) Clerical amendments (1) The table of sections for chapter 25 is amended by adding at the end the following new item: Sec. 3511. Certified professional employer organizations. . (2) The table of sections for chapter 79, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item: Sec. 7706. Certified professional employer organizations. . (e) Reporting requirements and obligations The Secretary of the Treasury shall develop such reporting and recordkeeping rules, regulations, and procedures as the Secretary determines necessary or appropriate to ensure compliance with the amendments made by this section with respect to entities applying for certification as certified professional employer organizations or entities that have been so certified. Such rules shall be designed in a manner which streamlines, to the extent possible, the application of requirements of such amendments, the exchange of information between a certified professional employer organization and its customers, and the reporting and recordkeeping obligations of the certified professional employer organization. (f) User fees Subsection (b) of section 7528 is amended by adding at the end thereof the following new paragraph: (4) Certified professional employer organizations The fee charged under the program in connection with the certification by the Secretary of a professional employer organization under section 7706 shall be an annual fee not to exceed $1,000 per year. . (g) Effective dates (1) In general The amendments made by this section shall apply with respect to wages for services performed on or after January 1 of the first calendar year beginning more than 12 months after the date of the enactment of this Act. (2) Certification program The Secretary of the Treasury shall establish the certification program described in section 7706(b) of the Internal Revenue Code of 1986, as added by this section, not later than 6 months before the effective date determined under paragraph (1). (h) No inference Nothing contained in this section or the amendments made by this section shall be construed to create any inference with respect to the determination of who is an employee or employer— (1) for Federal tax purposes (other than the purposes set forth in the amendments made by this section), or (2) for purposes of any other provision of law. G Pensions and Retirement 1 Individual Retirement Plans 1601. Elimination of income limits on contributions to Roth IRA s (a) In general Subsection (c) of section 408A is amended by striking paragraph (3). (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1602. No new contributions to traditional IRA s (a) In general (1) Individual retirement accounts Paragraph (1) of section 408(a) is amended by striking in excess of the amount and all that follows through the end and inserting the following: unless it is a contribution under a simplified employee pension described in subsection (k) not in excess of the amount of the limitation in effect for such taxable year under section 415(c)(1)(A), a contribution to a simple retirement account described in subsection (p) not in excess of the amount described in section 408(p)(8) for such taxable year, or a contribution to a Roth IRA described in section 408A not in excess of the amount in effect for the taxable year with respect to such individual under section 408A(c)(1)(A)(i). . (2) Individual retirement annuities (A) In general Subparagraph (B) of section 408(b)(2) is amended to read as follows: (B) any amount paid as a premium on behalf of any individual for a taxable year would meet the requirements of subsection (a)(1) if it were paid as a contribution to an individual retirement account, and . (B) Endowment contract requirement The last sentence of section 408(b) is amended by striking the dollar amount in effect under section 219(b)(1)(A) and inserting the amounts described in paragraph (2)(B) . (b) Conforming amendments (1) Amendments relating to deductibility (A) Section 219(a) is amended by striking equal to the qualified retirement contributions of the individual and inserting equal to the amounts contributed on behalf of the individual to a plan described in section 501(c)(18) . (B) Section 219(b) is amended— (i) by striking Maximum amount of deduction and all that follows through Notwithstanding paragraph (1), the amount allowable as a deduction and inserting Maximum amount of deduction. —The amount allowable as a deduction , and (ii) by striking paragraphs (4) and (5). (C) Section 219 is amended by striking subsections (c), (d), (e), (g), and (h) and by redesignating subsection (f) as subsection (c). (D) Section 219(c), as so redesignated, is amended— (i) by striking Other definitions and special rules and inserting Special rules , (ii) by striking paragraphs (1), (3), (4), (5), (6), (7), and (8), and (iii) by inserting before paragraph (2) the following new paragraph: (1) Beneficiary must be under age 70 1/2 No deduction shall be allowed under this section with respect to any amount contributed on behalf of an individual to a plan described in section 501(c)(18) if such individual has attained age 70 1/2 before the close of such individual’s taxable year for which the contribution was made. . (E) Section 4973(b)(2)(C) is amended by striking (determined without regard to section 219(f)(6)) . (2) Amendments relating to Roth IRA contribution limits (A) Section 408A(c), as amended by this Act, is amended— (i) by striking paragraphs (1) and (2) and inserting the following new paragraphs: (1) Maximum contribution (A) In general The aggregate amount of contributions for any taxable year to all Roth IRAs maintained for the benefit of an individual shall not exceed the lesser of— (i) $5,500, or (ii) an amount equal to the compensation includible in the individual’s gross income for such taxable year. (B) Catch-up contributions for individuals 50 or older In the case of an individual who has attained the age of 50 before the close of the taxable year, the amount in effect under subparagraph (A)(i) for such taxable year shall be increased by $1,000. (2) Special rule for certain married individuals In the case of an individual to whom this paragraph applies for the taxable year, the limitation of paragraph (1) shall be equal to the lesser of— (A) the dollar amount in effect under paragraph (1)(A)(i) for the taxable year, or (B) the sum of— (i) the compensation includible in such individual’s gross income for the taxable year, plus (ii) the compensation includible in the gross income of such individual’s spouse for the taxable year reduced by— (I) the amount allowed as a deduction under section 219(a) to such spouse for such taxable year, (II) the amount of any contribution on behalf of such spouse to a Roth IRA for such taxable year. (3) Individuals to whom paragraph (2) applies Paragraph (2) shall apply to any individual if— (A) such individual files a joint return for the taxable year, and (B) the amount of compensation (if any) includible in such individual’s gross income for the taxable year is less than the compensation includible in the gross income of such individual's spouse for the taxable year. . (ii) by striking paragraph (2) in paragraph (6) and inserting paragraph (1) , (iii) by striking the rule of section 219(f)(3) shall apply in paragraph (7) and inserting the following: a taxpayer shall be deemed to have made a contribution to a Roth IRA on the last day of the preceding taxable year if the contribution is made on account of such taxable year and is made not later than the time prescribed by law for filing the return for such taxable year (not including extensions thereof) , and (iv) by adding at the end the following new paragraphs: (8) Compensation For purposes of this section, the term compensation includes earned income (as defined in section 401(c)(2)). The term compensation does not include any amount received as a pension or annuity and does not include any amount received as deferred compensation. For purposes of this paragraph, section 401(c)(2) shall be applied as if the term trade or business for purposes of section 1402 included service described in subsection (c)(6) thereof. The term compensation includes any differential wage payment (as defined in section 3401(h)(2)). (9) Married individuals The limitation under this subsection shall be computed separately for each individual, and this section shall be applied without regard to any community property laws. (10) Special rule for compensation earned by members of Armed Forces for services in combat zone For purposes of paragraphs (1)(A)(ii) and (2), the amount of compensation includible in an individual’s gross income shall be determined without regard to section 112. . (B) Section 408A(d)(3)(A) is amended— (i) by inserting and at the end of clause (i), (ii) by striking , and at the end of clause (ii) and inserting a period, (iii) by striking clause (iii), and (iv) by striking the last sentence. (3) Amendments relating to traditional IRAs (A) Section 408(d)(4) is amended— (i) by striking subparagraph (B) and inserting the following: (B) in the case of simplified employee pension, such contribution is not excluded from gross income under section 402(h), . (ii) by adding at the end the following: This paragraph shall not apply to any contribution to a simple retirement account. . (B) Section 408(d)(5)(A) is amended— (i) by striking in effect under section 219(b)(1)(A) and inserting in effect with respect to the taxpayer for the taxable year under section 408A(c)(1)(A)(i) , (ii) by striking the amount allowable as a deduction and all that follows through such excess contribution. and inserting the amount that may be contributed under section 408A(c)(1) for the taxable year for which the contribution was made if such distribution is received after the date described in paragraph (4). , (iii) by adding at the end of subparagraph (A) the following: This paragraph shall not apply to any contribution to a simple retirement account. , and (iv) by striking the last sentence. (C) Section 408 is amended by striking subsection (o). (4) Amendments relating to simple retirement accounts (A) Section 408(p)(2)(D)(ii) is amended by striking means a plan, contract and all that follows through the period at the end and inserting the following: means— (I) a plan described in section 401(a) which includes a trust exempt from tax under section 501(a), (II) an annuity plan described in section 403(a), (III) an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A)), (IV) an annuity contract described in section 403(b), (V) a simplified employee pension (within the meaning of section 408(k)), (VI) any simple retirement account (within the meaning of section 408(p)), or (VII) a trust described in section 501(c)(18). . (B) Section 408(p)(8) is amended to read as follows: (8) Coordination with maximum limitation under subsection (a) In the case of a simple retirement account, for purposes of subsections (a)(1) and (b)(2), contributions may not exceed the sum of— (A) the dollar amount in effect under paragraph (2)(A)(ii), and (B) the employer contribution required under subparagraph (A)(iii) or (B)(i) of paragraph (2), whichever is applicable. . (5) Amendments relating to SEPs Section 408 is amended by striking subsection (j). (6) Amendments relating to excise tax on excess contributions (A) Traditional IRAs Subsection (b) of section 4973 is amended— (i) by striking paragraph (1) and inserting the following: (1) the amounts contributed for the taxable year to the accounts or for the annuities or bonds (other than any contributions to a Roth IRA) which are not permitted contributions under subsection (a)(1) or (b)(2) of section 408, and . (ii) in paragraph (2)(C), by striking the maximum amount allowable and all that follows through without regard to section 219(f)(6)) and inserting the permitted contributions under subsection (a)(1) or (b)(2) of section 408 for the taxable year over the amount contributed , and (iii) by striking the last sentence and inserting the following: Paragraph (2) shall be determined separately with respect to any simplified employee pension (within the meaning of section 408(k)) and any simple retirement account (within the meaning of section 408(p)). . (B) Roth IRAs Section 4973(f) is amended by striking sections 408A(c)(2) and (c)(3) each place it appears and inserting section 408A(c)(1) . (7) Amendments relating to saver’s credit Section 25B(d)(1)(A) is amended to read as follows: (A) the amounts— (i) paid in cash for the taxable year by or on behalf of an individual to all Roth IRAs maintained for such individual’s benefit, and (ii) contributed on behalf of the individual to a plan described in section 501(c)(18), . (8) Other conforming amendments (A) Section 86(f)(3) is amended by striking 219(f)(1) and inserting section 408A(c)(8) . (B) Section 132(m)(3) is amended by striking section 219(g)(5) and inserting section 408(p)(2)(D)(ii) . (C) (i) Section 223(d) is amended— (I) by redesignating paragraph (4) as paragraph (7), (II) by inserting after paragraph (3) the following new paragraphs: (4) Recontributed amounts No deduction shall be allowed under this section with respect to a rollover contribution described in subsection (f)(5). (5) Time when contributions deemed made For purposes of this section, a taxpayer shall be deemed to have made a contribution to a health savings account on the last day of the preceding taxable year if the contribution is made on account of such taxable year and is made not later than the time prescribed by law for filing the return for such taxable year (not including extensions thereof). (6) Employer payments Except as provided in section 106(d), for purposes of this title, any amount paid by an employer to a health savings account shall be treated as payment of compensation to the employee (other than a self-employed individual who is an employee within the meaning of section 401(c)(1)) includible in his gross income in the taxable year for which the amount was contributed, whether or not a deduction for such payment is allowable under this section to the employee. . (ii) Section 223(d)(7), as so redesignated, is amended by striking subparagraphs (A), (B), and (C), and redesignating subparagraphs (D) and (E) as subparagraphs (A) and (B), respectively. (D) Section 409A(d)(2)(A) is amended by striking subparagraph (A) or (B) of section 219(g)(5) (without regard to subparagraph (A)(iii)) and inserting section 408(p)(2)(D)(ii) (without regard to subclause (III) thereof) . (E) Section 501(c)(18)(D)(i) is amended by striking section 219(b)(3) and inserting section 219(a) . (F) Section 877A(d)(4)(A) is amended by striking section 219(g)(5) and inserting 408(p)(2)(D)(ii) . (G) Section 6652 is amended by striking subsection (g). (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1603. Inflation adjustment for Roth IRA contributions (a) In general Subsection (c) of section 408A, as amended by this Act, is amended by adding at the end the following new paragraph: (11) Cost-of-living adjustment In the case of any taxable year beginning after 2023, the dollar amount in paragraph (1)(A)(i) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting calendar year 2022 for calendar year 2012 in clause (ii) thereof. If any increase determined under the preceding sentence is not a multiple of $500, such increase shall be rounded to the next lowest multiple of $500. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2014. 1604. Repeal of special rule permitting recharacterization of Roth IRA contributions as traditional IRA contributions (a) In general Section 408A(d) is amended by striking paragraph (6) and by redesignating paragraph (7) as paragraph (6). (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1605. Repeal of exception to 10-percent penalty for first home purchases (a) In general Section 72(t)(2) is amended by striking subparagraph (F). (b) Roth IRAs Subparagraph (A) of section 408A(d)(2) is amended by inserting or at the end of clause (ii), and by striking , or at the end of clause (iii) and inserting a period, and by striking clause (iv). (c) Conforming amendment (1) Section 72(t) is amended by striking paragraph (8). (2) Section 408A(d), as amended by this Act, is amended by striking paragraph (5) and by redesignating paragraph (6) as paragraph (5). (d) Effective date The amendments made by this section shall apply to distributions after December 31, 2014. 2 Employer-Provided Plans 1611. Termination for new SEPs (a) In general (1) Section 408(k) is amended by redesignating paragraph (9) as paragraph (10) and by inserting after paragraph (8) the following new paragraph: (9) Termination This subsection shall not apply to years beginning after December 31, 2014. The preceding sentence shall not apply to any simplified employee pension of an employer if such simplified employee pension, and the terms thereof, meet the requirements of this subsection on and after such date. . (2) Section 402(h) is amended by adding at the end the following new paragraph: (4) Termination This subsection shall not apply to any simplified employee pension the arrangement for which is established after December 31, 2014. . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1612. Termination for new SIMPLE 401(k)s (a) Amendments relating to SIMPLE 401(k) s Section 401(k)(11) is amended by adding at the end the following new subparagraph: (E) Termination This paragraph shall apply to a cash or deferred arrangement for any plan year beginning after December 31, 2014, only if such arrangement meets the requirements of this paragraph for the last plan year beginning before January 1, 2015, and for each plan year thereafter. . (b) Effective date The amendment made by this section shall apply to plan years beginning after December 31, 2014. 1613. Rules related to designated Roth contributions (a) Applicable retirement plans which permit elective deferrals required To accept designated Roth contributions (1) In general Paragraph (30) of section 401(a) is amended— (A) by striking deferrals.— and all that follows through In the case of a trust and inserting the following: deferrals.— (A) In general In the case of a trust , (B) by striking unless the plan provides that and inserting the following: unless the plan— (i) provides that , (C) by striking the period at the end and inserting , and , and (D) by adding at the end the following: (ii) except as provided in subparagraph (B), includes a qualified Roth contribution program (as defined in section 402A(b)). (B) Exception for certain small plans Subparagraph (A)(ii) shall not apply to any plan of an eligible employer (as defined in section 408(p)(2)(C)). . (2) Conforming amendments (A) Section 402A(b)(1) is amended by striking all that follows designated Roth contributions and inserting a period. (B) The heading of section 402A (and the item relating to such section in the table of sections for part I of subchapter D of chapter 1) is amended by striking Optional treatment of elective deferrals as Roth contributions and inserting Designated Roth contributions . (b) Restriction on portion of elective deferral limitation which may apply to traditional elective deferrals (1) In general Subparagraph (A) of section 402(g)(1) is amended by striking the applicable dollar amount and inserting 50 percent (100 percent in the case of elective deferrals with respect to any plan of an eligible employer (as defined in section 408(p)(2)(C)) of the applicable dollar amount . (2) Government 457(b) plans (A) In general Subsection (b) of section 457 is amended by striking and at the end of paragraph (5), by redesignating paragraph (6) as paragraph (7), and by inserting after paragraph (5) the following new paragraph: (6) which, in the case of a plan maintained by an employer described in subsection (e)(1)(A), meets requirements similar to the requirements of section 401(a)(30), and . (B) Conforming amendment Section 402(g)(1)(A) is amended by inserting and section 457(a)(1) after (h)(1)(B) . (C) Cross-reference For treatment of amounts deferred under an eligible compensation plan of a governmental employer as elective deferrals, see section 1618(b)(1) of this Act. (3) Roth elective deferrals permitted to extent of full limitation amount (A) In general Section 402A(c)(2)(A) is amended to read as follows: (A) the applicable dollar amount in effect under section 402(g)(1)(B) with respect to the employee for the taxable year, over . (B) Conforming amendments (i) Section 401(a)(30) is amended— (I) by inserting (including contributions treated as elective deferrals under section 402A(a)(1)) after section 402(g)(3) , and (II) by striking section 402(g)(1)(A) and inserting section 402(g)(1)(B), and that the amount of elective deferrals not included in gross income may not exceed the amount of the limitation in effect under section 402(g)(1)(A), . (ii) Section 402(g)(1)(C) is amended— (I) by striking In addition to subparagraph (A) and inserting For purposes of subparagraph (A) . (II) by striking gross income shall not include and all that follows through does not exceed and inserting the applicable dollar amount in effect for the taxable year under subparagraph (B) shall be increased by . (iii) (I) So much of section 402(g)(2)(A) as precedes clause (i) is amended to read as follows: (A) In general If an individual’s aggregate elective deferrals for a taxable year exceed the applicable dollar amount under paragraph (1) (hereinafter in this paragraph referred to as excess total deferrals ) or if an individual’s aggregate elective deferrals (disregarding designated Roth contributions and simple Roth contributions) exceed the amount excludable under paragraph (1)(A) (hereinafter in this paragraph referred to as excess non-Roth deferrals )— . (II) Section 402(g)(2)(A)(i) is amended by striking such excess deferrals and inserting such excess total deferrals or excess non-Roth deferrals . (III) Section 402(g)(2)(C)(ii) is amended by striking the excess deferral and inserting the excess total deferral or excess non-Roth deferral . (IV) Section 402A(d)(2)(C) is amended by striking excess deferral and inserting excess total deferral . (V) Section 402A(d)(3) is amended by striking excess deferral each place it appears and inserting excess total deferral . (VI) Section 402(g)(1)(A) is amended by striking the second sentence. (iv) Section 402A(c)(1)(A) is amended by striking without regard to this section and inserting (determined without regard to this section and section 402(g)) . (4) Reporting by employers Section 6051(a)(8) is amended by inserting after (as defined in section 402A) the following: , and the type of plan under which amounts are deferred or contributed . (c) SIMPLE Roth retirement accounts permitted (1) In general Subsection (p) of section 408 is amended by adding at the end the following new paragraph: (11) Roth contributions For purposes of this section— (A) In general If a qualified salary reduction arrangement with respect to a simple retirement account includes a simple Roth contribution program, any simple Roth contribution made by an employer pursuant to such program shall be treated as an elective employer contribution, except that such contribution shall be paid to a Roth IRA and shall not be excludable from gross income. (B) Simple Roth contribution program The term simple Roth contribution program means a program under which an employee may elect to make simple Roth contributions. (C) Simple Roth contribution The term simple Roth contribution means any elective employer contribution which— (i) is excludable from gross income of an employee without regard to this paragraph, and (ii) the employee designates (at such time and in such manner as the Secretary may prescribe) as not being so excludable. (D) Limitation In the case of an eligible employer which elects the application of this subparagraph with respect to the simple retirement accounts established pursuant to a qualified salary reduction arrangement of such employer, notwithstanding paragraph (2)(E), the applicable dollar amount for purposes of paragraph (2)(A)(ii), shall be equal to— (i) in the case of any such account which is not designated as a Roth IRA, 50 percent of the applicable dollar amount in effect under section 402(g)(1)(B) for the taxable year, and (ii) in the case of any such account which is designated as a Roth IRA, the excess (if any) of— (I) the applicable dollar amount in effect under section 402(g)(1)(B) for the taxable year, over (II) the aggregate amount of elective employer contributions to any account described in clause (i). In the case of a simple retirement account with respect to which the application of this subparagraph is elected, the employer shall not be treated as an eligible employer for purposes of section 402(g)(1)(A), and the applicable dollar amount with respect to any eligible participant (as defined in section 414(v)) shall, notwithstanding section 414(v)(2)(B)(ii), be determined by reference to section 402(g)(1)(C). . (2) Coordination with maximum Roth limitation Subsection (c) of section 408A, as amended by this Act, is amended by adding at the end the following new paragraph: (12) Increase in maximum limitation for SIMPLE Roth In the case of any simple retirement account, subparagraphs (A)(i) and (B) of paragraph (1) shall be applied by disregarding any contributions made to a simple retirement account and any qualified rollover contributions. . (3) Conforming amendments (A) Section 408A(f)(1) is amended by striking or a simple retirement account . (B) Section 6051(a)(8), as amended by this Act, is amended by inserting after (as defined in section 402A) the following: and simple Roth contributions (as defined in section 408(p)(11)(C)) . (d) Effective date (1) In general Except as provided in paragraph (2), the amendments made by this section shall apply to plan years and taxable years beginning after December 31, 2014. (2) Subsection (c) The amendments made by subsection (c) shall apply to calendar years beginning after December 31, 2014. 1614. Modifications of required distribution rules for pension plans (a) In general Section 401(a)(9)(B) of the Internal Revenue Code of 1986 is amended to read as follows: (B) Required distributions where employee dies before entire interest is distributed (i) 5-year general rule A trust shall not constitute a qualified trust under this section unless the plan provides that, if an employee dies before the distribution of the employee's interest (whether or not such distribution has begun in accordance with subparagraph (A)), the entire interest of the employee will be distributed within 5 years after the death of such employee. (ii) Exception for eligible designated beneficiaries If— (I) any portion of the employee's interest is payable to (or for the benefit of) an eligible designated beneficiary, (II) such portion will be distributed (in accordance with regulations) over the life of such eligible designated beneficiary (or over a period not extending beyond the life expectancy of such beneficiary), and (III) such distributions begin not later than 1 year after the date of the employee's death or such later date as the Secretary may by regulations prescribe, then, for purposes of clause (i) and except as provided in clause (iv) or subparagraph (E)(iii), the portion referred to in subclause (I) shall be treated as distributed on the date on which such distributions begin. (iii) Special rule for surviving spouse of employee If the eligible designated beneficiary referred to in clause (ii)(I) is the surviving spouse of the employee— (I) the date on which the distributions are required to begin under clause (ii)(III) shall not be earlier than the date on which the employee would have attained age 70 1/2 , and (II) if the surviving spouse dies before the distributions to such spouse begin, this subparagraph shall be applied as if the surviving spouse were the employee. (iv) Rules upon death of eligible designated beneficiary If an eligible designated beneficiary dies before the portion of an employee's interest described in clause (ii) is entirely distributed, clause (ii) shall not apply to any beneficiary of such eligible designated beneficiary and the remainder of such portion shall be distributed within 5 years after the death of such beneficiary. . (b) Definition of eligible designated beneficiary Section 401(a)(9)(E) of such Code is amended to read as follows: (E) Definitions and rules relating to designated beneficiary For purposes of this paragraph— (i) Designated beneficiary The term designated beneficiary means any individual designated as a beneficiary by the employee. (ii) Eligible designated beneficiary The term eligible designated beneficiary means, with respect to any employee, any designated beneficiary who, as of the date of death of the employee, is— (I) the surviving spouse of the employee, (II) subject to clause (iii), a child of the employee who has not attained age 22, (III) disabled (within the meaning of section 72(m)(7)), (IV) a chronically ill individual (within the meaning of section 7702B(c)(2), except that the requirements of subparagraph (A)(i) thereof shall only be treated as met if there is a certification that, as of such date, the period of inability described in such subparagraph with respect to the individual is an indefinite one that is reasonably expected to be lengthy in nature), or (V) an individual not described in any of the preceding subparagraphs who is not more than 10 years younger than the employee. (iii) Special rule for children Subject to subparagraph (F), an individual described in clause (ii)(II) shall cease to be an eligible designated beneficiary as of the date the individual attains age 22 and the requirement of subparagraph (B)(i) shall not be treated as met with respect to any remaining portion of an employee’s interest payable to the individual unless such portion is distributed within 5 years after such date. . (c) Required beginning date Section 401(a)(9)(C) of such Code is amended by adding at the end the following new clause: (v) Employees becoming 5-percent owners after age 70 1/2 If an employee becomes a 5-percent owner (as defined in section 416) with respect to a plan year ending in a calendar year after the calendar year in which the employee attains age 70 1/2 , then clause (i)(II) shall be applied by substituting the calendar year in which the employee became such an owner for the calendar year in which the employee retires. . (d) Effective dates (1) In general Except as provided in this subsection, the amendments made by this section shall apply to distributions with respect to employees who die after December 31, 2014. (2) Required beginning date The amendment made by subsection (c) shall apply to employees becoming a 5-percent owner with respect to plan years ending in calendar years beginning before, on, or after the date of the enactment of this Act, except that— (A) if, without regard to such amendment, an employee’s required beginning date occurs before April 1, 2015, such amendment shall not result in an earlier required beginning date for such employee, and (B) if, solely by reason of such amendment, an employee’s required beginning date would occur before April 1, 2015, such employee's required beginning date shall occur on April 1, 2015. (3) Exception for certain beneficiaries If a designated beneficiary of an employee who dies before January 1, 2015, dies after December 31, 2014— (A) the amendments made by this section shall apply to any beneficiary of such designated beneficiary, and (B) the designated beneficiary shall be treated as an eligible designated beneficiary for purposes of applying section 401(a)(9)(B)(iv) of such Code (as in effect after the amendments made by this section). (4) Exception for certain existing annuity contracts (A) In general The amendments made by this section shall not apply to a qualified annuity which is a binding annuity contract in effect on the date of the enactment of this Act and at all times thereafter. (B) Qualified annuity contract For purposes of this paragraph, the term qualified annuity means, with respect to an employee, an annuity— (i) which is a commercial annuity (as defined in section 3405(e)(6) of such Code) or payable by a defined benefit plan, (ii) under which the annuity payments are substantially equal periodic payments (not less frequently than annually) over the lives of such employee and a designated beneficiary (or over a period not extending beyond the life expectancy of such employee or the life expectancy of such employee and a designated beneficiary) in accordance with the regulations described in section 401(a)(9)(A)(ii) of such Code (as in effect before such amendments) and which meets the other requirements of this section 401(a)(9) of such Code (as so in effect) with respect to such payments, and (iii) with respect to which— (I) annuity payments to the employee have begun before January 1, 2015, and the employee has made an irrevocable election before such date as to the method and amount of the annuity payments to the employee or any designated beneficiaries, or (II) if subclause (I) does not apply, the employee has made an irrevocable election before the date of the enactment of this Act as to the method and amount of the annuity payments to the employee or any designated beneficiaries. 1615. Reduction in minimum age for allowable in-service distributions (a) In general Section 401(a)(36) is amended by striking age 62 and inserting age 59 1/2 . (b) Application to governmental section 457(b) plans Clause (i) of section 457(d)(1)(A) is amended by inserting (in the case of a plan maintained by an employer described in subsection (e)(1)(A), age 59 1/2 ) before the comma at the end. (c) Effective date The amendments made by this section shall apply to distributions made after December 31, 2014. 1616. Modification of rules governing hardship distributions (a) In general Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury shall modify Treasury Regulation section 1.401(k)–1(d)(3)(iv)(E) to— (1) delete the 6-month prohibition on contributions imposed by paragraph (2) thereof, and (2) to make any other modifications necessary to carry out the purposes of section 401(k)(2)(B)(i)(IV) of the Internal Revenue Code of 1986. (b) Effective date The revised regulations under this section shall apply to plan years beginning after December 31, 2014. 1617. Extended rollover period for the rollover of plan loan offset amounts in certain cases (a) In general Paragraph (3) of section 402(c) is amended by adding at the end the following new subparagraph: (C) Rollover of certain plan loan offset amounts (i) In general In the case of a qualified plan loan offset amount, paragraph (1) shall not apply to any transfer of such amount made after the due date (including extensions) for filing the return of tax for the taxable year in which such amount is treated as distributed from a qualified employer plan. (ii) Qualified plan loan offset amount For purposes of this subparagraph, the term qualified plan loan offset amount means a plan loan offset amount which is treated as distributed from a qualified employer plan to a participant or beneficiary solely by reason of— (I) the termination of the qualified employer plan, or (II) the failure to meet the repayment terms of the loan from such plan because of the separation from service of the participant (whether due to layoff, cessation of business, termination of employment, or otherwise). (iii) Plan loan offset amount For purposes of clause (ii), the term plan loan offset amount means the amount by which the participant's accrued benefit under the plan is reduced in order to repay a loan from the plan. (iv) Limitation This subparagraph shall not apply to any plan loan offset amount unless such plan loan offset amount relates to a loan to which section 72(p)(1) does not apply by reason of section 72(p)(2). (v) Qualified employer plan For purposes of this subsection, the term qualified employer plan has the meaning given such term by section 72(p)(4). . (b) Conforming amendment Subparagraph (A) of section 402(c)(3) is amended by striking subparagraph (B) and inserting subparagraphs (B) and (C) . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1618. Coordination of contribution limitations for 403(b) plans and governmental 457(b) plans (a) 403(b) plans (1) Elimination of special catch-up rule Subsection (g) of section 402 is amended by striking paragraph (7) and by redesignating paragraph (8) as paragraph (7). (2) Elimination of post termination non-elective contributions Subsection (b) of section 403 is amended— (A) in paragraph (3), by striking for the most recent period and all that follows through more than five years , and (B) by striking paragraph (4). (3) Elimination of increased contribution limit for church plans Subsection (c) of section 415 is amended by striking paragraph (7). (4) Elimination of separate 415(c) limits Paragraph (4) of section 415(k) is amended by striking each employer with respect to which the participant has the control required and inserting the employer and each employer which is part of a controlled group or under common control . (b) 457(b) plans (1) Elimination of separate deferral limit Paragraph (3) of section 402(g) is amended by striking and at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting , and , and by inserting after subparagraph (D) the following new subparagraph: (E) any amount deferred under an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A). . (2) Taken into account under limitation for defined contribution plans (A) In general Paragraph (2) of section 415(a) is amended by striking or at the end of subparagraph (B), by inserting or at the end of subparagraph (C), and by inserting after subparagraph (C) the following new subparagraph: (D) an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A), . (B) Definition Paragraph (1) of section 415(k) is amended by striking or at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting , or , and by adding at the end the following new subparagraph: (E) an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A). . (3) Elimination of special catch-up rule Paragraph (3) of section 457(b) is amended by inserting , in the case of an eligible employer described in subsection (e)(1)(B), after which . (c) Conforming amendments (1) Section 25B(d)(1)(B) is amended— (A) by striking clause (ii), and (B) by striking the amount of— and all that follows through any elective deferrals and inserting the following: the amount of any elective deferrals . (2) Section 402A(e)(2) is amended— (A) by striking , and and all that follows and inserting a period, and (B) by striking means— and all that follows through any elective deferral described in subparagraph (A) or (C) and inserting the following: means any elective deferral described in (A), (C), or (E) . (3) Section 457(e) is amended by striking paragraph (18). (4) Section 414(u)(2)(C) is amended by inserting by an eligible employer described in section 457(e)(1)(B) after (as defined in section 457(b)) . (5) Section 414(v)(2)(D) is amended— (A) by striking clauses (i), (ii), and (iv) of , and (B) by striking , and plans described in clause (iii) and all that follows through the end and inserting a period. (6) Section 414(v)(3)(A)(i) is amended by striking (determined without regard to section 457(b)(3)) . (7) Section 414(v)(6)(B) is amended by striking subsection (u)(2)(C) and inserting section 402(g)(3) . (8) Section 414(v)(6) is amended by striking subparagraph (C). (d) Effective date The amendments made by this section shall apply to plan years and taxable years beginning after December 31, 2014. 1619. Application of 10-percent early distribution tax to governmental 457 plans (a) In general Paragraph (1) of section 72(t) is amended by inserting or an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A), after section 4974(c)), . (b) Effective date The amendment made by this section shall apply to withdrawals on or after February 26, 2014. 1620. Inflation adjustments for qualified plan benefit and contribution limitations (a) Defined benefit plans (1) Current limit Subparagraph (A) of section 415(b)(1) is amended by striking $160,000 and inserting $210,000 . (2) Inflation adjustment Section 415(d) is amended— (A) in paragraph (1)(A)— (i) by striking $160,000 and inserting $210,000 , and (ii) by inserting for calendar years beginning after 2023 after subsection (b)(1)(A) , (B) paragraph (3)(A), by striking July 1, 2001 and inserting July 1, 2022 . (b) Defined contribution plans (1) Current limit Subparagraph (A) of section 415(c)(1) is amended by striking $40,000 and inserting $52,000 . (2) Inflation adjustment Subsection (d) of section 415 is amended— (A) in paragraph (1)(C)— (i) by striking $40,000 and inserting $52,000 , (ii) by inserting for calendar years beginning after 2023 after subsection (c)(1)(A) , (B) in paragraph (3)(D), by striking July 1, 2001 and inserting July 1, 2022 . (c) Conforming amendments (1) Section 415(b)(2) is amended by striking $160,000 each place it appears in subparagraphs (C) and (D) and inserting $210,000 . (2) Section 415(b) is amended by striking $160,000 in the fourth sentence of paragraph (7) and inserting $210,000 . (3) The headings for subparagraphs (C) and (D) of section 415(b)(2) are each amended by striking $160,000 and inserting $210,000 . (4) The heading for subparagraph (A) of section 415(d)(3) is amended by striking $160,000 and inserting $210,000 . (5) The heading for subparagraph (D) of section 415(d)(3) is amended by striking $40,000 and inserting $52,000 . (6) The heading for subparagraph (A) of section 415(d)(4) is amended by striking $160,000 and inserting $210,000 . (7) The heading for subparagraph (B) of section 415(d)(4) is amended by striking $40,000 and inserting $52,000 . (d) Effective date The amendments made by this section shall apply to years ending with or within a calendar year beginning after 2014. 1621. Inflation adjustments for qualified plan elective deferral limitations (a) Current limit Subparagraph (B) of section 402(g)(1) is amended by striking shall be and all that follows and inserting is $17,500. (b) Inflation adjustment Paragraph (4) of section 402(g) is amended— (1) by striking December 31, 2006 and inserting December 31, 2023 , (2) by striking $15,000 and inserting $17,500 , and (3) by striking 2005 and inserting 2022 . (c) Effective date The amendments made by this section shall apply to plan years and taxable years beginning after December 31, 2014. 1622. Inflation adjustments for SIMPLE retirement accounts (a) Current limit Clause (i) of section 408(p)(2)(E) is amended by striking shall be and all that follows and inserting shall be $12,000 . (b) Inflation adjustment Clause (ii) of section 408(p)(2)(E) is amended— (1) by striking December 31, 2005 and inserting December 31, 2023 , (2) by striking $10,000 and inserting $12,000 , (3) by striking 2004 and inserting 2022 . (c) Effective date The amendments made by this section shall apply to calendar years beginning after 2014. 1623. Inflation adjustments for catch-up contributions for certain employer plans (a) Current limit (1) Plans other than simple 401(k) and simple retirement accounts Clause (i) of section 414(v)(2)(B) is amended by striking determined in accordance with the following table and all that follows through the period at the end and inserting $5,500. . (2) Simple 401(k) and simple retirement accounts Clause (ii) of section 414(v)(2)(B) is amended by striking determined in accordance with the following table and all that follows through the period at the end and inserting $2,500. . (b) Inflation adjustment Subparagraph (C) of section 414(v)(2) is amended— (1) by striking December 31, 2006 and inserting December 31, 2023 , (2) by striking $5,000 and inserting $5,500 , and (3) by striking 2005 and inserting 2022 . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 1624. Inflation adjustments for governmental and tax-exempt organization plans (a) Current limit Subparagraph (A) of section 457(b)(2) is amended by striking the applicable dollar amount and inserting $17,500 . (b) Inflation adjustment Paragraph (15) of section 457(e) is amended— (1) by striking Applicable dollar amount.— and all that follows through Cost-of-living adjustments.— In the case of taxable years beginning after December 31, 2006 and inserting the following: Cost-of-living adjustments.— In the case of taxable years beginning after December 31, 2023 , (2) by striking the $15,000 amount under subparagraph (A) and inserting the $17,500 amount under subsection (b)(2)(A) , and (3) by striking 2005 and inserting 2022 . (c) Conforming amendment Section 457(f)(4)(A) is amended by striking twice the applicable dollar limit determined under subsection (e)(15) and inserting twice the amount in effect under subsection (b)(2)(A) . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. H Certain provisions related to members of Indian tribes 1701. Indian general welfare benefits (a) In general Part III of subchapter B of chapter 1 is amended by inserting before section 140 the following new section: 139E. Indian general welfare benefits (a) In general Gross income does not include the value of any Indian general welfare benefit. (b) Indian general welfare benefit For purposes of this section, the term Indian general welfare benefit includes any payment made or services provided to or on behalf of a member of an Indian tribe (or any spouse or dependent of such a member) pursuant to an Indian tribal government program, but only if— (1) the program is administered under specified written guidelines and does not discriminate in favor of members of the governing body of the tribe, and (2) the benefits provided under such program— (A) are available to any tribal member who meets such guidelines, (B) are for the promotion of general welfare, (C) are not lavish or extravagant, and (D) are not compensation for services. (c) Definitions and special rules For purposes of this section— (1) Indian tribal government For purposes of this section, the term Indian tribal government includes any agencies or instrumentalities of an Indian tribal government and any Alaska Native regional or village corporation, as defined in, or established pursuant to, the Alaska Native Claims Settlement Act ( 43 U.S.C. 1601 , et seq.). (2) Dependent The term dependent has the meaning given such term by section 7705, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B). (3) Lavish or extravagant The Secretary shall, in consultation with the Tribal Advisory Committee (as established under section 1702 of the Tax Reform Act of 2014 ), establish guidelines for what constitutes lavish or extravagant benefits with respect to Indian tribal government programs. (4) Establishment of tribal government program A program shall not fail to be treated as an Indian tribal government program solely by reason of the program being established by tribal custom or government practice. . (b) Conforming amendment The table of sections for part III of subchapter B of chapter 1 is amended by inserting before the item relating to section 140 the following new item: Sec. 139E. Indian general welfare benefits. . (c) Effective date (1) In general The amendments made by this section shall apply to taxable years for which the period of limitation on refund or credit under section 6511 of the Internal Revenue Code of 1986 has not expired. (2) One-year waiver of statute of limitations If the period of limitation on a credit or refund resulting from the amendments made by subsection (a) expires before the end of the 1-year period beginning on the date of the enactment of this Act, refund or credit of such overpayment (to the extent attributable to such amendments) may, nevertheless, be made or allowed if claim therefor is filed before the close of such 1-year period. 1702. Tribal Advisory Committee (a) Establishment The Secretary of the Treasury shall establish a Tribal Advisory Committee (hereinafter in this subsection referred to as the Committee ). (b) Duties (1) Implementation The Committee shall advise the Secretary on matters relating to the taxation of Indians. (2) Education and training The Secretary shall, in consultation with the Committee, establish and require— (A) training and education for internal revenue field agents who administer and enforce internal revenue laws with respect to Indian tribes on Federal Indian law and the Federal Government’s unique legal treaty and trust relationship with Indian tribal governments, and (B) training of such internal revenue field agents, and provision of training and technical assistance to tribal financial officers, about implementation of this Act and the amendments made thereby. (c) Membership (1) In general The Committee shall be composed of 7 members appointed as follows: (A) Three members appointed by the Secretary of the Treasury. (B) One member appointed by the Chairman, and one member appointed by the Ranking Member, of the Committee on Ways and Means of the House of Representatives. (C) One member appointed by the Chairman, and one member appointed by the Ranking Member, of the Committee on Finance of the Senate. (2) Term (A) In general Except as provided in subparagraph (B), each member’s term shall be 4 years. (B) Initial staggering The first appointments made by the Secretary under paragraph (1)(A) shall be for a term of 2 years. 1703. Other relief for Indian tribes (a) Waiver of penalties and interest The Secretary of the Treasury may waive any interest and penalties imposed under the Internal Revenue Code of 1986 on any Indian tribal government or member of an Indian tribe (or any spouse or dependent of such a member) to the extent such interest and penalties relate to excluding a payment or benefit from gross income under the general welfare exclusion. (b) Definitions For purposes of this section— (1) Indian tribal government The term Indian tribal government shall have the meaning given such term by section 139E of such Code, as added by this Act. (2) Indian tribe The term Indian tribe shall have the meaning given such term by section 139D(c)(1) of such Code, as amended by this Act. II Alternative Minimum Tax Repeal 2001. Repeal of alternative minimum tax (a) In general Subchapter A of chapter 1 is amended by striking part VI (and by striking the item relating to such part in the table of parts for subchapter A). (b) Credit for prior year minimum tax liability (1) Limitation Subsection (c) of section 53 is amended to read as follows: (c) Limitation The credit allowed under subsection (a) shall not exceed the regular tax liability of the taxpayer reduced by the sum of the credits allowed under subparts A, B, and D. . (2) Credits treated as refundable Subsection (e) of section 53 is amended to read as follows: (e) Portion of credit treated as refundable (1) In general In the case of any taxable year beginning in 2016, 2017, 2018, or 2019, the limitation under subsection (c) shall be increased by the AMT refundable credit amount for such year. (2) AMT refundable credit amount For purposes of paragraph (1), the AMT refundable credit amount is an amount equal to 50 percent (100 percent in the case of a taxable year beginning in 2019) of the excess (if any) of— (A) the minimum tax credit determined under subsection (b) for the taxable year, over (B) the minimum tax credit allowed under subsection (a) for such year (before the application of this subsection for such year). (3) Credit refundable For purposes of this title (other than this section), the credit allowed by reason of this subsection shall be treated as a credit allowed under subpart C (and not this subpart). (4) Short taxable years In the case of any taxable year of less than 365 days, the AMT refundable credit amount determined under paragraph (2) with respect to such taxable year shall be the amount which bears the same ratio to such amount determined without regard to this paragraph as the number of days in such taxable year bears to 365. . (3) Treatment of references Section 53(d) is amended by adding at the end the following new paragraph: (3) AMT term references Any references in this subsection to section 55, 56, or 57 shall be treated as a reference to such section as in effect before its repeal by the Tax Reform Act of 2014 . . (4) Repeal of special rules with respect to treatment of incentive stock options Section 53 is amended by striking subsection (f). (c) Conforming amendments related to AMT repeal (1) Section 2(e), as redesignated by section 1001, is amended by striking sections 1 and 55 and inserting section 1 . (2) Section 5(a) is amended by striking paragraph (4). (3) Section 11(d) is amended by striking the taxes imposed by subsection (a) and section 55 and inserting the tax imposed by subsection (a) . (4) Section 13, as redesignated by title I, is amended by striking paragraph (7). (5) Section 26(a) is amended to read as follows: (a) Limitation based on amount of tax The aggregate amount of credits allowed by this subpart for the taxable year shall not exceed the taxpayer’s regular tax liability for the taxable year. . (6) Section 26(b)(2) is amended by striking subparagraph (A). (7) Section 26 is amended by striking subsection (c). (8) Section 38(c) is amended— (A) by striking paragraphs (1) through (5), (B) by redesignating paragraph (6) as paragraph (2), (C) by inserting before paragraph (2) (as so redesignated) the following new paragraph: (1) In general The credit allowed under subsection (a) for any taxable year shall not exceed the excess of— (A) the sum of— (i) so much of the regular tax liability as does not exceed $25,000, plus (ii) 75 percent of so much of the regular tax liability as exceeds $25,000, over (B) the sum of the credits allowable under subparts A and B of this part. , and (D) by striking subparagraph (B) of paragraph (1) each place it appears in paragraph (2) (as so redesignated) and inserting clauses (i) and (ii) of paragraph (1)(A) . (9) Section 45D(g)(4)(B) is amended by striking or for purposes of section 55 . (10) Section 54(c)(1) is amended to read as follows: (1) regular tax liability (as defined in section 26(b)), over . (11) Section 54A(c)(1)(A) is amended to read as follows: (A) regular tax liability (as defined in section 26(b)), over . (12) (A) Section 108(b)(2) is amended by striking subparagraph (C) and by redesignating subparagraphs (D) through (G) as subparagraphs (C) through (F), respectively. (B) Section 108(b)(3)(B) is amended— (i) by striking subparagraphs (B), (C), and (G) and inserting subparagraphs (B) and (F) of paragraph (2) , and (ii) by striking subparagraph (F) and inserting paragraph (2)(E) . (C) Section 108(b)(4)(B) is amended by striking subparagraph (A) or (D) in the heading and text thereof and inserting subparagraph (A) or (C) . (D) Section 108(b)(4)(C) is amended by striking subparagraphs (B) and (G) in the heading and text thereof and inserting subparagraphs (B) and (F) . (13) Section 168(k)(2) is amended by striking subparagraph (G). (14) Section 173 is amended by striking subsection (b). (15) Section 174(f) is amended to read as follows: (f) Cross reference For adjustments to basis of property for amounts allowed as deductions as deferred expenses under subsection (b), see section 1016(a)(14). . (16) Section 263A(c) is amended by striking paragraph (6). (17) Section 382(l) is amended by striking paragraph (7) and by redesignating paragraph (8) as paragraph (7). (18) Section 443 (relating to returns for a period of less than 12 months) adjustment in computing minimum tax and tax preferences) is amended by striking subsection (d) and by redesignating subsection (e) as subsection (d). (19) Section 641(c) is amended— (A) in paragraph (2) by striking subparagraph (B) and by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively, and (B) in paragraph (3), by striking paragraph (2)(C) and inserting paragraph (2)(B) . (20) Subsections (b) and (c) of section 666 are each amended by striking (other than the tax imposed by section 55) . (21) Section 815(c)(2) is amended by striking the last sentence. (22) Section 847 is amended— (A) by striking the last sentence of paragraph (9), and (B) in paragraph (10), by inserting and at the end of subparagraph (A), by striking subparagraph (B), and by redesignating subparagraph (C) as subparagraph (B). (23) Section 848 is amended by striking subsection (i) and by redesignating subsection (j) as subsection (i). (24) Section 860E(a) is amended by striking paragraph (4). (25) Section 871(b)(1) is amended by striking or 55 . (26) Section 882(a)(1) is amended by striking 55, . (27) Section 897(a) is amended to read as follows: (a) Treatment as effectively connected with united states trade or business For purposes of this title, gain or loss of a nonresident alien individual or a foreign corporation from the disposition of a United States real property interest shall be taken into account— (1) in the case of a nonresident alien individual, under section 871(b)(1), or (2) in the case of a foreign corporation, under section 882(a)(1), as if the taxpayer were engaged in a trade or business within the United States during the taxable year and as if such gain or loss were effectively connected with such trade or business. . (28) Section 904(k) is amended to read as follows: (k) Cross reference For increase of limitation under subsection (a) for taxes paid with respect to amounts received which were included in the gross income of the taxpayer for a prior taxable year as a United States shareholder with respect to a controlled foreign corporation, see section 960(b). . (29) Section 911(f) is amended to read as follows: (f) Determination of tax liability If, for any taxable year, any amount is excluded from gross income of a taxpayer under subsection (a), then, notwithstanding section 1, if such taxpayer has taxable income for such taxable year, the tax imposed by section 1 for such taxable year shall be equal to the excess (if any) of— (1) the tax which would be imposed by section 1 for such taxable year if the taxpayer’s taxable income were increased by the amount excluded under subsection (a) for such taxable year, over (2) the tax which would be imposed by section 1 for such taxable year if the taxpayer’s taxable income were equal to the amount excluded under subsection (a) for such taxable year. . (30) Section 962(a)(1) is amended— (A) by striking sections 1 and 55 and inserting section 1 , and (B) by striking sections 11 and 55 and inserting section 11 . (31) Section 1016(a) is amended by striking paragraph (20). (32) Section 1202(a)(4) is amended by inserting and at the end of subparagraph (A), by striking , and and inserting a period at the end of subparagraph (B), and by striking subparagraph (C). (33) Section 1374(b)(3)(B) is amended by striking the last sentence thereof. (34) Section 1397E(c)(1) is amended to read as follows: (1) regular tax liability (as defined in section 26(b), over . (35) Section 1561(a) is amended— (A) by inserting and at the end of paragraph (1), by striking the comma at the end of paragraph (2) and inserting a period, and by striking paragraphs (3) and (4), and (B) by striking the last sentence. (36) Section 6015(d)(2)(B) is amended by striking or 55 . (37) Section 6425(c)(1)(A) is amended— (A) by adding plus at the end of clause (i), and (B) by striking clause (ii) and by redesignating clause (iii) as clause (ii). (38) Section 6654(d)(2) is amended— (A) in clause (i) of subparagraph (B), by striking , alternative minimum taxable income, , and (B) in clause (i) of subparagraph (C), by striking , alternative minimum taxable income, . (39) Section 6655(e)(2)(B) is amended— (A) by striking The taxable income, alternative minimum taxable income, and modified alternative taxable income shall and inserting Taxable income shall , and (B) by striking clause (iii). (40) Section 6655(g)(1)(A) is amended— (A) by striking clause (ii), and (B) by redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively. (41) Section 6662(e)(3)(C) is amended by striking the regular tax (as defined in section 55(c)) and inserting the regular tax liability (as defined in section 26(b)) . (d) Effective dates (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2014. (2) Prior elections with respect to certain tax preferences So much of the amendment made by subsection (a) as relates to the repeal of section 59(e) of the Internal Revenue Code of 1986 shall apply to amounts paid or incurred after December 31, 2014. (3) Treatment of net operating loss carrybacks For purposes of section 56(d) of the Internal Revenue Code of 1986 (as in effect before its repeal), the amount of any net operating loss which may be carried back from a taxable year beginning after December 31, 2014, to taxable years beginning before January 1, 2015, shall be determined without regard to any adjustments under section 56(d)(2)(A) of such Code (as so in effect). III Business Tax Reform A Tax Rates 3001. 25-percent corporate tax rate (a) In general Subsection (b) of section 11 is amended to read as follows: (b) Amount of tax (1) In general Except as provided in paragraph (2), the amount of the tax imposed by subsection (a) shall be 25 percent of taxable income. (2) Phase-in for taxable years beginning before 2019 (A) In general In the case of taxable years beginning before 2019, the amount of tax imposed by subsection (a) shall be the sum of— (i) 25 percent of so much of the taxable income as does not exceed $75,000, and (ii) the applicable percentage of so much of taxable income as exceeds $75,000. (B) Applicable percentage For purposes of this paragraph, the applicable percentage shall be determined in accordance with the following table: In the case of taxable years beginning during calendar year The applicable percentage is: 2015 33% 2016 31% 2017 29% 2018 27% . (b) Conforming amendments (1) Paragraphs (2)(B) and (6)(A)(ii) of section 860E(e) are each amended by striking section 11(b)(1) and inserting section 11(b) . (2) (A) Part I of subchapter P of chapter 1 is amended by striking section 1201 (and by striking the item relating to such section in the table of sections for such part). (B) Section 13, as amended and redesignated by the preceding provisions of this Act, is amended by striking paragraphs (4) and (6), and by redesignating paragraph (5) as paragraph (4). (C) Section 527(b) is amended— (i) by striking paragraph (2), and (ii) by striking all that precedes is hereby imposed and inserting: (b) Tax imposed A tax . (D) Sections 594(a) is amended by striking taxes imposed by section 11 or 1201(a) and inserting tax imposed by section 11 . (E) Section 691(c)(4) is amended by striking 1201, . (F) Section 801(a) is amended— (i) by striking paragraph (2), and (ii) by striking all that precedes is hereby imposed and inserting: (a) Tax imposed A tax . (G) Section 831(d) is amended by striking paragraph (1) and by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively. (H) Sections 832(c)(5) and 834(b)(1)(D) are each amended by striking sec. 1201 and following, . (I) Section 852(b)(3)(A) is amended by striking section 1201(a) and inserting section 11(b) . (J) Section 857(b)(3) is amended— (i) by striking subparagraph (A) and redesignating subparagraphs (B) through (F) as subparagraphs (A) through (E), respectively, (ii) in subparagraph (C), as so redesignated— (I) by striking subparagraph (A)(ii) in clause (i) thereof and inserting paragraph (1) , (II) by striking the tax imposed by subparagraph (A)(ii) in clauses (ii) and (iv) thereof and inserting the tax imposed by paragraph (1) on undistributed capital gain , (iii) in subparagraph (E), as so redesignated, by striking subparagraph (B) or (D) and inserting subparagraph (A) or (C) , and (iv) by adding at the end the following new subparagraph: (F) Undistributed capital gain For purposes of this paragraph, the term undistributed capital gain means the excess of the net capital gain over the deduction for dividends paid (as defined in section 561) determined with reference to capital gain dividends only. . (K) Section 882(a)(1) is amended by striking , or 1201(a) . (L) Section 1374(b) is amended by striking paragraph (4). (M) Section 1381(b) is amended by striking taxes imposed by section 11 or 1201 and inserting tax imposed by section 11 . (N) Sections 6425(c)(1)(A)(i) and 6655(g)(1)(A)(i) are each amended by striking or 1201(a), . (3) (A) Section 1445(e)(1) is amended— (i) by striking 35 percent and inserting the highest rate of tax in effect for the taxable year under section 11(b) , and (ii) by striking of the gain and inserting multiplied by the gain . (B) Section 1445(e)(2) is amended by striking 35 percent of the amount and inserting the highest rate of tax in effect for the taxable year under section 11(b) multiplied by the amount . (C) Section 1445(e)(6) is amended— (i) by striking 35 percent and inserting the highest rate of tax in effect for the taxable year under section 11(b) , and (ii) by striking of the amount and inserting multiplied by the amount . (D) Section 1446(b)(2)(B) is amended by striking section 11(b)(1) and inserting section 11(b) . (4) Section 852(b)(1) is amended by striking the last sentence. (5) (A) Part I of subchapter B of chapter 5 is amended by striking section 1551 (and by striking the item relating to such section in the table of sections for such part). (B) Section 535(c)(5) is amended to read as follows: (5) Cross reference For limitation on credit provided in paragraph (2) or (3) in the case of certain controlled corporations, see section 1561. . (6) (A) Section 1561, as amended by the preceding provisions of this Act, is amended to read as follows: 1561. Limitation on accumulated earnings credit in the case of certain controlled corporations (a) In general The component members of a controlled group of corporations on a December 31 shall, for their taxable years which include such December 31, be limited for purposes of this subtitle to one $250,000 ($150,000 if any component member is a corporation described in section 535(c)(2)(B)) amount for purposes of computing the accumulated earnings credit under section 535(c)(2) and (3). Such amount shall be divided equally among the component members of such group on such December 31 unless the Secretary prescribes regulations permitting an unequal allocation of such amount. (b) Certain short taxable years If a corporation has a short taxable year which does not include a December 31 and is a component member of a controlled group of corporations with respect to such taxable year, then for purposes of this subtitle, the amount to be used in computing the accumulated earnings credit under section 535(c)(2) and (3) of such corporation for such taxable year shall be the amount specified in subsection (a) with respect to such group, divided by the number of corporations which are component members of such group on the last day of such taxable year. For purposes of the preceding sentence, section 1563(b) shall be applied as if such last day were substituted for December 31. . (B) The table of sections for part II of subchapter B of chapter 5 is amended by striking the item relating to section 1561 and inserting the following new item: Sec. 1561. Limitation on accumulated earnings credit in the case of certain controlled corporations. . (7) Section 7874(e)(1)(B) is amended by striking section 11(b)(1) and inserting section 11(b) . (c) Effective date (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2014. (2) Withholding The amendments made by subsection (b)(3) shall apply to distributions made after December 31, 2014. (3) Certain transfers The amendments made by subsection (b)(5) shall apply to transfers made after December 31, 2018. (4) Certain other amendments related to single rate of tax The amendments made by paragraphs (4) and (6) of subsection (b) shall apply to taxable years beginning after December 31, 2018. B Reform of business-Related exclusions and deductions 3101. Revision of treatment of contributions to capital (a) Inclusion of contributions to capital Part II of subchapter B of chapter 1 is amended by inserting after section 75 the following new section: 76. Contributions to capital (a) In general Gross income includes— (1) any contribution to the capital of any entity, and (2) any premium received by such entity with respect to any option on any interest in such entity. (b) Treatment of contributions in exchange for stock, etc (1) In general In the case of any contribution of money or other property to a corporation in exchange for stock of such corporation— (A) such contribution shall not be treated for purposes of subsection (a) as a contribution to the capital of such corporation (and shall not be includible in the gross income of such corporation), and (B) no gain or loss shall be recognized to such corporation upon the issuance of such stock. (2) Treatment limited to value of stock For purposes of this subsection, a contribution of money or other property to a corporation shall be treated as being in exchange for stock of such corporation only to the extent that the fair market value of such money and other property does not exceed the fair market value of such stock. (3) Application to entities other than corporations In the case of any entity other than a corporation, rules similar to the rules of paragraphs (1) and (2) shall apply in the case of any contribution of money or other property to such entity in exchange for any interest in such entity. (c) Treasury stock treated as stock Any reference in this section to stock shall be treated as including a reference to treasury stock. . (b) Basis of corporation in contributed property (1) Contributions to capital Subsection (c) of section 362 is amended to read as follows: (c) Contributions to capital If property other than money is transferred to a corporation as a contribution to the capital of such corporation (within the meaning of section 76) then the basis of such property shall be the greater of— (1) the basis determined in the hands of the transferor, increased by the amount of gain recognized to the transferor on such transfer, or (2) the amount included in gross income by such corporation under section 76 with respect to such contribution. . (2) Contributions in exchange for stock Paragraph (2) of section 362(a) is amended by striking contribution to capital and inserting contribution in exchange for stock of such corporation (determined under rules similar to the rules of paragraphs (2) and (3) of section 76(b)) . (c) Conforming amendments (1) Section 108(e) is amended by striking paragraph (6). (2) Part III of subchapter B of chapter 1 is amended by striking section 118 (and by striking the item relating to such section in the table of sections for such part). (3) The table of sections for part II of subchapter B of chapter 1 is amended by inserting after the item relating to section 75 the following new item: Sec. 76. Contributions to capital. . (d) Effective date The amendments made by this section shall apply to contributions made, and transactions entered into, after the date of the enactment of this Act. 3102. Repeal of deduction for local lobbying expenses (a) In general Section 162(e) is amended by striking paragraphs (2) and (7) and by redesignating paragraphs (3), (4), (5), (6), and (8) as paragraphs (2), (3), (4), (5), and (6), respectively. (b) Conforming amendment Section 6033(e)(1)(B)(ii) is amended by striking section 162(e)(5)(B)(ii) and inserting section 162(e)(4)(B)(ii) . (c) Effective date The amendments made by this section shall apply to amounts paid or incurred after December 31, 2014. 3103. Expenditures for repairs in connection with casualty losses (a) In general Section 165, as amended by the preceding provisions of this Act, is amended by inserting after subsection (g) the following new subsection: (h) Special rule for casualty losses (1) Expenditures for repairs in connection with casualty losses If a deduction is allowable under this section for any casualty loss with respect to any property, any expenditure made for any repair of damage to such property in connection with such casualty loss shall be treated as a permanent improvement made to increase the value of such property for purposes of section 263(a)(1). (2) Election to expense repair in lieu of deducting casualty loss If the taxpayer elects the application of this paragraph with respect to any property with respect to which there is a casualty loss, no deduction shall be allowable under this section for the casualty loss with respect to such property and paragraph (1) shall not apply to expenditures made for repair of damage to such property in connection with such casualty loss. Any election under this paragraph shall be made not later than the due date for the return of tax (including extensions) for the taxable year in which the casualty loss occurs and, once made, may be revoked only with the consent of the Secretary. . (b) Effective date The amendment made by this section shall apply to losses sustained after December 31, 2014. 3104. Reform of accelerated cost recovery system (a) Applicable depreciation method Subsection (b) of section 168 is amended to read as follows: (b) Applicable depreciation method For purposes of this section— (1) In general The applicable depreciation method is the straight line method. (2) Salvage value treated as zero Salvage value shall be treated as zero. . (b) Applicable recovery period Subsection (c) of section 168 is amended to read as follows: (c) Applicable recovery period For purposes of this section— (1) In general Except as provided in paragraph (2), the applicable recovery period for any property is the class life of such property. (2) Special rules for determining class life of certain property (A) Property with no class life In the case of personal property with no class life, the recovery period is 12 years. (B) Certain horses In the case of any race horse, and any horse other than a race horse which is more than 12 years old at the time it is placed in service, 3 years. (C) Semi-Conductor manufacturing equipment In the case of any semi-conductor manufacturing equipment, the recovery period is 5 years. (D) Qualified technological equipment In the case of any qualified technological equipment, the recovery period is 5 years. (E) Automobile or light general purpose truck In the case of any automobile or light general purpose truck, the recovery period is 5 years. (F) Qualified rent-to-own property In the case of any qualified rent-to-own property, the recovery period is 9 years. (G) Certain telephone switching equipment In the case of any computer-based telephone central office switching equipment, the recovery period is 9.5 years. (H) Railroad track In the case of any railroad track, the recovery period is 10 years. (I) Smart electric distribution property In the case of qualified smart electric meters and qualified smart electric grid systems, the recovery period is 10 years. (J) Airplanes In the case of any fixed-wing aircraft (including any fixed-wing airframe or engine), the recovery period is 12 years. (K) Natural gas gathering line In the case of any natural gas gathering line, the recovery period is 14 years. (L) Tree or vine bearing fruit or nuts In the case of any tree or vine bearing fruit or nuts, the recovery period is 20 years. (M) Telephone distribution plant In the case of any telephone distribution plant and comparable equipment used for 2-way exchange of voice and data communications by cable, the recovery period is 24 years. (N) Real property In the case of nonresidential real property, residential rental property, and any section 1245 property (as defined in section 1245(a)(3)) which is real property with no class life, the recovery period is 40 years. (O) Water treatment and utility property In the case of any municipal wastewater treatment plant or water utility property, the recovery period is 50 years. (P) Clearing and grading improvements; tunnel bore In the case of any clearing and grading land improvements or tunnel bore, the recovery period is 50 years. (Q) Tax-exempt use property subject to lease In the case of any tax-exempt use property subject to a lease, the recovery period used for purposes of paragraph (2) shall (notwithstanding any other subparagraph of this paragraph) in no event be less than 125 percent of the lease term. . (c) Neutral cost recovery system Section 168, as amended by subsection (f), is amended by adding at the end the following new subsection: (i) Neutral cost recovery system (1) In general In the case of any property (to which this section applies) placed in service by the taxpayer in a taxable year for which such taxpayer has elected the application of this subsection, the deduction determined under subsection (a) with respect to such property for any taxable year shall be increased by an amount equal to the product of— (A) the modified adjusted basis of such property determined as of the close of such taxable year (determined without regard to this subsection but after taking all other adjustments for such taxable year into account), multiplied by (B) the inflation adjustment percentage for the calendar year in which such taxable year begins. (2) Modified adjusted basis For purposes of this subsection, the term modified adjusted basis means, with respect to any property, the adjusted basis which would be determined with respect to such property if this subsection never applied to such property. (3) Inflation adjustment percentage For purposes of this subsection, the term inflation adjustment percentage means, with respect to any calendar year, the cost-of-living adjustment which would be determined under section 1(c)(2)(A) for such calendar year if clause (ii) thereof were applied by substituting the C-CPI-U for the calendar year preceding the calendar year referred to in clause (i) for the normalized CPI for calendar year 2012 . (4) Increase for first taxable year reduced to take into account placed in service convention In the case of the taxable year in which any property is placed in service, the increase determined under paragraph (1) with respect to such property shall be equal to— (A) in the case of any property to which subsection (d)(3) applies, 1/8 of the amount of such increase determined without regard to this paragraph, and (B) in the case of any other property, 1/2 of the amount of such increase determined without regard to this paragraph. (5) Overall depreciation allowance not to exceed basis The deduction determined under subsection (a) (after any increase determined under this subsection) with respect to any property for any taxable year shall not exceed the adjusted basis of such property determined as of the beginning of such taxable year. (6) Certain property excluded Paragraph (1) shall not apply to any specified property used outside the United States or to any property described in subsection (d)(2). (7) Election (A) In general An election under paragraph (1) for any taxable year shall be made not later than the due date (including extensions) for the return of tax for such taxable year. Such election, once made, shall be irrevocable. Such election shall apply with respect to all property placed in service during the taxable for which made (and shall apply for subsequent taxable years but only with respect to such property). (B) Taxpayer engaged in more than one business A taxpayer engaged in more than one trade or business may make separate elections under paragraph (1) with respect to each such trade or business. . (d) Application of mid-Month convention (1) In general Subparagraphs (A), (B) and (C) of section 168(d)(2) are amended to read as follows: (A) real property, (B) water treatment and utility property, and (C) any clearing and grading land improvements or tunnel bore, . (2) Conforming amendment Clause (i) of section 168(d)(3)(B) is amended to read as follows: (i) any property described in paragraph (2), . (e) Definitions Subsection (e) of section 168 is amended to read as follows: (e) Definitions For purposes of this section— (1) Class life (A) In general Except as provided in this section, the term class life means the class life (if any) which would be applicable with respect to any property as of January 1, 1986, under subsection (m) of section 167 (determined without regard to paragraph (4) and as if the taxpayer had made an election under such subsection). The reference in this paragraph to subsection (m) of section 167 shall be treated as a reference to such subsection as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990. (B) Secretarial authority to modify Rev. Proc. 87–56 (i) In general The Secretary, through the Office of Tax Analysis and in consultation with the Bureau of Economic Analysis of the Department of Commerce, shall— (I) determine, and develop a schedule of, the economic depreciation of the major categories of depreciable property (other than property with a specified class life under subsection (c)(2)) to approximate constant straight-line depreciation, and (II) develop recommendations regarding the proper economic depreciation for property with a specified class life under subsection (c)(2). (ii) Report Not later than December 31, 2017, the Secretary shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate— (I) the schedule developed under clause (i)(I), and (II) the recommendations developed under clause (i)(II). The schedule developed under clause (i)(I) shall take effect with respect to property placed in service after the later of December 31, 2017, or the end of the first calendar year ending after the calendar year during which such schedule is submitted. (2) Residential rental property (A) In general The term residential rental property means any building or structure if 80 percent or more of the gross rental income from such building or structure for the taxable year is rental income from dwelling units. (B) Dwelling unit For purposes of subparagraph (A)— (i) the term dwelling unit means a house or apartment used to provide living accommodations in a building or structure, but does not include a unit in a hotel, motel, or other establishment more than one-half of the units in which are used on a transient basis, and (ii) if any portion of the building or structure is occupied by the taxpayer, the gross rental income from such building or structure shall include the rental value of the portion so occupied. (3) Nonresidential real property The term nonresidential real property means section 1250 property which is not— (A) residential rental property, or (B) property with a class life of less than 27.5 years. (4) Water utility property The term water utility property means property— (A) which is an integral part of the gathering, treatment, or commercial distribution of water, and (B) any municipal sewer. (5) Qualified rent-to-own property (A) In general The term qualified rent-to-own property means any property held by a rent-to-own dealer for purposes of being subject to a rent-to-own contract. (B) Rent-to-own dealer The term rent-to-own dealer means a person that, in the ordinary course of business, regularly enters into rent-to-own contracts with customers for the use of consumer property, if a substantial portion of those contracts terminate and the property is returned to such person before the receipt of all payments required to transfer ownership of the property from such person to the customer. (C) Consumer property The term consumer property means tangible personal property of a type generally used within the home for personal use. (D) Rent-to-own contract The term rent-to-own contract means any lease for the use of consumer property between a rent-to-own dealer and a customer who is an individual which— (i) is titled Rent-to-Own Agreement or Lease Agreement with Ownership Option , or uses other similar language, (ii) provides for level (or decreasing where no payment is less than 40 percent of the largest payment), regular periodic payments (for a payment period which is a week or month), (iii) provides that legal title to such property remains with the rent-to-own dealer until the customer makes all the payments described in clause (ii) or early purchase payments required under the contract to acquire legal title to the item of property, (iv) provides a beginning date and a maximum period of time for which the contract may be in effect that does not exceed 156 weeks or 36 months from such beginning date (including renewals or options to extend), (v) provides for payments within the 156-week or 36-month period that, in the aggregate, generally exceed the normal retail price of the consumer property plus interest, (vi) provides for payments under the contract that, in the aggregate, do not exceed $10,000 per item of consumer property, (vii) provides that the customer does not have any legal obligation to make all the payments referred to in clause (ii) set forth under the contract, and that at the end of each payment period the customer may either continue to use the consumer property by making the payment for the next payment period or return such property to the rent-to-own dealer in good working order, in which case the customer does not incur any further obligations under the contract and is not entitled to a return of any payments previously made under the contract, and (viii) provides that the customer has no right to sell, sublease, mortgage, pawn, pledge, encumber, or otherwise dispose of the consumer property until all the payments stated in the contract have been made. (6) Qualified technological equipment (A) In general The term qualified technological equipment means— (i) any computer or peripheral equipment, (ii) any high technology telephone station equipment installed on the customer’s premises, and (iii) any high technology medical equipment. (B) Computer or peripheral equipment defined For purposes of this paragraph— (i) In general The term computer or peripheral equipment means— (I) any computer, and (II) any related peripheral equipment. (ii) Computer The term computer means a programmable electronically activated device which— (I) is capable of accepting information, applying prescribed processes to the information, and supplying the results of these processes with or without human intervention, and (II) consists of a central processing unit containing extensive storage, logic, arithmetic, and control capabilities. (C) High technology medical equipment For purposes of this paragraph, the term high technology medical equipment means any electronic, electromechanical, or computer-based high technology equipment used in the screening, monitoring, observation, diagnosis, or treatment of patients in a laboratory, medical, or hospital environment. (7) Natural gas gathering line The term natural gas gathering line means— (A) the pipe, equipment, and appurtenances determined to be a gathering line by the Federal Energy Regulatory Commission, and (B) the pipe, equipment, and appurtenances used to deliver natural gas from the wellhead or a commonpoint to the point at which such gas first reaches— (i) a gas processing plant, (ii) an interconnection with a transmission pipeline for which a certificate as an interstate transmission pipeline has been issued by the Federal Energy Regulatory Commission, (iii) an interconnection with an intrastate transmission pipeline, or (iv) a direct interconnection with a local distribution company, a gas storage facility, or an industrial consumer. (8) Qualified smart electric meters (A) In general The term qualified smart electric meter means any smart electric meter which— (i) is placed in service by a taxpayer that is a supplier of electric energy or a provider of electric energy services, and (ii) does not have a class life (determined without regard to subsection (c)) of less than 10 years. (B) Smart electric meter For purposes of subparagraph (A), the term smart electric meter means any time-based meter and related communication equipment which is capable of being used by the taxpayer as part of a system that— (i) measures and records electricity usage data on a time-differentiated basis in at least 24 separate time segments per day, (ii) provides for the exchange of information between supplier or provider and the customer’s electric meter in support of time-based rates or other forms of demand response, (iii) provides data to such supplier or provider so that the supplier or provider can provide energy usage information to customers electronically, and (iv) provides net metering. (9) Qualified smart electric grid systems (A) In general The term qualified smart electric grid system means any smart grid property which— (i) is used as part of a system for electric distribution grid communications, monitoring, and management placed in service by a taxpayer who is a supplier of electric energy or a provider of electric energy services, and (ii) does not have a class life (determined without regard to subsection (c)) of less than 10 years. (B) Smart grid property For the purposes of subparagraph (A), the term smart grid property means electronics and related equipment that is capable of— (i) sensing, collecting, and monitoring data of or from all portions of a utility’s electric distribution grid, (ii) providing real-time, two-way communications to monitor or manage such grid, and (iii) providing real time analysis of and event prediction based upon collected data that can be used to improve electric distribution system reliability, quality, and performance. (10) Specified property used outside the United States (A) In general The term specified property used outside the United States means— (i) any aircraft which is registered by the Administrator of the Federal Aviation Agency and which is operated to and from the United States or is operated under contract with the United States, (ii) rolling stock which is used within and without the United States and which is— (I) of a rail carrier subject to part A of subtitle IV of title 49, or (II) of a United States person (other than a corporation described in subclause (I)) but only if the rolling stock is not leased to one or more foreign persons for periods aggregating more than 12 months in any 24-month period, (iii) any vessel documented under the laws of the United States which is operated in the foreign or domestic commerce of the United States, (iv) any motor vehicle of a United States person (as defined in section 7701(a)(30)) which is operated to and from the United States, (v) any container of a United States person which is used in the transportation of property to and from the United States, (vi) any property (other than a vessel or an aircraft) of a United States person which is used for the purpose of exploring for, developing, removing, or transporting resources from the outer Continental Shelf (within the meaning of section 2 of the Outer Continental Shelf Lands Act, as amended and supplemented (43 U.S.C. 1331)), (vii) any property which is owned by a domestic corporation or by a United States citizen (other than a citizen entitled to the benefits of section 931 or 933) and which is used predominantly in a possession of the United States by such a corporation, or such a citizen, or by a corporation created or organized in, or under the law of, a possession of the United States, (viii) any communications satellite (as defined in section 103(3) of the Communications Satellite Act of 1962, 47 U.S.C. 702(3) ), or any interest therein, of a United States person, (ix) any cable, or any interest therein, of a domestic corporation engaged in furnishing telephone service to which section 168(e)(10)(C) applies (or of a wholly owned domestic subsidiary of such a corporation), if such cable is part of a submarine cable system which constitutes part of a communication link exclusively between the United States and one or more foreign countries, (x) any property (other than a vessel or an aircraft) of a United States person which is used in international or territorial waters within the northern portion of the Western Hemisphere for the purpose of exploring for, developing, removing, or transporting resources from ocean waters or deposits under such waters, (xi) any property described in section 48(l)(3)(A)(ix) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) which is owned by a United States person and which is used in international or territorial waters to generate energy for use in the United States, and (xii) any satellite (not described in clause (viii)) or other spacecraft (or any interest therein) held by a United States person if such satellite or other spacecraft was launched from within the United States. (B) Northern portion of the Western Hemisphere For purposes of subparagraph (A)(x), the term northern portion of the Western Hemisphere means the area lying west of the 30th meridian west of Greenwich, east of the international dateline, and north of the Equator, but not including any foreign country which is a country of South America. . (f) Conforming amendments (1) Amendments to section 168 (A) Section 168 is amended by striking subsections (g), (j), (k), (l), (m), and (n), and by redesignating subsections (h) and (i) as subsections (g) and (h), respectively. (B) Section 168(h), as redesignated by subparagraph (A), is amended— (i) by striking paragraphs (1), (2), (11), (12), (13), (14), (15), (16), (17), (18), and (19) and by redesignating paragraphs (3) through (10) as paragraphs (1) through (8), respectively, and (ii) by striking Definitions and in the heading thereof. (C) Section 168(h)(8), as redesignated by subparagraphs (A) and (B), is moved to the end of section 168(e) (as amended by subsection (e)) and redesignated as paragraph (11). (2) Other conforming amendments (A) Section 50(b)(4) is amended— (i) in subparagraph (A)(ii)— (I) by striking section 168(h)(2)(C) and inserting section 168(g)(2)(C) , (II) by striking section 168(h)(2)(A)(iii) and inserting section 168(g)(2)(A)(iii) , and (III) by striking section 168(h)(2)(B) and inserting section 168(g)(2)(B) , (ii) in subparagraph (B), by striking section 168(i)(3) and inserting section 168(h)(1) , and (iii) in subparagraphs (D) and (E), by striking section 168(h) each place it appears and inserting section 168(g) . (B) (i) Section 50(b)(1)(B) is amended by striking any property described in section 168(g)(4) and inserting any specified property used outside the United States (as defined in section 168(e)(10) . (ii) Section 865(c)(3)(B) is amended by striking property of a kind described in section 168(g)(4) and inserting specified property used outside the United States (as defined in section 168(e)(10) . (C) Section 179(e)(2) is amended by inserting as in effect before its repeal by the Tax Reform Act of 2014 after section 168(n)(2) . (D) Section 179(f), as amended by section 3111, is amended— (i) by striking paragraph (2), and (ii) by inserting after paragraph (1) the following new paragraphs: (2) Qualified real property For purposes of this subsection, the term qualified real property means qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property. (3) Qualified leasehold improvement property For purposes of this subsection— (A) In general The term qualified leasehold improvement property means any improvement to an interior portion of a building which is nonresidential real property if— (i) such improvement is made under or pursuant to a lease (as defined in section 168(g)(7))— (I) by the lessee (or any sublessee) of such portion, or (II) by the lessor of such portion, (ii) such portion is to be occupied exclusively by the lessee (or any sublessee) of such portion, and (iii) such improvement is placed in service more than 3 years after the date the building was first placed in service. (B) Certain improvements not included Such term shall not include any improvement for which the expenditure is attributable to— (i) the enlargement of the building, (ii) any elevator or escalator, (iii) any structural component benefitting a common area, and (iv) the internal structural framework of the building. (C) Definitions and special rules For purposes of this paragraph— (i) Commitment to lease treated as lease A commitment to enter into a lease shall be treated as a lease, and the parties to such commitment shall be treated as lessor and lessee, respectively. (ii) Related persons A lease between related persons shall not be considered a lease. For purposes of the preceding sentence, the term related persons means— (I) members of an affiliated group (as defined in section 1504), and (II) persons having a relationship described in subsection (b) of section 267; except that, for purposes of this subclause, the phrase 80 percent or more shall be substituted for the phrase more than 50 percent each place it appears in such subsection. (D) Improvements made by lessor In the case of an improvement made by the person who was the lessor of such improvement when such improvement was placed in service, such improvement shall be qualified leasehold improvement property (if at all) only so long as such improvement is held by such person. (E) Exception for changes in form of business Property shall not cease to be qualified leasehold improvement property by reason of— (i) death, (ii) a transaction to which section 381(a) applies, (iii) a mere change in the form of conducting the trade or business so long as the property is retained in such trade or business as qualified leasehold improvement property and the taxpayer retains a substantial interest in such trade or business, (iv) the acquisition of such property in an exchange described in section 1031 (as in effect before its repeal by the Tax Reform Act of 2014 ), 1033, or 1038 to the extent that the basis of such property includes an amount representing the adjusted basis of other property owned by the taxpayer or a related person, or (v) the acquisition of such property by the taxpayer in a transaction described in section 332, 351, 361, 721, or 731 (or the acquisition of such property by the taxpayer from the transferee or acquiring corporation in a transaction described in such section), to the extent that the basis of the property in the hands of the taxpayer is determined by reference to its basis in the hands of the transferor or distributor. (4) Qualified restaurant property For purposes of this subsection, the term qualified restaurant property means any section 1250 property which is— (A) a building, or (B) an improvement to a building, if more than 50 percent of the building’s square footage is devoted to preparation of, and seating for on-premises consumption of, prepared meals. (5) Qualified retail improvement property (A) In general The term qualified retail improvement property means any improvement to an interior portion of a building which is nonresidential real property if— (i) such portion is open to the general public and is used in the retail trade or business of selling tangible personal property to the general public, and (ii) such improvement is placed in service more than 3 years after the date the building was first placed in service. (B) Improvements made by owner In the case of an improvement made by the owner of such improvement, such improvement shall be qualified retail improvement property (if at all) only so long as such improvement is held by such owner. Rules similar to the rules under paragraph (3)(E) shall apply for purposes of the preceding sentence. (C) Certain improvements not included Such term shall not include any improvement for which the expenditure is attributable to— (i) the enlargement of the building, (ii) any elevator or escalator, (iii) any structural component benefitting a common area, or (iv) the internal structural framework of the building. . (E) Section 280F(b) is amended— (i) by striking paragraph (1) and by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively, and (ii) by striking , and the depreciation deduction and all that follows through alternative depreciation system) in paragraph (1) (as redesignated by clause (i)). (F) Section 280F(d)(4)(A)(iv) is amended by striking section 168(i)(2)(B) and inserting section 168(e)(6)(B) . (G) Section 312(k)(3) is amended by striking Exception for tangible property and all that follows through For purposes of computing the earnings and profits and inserting Exception for certain tangible property.— For purposes of computing the earnings and profits . (H) Section 460(c) is amended by striking paragraph (6). (I) Section 460(d)(2) is amended by striking section 168(h)(2)(D) and inserting section 168(g)(2)(D) . (J) Section 460(e)(6) is amended by striking section 168(e)(2)(A)(ii) each place it appears and inserting section 168(e)(2)(B) . (K) (i) Subparagraphs (A) and (C) of section 470(c)(2) are each amended by striking section 168(h) and inserting section 168(g). (ii) Section 470(c)(2)(B) is amended by striking section 168(h)(6) and inserting section 168(g)(6) . (L) Section 512(b)(17)(B)(ii)(I) is amended by striking section 168(h)(4)(B) and inserting section 168(g)(4)(B) . (M) Section 514(c)(9)(B)(vi)(II) is amended by striking section 168(h)(6) and inserting section 168(g)(6) . (N) Section 527(i)(3)(D) is amended by striking section 168(h)(4) and inserting section 168(g)(4) . (O) The second sentence of section 860E(e)(5) is amended by striking section 168(h)(2)(D) and inserting section 168(g)(2)(D) . (P) Section 1245(a) is amended— (i) in paragraph (3)(D), by striking section 168(i)(13) and inserting paragraph (4) , and (ii) by adding at the end the following new paragraph: (4) Single purpose agricultural or horticultural structure For purposes of this subsection— (A) In general The term single purpose agricultural or horticultural structure means— (i) a single purpose livestock structure, and (ii) a single purpose horticultural structure. (B) Definitions For purposes of this paragraph— (i) Single purpose livestock structure The term single purpose livestock structure means any enclosure or structure specifically designed, constructed, and used— (I) for housing, raising, and feeding a particular type of livestock and their produce, and (II) for housing the equipment (including any replacements) necessary for the housing, raising, and feeding referred to in subclause (I). (ii) Single purpose horticultural structure The term single purpose horticultural structure means— (I) a greenhouse specifically designed, constructed, and used for the commercial production of plants, and (II) a structure specifically designed, constructed, and used for the commercial production of mushrooms. (iii) Structures which include work space An enclosure or structure which provides work space shall be treated as a single purpose agricultural or horticultural structure only if such work space is solely for— (I) the stocking, caring for, or collecting of livestock or plants (as the case may be) or their produce, (II) the maintenance of the enclosure or structure, and (III) the maintenance or replacement of the equipment or stock enclosed or housed therein. (iv) Livestock The term “livestock” includes poultry. . (Q) Section 1245(a)(3)(F) is amended to read as follows: (F) any clearing and grading land improvements or tunnel bore (within the meaning of section 168(c)(2)(P)). . (R) Section 6050V(d)(3) is amended by striking section 168(h)(2)(A)(iv) and inserting section 168(g)(2)(A)(iv) . (S) Section 6211(b)(4)(A) is amended by striking 168(k)(4), . (T) The second sentence of section 7701(e)(4)(A) is amended by striking section 168(h) and inserting section 168(g) . (U) Section 7871(f)(3) is amended— (i) by striking (as defined in section 168(j)(6)) in subparagraph (B)(ii), and (ii) by adding at the end the following new subparagraph: (D) Indian reservation For purposes of this paragraph, the term Indian reservation means a reservation, as defined in— (i) section 3(d) of the Indian Financing Act of 1974 ( 25 U.S.C. 1452(d) ), or (ii) section 4(10) of the Indian Child Welfare Act of 1978 ( 25 U.S.C. 1903(10) ). For purposes of the preceding sentence, such section 3(d) shall be applied by treating the term former Indian reservations in Oklahoma as including only lands which are within the jurisdictional area of an Oklahoma Indian tribe (as determined by the Secretary of the Interior) and are recognized by such Secretary as eligible for trust land status under 25 CFR Part 151 (as in effect on August 5, 1997). . (g) Normalization requirements (1) In general A normalization method of accounting shall not be treated as being used with respect to any public utility property for purposes of section 167 or 168 of the Internal Revenue Code of 1986 if the taxpayer, in computing its cost of service for ratemaking purposes and reflecting operating results in its regulated books of account, reduces the excess tax reserve more rapidly or to a greater extent than such reserve would be reduced under the average rate assumption method. (2) Alternative Method for Certain Taxpayers If, as of the first day of the taxable year that includes the date of enactment of this Act— (A) the taxpayer was required by a regulatory agency to compute depreciation for public utility property on the basis of an average life or composite rate method, and (B) the taxpayer’s books and underlying records did not contain the vintage account data necessary to apply the average rate assumption method, the taxpayer will be treated as using a normalization method of accounting if, with respect to such jurisdiction, the taxpayer uses the alternative method for public utility property that is subject to the regulatory authority of that jurisdiction. (3) Definitions For purposes of this subsection— (A) Excess tax reserve The term excess tax reserve means the excess of— (i) the reserve for deferred taxes (as described in section 168(i)(9)(A)(ii) of the Internal Revenue Code of 1986 as in effect on the day before the date of the enactment of this Act), over (ii) the amount which would be the balance in such reserve if the amount of such reserve were determined by assuming that the corporate rate reductions provided in this Act were in effect for all prior periods. (B) Average rate assumption method The average rate assumption method is the method under which the excess in the reserve for deferred taxes is reduced over the remaining lives of the property as used in its regulated books of account which gave rise to the reserve for deferred taxes. Under such method, if timing differences for the property reverse, the amount of the adjustment to the reserve for the deferred taxes is calculated by multiplying— (i) the ratio of the aggregate deferred taxes for the property to the aggregate timing differences for the property as of the beginning of the period in question, by (ii) the amount of the timing differences which reverse during such period. (C) Alternative method The alternative method is the method in which the taxpayer— (i) computes the excess tax reserve on all public utility property included in the plant account on the basis of the weighted average life or composite rate used to compute depreciation for regulatory purposes, and (ii) reduces the excess tax reserve ratably over the remaining regulatory life of the property. (4) Tax increased for normalization violation If, for any taxable year ending after the date of the enactment of this Act, the taxpayer does not use a normalization method of accounting, the taxpayer’s tax for the taxable year shall be increased by the amount by which it reduces its excess tax reserve more rapidly than permitted under a normalization method of accounting. (h) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2016. 3105. Repeal of amortization of pollution control facilities (a) In general Part VI of subchapter B of chapter 1 is amended by striking section 169 (and by striking the item relating to such section in the table of sections for such part). (b) Conforming amendments (1) Section 642(f) is amended by striking the deductions for amortization provided by sections 169 and 197 and inserting the deduction for amortization provided by section 197 . (2) Section 1250(b)(3) is amended by inserting (as in effect before its repeal by the Tax Reform Act of 2014 ) after 169 . (c) Effective date The amendments made by this section shall apply to facilities placed in service after December 31, 2014. 3106. Net operating loss deduction (a) Limitation on net operating losses of corporations (1) In general Section 172(a) is amended to read as follows: (a) Deduction allowed (1) In general There shall be allowed as a deduction for the taxable year an amount equal to the aggregate of— (A) the net operating loss carryovers to such year, plus (B) the net operating loss carrybacks to such year. (2) Limitation in case of corporations In the case of a corporation— (A) the deduction allowed under paragraph (1) for the taxable year shall not exceed 90 percent of the taxable income for such year computed without regard to the deduction allowable under this section, and (B) appropriate adjustments in the application of subsection (b)(2) shall be made to take into account the limitation of subparagraph (A). (3) Net operating loss deduction defined For purposes of this subtitle, the term net operating loss deduction means the deduction allowed by this subsection. . (2) Coordination with limitation on deduction for charitable contributions (A) In general Section 170(b)(2)(C) is amended by redesignating clauses (iv) and (v) as clauses (v) and (vi), respectively, and by inserting after clause (iii) the following new clause: (iv) the limitation imposed under section 172(a)(2)(A), . (B) Life insurance companies Section 805(b)(2)(A) is amended by redesignating clauses (ii) through (v) as clauses (iii) through (vi), respectively, and by inserting after clause (i) the following new clause: (ii) the limitation imposed under section 172(a)(2)(A), . (b) Repeal of special carryback provisions (1) In general Section 172(b)(1) is amended by striking subparagraphs (C), (D), (E), (G), (H), (I), and (J) and by redesignating subparagraph (F) as subparagraph (C). (2) Conforming amendments (A) Section 172(b)(1)(C), as redesignated by paragraph (1), is amended— (i) in clause (ii), by striking the last sentence, and (ii) in clause (iv), by striking in a manner similar to the manner in which a specified liability loss is treated and inserting as a separate net operating loss for such taxable year to be taken into account after the remaining portion of the net operating loss for such taxable year . (B) Section 172 is amended by striking subsections (f), (g), (h), (i), and (j) and by redesignating subsection (k) as subsection (f). (c) Effective dates (1) Limitation on NOLs of corporations The amendments made by subsection (a) shall apply to— (A) taxable years beginning after December 31, 2014, and (B) to carrybacks of losses arising in taxable years beginning after December 31, 2014, to taxable years beginning on or before such date. (2) Repeal of special carrybacks (A) In general Except as otherwise provided in this paragraph, the amendments made by subsection (b) shall apply to losses arising in taxable years beginning after December 31, 2014. (B) Expired provisions So much of the amendments made by subsection (b) as relate to striking subparagraphs (D), (H), (I), and (J) of section 172(b)(1) of the Internal Revenue Code of 1986 shall take effect on the date of the enactment of this Act. 3107. Circulation expenditures (a) In general Section 173 is amended to read as follows: 173. Circulation expenditures (a) In general In the case of a taxpayer’s specified circulation expenditures— (1) except as provided in paragraph (2), no deduction shall be allowed for such expenditures, and (2) the taxpayer shall— (A) charge such expenditures to capital account, and (B) be allowed an amortization deduction of such expenditures ratably over the 36-month period beginning with the midpoint of the month in which such expenditures are paid or incurred. (b) Specified circulation expenditures For purposes of this section, the term specified circulation expenditures means all expenditures (other than expenditures for the purchase of land or depreciable property or for the acquisition of circulation through the purchase of any part of the business of another publisher of a newspaper, magazine, or other periodical) to establish, maintain, or increase the circulation of a newspaper, magazine, or other periodical. (c) Treatment upon abandonment If any property with respect to which specified circulation expenditures are paid or incurred is disposed, retired, or abandoned during the period during which such expenditures are allowed as an amortization deduction under this section, no deduction shall be allowed with respect to such expenditures on account of such disposition, retirement, or abandonment and such amortization deduction shall continue with respect to such expenditures. (d) Phase-In for taxable years beginning before 2019 (1) In general In the case of specified circulation expenditures paid or incurred in taxable years beginning before 2019— (A) notwithstanding subsection (a), the applicable percentage of such expenditures shall be allowed as a deduction for the taxable year in which paid or incurred, and (B) subsection (a) shall apply to the remainder of such expenditures. (2) Applicable percentage For purposes of paragraph (1), the applicable percentage shall be determined in accordance with the following table: In the case of taxable years beginning in: The applicable percentage is: 2016 75% 2017 50% 2018 25% (3) Election out of phase-in The taxpayer may elect, at such time and in such form and manner as the Secretary shall prescribe, for paragraph (1) not to apply for all taxable years beginning before 2019. Such election, once made, shall be irrevocable. . (b) Effective date The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2015. 3108. Amortization of research and experimental expenditures (a) In general Section 174 is amended to read as follows: 174. Amortization of research and experimental expenditures (a) In general In the case of a taxpayer’s specified research or experimental expenditures for any taxable year— (1) except as provided in paragraph (2), no deduction shall be allowed for such expenditures, and (2) the taxpayer shall— (A) charge such expenditures to capital account, and (B) be allowed an amortization deduction of such expenditures ratably over the 5-year period (15-year period in the case of any specified research or experimental expenditures which are attributable to foreign research (within the meaning of section 41(d)(4)(F))) beginning with the midpoint of the taxable year in which such expenditures are paid or incurred. (b) Specified research or experimental expenditures For purposes of this section, the term specified research or experimental expenditures means, with respect to any taxable year, research or experimental expenditures which are paid or incurred by the taxpayer during such taxable year in connection with the taxpayer’s trade or business. (c) Special rules (1) Land and other property This section shall not apply to any expenditure for the acquisition or improvement of land, or for the acquisition or improvement of property to be used in connection with the research or experimentation and of a character which is subject to the allowance under section 167 (relating to allowance for depreciation, etc.) or section 611 (relating to allowance for depletion); but for purposes of this section allowances under section 167, and allowances under section 611, shall be considered as expenditures. (2) Exploration expenditures This section shall not apply to any expenditure paid or incurred for the purpose of ascertaining the existence, location, extent, or quality of any deposit of ore or other mineral (including oil and gas). (3) Software development For purposes of this section, any amount paid or incurred in connection with the development of any software shall be treated as a research or experimental expenditure. (d) Treatment upon disposition, retirement, or abandonment If any property with respect to which specified research or experimental expenditures are paid or incurred is disposed, retired, or abandoned during the period during which such expenditures are allowed as an amortization deduction under this section, no deduction shall be allowed with respect to such expenditures on account of such disposition, retirement, or abandonment and such amortization deduction shall continue with respect to such expenditures. (e) Special rules for expenditures for domestic research during taxable years beginning before 2021 (1) In general In the case of domestic research or experimental expenditures paid or incurred during any taxable year beginning before 2021— (A) notwithstanding subsection (a), the applicable percentage of such expenditures shall be allowed as a deduction in the taxable year in which paid or incurred, and (B) subsection (a) shall apply to the remainder of such expenditures by substituting the applicable period for the 5-year period . (2) Domestic research or experimental expenditures For purposes of this subsection, the term domestic research or experimental expenditures means any expenditures— (A) to which subsection (a) applies (determined without regard to this subsection), and (B) which are not attributable to foreign research (within the meaning of section 41(d)(4)(F)). (3) Applicable percentage For purposes of this subsection, the applicable percentage shall be determined in accordance with the following table: In the case of taxable years beginning in: The applicable percentage is: 2015 60% 2016 or 2017 40% 2018, 2019, or 2020 20% (4) Applicable period For purposes of this subsection, the applicable period shall be determined in accordance with the following table: In the case of taxable years beginning in: The applicable period is the: 2015 2-year period 2016 or 2017 3-year period 2018, 2019, or 2020 4-year period (5) Election out of phase-in The taxpayer may elect, at such time and in such form and manner as the Secretary shall prescribe, for paragraph (1) not to apply to all domestic research or experimental expenditures of the taxpayer for any taxable years beginning before 2021. Such election, once made, shall be irrevocable. . (b) Clerical amendment The table of sections for part VI of subchapter B of chapter 1 is amended by striking the item relating to section 174 and inserting the following new item: Sec. 174. Amortization of research and experimental expenditures. . (c) Effective date The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2014. 3109. Repeal of deductions for soil and water conservation expenditures and endangered species recovery expenditures (a) In general Part VI of subchapter B of chapter 1 is amended by striking section 175 (and by striking the item relating to such section in the table of sections for such part). (b) Conforming amendments Paragraphs (1)(A) and (2) of section 1252(a) are each amended by striking relating to soil and water conservation expenditures and inserting as in effect before its repeal by the Tax Reform Act of 2014 . (c) Effective date (1) In general The amendments made by this section shall apply to amounts paid or incurred after December 31, 2014. (2) Assessments treated as paid or incurred In the case of any amount paid or incurred before December 31, 2014, and treated as paid or incurred in any succeeding taxable year by reason of section 175(f) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of this Act), paragraph (1) shall not apply. 3110. Amortization of certain advertising expenses (a) In general Part VI of subchapter B of chapter 1 is amended by inserting after section 176 the following new section: 177. Amortization of certain advertising expenses (a) In general In the case of a taxpayer’s amortizable advertising expenses for any taxable year— (1) except as provided in paragraph (2), no deduction shall be allowed for such expenses, and (2) the taxpayer shall— (A) charge such expenses to capital account, and (B) be allowed an amortization deduction of such expenses ratably over the 10-year period beginning with the midpoint of the taxable year in which such expenses are paid or incurred. (b) Exemption (1) In general So much of the taxpayer’s otherwise deductible advertising expenses for any taxable year as do not exceed $1,000,000 shall not be taken into account in determining such taxpayer’s amortizable advertising expenses for such taxable year. (2) Phaseout of exemption In the case of a taxpayer whose otherwise deductible advertising expenses for any taxable year exceed $1,500,000, the dollar amount in effect under paragraph (1) with respect to such taxpayer for such taxable year shall be reduced (but not below zero) by twice such excess. (3) Aggregation; short taxable years For purposes of this subsection, rules similar to the rules of paragraphs (2) and (3)(B) of section 448(b) shall apply. (c) Amortizable advertising expenses (1) In general For purposes of this section, the term amortizable advertising expenses means, with respect to any taxpayer for any taxable year, the applicable percentage of the taxpayer’s otherwise deductible advertising expenses for such taxable year. (2) Applicable percentage For purposes of this subsection, the term applicable percentage means (with respect to the taxpayer’s otherwise deductible advertising expenses for any taxable year) the percentage determined in accordance with the following table: For taxable years beginning in: The applicable percentage is: 2015 20 percent 2016 30 percent 2017 40 percent 2018 or thereafter 50 percent. (3) Election out of phase-in The taxpayer may elect, at such time and in such form and manner as the Secretary shall prescribe, to treat the applicable percentage as being equal to 50 percent for all taxable years beginning before 2018. Such election, once made, shall be irrevocable. (d) Otherwise deductible advertising expenses For purposes of this section— (1) In general The term otherwise deductible advertising expenses means, with respect to any taxpayer for any taxable year, the deductions which would (but for this section) be allowable to the taxpayer for such taxable year with respect to specified advertising expenses. (2) Specified advertising expenses The term specified advertising expenses means any amount paid or incurred for the development, production, or placement (including any form of transmission, broadcast, publication, display, or distribution) of any communication to the general public (or portions thereof) which is intended to promote the taxpayer or a trade or business of the taxpayer (or any service, facility, or product provided pursuant to such trade or business). (3) Exceptions The term specified advertising expenses shall not include— (A) Certain wages Wages paid or incurred to any employee unless the services rendered by such employee are primarily related to— (i) an activity described in paragraph (2) (other than the direct sale of goods or services to customers of the taxpayer), or (ii) the direct supervision of employees rendering services primarily related to such an activity. (B) Depreciation of tangible property In the case of any tangible property, any amount for which a deduction is allowed for depreciation under section 167. (C) Amortizable section 197 intangibles Any amount for which a deduction is allowed for amortization under section 197. (D) Discounts, etc Any discount, coupon, rebate, slotting allowance, sample, prize, loyalty reward point, or any item determined by the Secretary to be similar to any of the foregoing (other than any amount paid or incurred to promote any of the foregoing). (E) Certain communications on taxpayer’s property Any amount paid or incurred with respect to any communication appearing on tangible property of the taxpayer which— (i) is of a character subject to the allowance for depreciation, or (ii) is properly treated as inventory for purposes of section 471. (F) Creation of logos, trade names, etc Any amount paid or incurred for the creation of any logo, trademark, or trade name. (G) Package design Any amount to which section 263A(i) applies. (H) Marketing research Any amount paid or incurred for marketing research. (I) Business meals Any amount paid or incurred for meals. (J) Qualified sponsorship payments Any amount paid or incurred as a qualified sponsorship payment (as defined in section 513(i)(2)) with respect to an organization subject to the tax imposed by section 511. (e) Treatment upon abandonment If any property with respect to which specified advertising expenses are paid or incurred is disposed, retired, or abandoned during the period during which such expenses are allowed as an amortization deduction under this section, no deduction shall be allowed with respect such expenses on account of such disposition, retirement, or abandonment and such amortization deduction shall continue with respect to such expenses. (f) Inflation adjustment (1) In general In the case of any taxable year beginning after 2015, each of the dollar amounts in subsection (b) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(c)(2)(A) for such calendar year, determined by substituting calendar year 2014 for calendar year 2012 in clause (ii) thereof. (2) Rounding The amount of any increase under paragraph (1) shall be rounded to the nearest multiple of $10,000. . (b) Capitalization of package design expenses Section 263A is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection: (i) Capitalization of package design expenses For purposes of this section, in the case of any amount paid or incurred for package design, such amounts shall be treated as an indirect cost described in subsection (a)(2)(B) with respect to packages which utilize such design. . (c) Clerical amendment The table of sections for part VI of subchapter B of chapter 1 is amended by inserting after the item relating to section 176 the following new item: Sec. 177. Amortization of certain advertising expenses. . (d) Effective date The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2014. 3111. Expensing certain depreciable business assets for small business (a) In general (1) Dollar limitation Paragraph (1) of section 179(b) is amended by striking shall not exceed— and all that follows and inserting shall not exceed $250,000. . (2) Reduction in limitation Paragraph (2) of section 179(b) is amended by striking exceeds— and all that follows and inserting exceeds $800,000. . (b) Computer software Clause (ii) of section 179(d)(1)(A) is amended by striking to which section 167 applies, and which is placed in service in a taxable year beginning after 2002 and before 2014 and inserting and to which section 167 applies . (c) Election Paragraph (2) of section 179(c) is amended— (1) by striking may not be revoked and all that follows through and before 2014 , and (2) by striking irrevocable in the heading thereof. (d) Air conditioning and heating units Paragraph (1) of section 179(d) is amended by striking and shall not include air conditioning or heating units . (e) Qualified real property Section 179(f) is amended— (1) by striking beginning in 2010, 2011, 2012, or 2013 in paragraph (1), and (2) by striking paragraphs (3) and (4). (f) Inflation adjustment Subsection (b) of section 179 is amended by adding at the end the following new paragraph: (6) Inflation adjustment (A) In general In the case of any taxable year beginning after 2014, the dollar amounts in paragraphs (1) and (2) shall each be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(c)(2)(A) for such calendar year, determined by substituting calendar year 2013 for calendar year 2012 in clause (ii) thereof. (B) Rounding The amount of any increase under subparagraph (A) shall be rounded to the nearest multiple of $10,000. . (g) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2013. 3112. Repeal of election to expense certain refineries (a) In general Part VI of subchapter B of chapter 1 is amended by striking section 179C (and by striking the item relating to such section in the table of sections for such part). (b) Conforming amendment Section 312(k)(3), as amended by the preceding provisions of this Act, is amended by striking , 179C each place it appears. (c) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2013. 3113. Repeal of deduction for energy efficient commercial buildings (a) In general Part VI of subchapter B of chapter 1 is amended by striking section 179D (and by striking the item relating to such section in the table of sections for such part). (b) Conforming amendment (1) Section 1016(a) is amended by striking paragraph (31). (2) Section 312(k)(3), as amended by the preceding provisions of this Act, is amended by striking , 179D each place it appears. (c) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2013. 3114. Repeal of election to expense advanced mine safety equipment (a) In general Part VI of subchapter B of chapter 1 is amended by striking section 179E (and by striking the item relating to such section in the table of sections for such part). (b) Conforming amendment Section 312(k)(3), as amended by the preceding provisions of this Act, is amended— (1) by striking , or 179E, as the case may be , and (2) by striking , or 179E each place it appears. (c) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2013. 3115. Repeal of deduction for expenditures by farmers for fertilizer, etc (a) In general Part VI of subchapter B of chapter 1 is amended by striking section 180 (and by striking the item relating to such section in the table of sections for such part). (b) Effective date The amendments made by this section shall apply to expenses paid or incurred in taxable years beginning after December 31, 2014. 3116. Repeal of special treatment of certain qualified film and television productions (a) In general Part VI of subchapter B of chapter 1 is amended by striking section 181 (and by striking the item relating to such section in the table of sections for such part). (b) Effective date The amendments made by this section shall apply to productions commencing after December 31, 2013. 3117. Repeal of special rules for recoveries of damages of antitrust violations, etc (a) In general Part VI of subchapter B of chapter 1 is amended by striking section 186 (and by striking the item relating to such section in the table of sections for such part). (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3118. Treatment of reforestation expenditures (a) Elimination of expensing election Section 194 is amended by striking subsections (a) and (b), by redesignating subsection (c) and (d) as subsections (b) and (c), respectively, and by inserting before subsection (b) (as so redesignated) the following new subsection: (a) In general In the case of a taxpayer’s qualified reforestation expenditures for any taxable year— (1) except as provided in paragraph (2), no deduction shall be allowed for such expenditures, and (2) the taxpayer shall— (A) charge such expenditures to capital account, and (B) be allowed an amortization deduction of such expenditures ratably over the 7-year period beginning with the midpoint of the taxable year in which such expenditures are paid or incurred. . (b) Qualified reforestation expenditures Section 194(b), as redesignated by subsection (a), is amended by striking paragraph (2), by redesignating paragraph (1) as paragraph (2), and by inserting before paragraph (2) (as so redesignated the following new paragraph: (1) Qualified reforestation expenditures The term qualified reforestation expenditures means, with respect to any taxable year, the reforestation expenditures paid or incurred by the taxpayer during such taxable year with respect to qualified timber property. . (c) Qualified timber property limited to ornamental trees Section 194(b)(2), as redesignated by subsections (a) and (b), is amended to read as follows: (2) Qualified timber property The term qualified timber property means a woodlot or other site located in the United States which— (A) will contain evergreen trees in significant commercial quantities which are reasonably expected to be more than 6 years old at the time severed from the roots, and (B) is held by the taxpayer for the planting, cultivating, caring for, and cutting of such trees for sale for ornamental purposes. . (d) Determination of recomputed basis Section 1245(b) is amended by striking paragraph (7). (e) Effective date The amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2014. 3119. 20-year amortization of goodwill and certain other intangibles (a) In general Subsection (a) of section 197 is amended by striking 15-year period and inserting 20-year period . (b) Mortgage servicing rights Subsection (e) of section 197 is amended by striking paragraph (6) and by redesignating paragraph (7) as paragraph (6). (c) Conforming amendments (1) Clause (i) of section 197(e)(4)(D) is amended by striking 15 years and inserting 20 years . (2) Section 167(f) is amended by striking paragraph (3). (d) Effective date The amendments made by this section shall apply to property acquired after December 31, 2014. 3120. Treatment of environmental remediation costs (a) In general Subsection (a) of section 198 is amended to read as follows: (a) In general In the case of a taxpayer’s qualified environmental remediation expenditures for any taxable year— (1) except as provided in paragraph (2), no deduction shall be allowed for such expenditures, and (2) the taxpayer shall— (A) charge such expenditures to capital account, and (B) be allowed an amortization deduction of such expenditures ratably over the 40-year period beginning with the midpoint of the taxable year in which such expenditures are paid or incurred. . (b) Made permanent Section 198 is amended by striking subsection (h). (c) Conforming amendments (1) Section 198, as amended by subsection (b), is amended by striking subsection (f) and by redesignating subsection (g) as subsection (f). (2) Section 198 (and the item relating to such section in the table of sections for part VI of subchapter B of chapter 1) is amended by striking Expensing in the heading thereof and inserting Amortization . (d) Effective date The amendments made by this section shall apply to expenditures paid or incurred after December 31, 2014. 3121. Repeal of expensing of qualified disaster expenses (a) In general Part VI of subchapter B of chapter 1 is amended by striking section 198A (and by striking the item relating to such section in the table of sections for such part). (b) Effective date The amendments made by this section shall apply to amounts paid or incurred after December 31, 2014. 3122. Phaseout and repeal of deduction for income attributable to domestic production activities (a) Phaseout (1) In general Subsection (a) of section 199 is amended by adding at the end the following new paragraph: (3) Phaseout In the case of any taxable year beginning after 2014, paragraph (1) shall be applied by substituting for the percentage contained therein the phaseout percentage determined under the following table: For taxable years beginning in: The phaseout percentage is: 2015 6% 2016 3% . (2) Coordination with oil related qualified production activities income Section 199(d) is amended by striking paragraph (9). (3) Effective date The amendments made by this subsection shall apply to taxable years beginning after December 31, 2014. (b) Repeal (1) In general Part VI of subchapter B of chapter 1 is amended by striking section 199 (and by striking the item relating to such section in the table of sections for such part). (2) Conforming amendments (A) Sections 86(b)(2)(A), 137(b)(3)(A), 246(b)(1), and 469(i)(3)(F)(iii) are each amended by striking 199, . (B) Section 163(j)(6)(A)(i), as amended by the preceding provisions of this Act, is amended by striking subclause (III) and by redesignating subclauses (IV) and (V) as subclauses (III) and (IV), respectively. (C) Section 170(b)(2)(C), as amended by the preceding provisions of this Act, is amended by striking clause (v), by redesignating clause (vi) as clause (v), and by inserting and at the end of clause (iv). (D) Section 172(d) is amended by striking paragraph (7). (E) Section 1402(a) is amended by adding and at the end of paragraph (15) and by striking paragraph (16). (3) Effective date The amendments made by this subsection shall apply to taxable years beginning after December 31, 2016. 3123. Unification of deduction for organizational expenditures (a) In general Subsections (a) and (b) of section 195 is amended by inserting and organizational after start-up each place it appears. (b) Organizational expenditures Subsection (c) of section 195 is amended by adding at the end the following new paragraph: (3) Organizational expenditures The term organizational expenditures means any expenditure which— (A) is incident to the creation of a corporation or a partnership, (B) is chargeable to capital account, and (C) is of a character which, if expended incident to the creation of a corporation or a partnership having a limited life, would be amortizable over such life. . (c) Dollar amounts Clause (ii) of section 195(b)(1)(A) is amended— (1) by striking $5,000 and inserting $10,000 , and (2) by striking $50,000 and inserting $60,000 . (d) Mid-Year convention Subparagraph (B) of section 195(b)(1), as amended by subsection (a), is amended to read as follows: (B) the remainder of such start-up and organizational expenditures shall be charged to capital account and allowed as an amortization deduction determined by amortizing such expenditures ratably over the 15-year period beginning with the midpoint of the taxable year in which the active trade or business begins. . (e) Conforming amendments (1) Section 195(b)(1) is amended— (A) by inserting (or, in the case of a partnership, the partnership elects) after If a taxpayer elects , and (B) by inserting (or the partnership, as the case may be) after the taxpayer in subparagraph (A). (2) Section 195(b)(2) is amended— (A) by striking amortization period.— In any case and inserting the following: amortization period.— (A) In general In any case , and (B) by adding at the end the following new subparagraph: (B) Special partnership rule In the case of a partnership, subparagraph (A) shall be applied at the partnership level. . (3) Section 195(b) is amended by striking paragraph (3). (4) (A) Part VIII of subchapter B of chapter 1 is amended by striking section 248 (and by striking the item relating to such section in the table of sections for such part). (B) Section 170(b)(2)(C)(ii) is amended by striking (except section 248) . (C) Section 312(n)(3) is amended by striking Sections 173 and 248 and inserting Section 173 . (D) Section 535(b)(3) is amended by striking (except section 248) . (E) Section 545(b)(3) is amended by striking (except section 248) . (F) Section 834(c)(7) is amended by striking (except section 248) . (G) Section 852(b)(2)(C) is amended by striking (except section 248) . (H) Section 857(b)(2)(A) is amended by striking (except section 248) . (I) Section 1363(b) is amended by inserting and at the end of paragraph (2), by striking paragraph (3), and by redesignating paragraph (4) as paragraph (3). (J) Section 1375(b)(1)(B)(i) is amended by striking (other than the deduction allowed by section 248, relating to organization expenditures) . (5) Part I of subchapter K of chapter 1 is amended by striking section 709 (and by striking the item relating to such section in the table of sections for such part). (6) The heading of section 195 (and the item relating to such section in the table of sections for part VI of subchapter B of chapter 1) are each amended by inserting and organizational after Start-up . (f) Effective date The amendments made by this section shall apply to expenses paid or incurred in taxable years beginning after December 31, 2014. 3124. Prevention of arbitrage of deductible interest expense and tax-exempt interest income (a) Pro rata allocation rules applicable to financial institutions modified and made applicable to all C corporations (1) Application to corporations So much of section 265(b) as precedes paragraph (3) is amended to read as follows: (b) Pro rata allocation of interest expense of corporations and financial institutions to tax-Exempt interest (1) In general In the case of a C corporation or a financial institution, no deduction shall be allowed for that portion of the taxpayer’s interest expense which is allocable to tax-exempt interest. (2) Allocation For purposes of paragraph (1), the portion of the taxpayer’s interest expense which is allocable to tax-exempt interest is an amount which bears the same ratio to such interest expense as— (A) the taxpayer’s average adjusted bases (within the meaning of section 1016) of tax-exempt obligations acquired on or after February 26, 2014 (August 7, 1986, in the case of a financial institution), bears to (B) such average adjusted bases for all assets of the taxpayer. . (2) Repeal of exceptions Section 265(b) is amended by striking paragraphs (3) and (7). (b) Limitation on investment interest (1) In general Section 163(d)(1) is amended to read as follows: (1) In general In the case of a taxpayer other than a corporation, the amount allowed as a deduction under this chapter for investment interest for any taxable year— (A) shall be reduced by the amount of tax-exempt interest received by the taxpayer during such taxable year, and (B) shall not (after any reduction under subparagraph (A)) exceed the net investment income of the taxpayer for such taxable year. . (2) Reductions for tax-exempt interest not carried forward Section 163(d)(2) is amended by striking paragraph (1) and inserting paragraph (1)(B) . (3) Clarification that property held for investment includes property producing tax-exempt interest Section 163(d)(5)(A) is amended by striking and at the end of clause (i), by striking the period at the end of clause (ii)(II) and inserting , and , and by adding at the end the following new clause: (iii) any property held for the production of tax-exempt interest (including any shares of stock of a regulated investment company which during the taxable year of the holder thereof distributes exempt-interest dividends). . (4) Coordination with section 265 (A) In general Section 265(a) is amended by— (i) striking paragraph (2) and inserting the following new paragraph: (2) Interest (A) Corporations and financial institutions For pro rata allocation rules in the case of corporations and financial institutions, see subsection (b). (B) Other taxpayers For limitation on investment interest in the case of other taxpayers, see section 163(d). , and (ii) by striking paragraphs (4) and (5) and by redesignating paragraph (6) as paragraph (4). (B) Conforming amendments (i) Section 265(b), as amended by subsection (a), is amended by inserting after paragraph (2) the following new paragraph: (3) Special rules for short sales (A) In general For purposes of this subsection, interest includes any amount paid or incurred— (i) by any person making a short sale in connection with personal property used in such short sale, or (ii) by any other person for the use of any collateral with respect to such short sale. (B) Exception where no return on cash collateral If— (i) the taxpayer provides cash as collateral for any short sale, and (ii) the taxpayer receives no material earnings on such cash during the period of the sale, subparagraph (A)(i) shall not apply to such short sale. . (ii) Section 265(b)(6) is amended to read as follows: (6) Coordination with section 263A This section shall be applied before the application of section 263A (relating to capitalization of certain expenses where taxpayer produces property). . (iii) Section 163(n)(2) is amended to read as follows: (2) For disallowance of deduction for interest relating to tax-exempt income, see sections 163(d) and 265(b) . (c) Effective dates (1) Application of pro rata allocation rules (A) Application to C corporations The amendments made by subsection (a)(1) shall apply to taxable years ending on or after February 26, 2014. (B) Repeal of exceptions The amendments made by subsection (a)(2) shall apply to obligations issued on or after February 26, 2014. (2) Limitation on investment interest The amendments made by subsection (b) shall apply to taxable years beginning after December 31, 2014. 3125. Prevention of transfer of certain losses from tax indifferent parties (a) In general Section 267(d) is amended to read as follows: (d) Amount of gain where loss previously disallowed (1) In general If— (A) in the case of a sale or exchange of property to the taxpayer a loss sustained by the transferor is not allowable to the transferor as a deduction by reason of subsection (a)(1), and (B) the taxpayer sells or otherwise disposes of such property (or of other property the basis of which in the taxpayer’s hands is determined directly or indirectly by reference to such property) at a gain, then such gain shall be recognized only to the extent that it exceeds so much of such loss as is properly allocable to the property sold or otherwise disposed of by the taxpayer. (2) Exception for wash sales Paragraph (1) shall not apply if the loss sustained by the transferor is not allowable to the transferor as a deduction by reason of section 1091 (relating to wash sales). (3) Exception for transfers from tax indifferent parties Paragraph (1) shall not apply to the extent any loss sustained by the transferor (if allowed) would not be taken into account in determining a tax imposed under section 1 or 11 or a tax computed as provided by either of such sections. . (b) Effective date The amendment made by this section shall apply to sales and exchanges after December 31, 2014. 3126. Entertainment, etc. expenses (a) Denial of deduction Subsection (a) of section 274 is amended to read as follows: (a) Entertainment, amusement, or recreation (1) In general No deduction otherwise allowable under this chapter shall be allowed for amounts paid or incurred for any of the following items: (A) Activity With respect to an activity which is of a type generally considered to constitute entertainment, amusement, or recreation. (B) Membership dues With respect to membership in any club organized for business, pleasure, recreation or other social purposes. (C) Amenity With respect to a de minimis fringe (as defined in section 132(e)(1)) that is primarily personal in nature and involving property or services that are not directly related to the taxpayer’s trade or business. (D) Facility With respect to a facility or portion thereof used in connection with an activity referred to in subparagraph (A), membership dues or similar amounts referred to in subparagraph (B), or an amenity referred to in subparagraph (C). (E) Qualified transportation fringe and parking facility Which is a qualified transportation fringe (as defined in section 132(f)) or which is a parking facility used in connection with qualified parking (as defined in section 132(f)(5)(C)). (2) Special rules For purposes of applying paragraph (1), an activity described in section 212 shall be treated as a trade or business. (3) Regulations Under the regulations prescribed to carry out this section, the Secretary shall include regulations— (A) defining entertainment, amenities, recreation, amusement, and facilities for purposes of this subsection, (B) providing for the appropriate allocation of depreciation and other costs with respect to facilities used for parking, and (C) specifying arrangements a primary purpose of which is the avoidance of this subsection. . (b) Exception for certain expenses includible in income of recipient (1) Expenses treated as compensation Paragraph (2) of section 274(e) is amended to read as follows: (2) Expenses treated as compensation Expenses for goods, services, and facilities, to the extent that the expenses do not exceed the amount of the expenses which are treated by the taxpayer, with respect to the recipient of the entertainment, amusement, or recreation, as compensation to an employee on the taxpayer’s return of tax under this chapter and as wages to such employee for purposes of chapter 24 (relating to withholding of income tax at source on wages). . (2) Expenses includible in income of persons who are not employees Paragraph (9) of section 274(e) is amended by striking to the extent that the expenses and inserting to the extent that the expenses do not exceed the amount of the expenses that . (c) Exceptions for reimbursed expenses Paragraph (3) of section 274(e) is amended to read as follows: (3) Reimbursed expenses (A) In general Expenses paid or incurred by the taxpayer, in connection with the performance by him of services for another person (whether or not such other person is the taxpayer’s employer), under a reimbursement or other expense allowance arrangement with such other person, but this paragraph shall apply— (i) where the services are performed for an employer, only if the employer has not treated such expenses in the manner provided in paragraph (2), or (ii) where the services are performed for a person other than an employer, only if the taxpayer accounts (to the extent provided by subsection (d)) to such person. (B) Exception Except as provided by the Secretary, subparagraph (A) shall not apply— (i) in the case of an arrangement in which the person other than the employer is an entity described in section 168(g)(2)(A), or (ii) to any other arrangement designated by the Secretary as having the effect of avoiding the limitation under subparagraph (A). . (d) 50-Percent limitation on meals and entertainment expenses Subsection (n) of section 274 is amended to read as follows: (n) Limitation on certain expenses (1) In general The amount allowable as a deduction under this chapter for any expense for food or beverages (pursuant to subsection (e)(1)) or business meals (pursuant to subsection (k)(1)) shall not exceed 50 percent of the amount of such expense or item which would (but for this paragraph) be allowable as a deduction under this chapter. (2) Exceptions Paragraph (1) shall not apply to any expense if— (A) such expense is described in paragraph (2), (3), (6), (7), or (8) of subsection (e), (B) in the case of an expense for food or beverages, such expense is excludable from the gross income of the recipient under section 132 by reason of subsection (e) thereof (relating to de minimis fringes) or under section 119 (relating to meals and lodging furnished for convenience of employer), or (C) in the case of an employer who pays or reimburses moving expenses of an employee, such expenses are includible in the income of the employee under section 82. (3) Special rule for individuals subject to Federal hours of service In the case of any expenses for food or beverages consumed while away from home (within the meaning of section 162(a)(2)) by an individual during, or incident to, the period of duty subject to the hours of service limitations of the Department of Transportation, paragraph (1) shall be applied by substituting 80 percent for 50 percent . . (e) Conforming amendments (1) Section 274(d) is amended— (A) by striking paragraph (2) and redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively, and (B) in the flush material following paragraph (3) (as so redesignated)— (i) by striking , entertainment, amusement, recreation, or in item (B), and (ii) by striking (D) the business relationship to the taxpayer of persons entertained, using the facility or property, or receiving the gift and inserting (D) the business relationship to the taxpayer of the person receiving the benefit . (2) Section 274(e) is amended by striking paragraph (4) and redesignating paragraphs (5), (6), (7), (8), and (9) as paragraphs (4), (5), (6), (7), and (8), respectively. (3) Section 274(k)(2)(A) is amended by striking (4), (7), (8), or (9) and inserting (6), (7), or (8) . (4) Section 274 is amended by striking subsection (l). (5) Section 274(m)(1)(B)(ii) is amended by striking (4), (7), (8), or (9) and inserting (6), (7), or (8) . (f) Effective date The amendments made by this section shall apply to amounts paid or incurred after December 31, 2014. 3127. Repeal of limitation on corporate acquisition indebtedness (a) In general Part IX of subchapter B of chapter 1 is amended by striking section 279 (and by striking the item relating to such section in the table of sections for such part). (b) Effective date The amendments made by this section shall apply to interest paid or incurred with respect to indebtedness incurred after December 31, 2014. 3128. Denial of deductions and credits for expenditures in illegal businesses (a) In general Section 280E is amended to read as follows: 280E. Expenditures in connection with illegal businesses No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if— (1) such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted, or (2) the carrying out of such trade or business is a felony under Federal law or the law of any State in which such trade or business is conducted. . (b) Clerical amendment The table of sections for part IX of subchapter B of chapter 1 is amended by striking the item relating to section 280E and inserting the following new item: Sec. 280E. Expenditures in connection with illegal businesses. . (c) Effective date The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act in taxable years ending after the date of the enactment of this Act. 3129. Limitation on deduction for FDIC premiums (a) In general Section 162 is amended by redesignating subsection (q) as subsection (r) and by inserting after subsection (p) the following new subsection: (q) Disallowance of FDIC premiums paid by certain large financial institutions (1) In general No deduction shall be allowed for the applicable percentage of any FDIC premium paid or incurred by the taxpayer. (2) Exception for small institutions Paragraph (1) shall not apply to any taxpayer for any taxable year if the total consolidated assets of such taxpayer (determined as of the close of such taxable year) do not exceed $10,000,000,000. (3) Applicable percentage For purposes of this subsection, the term applicable percentage means, with respect to any taxpayer for any taxable year, the ratio (expressed as a percentage but not greater than 100 percent) which— (A) the excess of— (i) the total consolidated assets of such taxpayer (determined as of the close of such taxable year), over (ii) $10,000,000,000, bears to (B) $40,000,000,000. (4) FDIC premiums For purposes of this subsection, the term FDIC premium means any assessment imposed under section 7(b) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)). (5) Total consolidated assets For purposes of this subsection, the term total consolidated assets has the meaning given such term under section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5365 ). (6) Aggregation rule (A) In general Members of an expanded affiliated group shall be treated as a single taxpayer for purposes of applying this subsection. (B) Expanded affiliated group For purposes of this paragraph, the term expanded affiliated group means an affiliated group as defined in section 1504(a), determined— (i) by substituting more than 50 percent for at least 80 percent each place it appears, and (ii) without regard to paragraphs (2) and (3) of section 1504(b). A partnership or any other entity (other than a corporation) shall be treated as a member of an expanded affiliated group if such entity is controlled (within the meaning of section 954(d)(3)) by members of such group (including any entity treated as a member of such group by reason of this sentence). . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3130. Repeal of percentage depletion (a) In general Part I of subchapter I of chapter 1 is amended by striking sections 613 and 613A (and by striking the items relating to such sections in the table of sections for such part). (b) Conforming amendments (1) (A) Such part is amended by redesignating section 614 as section 613 (and, in the table of sections for such part, by redesignating the item relating to section 614 as an item relating to section 613). (B) Clauses (iv) and (v) of section 465(c)(2)(A) are each amended by striking section 614 and inserting section 613 . (C) Section 1016(e) is amended by striking section 614 and inserting section 613 . (D) Section 1254(a)(3) is amended by striking section 614 and inserting section 613 . (2) Section 45(c)(4) is amended to read as follows: (4) Geothermal energy (A) In general The term geothermal energy means energy derived from a geothermal deposit. (B) Geothermal deposit The term geothermal deposit means a geothermal reservoir consisting of natural heat which is stored in rocks or in an aqueous liquid or vapor (whether or not under pressure). . (3) Section 48(a)(3)(A)(iii) is amended by striking section 613(e)(2) and inserting section 45(c)(4)(B) (4) Section 381(c) is amended by striking paragraph (18). (5) Section 465(c)(1)(E) is amended by striking section 613(e)(2) and inserting section 45(c)(4)(B) . (6) Section 468(d)(3) is amended by striking section 614 and inserting section 613 . (7) Section 611(a) is amended by striking the second sentence. (8) Section 613(d), as redesignated by paragraph (1), is amended by striking includes only and all that follows and inserting includes only an interest burdened by the costs of production. . (9) Section 636(a) is amended by striking (for purposes of section 613) . (10) Section 636(d) is amended by striking section 614(a) and inserting section 613(a) . (11) Section 705(a) is amended— (A) in paragraph (1), by adding and at the end of subparagraph (A), by striking ; and at the end of subparagraph (B) and inserting a period, and by striking subparagraph (C), (B) in paragraph (2), by striking ; and at the end of subparagraph (B) and inserting a period, and (C) by striking paragraph (3). (12) Section 901(e)(1)(A) is amended by striking (or, if smaller and all that follows through under section 613) . (13) Section 993(c)(2)(C) is amended by inserting (as each such section was in effect before its repeal by the Tax Reform Act of 2014 ) after section 613 or 613A . (14) Section 1202(e)(3)(D) is amended by inserting (as each such section was in effect before its repeal by the Tax Reform Act of 2014 ) after section 613 or 613A . (15) Section 1367(a) is amended— (A) in paragraph (1), by adding and at the end of subparagraph (A), by striking , and at the end of subparagraph (B) and inserting a period, and by striking subparagraph (C), and (B) in paragraph (2), by adding and at the end of subparagraph (C), by striking , and at the end of subparagraph (D) and inserting a period, and by striking subparagraph (E). (16) Section 1446(c) is amended by striking paragraph (2) and by redesignating paragraph (3) as paragraph (2). (17) Section 4612(a)(7) is amended by inserting (as in effect before its repeal by the Tax Reform Act of 2014 ) after section 613 . (18) Section 4940(c)(3)(B) is amended— (A) by striking clause (ii), and (B) by striking all that precedes The deduction provided and inserting the following: (B) Modifications For purposes of subparagraph (A), the deduction provided . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3131. Repeal of passive activity exception for working interests in oil and gas property (a) In general Subsection (c) of section 469 is amended by striking paragraph (3). (b) Conforming amendments Section 469 is amended— (1) by striking paragraph (4) and by redesignating paragraphs (5), (6), and (7) as paragraphs (3), (4), and (5), respectively, and (2) in paragraph (2)— (A) by striking paragraph (7) and inserting paragraph (5) , and (B) by inserting , without regard to whether or not the taxpayer materially participates in the activity before the period at the end. (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3132. Repeal of special rules for gain or loss on timber, coal, or domestic iron ore (a) In general Subchapter I of chapter 1 is amended by striking part III (and by striking the item relating to such part in the table of parts for such subchapter). (b) Conforming amendments (1) Section 512(b)(5) is amended by striking the last sentence. (2) Section 871(a)(1)(B) is amended by striking gains described in section 631(b) or (c), and . (3) Section 871(d)(1)(A) is amended— (A) by striking , (ii) rents and inserting and (ii) rents , and (B) by striking , and (iii) gains described in section 631(b) or (c) . (4) (A) Section 881(a) is amended by striking paragraph (2) and by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively. (B) Section 1442(a) is amended— (i) by striking 881(a)(3) and (4) and inserting 881(a)(2) and (3) , (ii) by striking 881(a)(3), and inserting 881(a)(2), , and (iii) by striking 881(a)(4) and inserting 881(a)(3) . (5) Section 882(d)(1)(A) is amended— (A) by striking , (ii) rents and inserting and (ii) rents , and (B) by striking , and (iii) gains described in section 631(b) or (c) . (6) Section 1231(b) is amended by striking paragraph (2). (7) Section 1402(a)(3) is amended by inserting or at the end of subparagraph (A) and by striking subparagraph (B) and redesignating subparagraph (C) as subparagraph (B). (8) Section 1441 is amended— (A) in subsection (b), by striking , gains described in section 631(b) or (c) , and (B) in subsection (c)(5), by striking gains described in section 631(b) or (c), gains subject to tax under section 871(a)(1)(D), and inserting gains subject to tax under section 871(a)(1)(D) . (9) (A) Part IX of subchapter B of chapter 1 is amended by striking section 272 (and by striking the item relating to such section in the table of sections for such subpart). (B) Section 1016(a) is amended by striking paragraph (15). (c) Effective date (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2014. (2) Basis adjustments The amendment made by subsection (b)(9)(B) shall apply to deductions determined for taxable years beginning after December 31, 2014. 3133. Repeal of like-kind exchanges (a) In general Part III of subchapter O of chapter 1 is amended by striking section 1031 (and by striking the item relating to such section in the table of sections for such part). (b) Conforming amendments (1) Section 121(d)(10) is amended by inserting (as in effect before its repeal by the Tax Reform Act of 2014 ) after section 1031 . (2) Section 197(f)(2)(B)(i) is amended by inserting (as in effect before its repeal by the Tax Reform Act of 2014 ) after 1031 . (3) Section 453(f) is amended by striking paragraph (6). (4) Section 470(e)(4) is amended— (A) by striking Sections 1031(a) and in subparagraph (A) and inserting Section , (i) by striking 1031 or in subparagraph (B), and (ii) by striking sections 1031 and in the heading thereof and inserting section . (5) (A) Section 501(c)(12)(C)(v) is amended by striking asset exchange or conversion transaction and inserting specified involuntary conversion . (B) Section 501(c)(12)(G) is amended— (i) by striking asset exchange or conversion transaction and inserting specified involuntary conversion , (ii) by striking voluntary exchange or , and (iii) by striking 1031 or . (6) (A) Section 704(c) is amended by striking paragraph (2) and by redesignating paragraph (3) as paragraph (2). (B) Section 704(c)(2), as so redesignated, is amended by striking or (2) . (7) Section 857(e)(2) is amended by striking subparagraph (B) and by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively. (8) (A) Section 1035 is amended by striking subsection (d) and inserting the following new subsections: (d) Gain from exchanges not solely in kind If an exchange would be within the provisions of subsection (a), of section 1036(a), or of section 1037(a), if it were not for the fact that the property received in exchange consists not only of property permitted by such provisions to be received without the recognition of gain, but also of other property or money, then the gain, if any, to the recipient shall be recognized, but in an amount not in excess of the sum of such money and the fair market value of such other property. (e) Loss from exchanges not solely in kind If an exchange would be within the provisions of subsection (a), of section 1036(a), or of section 1037(a), if it were not for the fact that the property received in exchange consists not only of property permitted by such provisions to be received without the recognition of gain or loss, but also of other property or money, then no loss from the exchange shall be recognized. (f) Basis If property was acquired on an exchange described in this section, section 1036(a), or section 1037(a), then the basis shall be the same as that of the property exchanged, decreased in the amount of any money received by the taxpayer and increased in the amount of gain or decreased in the amount of loss to the taxpayer that was recognized on such exchange. If the property so acquired consisted in part of the type of property permitted by this section, section 1036(a), or section 1037(a), to be received without the recognition of gain or loss, and in part of other property, the basis provided in this subsection shall be allocated between the properties (other than money) received, and for the purpose of the allocation there shall be assigned to such other property an amount equivalent to its fair market value at the date of the exchange. For purposes of this section and section 1036(a), where as part of the consideration to the taxpayer another party to the exchange assumed (as determined under section 357(d)) a liability of the taxpayer, such assumption shall be considered as money received by the taxpayer on the exchange. . (B) Section 1036(c) is amended— (i) in paragraph (1), by striking subsections (b) and (c) of section 1031 and inserting subsections (d) and (e) of section 1035 , and (ii) in paragraph (2), by striking subsection (d) of section 1031 and inserting subsection (f) of section 1035 . (C) Section 1037(c) is amended— (i) in paragraph (1), by striking subsections (b) and (c) of section 1031 and inserting subsections (d) and (e) of section 1035 , and (ii) in paragraph (2), by striking subsection (d) of section 1031 and inserting subsection (f) of section 1035 . (D) Section 83(g) is amended by striking section 1031 and inserting section 1035 . (E) Section 424(b) is amended by striking section 1031 and inserting section 1035 . (F) Section 424(c)(1)(B) is amended by striking section 1031 and inserting section 1035 . (9) Section 1060(c) is amended by striking the second sentence thereof. (10) Section 1245(b)(4) is amended— (A) by striking Like kind exchanges; involuntary and inserting Involuntary , and (B) by striking 1031 or . (11) Section 1250(d)(4) is amended— (A) by striking Like kind exchanges; involuntary and inserting Involuntary , (B) by striking 1031 or in subparagraph (A), and (C) by striking 1031 or in subparagraph (E). (12) Section 2032A(e)(14)(C) is amended— (A) in clause (i)(I), by inserting (as in effect before its repeal by the Tax Reform Act of 2014 ) after section 1031 , and (B) in clause (ii)(I), by inserting (as so in effect) after section 1031 . (13) Section 4940(c)(4) is amended by striking subparagraph (D). (c) Effective date (1) In general The amendments made by this section shall apply to transfers after December 31, 2014. (2) Exception for transfers pursuant to binding contracts Notwithstanding paragraph (1), the amendments made by this section shall not apply to any transfer if— (A) such transfer is pursuant to a written binding contract entered into before January 1, 2015, and (B) the exchange of which such transfer is a part is completed before January 1, 2017. 3134. Restriction on trade or business property treated as similar or related in service to involuntarily converted property in disaster areas (a) Class life of replacement property not To exceed converted property Section 1033(h)(2) is amended by inserting if the class life of such tangible property does not exceed the class life of the property so converted before the period at the end. (b) Effective date The amendment made by this section shall apply to disasters declared after December 31, 2014. 3135. Repeal of rollover of publicly traded securities gain into specialized small business investment companies (a) In general Part III of subchapter O of chapter 1 is amended by striking section 1044 (and by striking the item relating to such section in the table of sections of such part). (b) Conforming amendments (1) Section 45D(c)(2)(A) is amended to read as follows: (A) any partnership or corporation which is licensed by the Small Business Administration under section 301(d) of the Small Business Investment Act of 1958 (as in effect on May 13, 1993), and . (2) Section 1016(a)(23) is amended— (A) by striking 1044, , and (B) by striking 1044(d), . (c) Effective date The amendments made by this section shall apply to sales after December 31, 2014. 3136. Termination of special rules for gain from certain small business stock (a) Termination of partial exclusion Section 1202 is amended— (1) by inserting and before the date of the enactment of the Tax Reform Act of 2014 after Revenue Reconciliation Act of 1993 in subsection (c)(1), and (2) by adding at the end the following new subsection: (l) Termination For termination with respect to qualified small business stock issued after the date of the enactment of the Tax Reform Act of 2014 , see subsection (c)(1). . (b) Repeal of rollover rules (1) In general Part III of subchapter O of chapter 1 is amended by striking section 1045 (and by striking the item relating to such section in the table of sections of such part). (2) Conforming amendments (A) Section 1016(a)(23) is amended— (i) by striking 1045, , and (ii) by striking 1045(b)(3), . (B) Section 1223 is amended by striking paragraph (13). (c) Effective dates (1) Termination of partial exclusion The amendments made by subsection (a) shall apply to sales and exchanges after the date of the enactment of this Act. (2) Repeal of rollover rules (A) In general Except as provided in subparagraph (B), the amendments made by subsection (b) shall apply to sales after the date of the enactment of this Act. (B) Savings provision The amendments made by subsection (b)(2) shall not apply with respect to property the acquisition of which was before the date of the enactment of this Act. 3137. Certain self-created property not treated as a capital asset (a) Patents, etc Section 1221(a)(3) is amended by inserting a patent, invention, model or design (whether or not patented), a secret formula or process, before a copyright . (b) Self-Created musical works Section 1221(b) is amended by striking paragraph (3). (c) Effective date The amendments made by this section shall apply to dispositions after December 31, 2014. 3138. Repeal of special rule for sale or exchange of patents (a) In general Part IV of subchapter P of chapter 1 is amended by striking section 1235 (and by striking the item relating to such section in the table of sections of such part). (b) Conforming amendments (1) Section 483(d) is amended by striking paragraph (4). (2) (A) Section 871(a)(1), as amended by the preceding provisions of this Act, is amended by striking subparagraph (B) and by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively. (B) Section 871(g)(3) is amended by striking (a)(1)(C) and inserting (a)(1)(B) . (C) Subsections (h)(1) and (i)(1) of section 871 are each amended by striking (1)(C) and inserting (1)(B) . (D) Section 1441, as amended by the preceding provisions of this Act, is amended— (i) in subsections (b) and (c)(8), by striking 871(a)(1)(C) and inserting 871(a)(1)(B) , and (ii) in subsections (b) and (c)(5), by striking 871(a)(1)(D) and inserting 871(a)(1)(C) . (E) Section 1442(a), as amended by the preceding provisions of this Act, is amended— (i) by striking 871(a)(1)(C) and (D) and inserting 871(a)(1)(B) and (C) , and (ii) by striking 871(a)(1)(D) and inserting 871(a)(1)(C) . (3) Section 901(l)(5) is amended by striking without regard to section 1235 or any similar rule and inserting without regard to any provision which treats a disposition as a sale or exchange of a capital asset held for more than 1 year or any similar provision . (4) Section 1274(c)(3) is amended by striking subparagraph (E) and redesignating subparagraph (F) as subparagraph (E). (5) Subsections (b) and (c)(5) of section 1441, as amended by the preceding provisions of this Act, are each amended by striking gains subject to tax under section 871(a)(1)(C), and gains on transfers described in section 1235 made on or before October 4, 1966 and inserting and gains subject to tax under section 871(a)(1)(C) . (c) Effective date The amendments made by this section shall apply to dispositions after December 31, 2014. 3139. Depreciation recapture on gain from disposition of certain depreciable realty (a) In general Subsection (a) of section 1250 is amended to read as follows: (a) In general Except as otherwise provided in this section, if section 1250 property is disposed of after December 31, 2014, the amount of gain with respect to such property which is treated as ordinary income shall be an amount equal to the lesser of— (1) the sum of— (A) the amount of additional depreciation attributable to periods before January 1, 2015, in respect of such property, and (B) the amount of depreciation adjustments attributable to periods after December 31, 2014, in respect of such property, or (2) the excess of the amount realized (or, in the case of a disposition other than a sale, exchange, or involuntary conversion, the fair market value of such property), over the adjusted basis of such property. . (b) Conforming amendments (1) Section 267(e)(5)(D)(i) is amended to read as follows: (i) any interest in— (I) any section 1250 property with respect to which a mortgage is insured under section 221(d)(3) or 236 of the National Housing Act, or housing financed or assisted by direct loan or tax abatement under similar provisions of State or local laws and with respect to which the owner is subject to the restrictions described in section 1039(b)(1)(B) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990), (II) dwelling units which, on the average, were held for occupancy by families or individuals eligible to receive subsidies under section 8 of the United States Housing Act of 1937, as amended, or under the provisions of State or local law authorizing similar levels of subsidy for lower-income families, (III) any section 1250 property with respect to which a depreciation deduction for rehabilitation expenditures was allowed under section 167(k), or (IV) any section 1250 property with respect to which a loan is made or insured under title V of the Housing Act of 1949, and . (2) Section 1250(b) is amended by striking paragraph (4) and by redesignating paragraph (5) as paragraph (4). (3) Section 1250(c) is amended by striking For purposes of this section and inserting For purposes of this title (4) (A) Section 1250(d)(5)(B)(i) is amended by striking and the applicable percentage for the property had been 100 percent . (B) Section 1250(d)(5)(B)(ii) is amended to read as follows: (ii) the amount of such gain (if any) to which section 751(b) applied. . (5) Section 1250(d) is amended by striking paragraph (7). (6) Section 1250 is amended by striking subsections (e) and (f) and by redesignating subsections (g) and (h) as subsections (e) and (f), respectively. (c) Effective date The amendments made by this section shall apply to dispositions after December 31, 2014. 3140. Common deduction conforming amendments (a) In general (1) Section 1245(a)(2)(C) is amended by striking section 179, and all that follows through or 194 and inserting section 179 or (as in effect before repeal by the Tax Reform Act of 2014 ) section 179A, 179B, 179C, 179D, 179E, 181, 190, 193, or 194, (2) Section 1245(a)(3)(C) is amended by striking section 169 and all that follows through or 194 and inserting section 179, 185, 188 (as in effect before its repeal by the Revenue Reconciliation Act of 1990), or (as in effect before repeal by the Tax Reform Act of 2014 ) section 169, 179A, 179B, 179C, 179D, 179E, 190, 193, or 194 . (3) Section 263(a)(1) is amended by striking subparagraphs (C), (D), (F), (H), (I), (J), (K), and (L) and by redesignating subparagraphs (E) and (G) as subparagraphs (C) and (D), respectively. (4) Section 280C, as amended by the preceding provisions of this Act, is amended by redesignating subsections (c) and (g) as subsections (b) and (c), respectively. (b) Effective date Each portion of each amendment made by this section shall take effect as if included in the provision of this subtitle to which such portion relates. C Reform of business credits 3201. Repeal of credit for alcohol, etc., used as fuel (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 40 (and by striking the item relating to such section in the table of sections for such subpart). (b) Repeal of corresponding excise tax credits (1) Credit Subchapter B of chapter 65 is amended by striking section 6426 (and by striking the item relating to such section in the table of sections for such subchapter). (2) Payment Section 6427 is amended by striking subsection (e). (c) Conforming amendments (1) Section 38(b) is amended by striking paragraph (3). (2) Section 6416(a)(4)(C) is amended— (A) by striking section 6427(i)(4) and inserting section 6427(i)(3) , and (B) by striking section 6427(i)(3)(B) and inserting subparagraph (B) thereof . (3) Section 6427(i) is amended by striking paragraph (3) and by redesignating paragraph (4) as paragraph (3). (4) Section 6427(i)(3), as redesignated by paragraph (2), is amended— (A) by striking the sentence at the end of subparagraph (A), (B) by redesignating subparagraph (B) as subparagraph (C), and (C) by inserting after subparagraph (A) the following new subparagraph: (B) Payment of claim Notwithstanding subsection (l)(1), if the Secretary has not paid pursuant to a claim filed under subsection (b)(4), (l)(4)(C)(ii), or (l)(5) within 45 days of the date of the filing of such claim (20 days in the case of an electronic claim), the claim shall be paid with interest from such date determined by using the overpayment rate and method under section 6621. . (5) Subpart B of part III of subchapter A of chapter 32 is amended by striking section 4104 (and by striking the item relating to such section in the table of sections for such subpart). (6) Section 6501(m) is amended by striking 40(f), . (7) Section 9503(b)(1) is amended by striking the second sentence. (d) Effective date The amendments made by this section shall apply to fuels sold or used after December 31, 2013. 3202. Repeal of credit for biodiesel and renewable diesel used as fuel (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 40A (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(b) is amended by striking paragraph (17). (2) Part II of subchapter B of chapter 1 is amended by striking section 87 (and by striking the item relating to such section in the table of sections for such subpart). (3) Section 4101(a)(1) is amended by striking , every person producing and all that follows through section 40(b)(6)(E)) . (c) Effective date The amendments made by this section shall apply to fuels sold or used after December 31, 2013. 3203. Research credit modified and made permanent (a) Permanent simplification of incremental research credit and elimination of credit for energy research consortium payments (1) In general Subsection (a) of section 41 is amended to read as follows: (a) In general For purposes of section 38, the research credit determined under this section for the taxable year shall be an amount equal to the sum of— (1) 15 percent of so much of the qualified research expenses for the taxable year as exceeds 50 percent of the average qualified research expenses for the 3 taxable years preceding the taxable year for which the credit is being determined, plus (2) 15 percent of so much of the basic research payments for the taxable year as exceeds 50 percent of the average basic research payments for the 3 taxable years preceding the taxable year for which the credit is being determined. . (2) Repeal of termination Section 41 is amended by striking subsection (h). (3) Conforming amendments (A) Subsection (c) of section 41 is amended to read as follows: (c) Determination of average research expenses for prior years (1) Special rule in case of no qualified research expenditures in any of 3 preceding taxable years In any case in which the taxpayer has no qualified research expenses in any one of the 3 taxable years preceding the taxable year for which the credit is being determined, the amount determined under subsection (a)(1) for such taxable year shall be equal to 10 percent of the qualified research expenses for the taxable year. (2) Consistent treatment of expenses (A) In general Notwithstanding whether the period for filing a claim for credit or refund has expired for any taxable year taken into account in determining the average qualified research expenses, or average basic research payments, taken into account under subsection (a), the qualified research expenses and basic research payments taken into account in determining such averages shall be determined on a basis consistent with the determination of qualified research expenses and basic research payments, respectively, for the credit year. (B) Prevention of distortions The Secretary may prescribe regulations to prevent distortions in calculating a taxpayer’s qualified research expenses or basic research payments caused by a change in accounting methods used by such taxpayer between the current year and a year taken into account in determining the average qualified research expenses or average basic research payments taken into account under subsection (a). . (B) Section 41(e) is amended— (i) by striking all that precedes paragraph (6) and inserting the following: (e) Basic research payments For purposes of this section— (1) In general The term basic research payment means, with respect to any taxable year, any amount paid in cash during such taxable year by a corporation to any qualified organization for basic research but only if— (A) such payment is pursuant to a written agreement between such corporation and such qualified organization, and (B) such basic research is to be performed by such qualified organization. (2) Exception to requirement that research be performed by the organization In the case of a qualified organization described in subparagraph (C) or (D) of paragraph (3), subparagraph (B) of paragraph (1) shall not apply. , (ii) by redesignating paragraphs (6) and (7) as paragraphs (3) and (4), respectively, and (iii) in paragraph (4) as so redesignated, by striking subparagraphs (B) and (C) and by redesignating subparagraphs (D) and (E) as subparagraphs (B) and (C), respectively. (C) (i) Section 41(f)(1) is amended by striking , basic research payments, and amounts paid or incurred to energy research consortiums, in subparagraphs (A)(ii) and (B)(ii) and inserting and basic research payments . (ii) Section 41(f) is amended by striking paragraph (6). (4) Effective date (A) In general Except as provided in subparagraph (B), the amendments made by this subsection shall apply to taxable years beginning after December 31, 2013. (B) Paragraph (2) The amendment made by paragraph (2) shall apply to amounts paid or incurred after December 31, 2013. (b) Other reforms (1) Elimination of credit for computer software Subparagraph (E) of section 41(d)(4) is amended— (A) by striking Except to the extent provided in regulations, any research and inserting Any research , and (B) by striking which is developed by and all that follows through the end and inserting a period. (2) Elimination of increased credit for amounts paid to certain entities Paragraph (3) of section 41(b) is amended by striking subparagraphs (C) and (D). (3) Elimination of credit for supplies Subparagraph (A) of section 41(b)(2) is amended by inserting and at the end of clause (i), by striking clause (ii), and by redesignating clause (iii) as clause (ii). (4) Elimination of election of reduced credit Section 280C(c) is amended by striking paragraphs (3) and (4). (5) Conforming amendments (A) The second sentence of section 41(b)(2)(A) is amended by striking Clause (iii) and inserting Clause (ii) . (B) Section 41(b)(2) is amended by striking subparagraph (C) and by redesignating subparagraph (D) as subparagraph (C). (C) Section 41(d)(2)(B) is amended by striking , computer software . (6) Effective date The amendments made by this subsection shall apply to taxable years beginning after December 31, 2013. 3204. Low-income housing tax credit (a) Reform of limitation and allocation rules (1) Allocations of eligible basis amounts rather than credit amounts; elimination of national reallocations Subsection (h) of section 42 is amended to read as follows: (h) Limitation on qualified basis with respect to projects located in a State (1) Qualified basis may not exceed limitation amount allocated to building (A) In general The qualified basis of any building which is taken into account under subsection (a) for any taxable year shall not exceed the limitation amount allocated to such building under this subsection. (B) Time for making allocation Except in the case of an allocation which meets the requirements of subparagraph (C), (D), (E), or (F), an allocation shall be taken into account under subparagraph (A) only if it is made not later than the close of the calendar year in which the building is placed in service. (C) Exception where binding commitment An allocation meets the requirements of this subparagraph if there is a binding commitment (not later than the close of the calendar year in which the building is placed in service) by the housing credit agency to allocate a specified limitation amount to such building beginning in a specified later taxable year. (D) Exception where increase in qualified basis (i) In general An allocation meets the requirements of this subparagraph if such allocation is made not later than the close of the calendar year in which ends the taxable year to which it will 1st apply but only to the extent the amount of such allocation does not exceed the limitation under clause (ii). (ii) Limitation The limitation under this clause is the excess of— (I) the qualified basis of such building as of the close of the 1st taxable year to which such allocation will apply, over (II) the qualified basis of such building as of the close of the 1st taxable year to which the most recent prior allocation with respect to such building applied. (iii) Housing credit basis limitation reduced by full allocation Notwithstanding clause (i), the full amount of the allocation shall be taken into account under paragraph (2). (E) Exception where 10 percent of cost incurred (i) In general An allocation meets the requirements of this subparagraph if such allocation is made with respect to a qualified building which is placed in service not later than the close of the second calendar year following the calendar year in which the allocation is made. (ii) Qualified building For purposes of clause (i), the term qualified building means any building which is part of a project if the taxpayer's basis in such project (as of the date which is 1 year after the date that the allocation was made) is more than 10 percent of the taxpayer's reasonably expected basis in such project (as of the close of the second calendar year referred to in clause (i)). Such term does not include any existing building unless a credit is allowable under subsection (e) for rehabilitation expenditures paid or incurred by the taxpayer with respect to such building for a taxable year ending during the second calendar year referred to in clause (i) or the prior taxable year. (F) Allocation of credit on a project basis (i) In general In the case of a project which includes (or will include) more than 1 building, an allocation meets the requirements of this subparagraph if— (I) the allocation is made to the project for a calendar year during the project period, (II) the allocation only applies to buildings placed in service during or after the calendar year for which the allocation is made, and (III) the portion of such allocation which is allocated to any building in such project is specified not later than the close of the calendar year in which the building is placed in service. (ii) Project period For purposes of clause (i), the term project period means the period— (I) beginning with the 1st calendar year for which an allocation may be made for the 1st building placed in service as part of such project, and (II) ending with the calendar year the last building is placed in service as part of such project. (2) Allocated limitation amount to apply to all taxable years ending during or after allocation year Any limitation amount allocated to any building for any calendar year— (A) shall apply to such building for all taxable years in the compliance period ending during or after such calendar year, and (B) shall reduce the aggregate limitation amount of the allocating agency only for such calendar year. (3) Limitation amount for agencies (A) In general The limitation amount which a housing credit agency may allocate for any calendar year is the portion of the State limitation allocated under this paragraph for such calendar year to such agency. (B) State limitation initially allocated to State housing credit agencies Except as provided in subparagraph (F), the State limitation for each calendar year shall be allocated to the housing credit agency of such State. If there is more than 1 housing credit agency of a State, all such agencies shall be treated as a single agency. (C) State limitation The State limitation applicable to any State for any calendar year shall be an amount equal to the sum of— (i) the unused State limitation (if any) of such State for the preceding calendar year, (ii) the greater of— (I) $31.20 multiplied by the State population, or (II) $36,300,000, plus (iii) the amount of State limitation returned in the calendar year. (D) Unused State limitation For purposes of subparagraph (C)(i), the unused State limitation for any calendar year is the excess (if any) of the sum of the amounts described in clauses (ii) and (iii) of subparagraph (C) over the aggregate limitation amount allocated for such year. (E) State limitation returned in the calendar year For purposes of subparagraph (C)(iii), the amount of State limitation returned in the calendar year equals the limitation amount previously allocated within the State to any project— (i) which fails to meet the 10 percent test under paragraph (1)(E)(ii) on a date after the close of the calendar year in which the allocation was made, (ii) which does not become a qualified low-income housing project within the period required by this section or the terms of the allocation, or (iii) with respect to which an allocation is cancelled by mutual consent of the housing credit agency and the allocation recipient. (F) State may provide for different allocation For purposes of this paragraph, a State may by law provide (or a Governor of a State may proclaim) a different formula for allocating the State limitation among the State housing credit agencies in such State. (G) Population For purposes of this paragraph, determinations of the population of any State shall be made with respect to any calendar year on the basis of the most recent census estimate of the resident population of such State released by the Bureau of Census before the beginning of such calendar year. (H) Cost-of-living adjustment (i) In general In the case of a calendar year after 2015, the dollar amounts in subparagraph (C)(ii) shall each be increased by an amount equal to— (I) such dollar amount, multiplied by (II) the cost-of-living adjustment determined under section 1(c)(2)(A) for such calendar year, determined by substituting calendar year 2014 for calendar year 2012 in clause (ii) thereof. (ii) Rounding (I) In the case of the dollar amount in subparagraph (C)(ii)(I), any increase under clause (i) which is not a multiple of 20 cents shall be rounded to the next lowest multiple of 20 cents. (II) In the case of the dollar amount in subparagraph (C)(ii)(II), any increase under clause (i) which is not a multiple of $100,000 shall be rounded to the next lowest multiple of $100,000. (4) Portion of State limitation set-aside for certain projects involving qualified nonprofit organizations (A) In general Not more than 90 percent of the State limitation for any State for any calendar year shall be allocated to projects other than qualified low-income housing projects described in subparagraph (B). (B) Projects involving qualified nonprofit organizations For purposes of subparagraph (A), a qualified low-income housing project is described in this subparagraph if a qualified nonprofit organization is to own an interest in the project (directly or through a partnership) and materially participate (within the meaning of section 469(h)) in the development and operation of the project throughout the credit period. (C) Qualified nonprofit organization For purposes of this paragraph, the term qualified nonprofit organization means any organization if— (i) such organization is described in paragraph (3) or (4) of section 501(c) and is exempt from tax under section 501(a), (ii) such organization is determined by the State housing credit agency not to be affiliated with or controlled by a for-profit organization; and (iii) 1 of the exempt purposes of such organization includes the fostering of low-income housing. (D) Treatment of certain subsidiaries (i) In general For purposes of this paragraph, a qualified nonprofit organization shall be treated as satisfying the ownership and material participation test of subparagraph (B) if any qualified corporation in which such organization holds stock satisfies such test. (ii) Qualified corporation For purposes of clause (i), the term qualified corporation means any corporation if 100 percent of the stock of such corporation is held by 1 or more qualified nonprofit organizations at all times during the period such corporation is in existence. (E) State may not override set-aside Nothing in subparagraph (F) of paragraph (3) shall be construed to permit a State not to comply with subparagraph (A) of this paragraph. (5) Buildings eligible for credit only if minimum long-term commitment to low-income housing (A) In general No credit shall be allowed by reason of this section with respect to any building for the taxable year unless an extended low-income housing commitment is in effect as of the end of such taxable year. (B) Extended low-income housing commitment For purposes of this paragraph, the term extended low-income housing commitment means any agreement between the taxpayer and the housing credit agency— (i) which requires that the applicable fraction (as defined in subsection (c)(1)) for the building for each taxable year in the extended use period will not be less than the applicable fraction specified in such agreement and which prohibits the actions described in subclauses (I) and (II) of subparagraph (E)(ii), (ii) which allows individuals who meet the income limitation applicable to the building under subsection (g) (whether prospective, present, or former occupants of the building) the right to enforce in any State court the requirement and prohibitions of clause (i), (iii) which prohibits the disposition to any person of any portion of the building to which such agreement applies unless all of the building to which such agreement applies is disposed of to such person, (iv) which prohibits the refusal to lease to a holder of a voucher or certificate of eligibility under section 8 of the United States Housing Act of 1937 because of the status of the prospective tenant as such a holder, (v) which is binding on all successors of the taxpayer, and (vi) which, with respect to the property, is recorded pursuant to State law as a restrictive covenant. (C) Allocation of limitation amount may not exceed amount necessary to support commitment The limitation amount allocated to any building may not exceed the amount necessary to support the applicable fraction specified in the extended low-income housing commitment for such building. (D) Extended use period For purposes of this paragraph, the term extended use period means the period— (i) beginning on the 1st day in the credit period on which such building is part of a qualified low-income housing project, and (ii) ending on the later of— (I) the date specified by such agency in such agreement, or (II) the date which is 15 years after the close of the credit period. (E) Exceptions if foreclosure or if no buyer willing to maintain low-income status (i) In general The extended use period for any building shall terminate— (I) on the date the building is acquired by foreclosure (or instrument in lieu of foreclosure) unless the Secretary determines that such acquisition is part of an arrangement with the taxpayer a purpose of which is to terminate such period, or (II) on the last day of the period specified in subparagraph (I) if the housing credit agency is unable to present during such period a qualified contract for the acquisition of the low-income portion of the building by any person who will continue to operate such portion as a qualified low-income building. Subclause (II) shall not apply to the extent more stringent requirements are provided in the agreement or in State law. (ii) Eviction, etc., of existing low-income tenants not permitted The termination of an extended use period under clause (i) shall not be construed to permit before the close of the 3-year period following such termination— (I) the eviction or the termination of tenancy (other than for good cause) of an existing tenant of any low-income unit, or (II) any increase in the gross rent with respect to such unit not otherwise permitted under this section. (F) Qualified contract For purposes of subparagraph (E), the term qualified contract means a bona fide contract to acquire (within a reasonable period after the contract is entered into) the nonlow-income portion of the building for fair market value and the low-income portion of the building for an amount not less than the applicable fraction (specified in the extended low-income housing commitment) of— (i) the sum of— (I) the outstanding indebtedness secured by, or with respect to, the building, (II) the adjusted investor equity in the building, plus (III) other capital contributions not reflected in the amounts described in subclause (I) or (II), reduced by (ii) cash distributions from (or available for distribution from) the project. The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out this paragraph, including regulations to prevent the manipulation of the amount determined under the preceding sentence. (G) Adjusted investor equity (i) In general For purposes of subparagraph (F), the term adjusted investor equity means, with respect to any calendar year, the aggregate amount of cash taxpayers invested with respect to the project increased by the amount equal to— (I) such amount, multiplied by (II) the cost-of-living adjustment for such calendar year, determined under section 1(c)(2)(A) by substituting the base calendar year for calendar year 2012 in clause (ii) thereof. An amount shall be taken into account as an investment in the project only to the extent there was an obligation to invest such amount as of the beginning of the credit period and to the extent such amount is reflected in the adjusted basis of the project. (ii) Cost-of-living increases in excess of 5 percent not taken into account Under regulations prescribed by the Secretary, if the C-CPI-U for any calendar year (within the meaning of section 1(c)) exceeds the C-CPI-U for the preceding calendar year by more than 5 percent, the C-CPI-U for the base calendar year shall be increased such that such excess shall never be taken into account under clause (i). (iii) Base calendar year For purposes of this subparagraph, the term base calendar year means the calendar year with or within which the 1st taxable year of the credit period ends. (H) Low-income portion For purposes of this paragraph, the low-income portion of a building is the portion of such building equal to the applicable fraction specified in the extended low-income housing commitment for the building. (I) Period for finding buyer The period referred to in this subparagraph is the 1-year period beginning on the date (after the 14th year of the credit period) the taxpayer submits a written request to the housing credit agency to find a person to acquire the taxpayer’s interest in the low-income portion of the building. (J) Effect of noncompliance If, during a taxable year, there is a determination that an extended low-income housing agreement was not in effect as of the beginning of such year, such determination shall not apply to any period before such year and subparagraph (A) shall be applied without regard to such determination if the failure is corrected within 1 year from the date of the determination. (K) Projects which consist of more than 1 building The application of this paragraph to projects which consist of more than 1 building shall be made under regulations prescribed by the Secretary. (6) Special rules (A) Building must be located within jurisdiction of credit agency A housing credit agency may allocate its limitation amount only to buildings located in the jurisdiction of the governmental unit of which such agency is a part. (B) Agency allocations in excess of limit If the limitation amounts allocated by a housing credit agency for any calendar year exceed the portion of the State limitation allocated to such agency for such calendar year, the limitation amounts so allocated shall be reduced (to the extent of such excess) for buildings in the reverse of the order in which the allocations of such amounts were made. (C) Credit reduced if credit is less than credit which would be allowable without regard to placed in service convention, etc (i) In general The amount of the credit determined under this section with respect to any building shall not exceed the clause (ii) percentage of the amount of the credit which would (but for this subparagraph) be determined under this section with respect to such building. (ii) Determination of percentage For purposes of clause (i), the clause (ii) percentage with respect to any building is the percentage which— (I) the credit amount which would be determined under this section with respect to the building if the limitation amount allocated to such building were equal to the qualified basis of such building, bears to (II) the credit amount determined in accordance with clause (iii). (iii) Determination of credit amount The credit amount determined in accordance with this clause is the amount of the credit which would (but for this subparagraph) be determined under this section with respect to the building if this section were applied without regard to subsection (f)(2)(A). (7) Other definitions For purposes of this subsection— (A) Housing credit agency The term housing credit agency means any agency authorized to carry out this subsection. (B) Possessions treated as States The term State includes a possession of the United States. . (2) Conforming amendments (A) Section 42(f) is amended by striking paragraph (3). (B) Section 42(i)(3)(B)(iii)(II) is amended by striking subsection (h)(5) and inserting subsection (h)(4) . (C) Section 42(i)(7)(A) is amended by striking subsection (h)(5)(C) and inserting subsection (h)(4)(C) . (D) Section 42(i)(8) is amended by striking the last sentence. (E) Section 42(i) is amended by striking paragraph (9). (F) Section 42(k)(2)(A) is amended by striking subsection (h)(5) and inserting subsection (h)(4) . (G) Section 42(l)(3) is amended by striking housing credit amount both places it appears and inserting limitation amount . (H) Section 42(m)(1)(A) is amended by striking housing credit dollar amount both places it appears and inserting limitation amount . (I) Section 42(m)(1)(B)(ii) is amended by striking housing credit dollar amounts and inserting limitation amounts . (J) Section 42(m)(1) is amended by striking subparagraph (D). (K) Subparagraphs (A), (B)(iii), (C)(i)(I), and (C)(i)(II) of section 42(m)(2) are each amended by striking housing credit dollar amount and inserting limitation amount . (L) Section 42(m)(2) is amended by striking subparagraph (D). (b) 15-Year credit period (1) In general Section 42(f)(1) is amended by striking 10 taxable years and inserting 15 taxable years . (2) Repeal of recapture Section 42 is amended by striking subsection (j). (3) Conforming amendments (A) Section 42(d)(7) is amended— (i) by striking compliance period in the heading thereof and inserting credit period , and (ii) by striking compliance period in subparagraph (B)(ii) and inserting credit period . (B) Section 42(f)(4) is amended by striking the last sentence thereof. (C) Section 42(i) is amended by striking paragraph (1). (D) Section 42(i)(6) is amended by striking and any increase in tax under subsection (j) . (E) Section 42(k)(4)(C) is amended to read as follows: (C) Special rules (i) Tax benefit rule The tax for the taxable year shall be increased under subparagraph (A) only with respect to credits allowed by reason of this section which were used to reduce tax liability. In the case of credits not so used to reduce tax liability, the carryforwards and carrybacks under section 39 shall be appropriately adjusted. (ii) No credits against tax Any increase in tax under this paragraph shall not be treated as a tax imposed by this chapter for purposes of determining the amount of any credit under this chapter. . (c) Determination of applicable percentage (1) Elimination of 30 percent credit; modification of discount rate Subsection (b) of section 42 is amended to read as follows: (b) Applicable percentage (1) In general For purposes of this section, the term applicable percentage means with respect to any building, the appropriate percentage prescribed by the Secretary for the earlier of— (A) the month in which such building is placed in service, or (B) at the election of the taxpayer, the month in which the taxpayer and the housing credit agency enter into an agreement with respect to such building (which is binding on such agency, the taxpayer, and all successors in interest) as to the limitation amount to be allocated to such building. A month may be elected under subparagraph (B) only if the election is made not later than the 5th day after the close of such month. Such an election, once made, shall be irrevocable. (2) Method of prescribing percentages The percentages prescribed by the Secretary for any month shall be percentages which will yield over a 15-year period amounts of credit under subsection (a) which have a present value equal to 70 percent of the qualified basis of the building. (3) Method of discounting (A) In general The present value under paragraph (2) shall be determined— (i) as of the last day of the 1st year of the 15-year period referred to in paragraph (2), (ii) by using a discount rate equal to the applicable discount percentage of the average of the annual Federal mid-term rate and the annual Federal long-term rate applicable under section 1274(d)(1) to the month applicable under subparagraph (A) or (B) of paragraph (1) and compounded annually, and (iii) by assuming that the credit allowable under this section for any year is received on the last day of such year. (B) Applicable discount percentage For purposes of this paragraph, the term applicable discount percentage means, with respect to any month referred to in subparagraph (A)(ii) the number of percentage points by which 100 percent exceeds the highest rate of tax in effect under section 11 for a taxable year which begins in such month. (4) Cross reference For treatment of certain rehabilitation expenditures as separate new buildings, see subsection (e). . (2) Existing and Federally subsidized buildings ineligible for credit Section 42(d) is amended— (A) by striking paragraphs (1), (2), and (6), and redesignating paragraphs (3), (4), (5), and (7) as paragraphs (2), (3), (4), and (5), respectively, and (B) by inserting before paragraph (2) (as so redesignated) the following new paragraph: (1) In general The eligible basis of any building is— (A) in the case a new building which is not Federally subsidized for the taxable year, its adjusted basis as of the close of the 1st taxable year of the credit period, and (B) zero in any other case. . (3) Conforming amendments (A) Section 42(e) is amended— (i) in paragraph (2)(B), by striking paragraph (3) or (4) and inserting paragraph (2) or (3) . (ii) in paragraph (3), by striking subparagraph (B) and redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively, (iii) in paragraph (4), by striking the last sentence thereof, and (iv) by striking paragraph (5) and redesignating paragraph (6) as paragraph (5). (B) Section 42(f) is amended by striking paragraph (5). (C) Section 42(i)(2)(A) is amended by striking for purposes of subsection (b)(1), . (D) Section 42(i)(3) is amended— (i) by striking (as defined in subsection (d)(2)(D)(iii)) in subparagraph (C)(ii) and inserting (within the meaning of subparagraph (F)) , and (ii) by adding at the end the following new subparagraph: (F) Related person For purposes of subparagraph (C), a person (hereinafter in this subparagraph referred to as the related person ) is related to any person if the related person bears a relationship to such person specified in section 267(b) or 707(b)(1), or the related person and such person are engaged in trades or businesses under common control (within the meaning of subsections (a) and (b) of section 52). . (E) Section 42(i) is amended by striking paragraph (5). (F) Section 42(k)(2)(B) is amended by striking , except that and all that follows and inserting a period. (d) Repeal of special rules for buildings in high cost and difficult development areas (1) In general Paragraph (4) of section 42(d), as redesignated by subsection (c)(2), is amended to read as follows: (4) Federal grants not taken into account in determining eligible basis The eligible basis of a building shall not include any costs financed with the proceeds of a federally funded grant. . (2) Conforming amendments (A) Paragraph (3) of section 42(d), as redesignated by subsection (c)(2), is amended— (i) by striking (as defined in paragraph (5)(C)) in subparagraph (C)(i), and (ii) by adding at the end the following new subparagraph: (E) Qualified census tract For purposes of this paragraph— (i) In general The term qualified census tract means any census tract which is designated by the Secretary of Housing and Urban Development and, for the most recent year for which census data are available on household income in such tract, either in which 50 percent or more of the households have an income which is less than 60 percent of the area median gross income for such year or which has a poverty rate of at least 25 percent. If the Secretary of Housing and Urban Development determines that sufficient data for any period are not available to apply this subparagraph on the basis of census tracts, such Secretary shall apply this subparagraph for such period on the basis of enumeration districts. (ii) Limit on MSA's designated The portion of a metropolitan statistical area which may be designated for purposes of this subparagraph shall not exceed an area having 20 percent of the population of such metropolitan statistical area. (iii) Determination of areas For purposes of this subparagraph, each metropolitan statistical area shall be treated as a separate area and all nonmetropolitan areas in a State shall be treated as 1 area. . (B) Clause (i) of section 42(d)(5)(A), as redesignated by subsection (c)(2), is amended to read as follows: (i) such building shall be treated as a new building, but . (e) Repeal of certain exceptions to rules against preferential treatment Section 42(g)(9) is amended— (1) by adding or at the end of subparagraph (A), and (2) by striking subparagraphs (B) and (C) and inserting the following new subparagraph: (B) who are veterans (as defined in section 101 of title 38, United States Code). . (f) Modification of selection criteria Section 42(m)(1)(C) is amended— (1) by adding and at the end of clause (vii), (2) by striking the comma at the end of clause (viii) and inserting a period, and (3) by striking clauses (ix) and (x). (g) Effective date (1) In general The amendments made by this section shall apply with respect to State limitation amounts determined for calendar years after 2014 (and to determinations with respect to allocations of such limitation amounts). (2) Transition rule For purposes of determining the State limitation amount for calendar year 2015 under section 42(h)(3)(C) of the Internal Revenue Code of 1986, as amended by this section, the amount described in clause (i) of such section shall be treated as being equal to the quotient of— (A) the amount which would be described in section 42(h)(3)(C)(i) of such Code (determined without regard to the amendments made by this section), divided by (B) the applicable percentage determined under section 42(b)(1)(B)(i) for December 2014 (determined without regard to the amendments made by this section). 3205. Repeal of enhanced oil recovery credit (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 43 (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(b) is amended by striking paragraph (6). (2) Section 6501(m) is amended by striking 43, . (c) Effective date The amendments made by this section shall take effect on the date of the enactment of this Act. 3206. Phaseout and repeal of credit for electricity produced from certain renewable resources (a) Reduction of credit and phaseout amounts (1) In general Section 45(b) is amended by striking paragraph (2). (2) Conforming amendments Section 45(e)(2) is amended— (A) by striking the inflation adjustment factor and in subparagraph (A), and (B) by striking subparagraph (B) and redesignating subparagraph (C) as subparagraph (B). (3) Effective date The amendments made by this subsection shall apply to electricity, and refined coal, produced and sold after December 31, 2014. (b) Special rule for determining beginning of construction (1) In general Section 45(e) is amended by adding at the end the following new paragraph: (12) Special rule for determining beginning of construction For purposes of subsection (d) and section 48(a)(5), the construction of any facility, modification, improvement, addition, or other property shall not be treated as beginning before any date unless there is a continuous program of construction which begins before such date and ends on the date that such property is placed in service. . (2) Effective date The amendment made by this subsection shall apply to taxable years beginning before, on, or after the date of the enactment of this Act. (c) Repeal of credit (1) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45 (and by striking the item relating to such section in the table of sections for such subpart). (2) Conforming amendment Section 38(b) is amended by striking paragraph (8). (3) Effective date The amendments made by this subsection shall apply to electricity, and refined coal, produced and sold after December 31, 2024. 3207. Repeal of Indian employment credit (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45A (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendment (1) Section 38(b) is amended by striking paragraph (10). (2) Section 139D(c)(1) is amended to read as follows: (1) Indian tribe The term Indian tribe means any Indian tribe, band, nation, pueblo, or other organized group or community, including any Alaska Native village or regional or village corporation, as defined in, or established pursuant to, the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.) which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians. . (3) Section 280C(a) is amended by striking 45A, . (4) Section 5000A(e)(3) is amended by striking section 45A(c)(6) and inserting section 139D(c)(1) . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2013. 3208. Repeal of credit for portion of employer Social Security taxes paid with respect to employee cash tips (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45B (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(b) is amended by striking paragraph (11). (2) Section 6501(m) is amended by striking 45B, . (c) Effective date The amendments made by this section shall apply with respect to tips received for services performed after December 31, 2014. 3209. Repeal of credit for clinical testing expenses for certain drugs for rare diseases or conditions (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45C (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(b) is amended by striking paragraph (12). (2) Section 280C is amended by striking subsection (b). (3) Section 6501(m) is amended by striking 45C(d)(4), . (c) Effective date The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2014. 3210. Repeal of credit for small employer pension plan startup costs (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45E (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments Section 38(b) is amended by striking paragraph (14). (c) Effective date The amendments made by this section shall apply to costs paid or incurred after December 31, 2014, with respect to qualified employer plans first effective after such date. 3211. Repeal of employer-provided child care credit (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45F (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(b) is amended by striking paragraph (15). (2) Section 1016(a) is amended by striking paragraph (28). (c) Effective date (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2014. (2) Basis adjustments The amendment made by subsection (b)(2) shall apply to credits determined for taxable years beginning after December 31, 2014. 3212. Repeal of railroad track maintenance credit (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45G (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(b) is amended by striking paragraph (16). (2) Section 1016(a) is amended by striking paragraph (29). (c) Effective date (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2013. (2) Basis adjustments The amendment made by subsection (b)(2) shall apply to credits determined for taxable years beginning after December 31, 2013. 3213. Repeal of credit for production of low sulfur diesel fuel (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45H (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(b) is amended by striking paragraph (18). (2) Section 280C is amended by striking subsection (d). (3) Section 6501(m) is amended by striking 45H(g), . (4) Section 6720A is amended— (A) by striking (as defined in section 45H(c)(3)) in subsection (a), and (B) by adding at the end the following new subsection: (c) Applicable EPA regulations The term applicable EPA regulations means the Highway Diesel Fuel Sulfur Control Requirements of the Environmental Protection Agency. . (c) Effective date The amendments made by this section shall apply to expenses paid or incurred in taxable years beginning after December 31, 2014. 3214. Repeal of credit for producing oil and gas from marginal wells (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45I (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendment Section 38(b) is amended by striking paragraph (19). (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3215. Repeal of credit for production from advanced nuclear power facilities (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45J (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendment Section 38(b) is amended by striking paragraph (21). (c) Effective date The amendments made by this section shall apply to electricity produced and sold after December 31, 2014. 3216. Repeal of credit for producing fuel from a nonconventional source (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45K (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(b) is amended by striking paragraph (22). (2) Section 45(e)(9) is amended— (A) in subparagraph (A)— (i) by inserting , as in effect before its repeal after within the meaning of section 45K , and (ii) by inserting (as in effect before its repeal) after under section 45K , and (B) in subparagraph (B), by inserting (as in effect before its repeal) after section 45K . (3) Section 4041(a)(2) is amended— (A) by striking (as defined in section 45K(c)(3)) in subparagraph (B)(ii), and (B) by adding at the end the following new subparagraph: (C) Biomass The term “biomass” means any organic material other than— (i) oil and natural gas (or any product thereof), and (ii) coal (including lignite) or any product thereof. . (c) Effective date The amendments made by this section shall apply to fuel produced and sold after December 31, 2013. 3217. Repeal of new energy efficient home credit (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45L (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(b) is amended by striking paragraph (23). (2) Section 1016(a) is amended by striking paragraph (32). (c) Effective date The amendments made by this section shall apply to homes acquired after December 31, 2013. 3218. Repeal of energy efficient appliance credit (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45M (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendment Section 38(b) is amended by striking paragraph (24). (c) Effective date The amendments made by this section shall apply to appliances produced after December 31, 2013. 3219. Repeal of mine rescue team training credit (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45N (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(b) is amended by striking paragraph (31). (2) Section 280C is amended by striking subsection (e). (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2013. 3220. Repeal of agricultural chemicals security credit (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45O (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(b) is amended by striking paragraph (32). (2) Section 280C is amended by striking subsection (f). (c) Effective date The amendments made by this section shall apply to amounts paid or incurred after December 31, 2012. 3221. Repeal of credit for carbon dioxide sequestration (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45Q (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendment Section 38(b) is amended by striking paragraph (34). (c) Effective date The amendments made by this section shall apply to credits determined for taxable years beginning after December 31, 2014. 3222. Repeal of credit for employee health insurance expenses of small employers (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45R (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(b) is amended by striking paragraph (36). (2) Section 280C is amended by striking subsection (h). (3) Section 6055(b)(2) is amended by inserting and at the end of subparagraph (A), by striking , and at the end of subparagraph (B) and inserting a period, and by striking subparagraph (C). (c) Effective date The amendments made by this section shall apply to amounts paid or incurred for taxable years beginning after December 31, 2014. 3223. Repeal of rehabilitation credit (a) In general Subpart E of part IV of subchapter A of chapter 1 is amended by striking section 47 (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 170(f)(14)(A) is amended by inserting (as in effect before its repeal by the Tax Reform Act of 2014 ) after section 47 . (2) Section 170(h)(4) is amended— (A) by striking (as defined in section 47(c)(3)(B)) in subparagraph (C)(ii), and (B) by adding at the end the following new subparagraph: (D) Registered historic district The term registered historic district means— (i) any district listed in the National Register, and (ii) any district— (I) which is designated under a statute of the appropriate State or local government, if such statute is certified by the Secretary of the Interior to the Secretary as containing criteria which will substantially achieve the purpose of preserving and rehabilitating buildings of historic significance to the district, and (II) which is certified by the Secretary of the Interior to the Secretary as meeting substantially all of the requirements for the listing of districts in the National Register. . (3) Section 469(i)(3) is amended by striking subparagraph (B). (4) Section 469(i)(6)(B) is amended— (A) by striking in the case of— and all that follows and inserting in the case of any credit determined under section 42 for any taxable year. , and (B) by striking , rehabilitation credit, in the heading thereof. (5) Section 469(k)(1) is amended by striking , or any rehabilitation credit determined under section 47, . (c) Effective date (1) In general Except as provided in paragraph (2), the amendments made by this section shall apply to amounts paid after December 31, 2014. (2) Transition rule In the case of qualified rehabilitation expenditures (within the meaning of section 47 of the Internal Revenue Code of 1986 as in effect before its repeal) with respect to any building— (A) acquired by the taxpayer before January 1, 2015, and (B) with respect to which the 24-month period selected by the taxpayer under section 47(c)(1)(C) of such Code begins not later than January 1, 2015, the amendments made by this section shall apply to amounts paid after December 31, 2016. 3224. Repeal of energy credit (a) Termination Section 48 is amended by adding at the end the following new subsection: (e) Application of section This section shall not apply to any energy property placed in service after December 31, 2016. . (b) Conforming amendments (1) Paragraph (2)(A)(i)(II), and clauses (ii) and (vii) of paragraph (3)(A), of section 48(a) are each amended by striking but only with respect to periods ending before January 1, 2017 . (2) Paragraph (1) of section 48(c) is amended by striking subparagraph (D). (3) Paragraph (2) of section 48(c) is amended by striking subparagraph (D). (4) Subparagraph (A) of section 48(c)(3) is amended by inserting and at the end of clause (ii), by striking , and at the end of clause (iii) and inserting a period, and by striking clause (iv). (5) Paragraph (4) of section 48(c) is amended by striking subparagraph (C). (c) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2016. 3225. Repeal of qualifying advanced coal project credit (a) In general Subpart E of part IV of subchapter A of chapter 1 is amended by striking section 48A (and by striking the item relating to such section in the table of sections for such subpart). (b) Effective date The amendments made by this section shall apply to allocations and reallocations after December 31, 2014. 3226. Repeal of qualifying gasification project credit (a) In general Subpart E of part IV of subchapter A of chapter 1 is amended by striking section 48B (and by striking the item relating to such section in the table of sections for such subpart). (b) Effective date The amendments made by this section shall apply to allocations and reallocations after December 31, 2014. 3227. Repeal of qualifying advanced energy project credit (a) In general Subpart E of part IV of subchapter A of chapter 1 is amended by striking section 48C (and by striking the item relating to such section in the table of sections for such subpart). (b) Effective date The amendments made by this section shall apply to allocations and reallocations after December 31, 2014. 3228. Repeal of qualifying therapeutic discovery project credit (a) In general Subpart E of part IV of subchapter A of chapter 1 is amended by striking section 48D (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments Section 280C is amended by striking the second subsection (g) (as added by the Patient Protection and Affordable Care Act). (c) Effective date The amendments made by this section shall apply to allocations and reallocations after December 31, 2014. 3229. Repeal of work opportunity tax credit (a) In general Subpart F of part IV of subchapter A of chapter 1 is amended by striking section 51 (and by striking the item relating to such section in the table of sections for such subpart). (b) Clerical amendment The heading of such subpart F (and the item relating to such subpart in the table of subparts for part IV of subchapter A of chapter 1) are each amended by striking Rules for Computing Work Opportunity Credit and inserting Special Rules . (c) Effective date The amendments made by this section shall apply to amounts paid or incurred to individuals who begin work for the employer after December 31, 2013. 3230. Repeal of deduction for certain unused business credits (a) In general Part VI of subchapter B of chapter 1 is amended by striking section 196 (and by striking the item relating to such section in the table of sections for such part). (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. D Accounting methods 3301. Limitation on use of cash method of accounting (a) In general Section 448 is amended to read as follows: 448. Limitation on use of cash method of accounting (a) In general The cash receipts and disbursements method of accounting may only be used by— (1) a natural person, (2) a farming business, and (3) any other entity which meets the gross receipts test of subsection (b) for the taxable year. Such method may not be used by a tax shelter (as defined in subsection (d)). (b) Gross receipts test For purposes of this section— (1) In general An entity meets the gross receipts test of this subsection for any taxable year if the average annual gross receipts of such entity for the 3-taxable-year period ending with the taxable year which precedes such taxable year does not exceed $10,000,000. (2) Aggregation rules All persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as one entity for purposes of paragraph (1). (3) Special rules For purposes of this subsection— (A) Not in existence for entire 3-year period If the entity was not in existence for the entire 3-year period referred to in paragraph (1), such paragraph shall be applied on the basis of the period during which such entity (or trade or business) was in existence. (B) Short taxable years Gross receipts for any taxable year of less than 12 months shall be annualized by multiplying the gross receipts for the short period by 12 and dividing the result by the number of months in the short period. (C) Gross receipts Gross receipts for any taxable year shall be reduced by returns and allowances made during such year. (D) Treatment of predecessors Any reference in this subsection to an entity shall include a reference to any predecessor of such entity. (c) Farming business For purposes of this section— (1) In general The term farming business means the trade or business of farming. (2) Certain trades and businesses included (A) In general The term farming business shall include the trade or business of— (i) operating a nursery or sod farm, or (ii) the raising or harvesting of trees bearing fruit, nuts, or other crops, or ornamental trees. (B) Certain evergreen trees not treated as ornamental For purposes of subparagraph (A)(ii), an evergreen tree which is more than 6 years old at the time severed from the roots shall not be treated as an ornamental tree. (d) Tax shelter defined For purposes of this section, the term tax shelter has the meaning given such term by section 461(i)(2) (determined after application of paragraph (3) thereof). An S corporation shall not be treated as a tax shelter for purposes of this section merely by reason of being required to file a notice of exemption from registration with a State agency described in section 461(i)(2)(A), but only if there is a requirement applicable to all corporations offering securities for sale in the State that to be exempt from such registration the corporation must file such a notice. (e) Special rules For purposes of this section— (1) Coordination with section 481 In the case of any person required by this section to change its method of accounting for any taxable year— (A) such change shall be treated as initiated by such person, and (B) such change shall be treated as made with the consent of the Secretary. (2) Use of related parties, etc The Secretary shall prescribe such regulations as may be necessary to prevent the use of related parties, pass-thru entities, or intermediaries to avoid the application of this section. . (b) Conforming amendments (1) Section 446(c)(1) is amended by inserting to the extent provided in section 448, before the cash receipts . (2) Section 451 is amended by adding at the end the following new subsection: (j) Special rule for losses of certain service providers on accrual method of accounting (1) In general In the case of any person using an accrual method of accounting with respect to amounts to be received for the performance of services by such person, such person shall not be required to accrue any portion of such amounts which (on the basis of such person’s experience) will not be collected if such services are in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, consulting, or any other field identified by the Secretary for purposes of this subsection. (2) Exception Paragraph (1) shall not apply to any amount if interest is required to be paid on such amount or there is any penalty for failure to timely pay such amount. (3) Regulations The Secretary shall prescribe regulations to permit taxpayers to determine amounts referred to in paragraph (1) using computations or formulas which, based on experience, accurately reflect the amount of income that will not be collected by such person. A taxpayer may adopt, or request consent of the Secretary to change to, a computation or formula that clearly reflects the taxpayer’s experience. A request under the preceding sentence shall be approved if such computation or formula clearly reflects the taxpayer’s experience. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. (d) Change in method of accounting (1) In general In the case of any qualified change in method of accounting for the taxpayer’s first taxable year beginning after December 31, 2014— (A) such change shall be treated as initiated by the taxpayer, (B) such change shall be treated as made with the consent of the Secretary of the Treasury, and (C) if the net amount of the adjustments required to be taken into account by the taxpayer under section 481 of the Internal Revenue Code of 1986 by reason of such change is positive— (i) such amount shall be taken into account during the 4-taxable year period beginning with the earlier of the taxpayer’s elected taxable year or the taxpayer’s first taxable year beginning after December 31, 2018, as follows: (I) 10 percent of such amount in the first taxable year in such period, (II) 15 percent of such amount in the second taxable year in such period, (III) 25 percent of such amount in the third taxable year in such period, and (IV) 50 percent of such amount in the fourth taxable year in such period, and (ii) for purposes of applying the regulations and other guidance issued under such section (including any provisions which require accelerated inclusion), the period beginning with the taxpayer’s first taxable year beginning after December 31 2014, and ending with the taxable year before the first taxable year referred to in clause (i) shall not fail to be taken into account as part of the period of the adjustment merely because such amount is not otherwise taken into account under clause (i) during such period. (2) Qualified change in method of accounting For purposes of this subsection, the term qualified change in method of accounting means any change in method of accounting which— (A) is required by the amendments made by this section, or (B) was prohibited under the Internal Revenue Code of 1986 prior to such amendments and is permitted under such Code after such amendments. (3) Elected taxable year For purposes of this subsection, the term elected taxable year means such taxable year as the taxpayer may elect (at such time and in such form and manner as the Secretary may provide) which begins after December 31, 2014, and is before the taxpayer’s second taxable year beginning after December 31, 2018. 3302. Rules for determining whether taxpayer has adopted a method of accounting (a) In general Section 446 is amended by adding at the end the following new subsection: (g) Rules for treating accounting method as adopted by taxpayer If the taxpayer uses a method of accounting with respect to any item on any return of tax— (1) in the case of any method of accounting which the taxpayer is permitted to use with respect to such item, such method shall be treated as having been adopted by the taxpayer with respect to such item, and (2) in the case of any method of accounting which the taxpayer is not permitted to use with respect to such item, such method shall be treated as having been adopted by the taxpayer with respect to such item if the taxpayer used the same method with respect to such item on the return of tax for the preceding taxable year. . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3303. Certain special rules for taxable year of inclusion (a) Inclusion not later than for financial accounting purposes Section 451 is amended by redesignating subsections (b) through (j) as subsection (c) through (k), respectively, and by inserting after subsection (a) the following new subsection: (b) Inclusion not later than for financial accounting purposes (1) In general In the case of a taxpayer the taxable income of which is computed under the accrual method of accounting, the amount of any portion of any item of income shall be included in gross income not later than the taxable year with respect to which such amount is taken into account as income in— (A) an audited financial statement of the taxpayer described in section 1221(b)(3)(B), or (B) such other financial statement as the Secretary may specify for purposes of this subsection. (2) Coordination with special rules for long-term contracts Paragraph (1) shall not apply with respect to any item of income to which section 460 applies. . (b) Treatment of advance payments Section 451, as amended by subsection (a), is amended by redesignating subsections (c) through (k) as subsections (d) through (l), respectively, and by inserting after subsection (b) the following new subsection: (c) Treatment of advance payments (1) In general A taxpayer which computes taxable income under the accrual method of accounting, and receives any advance payment during the taxable year, shall— (A) except as provided in subparagraph (B), include such advance payment in gross income for such taxable year, or (B) if the taxpayer elects the application of this subparagraph with respect to the category of advance payments to which such advance payment belongs, the taxpayer shall— (i) to the extent that any portion of such advance payment is required under subsection (b) to be included in gross income in the taxable year in which such payment is received, so include such portion, and (ii) include the remaining portion of such advance payment in gross income in the taxable year following the taxable year in which such payment is received. (2) Election (A) In general Except as otherwise provided in this paragraph, the election under paragraph (1)(B) shall be made at such time, in such form and manner, and with respect to such categories of advance payments, as the Secretary may provide. (B) Period to which election applies An election under paragraph (1)(B) shall be effective for the taxable year with respect to which it is first made and for all subsequent taxable years, unless the taxpayer secures the consent of the Secretary to revoke such election. For purposes of this title, the computation of taxable income under an election made under paragraph (1)(B) shall be treated as a method of accounting. (3) Advance payment For purposes of this subsection— (A) In general The term advance payment means any payment— (i) the full inclusion of which in the gross income of the taxpayer for the taxable year of receipt is a permissible method of accounting under this section (determined without regard to this subsection), and (ii) which is for goods, services, or such other items as may be identified by the Secretary for purposes of this clause. (B) Exclusions Except as otherwise provided by the Secretary, such term shall not include— (i) rent, (ii) insurance premiums, (iii) payments with respect to financial instruments, (iv) payments with respect to warranty or guarantee contracts under which a third party is the primary obligor, (v) payments subject to section 871(a), 881, 1441, or 1442, (vi) payments in property to which section 83 applies, and (vii) any other payment identified by the Secretary for purposes of this subparagraph. . (c) Crop insurance proceeds and disaster payments Section 451, as amended by subsections (a) and (b), is amended by striking subsection (f). (d) Livestock sold on account of drought, flood, and other weather-Related conditions Section 451, as amended by subsections (a) and (b), is amended by striking subsection (g). (e) Sales or dispositions To implement Federal Energy Regulatory Commission or State electric restructuring policy Section 451, as amended by subsections (a) and (b), is amended by striking subsection (k). (f) Conforming amendments Section 451, as amended by subsections (a), (b), (c), (d), and (e), is amended by redesignating subsections (h), (i), (j), and (l) as subsections (f), (g), (h), and (i), respectively. (g) Effective dates (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2014. (2) Crop insurance proceeds and disaster payments — (A) In general Except as provided in subparagraph (B), the amendments made by subsection (c) shall apply to destruction and damage of crops occurring after December 31, 2014. (B) Inability to plant In the case of inability to plant crops because of a natural disaster, the amendments made by subsection (c) shall apply to natural disasters occurring after December 31, 2014. (3) Livestock The amendments made by subsection (d) shall apply to sales and exchanges after December 31, 2014. (4) Sales or dispositions to implement electric restructuring policy The amendments made by subsection (e) shall apply to sales and dispositions after December 31, 2013. (5) Change in method of accounting In the case of any taxpayer required by the amendments made by subsections (a) and (b) to change its method of accounting for its first taxable year beginning after December 31, 2014— (A) such change shall be treated as initiated by the taxpayer, and (B) such change shall be treated as made with the consent of the Secretary of the Treasury. 3304. Installment sales (a) Repeal of exceptions to treatment as dealer dispositions Section 453(l) is amended to read as follows: (l) Dealer dispositions For purposes of subsection (b)(2)(A), the term dealer disposition means any of the following dispositions: (1) Personal property Any disposition of personal property by a person who regularly sells or otherwise disposes of personal property of the same type on the installment plan. (2) Real property Any disposition of real property which is held by the taxpayer for sale to customers in the ordinary course of the taxpayer’s trade or business. . (b) Modification of rules for nondealers (1) Repeal of special rule for interest payments Section 453A(b)(2) is amended to read as follows: (2) Interest payment exception for obligations not outstanding at close of taxable year Subsection (a)(1) shall apply to an obligation described in paragraph (1) arising during any taxable year only if such obligation is outstanding as of the close of such taxable year. . (2) Repeal of exception for farm property Section 453A(b)(3) is amended— (A) by striking from the disposition— and all that follows and inserting from the disposition by an individual of personal use property (within the meaning of section 1275(b)(3)). , and (B) by striking and farm in the heading. (3) Repeal of special rule for timeshares and residential lots Section 453A(b) is amended by striking paragraph (4) and by redesignating paragraph (5) as paragraph (4). (4) Conforming amendment Section 453A(c) is amended— (A) by striking the applicable percentage of in paragraph (2)(A), and (B) by striking paragraph (4) and by redesignating paragraphs (5) and (6) as paragraphs (4) and (5), respectively. (c) Effective date The amendments made by this section shall apply to sales and other dispositions after December 31, 2014. 3305. Repeal of special rule for prepaid subscription income (a) In general Subpart B of part II of subchapter E of chapter 1 is amended by striking section 455 (and by striking the item relating to such section in the table of sections for such subpart). (b) Effective date The amendments made by this section shall apply to payments received after December 31, 2014. 3306. Repeal of special rule for prepaid dues income of certain membership organizations (a) In general Subpart B of part II of subchapter E of chapter 1 is amended by striking section 456 (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendment Section 277(b)(2) is amended by inserting (as in effect before its repeal) after section 456(c) . (c) Effective date The amendments made by this section shall apply to payments received after December 31, 2014. 3307. Repeal of special rule for magazines, paperbacks, and records returned after close of the taxable year (a) In general Subpart B of part II of subchapter E of chapter 1 is amended by striking section 458 (and by striking the item relating to such section in the table of sections for such subpart). (b) Effective date (1) In general The amendments made by this section shall apply to taxable years beginning after December 31, 2014. (2) Change in method of accounting In the case of any taxpayer required by the amendments made by this section to change its method of accounting for its first taxable year beginning after December 31, 2014— (A) such change shall be treated as initiated by the taxpayer, and (B) such change shall be treated as made with the consent of the Secretary of the Treasury. 3308. Modification of rules for long-term contracts (a) Repeal of exception for home construction contracts Paragraph (1) of section 460(e) is amended to read as follows: (1) Exception for certain construction contracts Subsections (a), (b), and (c)(1) and (2) shall not apply to any construction contract entered into by a taxpayer— (A) who estimates (at the time such contract is entered into) that such contract will be completed within the 2-year period beginning on the contract commencement date of such contract, and (B) whose average annual gross receipts for the 3 taxable years preceding the taxable year in which such contract is entered into do not exceed $10,000,000. For purposes of this paragraph, rules similar to the rules of paragraphs (2) and (3) of section 448(b) shall apply. . (b) Repeal of special rule for other residential construction contracts Section 460(e) is amended by striking paragraphs (5) and (6). (c) Repeal of special rules for qualified ship contracts (1) In general Section 10203(b) of the Revenue Act of 1987 is amended by striking paragraph (2). (2) Qualified naval ship contracts The American Jobs Creation Act of 2004 is amended by striking section 708. (d) Conforming amendments Section 460(e) is amended by striking paragraphs (2) and (3) and by redesignating paragraph (4) as paragraph (2). (e) Effective date The amendments made by this section shall apply to contracts entered into after December 31, 2014. 3309. Nuclear decommissioning reserve funds (a) Gross income on nuclear decommissioning reserve funds taxed at corporate rate Section 468A(e)(2) is amended by striking at the rate of 20 percent and inserting at a rate equal to the maximum rate in effect for such taxable year under section 11 . (b) Income inclusion upon disqualified distribution Section 468A(c)(1) is amended by striking and at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting , and , and by adding at the end the following new subparagraph: (C) if any distribution is made from the Fund during such taxable year which is not used as provided in subsection (e)(4), the balance of the Fund determined immediately before such distribution. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3310. Repeal of last-in, first-out method of inventory (a) In general Section 471 is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: (c) Last-In, first-Out method not permissible The last-in, first-out method of determining inventories shall in no event be treated as clearly reflecting income. . (b) Conforming amendments (1) Subpart D of part II of subchapter E of chapter 1 is amended by striking sections 472, 473, and 474 (and by striking the items relating to such sections in the table of sections for such subpart). (2) (A) Section 312(n), as amended by the preceding provisions of this Act, is amended by striking paragraph (3) and by redesignating paragraphs (4) through (7) as paragraphs (3) through (6), respectively. (B) Section 312(n)(6), as amended by the preceding provisions of this Act, is amended— (i) by striking paragraphs (4) and (6) in subparagraph (A) and inserting paragraph (4) , and (ii) by striking paragraph (5) in subparagraph (B) and inserting paragraph (3) . (C) Section 301(e)(3), as amended by the preceding provisions of this Act, is amended— (i) by striking paragraph (6) and inserting paragraph (5) , and (ii) by striking section 312(n)(6) in the heading and inserting section 312(n)(5) . (D) Section 952(c)(3), as amended by the preceding provisions of this Act, is amended by striking paragraphs (3), (4), and (5) and inserting paragraphs (2), (3), and (4) . (E) Section 1293(e)(3), as amended by the preceding provisions of this Act, is amended by striking paragraphs (3), (4), and (5) and inserting paragraphs (2), (3), and (4) . (F) Section 1503(e)(2)(C), as amended by the preceding provisions of this Act, is amended— (i) by striking paragraph (6) and inserting paragraph (5) , and (ii) by striking section 312(n)(6) in the heading and inserting section 312(n)(5) . (3) Section 1363 is amended by striking subsection (d). (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. (d) Change in method of accounting (1) In general In the case of any taxpayer required by the amendments made by this section to change its method of accounting for its first taxable year beginning after December 31, 2014— (A) such change shall be treated as initiated by the taxpayer, (B) such change shall be treated as made with the consent of the Secretary of the Treasury, and (C) if the net amount of the adjustments required to be taken into account by the taxpayer under section 481 of the Internal Revenue Code of 1986 by reason of such change is positive— (i) such amount shall be taken into account during the 4-taxable year period beginning with the earlier of the taxpayer’s elected taxable year or the taxpayer’s first taxable year beginning after December 31, 2018, as follows: (I) 10 percent of such amount in the first taxable year in such period, (II) 15 percent of such amount in the second taxable year in such period, (III) 25 percent of such amount in the third taxable year in such period, and (IV) 50 percent of such amount in the fourth taxable year in such period, and (ii) for purposes of applying the regulations and other guidance issued under such section (including any provisions which require accelerated inclusion), the period beginning with the taxpayer’s first taxable year beginning after December 31 2014, and ending with the taxable year before the first taxable year referred to in clause (i) shall not fail to be taken into account as part of the period of the adjustment merely because such amount is not otherwise taken into account under clause (i) during such period. (2) Elected taxable year For purposes of this subsection, the term elected taxable year means such taxable year as the taxpayer may elect (at such time and in such form and manner as the Secretary may provide) which begins after December 31, 2014, and is before the taxpayer’s second taxable year beginning after December 31, 2018. (3) Reduction in amount of adjustment for closely-held entities (A) In general In the case of any closely-held entity, paragraph (1)(C) shall be applied by treating any reference to such amount as a reference to 20 percent (28 percent in the case of a C corporation) of such amount. (B) Closely-held entity For purposes of this paragraph— (i) In general The term closely-held entity means any domestic corporation or domestic partnership which— (I) is not an ineligible entity, (II) does not have more than 100 shareholders or partners (as the case may be), and (III) does not have as a shareholder or partner a person (other than an estate, a trust described in section 1361(c)(2) of the Internal Revenue Code of 1986, or an organization described section 1361(c)(6) of such Code) who is not an individual. (ii) Certain subsidiaries An entity shall not fail to be treated as a closely-held entity by reason of clause (i)(III) if all of the interests in such entity are held by a single closely-held entity (determined without regard to this clause) and individuals taken into account under clause (i)(II) with respect to such entity. In the case of tiered entities (other than the top tier entity), the preceding sentence shall be applied— (I) by substituting (determined after application of this clause) for (determined without regard to this clause) , and (II) by substituting with respect to the top tier entity for with respect to such entity . (iii) Ineligible entity The term ineligible entity means any entity described in section 1361(b)(2) of the Internal Revenue Code of 1986 applied by substituting corporation or partnership for corporation each place it appears. (iv) Date of determination The status of any entity as a closely-held entity shall be determined as of February 26, 2014. (v) Sole proprietors An individual operating a trade or business shall be treated as a closely-held entity. (C) Certain transfers disregarded (i) In general In the case of any specified inventory transfer, the adjustments referred to in paragraph (1)(C) shall be determined— (I) with respect to the transferor, as though the property transferred continued to be held at all times by such transferor, and (II) with respect to the transferee, as though such property was never transferred to such transferee. (ii) Specified inventory transfer The term specified inventory transfer means any transfer of property described in section 1221(a)(1) if— (I) such transfer is to a closely-held entity from any person who is not a closely-held entity, (II) such transfer is on or after February 26, 2014, and before the beginning of the transferor’s first taxable year beginning after December 31, 2014, and (III) the basis of such property in the hands of the transferee immediately after such transfer is either determined by reference to the basis of such property in the hands of the transferor or is less than the fair market value of such property at the time of such transfer. 3311. Repeal of lower of cost or market method of inventory (a) In general Section 471, as amended by the preceding provisions of this Act, is amended by redesignating subsection (d) as subsection (e) and by inserting after subsection (c) the following new subsection: (d) Lower of cost or market method not permissible The lower of cost or market method of determining inventories shall in no event be treated as clearly reflecting income. For purposes of the preceding sentence, the lower of cost or market shall include the lower of cost or bona fide net selling price. . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. (c) Change in method of accounting (1) In general In the case of any taxpayer required by the amendments made by this section to change its method of accounting for its first taxable year beginning after December 31, 2014— (A) such change shall be treated as initiated by the taxpayer, (B) such change shall be treated as made with the consent of the Secretary of the Treasury, and (C) if the net amount of the adjustments required to be taken into account by the taxpayer under section 481 of the Internal Revenue Code of 1986 by reason of such change is positive— (i) such amount shall be taken into account during the 4-taxable year period beginning with the earlier of the taxpayer’s elected taxable year or the taxpayer’s first taxable year beginning after December 31, 2018, as follows: (I) 10 percent of such amount in the first taxable year in such period, (II) 15 percent of such amount in the second taxable year in such period, (III) 25 percent of such amount in the third taxable year in such period, and (IV) 50 percent of such amount in the fourth taxable year in such period, and (ii) for purposes of applying the regulations and other guidance issued under such section (including any provisions which require accelerated inclusion), the period beginning with the taxpayer’s first taxable year beginning after December 31 2014, and ending with the taxable year before the first taxable year referred to in clause (i) shall not fail to be taken into account as part of the period of the adjustment merely because such amount is not otherwise taken into account under clause (i) during such period. (2) Elected taxable year For purposes of this subsection, the term elected taxable year means such taxable year as the taxpayer may elect (at such time and in such form and manner as the Secretary may provide) which begins after December 31, 2014, and is before the taxpayer’s second taxable year beginning after December 31, 2018. 3312. Modification of rules for capitalization and inclusion in inventory costs of certain expenses (a) $10,000,000 gross receipts exception To apply to property produced by the taxpayer Section 263A(b) is amended by striking all that follows paragraph (1) and inserting the following new paragraphs: (2) Property acquired for resale Real or personal property described in section 1221(a)(1) which is acquired by the taxpayer for resale. (3) Exception for taxpayer with gross receipts of $10,000,000 or less This section shall not apply to any property produced or acquired by the taxpayer during any taxable year if the average annual gross receipts of the taxpayer (or any predecessor) for the 3-taxable year period ending with the taxable year preceding such taxable year do not exceed $10,000,000. For purposes of this paragraph, rules similar to the rules of paragraphs (2) and (3) of section 448(b) shall apply. (4) Films, sound recordings, books, etc For purposes of this subsection, the term tangible personal property shall include a film, sound recording, video tape, book, or similar property. . (b) Repeal of exceptions for timber and certain ornamental trees Section 263A(c) is amended by striking paragraph (5). (c) Repeal of exception for qualified creative expenses Section 263A is amended by striking subsection (h). (d) Effective date (1) In general The amendments made by this section shall apply to taxable years beginning after December 31, 2014. (2) Change in method of accounting In the case of any taxpayer required by the amendments made by this section to change its method of accounting for its first taxable year beginning after December 31, 2014— (A) such change shall be treated as initiated by the taxpayer, and (B) such change shall be treated as made with the consent of the Secretary of the Treasury. 3313. Modification of income forecast method (a) Extension of forecast period (1) In general Paragraph (1) of section 167(g) is amended by striking 10th each place it appears and inserting 20th . (2) Modification of recomputation years Paragraph (4) of section 167(g) is amended by striking the 3d and the 10th and inserting the 5th, 10th, 15th, and 20th . (b) Modification of rules for treatment of participations and residuals Paragraph (7) of section 167(g) is amended to read as follows: (7) Treatment of participations and residuals (A) In general In the case of any participation or residual with respect to any property to which this subsection applies (including any property to which section 168 applies by reason of paragraph (8)), the taxpayer— (i) shall exclude such participation or residual from the adjusted basis of such property, and (ii) shall be allowed a deduction for such participation or residual in the taxable year in which such participation or residual is paid. (B) Participations and residuals For purposes of this paragraph, the term participation or residual means, with respect to any property, any cost the amount of which by contract varies with the amount of income earned in connection with such property. . (c) Election To utilize 20-Year straight line recovery Subsection (g) of section 167 is amended by redesignating (8) as paragraph (9) and by inserting after paragraph (7) the following new paragraph: (8) Election to utilize 20-year straight line recovery If the taxpayer elects the application of this paragraph for any taxable year, the depreciation deduction allowable with respect to any property placed in service by the taxpayer during such taxable year which would otherwise be determined under paragraph (1) shall be determined under section 168— (A) by treating the straight line method as the applicable depreciation method, and (B) by treating 20 years as the applicable recovery period. . (d) Repeal of special rules for certain musical works and copyrights Subsection (g) of section 167, as amended by subsection (c), is amended by striking paragraph (9). (e) Safe harbor amortization of certain intangible assets Effective for property placed in service after December 31, 2014, the Secretary of the Treasury, or the Secretary’s designee, shall revise Treasury Regulation section 1.167(a)–3(b) (and such regulation shall be applied) such that the safe harbor amortization for certain intangible assets to which such regulation applies shall allow the taxpayer to treat such asset as having a useful life equal to 20 years (and not 15 years). (f) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2014. 3314. Repeal of averaging of farm income (a) In general Subchapter Q of chapter 1 is amended by striking part I (and by striking the item relating to such part in the table of parts for such subchapter). (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3315. Treatment of patent or trademark infringement awards (a) In general Part II of subchapter B of chapter 1 is amended by adding at the end the following new section: 91. Patent or trademark infringement awards (a) In general Except as provided in subsection (b), any payment received for infringement of any patent or trademark (whether by reason of judgment or settlement) shall be included in gross income as ordinary income. (b) Impairment of capital If the taxpayer demonstrates to the satisfaction of the Secretary that a payment described in subsection (a) constitutes damages received by reason of the reduction in value of property of the taxpayer caused by the infringement referred to in subsection (a)— (1) the taxpayer’s basis in such property shall be reduced (but not below zero) by the amount of such payment, and (2) subsection (a) shall apply to so much of such payment as exceeds the amount of the reduction under paragraph (1). . (b) Conforming amendments (1) Section 1016(a) is amended by adding at the end the following new paragraph: (38) to the extent provided in section 91(b)(1), . (2) The table of sections for part II of subchapter B of chapter 1 is amended by adding at the end the following new item: Sec. 91. Patent or trademark infringement awards. . (c) Effective date The amendments made by this section shall apply to payments received pursuant to judgments and settlements after December 31, 2014. 3316. Repeal of redundant rules with respect to carrying charges (a) In general Part IX of subchapter B of chapter 1 is amended by striking section 266 (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 163(n) is amended by striking paragraph (3) and by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively. (2) Section 1016(a)(1)(A)(i), as amended by section 3514, is amended by striking described in section 266 . (c) Effective date The amendments made by this section shall apply to amounts paid or incurred after December 31, 2014. 3317. Repeal of recurring item exception for spudding of oil or gas wells (a) In general Section 461(i) is amended by striking paragraph (2) and by redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively. (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2014. E Financial Instruments 1 Derivatives and hedges 3401. Treatment of certain derivatives (a) In General Subchapter E of chapter 1 is amended by adding at the end the following new part: IV Derivatives Sec. 485. Treatment of certain derivatives. Sec. 486. Derivative defined. 485. Treatment of certain derivatives (a) In general For purposes of this subtitle— (1) any derivative held by a taxpayer at the close of the taxable year shall be treated as sold for its fair market value on the last business day of such taxable year (and any gain or loss shall be taken into account for the taxable year), and (2) proper adjustment shall be made in the amount of any gain or loss subsequently realized for gain or loss taken into account by reason of paragraph (1). (b) Treatment as ordinary income or loss; allowance as net operating loss All items of income, gain, loss, and deduction with respect to any derivative— (1) shall be treated as ordinary income or loss, and (2) shall be treated for purposes of section 172(d)(4) as attributable to a trade or business of the taxpayer. (c) Mark to market of certain offsetting positions (1) In general In the case of any straddle which includes any derivative, subsections (a) and (b) shall apply to all positions comprising such straddle in the same manner as such subsections apply to such derivative. (2) Application to built-in gain positions (A) In general In the case of any built-in gain position to which subsection (a) applies by reason of paragraph (1)— (i) in addition to any other time at which such position is treated as sold under subsection (a)(1), such position shall be treated as sold for its fair market value at the time that the straddle is established with respect to such position, (ii) proper adjustment shall be made in the amount of any gain or loss subsequently realized for gain taken into account by reason of clause (i), and (iii) subsection (b) shall not apply to any gain taken into account by reason of clause (i). (B) Built-in gain position For purposes of this subsection, the term built-in gain position means any position (other than a derivative to which subsection (a) applies) with respect to which a gain would be realized if such position were sold for its fair market value at the time that the straddle is established with respect to such position. (C) Exception for straight debt Subparagraph (A) shall not apply to any position with respect to debt if— (i) the interest payments (or other similar amounts) with respect to such position meet the requirements of section 860G(a)(1)(B)(i), and (ii) such position is not convertible (directly or indirectly) into stock of the issuer or any related person. (D) Exception for straddles consisting of qualified covered call options and the optioned stock Subparagraph (A) shall not apply to any position which is part of a straddle if— (i) all the offsetting positions which are part of such straddle consist of 1 or more qualified covered call options (as defined in paragraph (6)) and the stock to be purchased from the taxpayer under such options, and (ii) such straddle is not part of a larger straddle. (3) Application to built-in loss positions (A) In general In the case of any built-in loss position to which subsection (a) applies by reason of paragraph (1), any gain or loss realized under subsection (a)(1) shall be properly adjusted so as not to take into account the loss referred to in subparagraph (B) with respect to such position. (B) Built-in loss position For purposes of subparagraph (A), the term built-in loss position means any position (other than a derivative to which subsection (a) applies) with respect to which a loss would be realized if such position were sold for its fair market value at the time that the straddle is established with respect to such position. (4) Holding period of non-derivatives For purposes of section 1222, in the case of any position to which subsection (a) applies by reason of paragraph (1), the holding period of such position shall not include— (A) the period during which subsection (a) applies to such position, and (B) in the case of a built-in gain position, the period before such position is treated as sold under paragraph (2)(A). (5) Straddle For purposes of this section— (A) the term straddle has the meaning given such term by section 1092(c) applied by treating all offsetting positions as being with respect to personal property, and (B) the term position includes any derivative. (6) Qualified covered call options (A) In general For purposes of paragraph (2)(D), the term qualified covered call option means any option granted by the taxpayer to purchase stock held by the taxpayer (or stock acquired by the taxpayer in connection with the granting of the option) but only if— (i) such option is traded on a national securities exchange which is registered with the Securities and Exchange Commission or other market which the Secretary determines has rules adequate to carry out the purposes of this paragraph, (ii) such option is granted— (I) more than 30 days before the day on which the option expires, and (II) not more than 90 days before the day on which the option expires, (iii) such option is not granted by an options dealer (as defined in subparagraph (B)) in connection with such dealer’s activity of dealing in options, and (iv) gain or loss with respect to such option would not be ordinary income or loss if determined without regard to this section. (B) Options dealer For purposes of subparagraph (A), the term options dealer means— (i) any person registered with an appropriate national securities exchange as a market maker or specialist in listed options, and (ii) to the extent provided by the Secretary consistent with the purposes of this paragraph, any person whom the Secretary determines performs functions similar to the persons described in clause (i). (C) Regulations The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this paragraph and paragraph (2)(D). Such regulations may include modifications to the provisions of this paragraph and paragraph (2)(D) which are appropriate to take account of changes in the practices of option exchanges or to prevent the use of options for tax avoidance purposes. (d) Terminations, etc (1) In general The rules of subsections (a) and (b) shall also apply to the termination (or transfer) during the taxable year of the taxpayer’s obligation (or rights) with respect to a derivative by offsetting, by taking or making delivery, by exercise or being exercised, by assignment or being assigned, by lapse, by expiration, by settlement, or otherwise. (2) Mark to market of all positions in straddle if any position terminated or transferred If paragraph (1) applies with respect to any position which is part of a straddle, the rules of subsections (a) and (b) shall apply to every position which is part of such straddle. (e) Determination of fair market value For purposes of this section— (1) Terminations, etc For purposes of subsection (d), fair market value shall be determined at the time of the termination (or transfer). (2) Blockage factor not taken into account To the extent provided in regulations prescribed by the Secretary, fair market value shall be determined without regard to any premium or discount based on the proportion of the total available trading units which are held. (f) Coordination with certain rules The rules of sections 263(g) and 263A shall not apply to any derivative or other position to which subsection (a) applies, and section 1091 shall not apply (and section 1092 shall apply) to any loss recognized under subsection (a). 486. Derivative defined (a) In general For purposes of this part, except as otherwise provided in this section, the term derivative means any contract (including any option, forward contract, futures contract, short position, swap, or similar contract) the value of which, or any payment or other transfer with respect to which, is (directly or indirectly) determined by reference to one or more of the following: (1) Any share of stock in a corporation. (2) Any partnership or beneficial ownership interest in a partnership or trust. (3) Any evidence of indebtedness. (4) Except as provided in subsection (d), any real property. (5) Any commodity which is actively traded (within the meaning of section 1092(d)(1)). (6) Any currency. (7) Any rate, price, amount, index, formula, or algorithm. (8) Any other item as the Secretary may prescribe. Such term shall not include any item described in paragraphs (1) through (8). (b) Exceptions (1) Certain real property (A) In general For purposes of subsection (a)(4), the term real property shall not include— (i) a tract of real property (as defined in section 1237(c)), or (ii) any real property which would be property described in section 1221(a)(1) with respect to the taxpayer if held directly by the taxpayer. (B) Regulations The Secretary shall prescribe regulations or other guidance under which multiple tracts of real property may be treated as a single tract of real property for purposes of subparagraph (A)(i) if the contract referred to in subsection (a) is of a type which is designed to facilitate the acquisition or disposition of such real property. (2) Hedging transactions (A) In general For purposes of this part, the term derivative shall not include any contract which is part of a hedging transaction (as defined in section 1221(b)). (B) Section 988 hedging transactions For exception for section 988 hedging transactions, see section 988(d)(1). (3) Securities lending, sale-repurchase, and similar financing transactions To the extent provided by the Secretary, for purposes of this part, the term derivative shall not include the right to the return of the same or substantially identical securities transferred in a securities lending transaction, sale-repurchase transaction, or similar financing transaction. (4) Options received in connection with the performance of services For purposes of this part, the term derivative shall not include any option described in section 83(e)(3) received in connection with the performance of services. (5) Insurance contracts, annuities, and endowments For purposes of this part, the term derivative shall not include any insurance, annuity, or endowment contract issued by an insurance company to which subchapter L applies (or issued by any foreign corporation to which such subchapter would apply if such foreign corporation were a domestic corporation). (6) Derivatives with respect to stock of members of same worldwide affiliated group For purposes of this part, the term derivative shall not include, and subsections (c) and (d)(2) of section 485 shall not apply to, any derivative (determined without regard to this subsection) with respect to stock issued by any member of the same worldwide affiliated group (as defined in section 864(f)) in which the taxpayer is a member. (7) Commodities used in normal course of trade or business For purposes of this part, the term derivative shall not include any contract with respect to any commodity if— (A) such contract requires physical delivery with the option of cash settlement only in unusual and exceptional circumstances, and (B) such commodity is used (and is used in quantities with respect to which such derivative relates) in the normal course of the taxpayer’s trade or business (or, in the case of an individual, for personal consumption). (c) Contracts with embedded derivative components (1) In general If a contract has derivative and nonderivative components, then each derivative component shall be treated as a derivative for purposes of this part. If the derivative component cannot be separately valued, then the entire contract shall be treated as a derivative for purposes of this part. (2) Exception for certain embedded derivative components of debt instruments A debt instrument shall not be treated as having a derivative component merely because— (A) such debt instrument is denominated in a nonfunctional currency (as defined in section 988(c)(1)(C)(ii)), (B) payments with respect to such debt instrument are determined by reference to the value of a nonfunctional currency (as so defined), or (C) such debt instrument is a convertible debt instrument, contingent payment debt instrument, a variable rate debt instrument, an integrated debt instrument, an investment unit, a debt instrument with alternative payment schedules, or other debt instrument with respect to which the regulations under section 1275(d) apply. (d) Treatment of American Depository Receipts and similar instruments Except as otherwise provided by the Secretary, for purposes of this part, American depository receipts (and similar instruments) with respect to shares of stock in foreign corporations shall be treated as shares of stock in such foreign corporations. . (b) Coordination with rules for dealers and traders (1) Derivatives not treated as securities Section 475(c)(2) is amended— (A) by adding and at the end of subparagraph (C), (B) by striking subparagraphs (D) and (E) and by redesignating subparagraph (F) as subparagraph (D), (C) by striking subparagraph (A), (B), (C), (D), or (E) in subparagraph (D)(i), as so redesignated, and inserting subparagraph (A), (B), or (C) , and (D) by amending the last sentence to read as follows: Such term shall not include any position to which section 485(a) applies. (2) Derivatives not treated as commodities Section 475(e)(2) is amended— (A) by adding and at the end of subparagraph (A), (B) by striking subparagraphs (B) and (C) and by redesignating subparagraph (D) as subparagraph (B), and (C) by striking subparagraph (A), (B) or (C) in subparagraph (B)(i), as so redesignated, and inserting subparagraph (A) . (3) Conforming amendments (A) Section 475(b) is amended by striking paragraph (4). (B) Section 475(d)(2)(B) is amended— (i) by striking subsection (c)(2)(F)(iii) and inserting subsection (c)(2)(D)(iii) , and (ii) by striking subsection (c)(2)(F) and inserting subsection (c)(2)(D) . (C) Section 475(f)(1)(D) is amended by striking subsections (b)(4) and (d) and inserting subsection (d) . (c) Coordination with straddle rules (1) In general Section 1092(e) is amended to read as follows: (e) Exception for hedging transactions and straddles with derivatives This section shall not apply in the case of— (1) any hedging transaction (as defined in section 1221(b)), and (2) any straddle (as defined in section 485) which includes any derivative (as defined in section 486). . (2) Conforming amendments (A) Section 263(g)(3) is amended to read as follows: (3) Exception for hedging transactions and straddles with derivatives This subsection shall not apply in the case of— (A) any hedging transaction (as defined in section 1221(b)), and (B) any straddle (as defined in section 485) which includes any derivative (as defined in section 486). . (B) Section 1092(b) is amended— (i) by striking paragraph (2), and (ii) by striking all that precedes The Secretary shall and inserting the following: (b) Regulations The Secretary shall . (C) Section 1092(c) is amended by striking paragraph (4). (D) Section 1092 is amended by striking subsection (f) and by redesignating subsection (g) as subsection (f). (d) Treatment of convertible debt instruments The Secretary of the Treasury, or the Secretary’s designee, shall modify the regulations issued under section 1275(d) of the Internal Revenue Code of 1986 to provide that convertible debt instruments are treated in a manner similar to contingent payment debt instruments. (e) Repeal of certain other superceded rules for determining capital gains and losses (1) In general Part IV of subchapter P of chapter 1 is amended by striking sections 1233, 1234, 1234A, 1234B, 1236, 1256, 1258, 1259, and 1260 (and by striking the items relating to such sections in the table of sections for such part). (2) Conforming amendments related to repeal of section 1233 Section 1092(b) is amended by inserting (as in effect before their repeal) after section 1233 . (3) Conforming amendments related to repeal of section 1234 Section 6045(h)(2) is amended— (A) by striking (as defined in section 1234(b)(2)(A) , and (B) by adding at the end the following: For purposes of the preceding sentence, the term closing transaction means any termination of the taxpayer’s obligation under an option in property other than through the exercise or lapse of the option. . (4) Conforming amendments related to repeal of section 1236 (A) Section 475(d)(3)(A) is amended by striking or section 1236(b) . (B) Section 512(b)(5) is amended by striking section 1236(c) and inserting section 1058(c) . (C) Section 1058 is amended— (i) by striking (as defined in section 1236(c)) in subsection (a), and (ii) by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: (c) Securities For purposes of this section, the term security means any share of stock in any corporation, certificate of stock or interest in any corporation, note, bond, debenture, or evidence of indebtedness, or any evidence of an interest in or right to subscribe to or purchase any of the foregoing. . (5) Conforming amendments related to repeal of section 1256 (A) Section 461(i)(2)(B), as amended by the preceding provisions of this Act, is amended to read as follows: (B) any partnership or other entity (other than a corporation which is not an S corporation) if more than 35 percent of the losses of such entity during the taxable year are allocable to limited partners or limited entrepreneurs (within the meaning of section 461(j)(4)), and . (B) Section 475(d)(1) is amended by striking sections 263(g), 263A, and 1256(a) and inserting sections 263(g) and 263A . (C) Section 988(c)(1) is amended by striking subparagraphs (D) and (E). (D) Section 1092(a)(3)(C)(ii)(II) is amended by striking section 1256(e) and inserting section 1221(b) . (E) Section 1092(d) is amended by striking paragraphs (5) and (6) and by redesignating paragraphs (7) and (8) as paragraphs (5) and (6), respectively. (F) Section 1212 is amended by striking subsection (c). (G) Section 1223 is amended by striking paragraphs (7) and (14). (H) Section 1281(b)(1)(E) is amended to read as follows: (E) is a hedging transaction (as defined in section 1221(b)), or . (I) Section 1402 is amended by striking subsection (i). (J) Section 4982(e)(6)(B) is amended by striking sections 1256 and 1296 and inserting sections 485 and 1296 . (6) Conforming amendments related to repeal of section 1259 Section 475(f)(1) is amended by striking subparagraph (C) and by redesignating subparagraph (D) as subparagraph (C). (f) Other conforming amendments (1) Section 355(g)(2)(B)(i)(V) is amended to read as follows: (V) any derivative (as defined in section 486), . (2) Section 856(n)(4) is amended by inserting or derivatives (as defined in section 486) after securities (as defined in section 475(c)(2)) . (3) Section 857(e)(2)(B)(i), as amended by the preceding provisions of this Act, is amended by striking section 860E or 1272 and inserting section 485, 860E, or 1272 . (4) Section 988(d)(1) is amended— (A) by striking or 1256 and inserting or 485 , and (B) by striking 1092, and 1256 and inserting 485, and 1092 . (5) Section 1091(e) is amended to read as follows: (e) Coordination with mark to market of derivatives Notwithstanding any other provision of this section, a derivative (as defined in section 486) shall not be treated as a security for purposes of this section. . (6) (A) Section 1221(a)(6) is amended to read as follows: (6) any derivative (as defined in section 486), . (B) Section 1221(b) is amended by striking paragraph (1). (7) Section 4975(f)(11)(D) is amended by striking clauses (i) and (ii) and inserting the following: (i) Security The term security means any security described in section 475(c)(2) (without regard to subparagraph (D)(iii) thereof) and any derivative with respect to such a security (within the meaning of section 486). (ii) Commodity The term commodity means any commodity described in section 475(e)(2) (without regard to subparagraph (B)(iii) thereof) and any derivative with respect to such a commodity (within the meaning of section 486). . (8) The table of parts for subchapter E of chapter 1 is amended by adding at the end the following new item: Part IV. Derivatives . (g) Effective dates The amendments made by this section shall apply to— (1) taxable years ending after December 31, 2014, in the case of property acquired and positions established after December 31, 2014, and (2) taxable years ending after December 31, 2019, in the case of any other property or position. For purposes of this subsection, any property acquired on or before December 31, 2014, which becomes part of a straddle (as defined in section 485, as added by this section) after such date shall be treated as a position established after such date. 3402. Modification of certain rules related to hedges (a) Treatment of hedges identified for financial accounting purposes (1) In general Section 1221(b), as amended by the preceding provisions of this Act, is amended to read as follows: (b) Hedging transaction For purposes of this section— (1) In general The term hedging transaction means any transaction described in paragraph (2) and identified under paragraph (3). (2) Transaction described A transaction is described in this paragraph if such transaction is entered into by the taxpayer in the normal course of the taxpayer’s trade or business primarily— (A) to manage risk of price changes or currency fluctuations with respect to ordinary property which is held or to be held by the taxpayer, (B) to manage risk of interest rate or price changes or currency fluctuations with respect to borrowings made or to be made, or ordinary obligations incurred or to be incurred, by the taxpayer, or (C) to manage such other risks as the Secretary may prescribe in regulations. (3) Identification A transaction is identified under this paragraph if— (A) such transaction is clearly identified as a hedging transaction for purposes of this paragraph before the close of the day on which it was acquired, originated, or entered into (or such other time as the Secretary may by regulations prescribe), or (B) such transaction is treated as a hedging transaction (within the meaning of generally accepted accounting principles) for purposes of an audited financial statement of the taxpayer which— (i) is certified as being prepared in accordance with generally accepted accounting principles, and (ii) is used for the purposes of a statement or report— (I) to shareholders, partners, or other proprietors, or to beneficiaries, or (II) for credit purposes. (4) Treatment of nonidentification or improper identification of hedging transactions The Secretary shall prescribe regulations to properly characterize any income, gain, expense, or loss arising from a transaction— (A) which would be a hedging transaction if identified under paragraph (3), or (B) which is identified under paragraph (3) but is not a transaction described in paragraph (2). In the case of a transaction identified under paragraph (3) solely by reason of paragraph (3)(B), subparagraph (B) of this paragraph shall not apply with respect to such transaction unless the taxpayer treats such transaction as a hedging transaction for purposes of any provision of this title. (5) Bonds held by an insurance company For purposes of paragraph (2)(A), in the case of an insurance company to which subchapter L applies, any bond, debenture, note, certificate, or other evidence of indebtedness held by the taxpayer shall be treated as ordinary property. (6) Regulations The Secretary shall prescribe such regulations as are appropriate to carryout the purposes of this subsection and subsection (a)(7) in the case of transactions involving related parties. . (2) Conforming amendments (A) Section 856(c)(5)(G)(i) is amended by striking (as defined in clause (ii) or (iii) of section 1221(b)(2)(A)) which is clearly identified pursuant to section 1221(a)(7) and inserting (as defined in section 1221(b) (determined without regard to paragraph (2)(A) thereof) . (B) Section 954(c)(5)(A) is amended to read as follows: (A) Commodity hedging transactions (i) In general For purposes of paragraph (1)(C)(i), the term commodity hedging transaction means any transaction with respect to a commodity if such transaction would be a hedging transaction under section 1221(b) if— (I) the only transactions described in paragraph (2) thereof were transactions described in clause (ii), and (II) paragraphs (3) and (4) thereof were applied by substituting controlled foreign corporation for taxpayer each place it appears. (ii) Transaction described A transaction is described in this clause if such transaction is entered into by the controlled foreign corporation in the normal course of the controlled foreign corporation’s trade or business primarily— (I) to manage risk of price changes or currency fluctuations with respect to ordinary property or property described in section 1231(b) which is held or to be held by the controlled foreign corporation, or (II) to manage such other risks as the Secretary may prescribe in regulations. . (C) Section 1221(a)(7) is amended by striking which is clearly and all that follows through regulations prescribe) . (b) Special rule for commodity hedging transactions involving related controlled foreign corporations Section 954(c)(5)(A), as amended by subsection (a), is amended by adding at the end the following new clause: (iii) Application to related controlled foreign corporations (I) In general In the case of qualified property, clause (ii)(I) shall be applied by substituting the controlled foreign corporation or another controlled foreign corporation which is a related person (within the meaning of subsection (d)(3)) for the controlled foreign corporation . (II) Qualified property For purposes of this clause, the term qualified property means ordinary property or property described in section 1231(b) (if disposed of at a gain) the income from the disposition of which would be neither subpart F income nor income treated as effectively connected with the conduct of a trade or business in the United States. . (c) Effective date The amendments made by this section shall apply to transactions entered into after December 31, 2014. 2 Treatment of debt instruments 3411. Current inclusion in income of market discount (a) In general Subpart B of part V of subchapter P of chapter 1 is amended by redesignating section 1278 as section 1279 and by inserting after section 1277 the following new section: 1278. Current inclusion in income of market discount on bonds acquired after 2014 (a) In general There shall be included in the gross income of the holder of any market discount bond acquired after December 31, 2014, an amount equal to the sum of the daily portions of the market discount for each day during the taxable year on which such holder held such bond. (b) Determination of daily portions (1) In general For purposes of subsection (a), the daily portion of the market discount on any market discount bond shall be an amount equal to the daily portion of original issue discount which would be includible in gross income under section 1272(a) (determined without regard to paragraph (2) thereof) if such bond had been— (A) originally issued on the date on which such bond was acquired by the taxpayer, (B) for an issue price equal to the basis of such bond immediately after such acquisition. (2) Coordination where bond has original issue discount In the case of any bond having original issue discount, the daily portion determined under paragraph (1) shall be reduced by the daily portion of original issue discount includible in gross income under section 1272(a) (determined without regard to paragraph (2) thereof) with respect to such bond. (3) Special rule where partial principal payments In the case of a bond the principal of which may be paid in 2 or more payments, the daily portions of market discount shall be determined under regulations prescribed by the Secretary. (c) Limitation (1) In general The amount of market discount allocable to any accrual period for purposes of determining the sum of the daily portions under subsection (a) shall not exceed the excess (if any) of— (A) the product of— (i) the maximum accrual rate determined under paragraph (2), properly adjusted for the length of the accrual period, multiplied by (ii) the adjusted basis of such bond at the beginning of such accrual period, over (B) the sum of the qualified stated interest and original issue discount allocable to such accrual period. (2) Maximum accrual rate The maximum accrual rate determined under this paragraph with respect to any bond is the greater of— (A) such bonds’s yield to maturity (determined as of the date of the issuance of such bond) plus 5 percentage points, or (B) the applicable Federal rate for such bond (determined under section 1274(d) as of the date of the acquisition of such bond and on the basis of the remaining term of such bond as of such date) plus 10 percentage points. (3) Application to pools In the case of debt instruments to which section 1272(a)(6) applies, rules similar to the rules of such section shall apply for purposes of determining the daily portions of market discount. (4) Accrual period For purposes of this subsection, the term accrual period has the meaning given such term in section 1272(a)(5). (d) Special rules (1) Accruals treated as interest Except for purposes of sections 103, 871(a), 881, 1441, 1442, and 6049 (and such other provisions as may be specified in regulations), any amount included in gross income under this section shall be treated as interest for purposes of this title. (2) Basis adjustment The basis of any market discount bond in the hands of the taxpayer shall be increased by the amount included in gross income pursuant to this section. (3) Treatment of loss on disposition So much of any loss recognized by the taxpayer on the disposition of a market discount bond as does not exceed the aggregate amounts included in the taxpayer’s gross income under subsection (a) with respect to such bond shall be treated for purposes of this title as an ordinary loss. . (b) Treatment of market discount on short-Term nongovernmental bonds (1) Accrual basis taxpayers, etc Section 1283 is amended by striking subsection (c) and redesignating subsection (d) as subsection (c). (2) Other taxpayers (A) Section 1271(a)(3) is amended— (i) by striking all that precedes subparagraph (C) and inserting the following: (3) Certain short-term obligations (A) In general On the sale or exchange of any short-term obligation (as defined in section 1283(a)(1)), any gain realized which does not exceed an amount equal to the ratable share of the acquisition discount shall be treated as ordinary income. , and (ii) by redesignating subparagraphs (C), (D), and (E) as subparagraphs (B), (C), and (D), respectively. (B) Section 1271(a) is amended by striking paragraph (4). (C) Section 1283(c)(3), as redesignated by paragraph (1), is amended by striking paragraphs (3) and (4) of section 1271(a) and inserting section 1271(a)(3) . (c) Coordination with rules related To treating market discount as ordinary income upon disposition (1) In general Section 1276 is amended by adding at the end the following new subsection: (e) Coordination with rules for current inclusion of market discount This section shall not apply to any market discount bond to which section 1278 applies. . (2) Coordination with deferral of interest deduction Section 1277 is amended by adding at the end the following new subsection: (d) Coordination with rules for current inclusion of market discount This section shall not apply to any market discount bond to which section 1278 applies. . (3) Coordination with election to include market discount currently Section 1279(b), as redesignated by subsection (a), is amended by adding at the end the following new paragraph: (5) Coordination with rules for current inclusion of market discount This subsection shall not apply to any market discount bond to which section 1278 applies. . (d) Treatment of certain bonds held by partnerships (1) Transfers of partnership interests Section 1279(a), as redesignated by subsection (a), is amended by adding at the end the following new paragraph: (6) Transfers of partnership interests In the case of a transfer described in section 743 of an interest in a partnership holding a bond, the partnership shall be treated as acquiring the transferee partner’s proportionate share of such bond at the time of such transfer. . (2) Distribution of bonds by partnerships Section 1279(a)(2), as redesignated by subsection (a), is amended by adding at the end the following new subparagraph: (D) Distribution by partnership If the basis of the taxpayer in a bond is determined under section 734(a)(2) or (b), for purposes of subparagraph (A)(ii), the basis of such bond shall not be less than its fair market value immediately after its acquisition by the taxpayer. . (e) Modernization of certain definitions (1) Repeal of superceded exception for market discount bonds acquired at issue Section 1279(a)(1), as redesignated by subsection (a), is amended by striking subparagraph (D) (2) Revised issue price Section 1279(a)(4), as redesignated by subsection (a), is amended— (A) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii) and by indenting such clauses appropriately, (B) by striking means the sum of— and inserting means the excess of— (A) the sum of— , (C) by striking the period at the end and inserting , over , and (D) by adding at the end the following new subparagraph: (B) the sum of— (i) any payments other than qualified stated interest made under the bond during periods before the acquisition of the bond by the taxpayer, and (ii) any premium which has accrued during such periods (determined as if owned at all times by the original holder). . (3) Redemption price (A) In general Section 1273(a)(2) is amended to read as follows: (2) Redemption price (A) In general The term redemption price means the sum of all payments provided by the debt instrument other than qualified stated interest. (B) Qualified stated interest The term qualified stated interest means stated interest that is unconditionally payable in money and other property (other than a debt instrument of the issuer) at least annually at a fixed rate (or to the extent provided by regulations, at a variable rate). (C) Basis adjustment The basis of any debt instrument shall be reduced by the amount of any payment received other than qualified stated interest. . (B) Conforming amendments (i) Each of the following provisions is amended by striking stated redemption price at maturity and inserting redemption price : (I) Section 1271(a)(3)(B) (as redesignated by subsection (b)). (II) Section 1273(a)(1)(A). (III) Section 1273(a)(3). (IV) Section 1273(b)(4). (V) Section 1274(c)(1)(A). (VI) Section 1279(a)(5) (as redesignated by subsection (a)). (VII) Section 1283(a)(2)(A). (VIII) Section 1286(a)(1). (IX) The heading and text of section 1286(e)(4). (ii) Section 108(e)(10)(B) is amended by striking stated both places it appears. (iii) Section 1272(a)(6)(A)(i) is amended by striking stated . (iv) Subparagraphs (A)(i) and (C) of section 1279(a)(2) (as redesignated by subsection (a)) are each amended by striking the stated redemption price of the bond at maturity and inserting the redemption price of the bond . (v) Section 1279(a)(2)(B) (as redesignated by subsection (a)) is amended by striking the stated redemption price of such bond at maturity and inserting the redemption price of such bond . (4) Adjusted issue price Section 1275(a) is amended by adding at the end the following new paragraph: (5) Adjusted issue price (A) In general For purposes of this part, the adjusted issue price of any debt instrument is its issue price— (i) increased by the aggregate of the original issue discount includible in the gross income of all holders for prior periods (determined without regard to paragraph (7) of section 1272(a)), or, in the case of a tax-exempt obligation, the aggregate amount which accrued in the manner provided by this subsection (determined without regard to such paragraph (7)) for all prior periods, and (ii) reduced by the sum of— (I) any payments other than qualified stated interest previously made on the debt instrument, and (II) in the case of a debt instrument which was issued with amortizable bond premium (as defined in section 171(b)), the aggregate amount by which the basis of such instrument would have been reduced under section 1016(a)(5) for prior periods if the instrument had been held by the original holder at all times. (B) De minimis rule The adjusted issue price of the issuer shall be properly adjusted to take into account that section 1273(a)(3) does not apply to the deduction under section 163 for original issue discount. . (5) Certain other terms Paragraphs (3), (4), and (5) of section 1272(a) are amended to read as follows: (3) Determination of daily portions For purposes of paragraph (1), the daily portion of the original issue discount on any debt instrument shall be determined by allocating to each day in any accrual period its ratable share of the original issue discount allocable to such accrual period. For purposes of the preceding sentence, the original issue discount allocable to any accrual period is the excess (if any) of— (A) the product of— (i) the adjusted issue price of the debt instrument at the beginning of such accrual period, multiplied by (ii) the yield to maturity of the debt instrument properly adjusted for the length of the accrual period, over (B) the amount of any qualified stated interest allocable to such accrual period. (4) Yield to maturity For purposes of this subsection, the term yield to maturity means the discount rate that, when used in computing the present value of all principal and interest payments to be made under the debt instrument produces an amount equal to the issue price of the debt instrument. (5) Accrual period For purposes of this subsection, the term accrual period shall be determined under regulations prescribed by the Secretary, provided that an accrual period shall in no event be longer than one year. . (f) Broker reporting of includible discount on bonds (1) In general Section 6045 is amended by adding at the end the following new subsection: (i) Discount on bonds (1) In general If any customer of a broker holds a covered bond in an account with such broker at any time during a calendar year— (A) such broker shall file a return under subsection (a) for such calendar year, and (B) such return shall include with respect to each such covered bond— (i) the amount (if any) includible in the gross income of such customer as original issue discount with respect to such bond under section 1272 for periods during such calendar year, and. (ii) the amount (if any) includible in the gross income of such customer as market discount with respect to such bond under section 1278(a) for periods during such calendar year. (2) Covered bond For purposes of this subsection, the term covered bond means any obligation to which section 1272 or 1278(a) applies if such obligation— (A) was acquired after December 31, 2014, through a transaction in the account in which such obligation is held, or (B) was transferred to such account from an account in which such obligation was a covered bond, but only if the broker received a statement under section 6045A with respect to the transfer. (3) Statements to customers The requirements of subsections (b) shall apply with respect to any return filed under subsection (a) by reason of this subsection. . (2) Information required in connection with transfers of covered bonds to brokers Subsection (a) of section 6045A is amended— (A) by inserting or a covered bond (as defined in section 6045(i)(2)) after covered security (as defined in section 6045(g)(3)) , and (B) by striking section 6045(g) and inserting subsections (g) and (i) of section 6045 . (3) Coordination with reporting by issuer of original issue discount Paragraph (6) of section 6049(d) is amended by adding at the end the following new subparagraph: (C) Prevention of double reporting Except as otherwise provided by the Secretary, original issue discount with respect to any obligation shall not be required to be reported under this section if such original issue discount is required to be reported with respect to such obligation under section 6045(i). . (g) Conforming amendments (1) Section 857(e)(2)(B)(i), as amended by the preceding provisions of this Act, is amended by striking or 1272 and inserting 1272, or 1278 . (2) Section 1042(d) is amended by striking section 1278(a)(2)(A)(ii) in the matter following paragraph (2) and inserting section 1279(a)(2)(A)(ii) . (3) Section 1016(a), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph: (39) in the case of any debt instrument, to extend provided in sections 1272(d)(1), 1273(a)(2)(C), and 1278(d)(2). . (4) Section 1276 is amended by inserting on bonds not subject to current inclusion after accrued market discount in the heading thereof. (5) Section 1277 is amended by inserting on bonds not subject to current inclusion after accrued market discount in the heading thereof. (6) Section 1281 is amended by striking subsection (c). (7) Section 1282 is amended by striking subsection (d). (8) The table of sections for subpart B of part V of subchapter P of chapter 1 is amended to read as follows: Sec. 1276. Disposition gain representing accrued market discount on bonds not subject to current inclusion treated as ordinary income. Sec. 1277. Deferral of interest deduction allocable to accrued market discount on bonds not subject to current inclusion. Sec. 1278. Current inclusion in income of market discount on bonds acquired after 2014. Sec. 1279. Definitions and special rules. . (h) Effective date (1) In general Except as provided in paragraph (2), the amendments made by this section shall apply to obligations acquired after December 31, 2014. (2) Modernization of terms The amendments made by subsection (e) shall take effect on January 1, 2015. 3412. Treatment of certain exchanges of debt instruments (a) Determination of issue price (1) In general Subpart A of part V of subchapter P is amended by inserting after section 1274A the following new section: 1274B. Determination of issue price in the case of an exchange of debt instruments (a) In general In the case of an exchange (including by significant modification) by an issuer of a new debt instrument for an existing debt instrument issued by the same issuer, the issue price of the new debt instrument shall be the least of— (1) the adjusted issue price of the existing debt instrument, (2) the stated principal amount of the new debt instrument, or (3) the imputed principal amount of the new debt instrument. (b) Applicable rate The discount rate used to determine the imputed principal amount of the new debt instrument under subsection (a)(3) shall be the lesser of— (1) the applicable Federal rate determined under section 1274(d) with respect to the new debt instrument, or (2) the greater of— (A) the rate of qualified stated interest with respect to the existing debt instrument, or (B) the applicable Federal rate determined under section 1274(d) with respect to the existing debt instrument. (c) Treatment of investment units Rules similar to the rules of section 1273(c)(2) shall apply for purposes of this section. . (2) Conforming amendments (A) Section 108(e)(10)(B) is amended by striking and 1274 and inserting , 1274, and 1274B . (B) Section 1274(c)(3), as amended by the preceding provisions of this Act, is amended by adding at the end the following new subparagraph: (F) Certain modified debt Any debt instrument the issue price of which is determined under section 1274B. . (C) The table of sections for subpart A of part V of subchapter P is amended by inserting after the item relating to section 1274A the following new item: Sec. 1274B. Determination of issue price in the case of an exchange of debt instruments. . (b) Nonrecognition of gain or loss by holder (1) In general Section 1037 is amended to read as follows: 1037. Certain exchanges of debt instruments (a) Nonrecognition of gain or loss No gain or loss shall be recognized to the holder of a debt instrument if such existing debt instrument is exchanged solely for a new debt instrument (whether by exchange or significant modification) issued by the same issuer. (b) Property attributable to accrued interest Subsection (a) shall not apply to the extent that any property received is attributable to interest which accrued on the existing debt instrument on or after the beginning of the holder’s holding period of such instrument. (c) Limitation on gain recognition in case of exchange not solely for a new debt instrument In the case of an exchange of a debt instrument to which section 1035(d) applies, the amount of gain recognized shall not exceed the amount of gain which would have been recognized if section 1274B did not apply. (d) Cross references (1) For rules relating to securities exchanged or distributed in a reorganization, etc., see sections 354, 355, and 356. (2) For rules relating to recognition of gain or loss where exchange was not made solely for another debt instrument of the issuer, see subsections (d) and (e) of section 1035. (3) For rules relating to basis of obligations acquired in an exchange described in subsection (a), see subsection (f) of section 1035. . (2) Clerical amendment The table of sections for part III of subchapter O of chapter 1 is amended by striking the item relating to section 1037 and inserting the following new item: Sec. 1037. Certain exchanges of debt instruments. . (c) Application to excess principal rules for corporate reorganizations (1) Exchanges of securities in reorganizations (A) In general Section 354(a)(2)(A)(i) is amended to read as follows: (i) the issue price of any such securities received exceeds the adjusted issue price of any such securities surrendered, or . (B) Definitions Section 354(a)(2) is amended by inserting after subparagraph (C) the following new subparagraph: (D) Definitions For purposes of this paragraph— (i) Issue price The issue price of any security shall be determined under sections 1273, 1274, and 1274B. (ii) Adjusted issue price The adjusted issue price of any security shall be determined under section 1275(a)(5). . (2) Section 355 transactions Section 355(a)(3)(A)(i) is amended to read as follows: (i) the issue price (as defined in section 354(a)(2)(D)) of the securities in the controlled corporation which are received exceeds the adjusted issue price (as so defined) of the securities which are surrendered in connection with such distribution, or . (3) Section 356 transactions (A) In general Section 356(d)(2)(B)(ii) is amended to read as follows: (ii) the issue price (as defined in section 354(a)(2)(D)) of such securities received exceeds the adjusted issue price (as so defined) of such securities surrendered, . (B) Conforming amendments (i) Section 356(d)(2)(B) is amended in the matter following clause (ii)— (I) by striking “the fair market value of such excess” and inserting “the amount of such excess”, and (II) by striking “the entire principal amount” and inserting “the entire issue price (as so defined)”. (ii) Section 356(d)(2)(C) is amended to read as follows: (C) Greater principal amount in section 355 transaction If, in an exchange or distribution described in section 355, the issue price (as defined in section 354(a)(2)(D)) of the securities in the controlled corporation which are received exceeds the adjusted issue price (as so defined) of the securities in the distributing corporation which are surrendered, then, with respect to such securities received, the term other property means only the amount of such excess. . (d) Effective date The amendments made by this section shall apply to transactions after December 31, 2014. 3413. Coordination with rules for inclusion not later than for financial accounting purposes (a) In general Section 451(b), as amended by the preceding provisions of this Act, is amended by inserting immediately after the heading thereof (and before paragraph (1) thereof) the following: Notwithstanding any other provision of law (including part V of subchapter P)— . (b) Effective date; change in method of accounting The amendment made by subsection (a) shall be treated for purposes of section 3303(g) as though such amendment were made by section 3303(a). 3414. Rules regarding certain government debt (a) Repeal of certain superceded rules Subpart B of part II of subchapter E of chapter 1 is amended by striking section 454 (and by striking the item relating to such section in the table of sections for such subpart). (b) Preservation of rules related to United States savings bonds Subpart A of part V of subchapter P of chapter 1 is amended by inserting after section 1272 the following new section: 1272A. United States savings bonds (a) Election To include increase in redemption price in income A taxpayer holding a United States savings bond may elect (on the taxpayer’s return for the taxable year) to treat any increase in the redemption price as income received in the taxable year. If any such election is made with respect to any such obligation, it shall apply also to all such obligations owned by the taxpayer at the beginning of the first taxable year to which it applies and to all such obligations thereafter acquired by the taxpayer and shall be binding for all subsequent taxable years, unless revoked with the consent of the Secretary. In the case of any such obligations owned by the taxpayer at the beginning of the first taxable year to which the taxpayer’s election applies, the increase in the redemption price of such obligations occurring between the date of acquisition and the first day of such taxable year shall also be treated as income received in such taxable year. (b) Treatment upon redemption or final maturity The increase in redemption value of a United States savings bond (to the extent not previously included in gross income) in excess of the adjusted basis of such bond shall be included in gross income in the earlier of the taxable year in which the bond is redeemed or in the taxable year of final maturity. (c) Cross references (1) For exception from current inclusion of original issue discount, see section 1272(a)(2)(B). (2) For exception from market discount rules, see section 1279(a)(1)(B)(iii). . (c) Conforming amendments (1) Section 852(b)(2), as amended by the preceding provisions of this Act, is amended by striking subparagraph (E) and redesignating subparagraphs (F) and (G) as subparagraphs (E) and (F), respectively. (2) Section 1283(c)(3), as amended by the preceding provisions of this Act, is amended by striking all that precedes shall not apply and inserting the following: (3) Coordination with section 1271 Section 1271(a)(3) . (3) Section 7871(a)(6) is amended by adding and at the end of subparagraph (A) and by striking subparagraph (C). (4) The table of sections for subpart A of part V of subchapter P of chapter 1 is amended by inserting after the item relating to section 1272 the following new item: Sec. 1272A. United States savings bonds. . (d) Effective date The amendments made by this section shall take effect on the date of the enactment of this Act. 3 Certain rules for determining gain and loss 3421. Cost basis of specified securities determined without regard to identification (a) In general Section 1012 is amended by adding at the end the following new subsection: (e) Cost basis of specified securities determined without regard to identification Except to the extent otherwise provided in this section or in regulations thereunder permitting the use of an average basis method for determining cost, in the case of the sale, exchange, or other disposition of a specified security (within the meaning of section 6045(g)(3)(B)), the basis (and holding period) of such security shall be determined on a first-in first-out basis. . (b) Conforming amendments (1) Section 1012(c)(1) is amended by striking the conventions prescribed by regulations under this section and inserting the method applicable for determining the cost of such security . (2) Section 1012(c)(2)(A) is amended by striking section 1012 and inserting this section (as in effect prior to the enactment of the Tax Reform Act of 2014 ) . (3) Section 6045(g)(2)(B)(i)(I) is amended by striking unless the customer notifies the broker by means of making an adequate identification of the stock sold or transferred . (c) Effective date The amendments made by this section shall apply to sales, exchanges, and other dispositions after December 31, 2014. 3422. Wash sales by related parties (a) Application of wash sale rules to related parties Subsection (a) of section 1091 is amended by striking the taxpayer has acquired and inserting the taxpayer (or a related party) has acquired . (b) Modification of basis adjustment rule To prevent transfer of losses to related parties Subsection (d) of section 1091 is amended to read as follows: (d) Adjustment to basis in case of wash sale If the taxpayer (or the taxpayer’s spouse) acquires substantially identical stock or securities during the period which— (1) begins 30 days before the disposition with respect to which a deduction was disallowed under subsection (a), and (2) ends with the close of the taxpayer’s first taxable year which begins after such disposition, the basis of such stock or securities shall be increased by the amount of the deduction so disallowed (reduced by any amount of such deduction taken into account under this subsection to increase the basis of stock or securities previously acquired). . (c) Related party Section 1091 is amended by adding at the end the following new subsection: (g) Related party For purposes of this section— (1) In general The term related party means— (A) the taxpayer’s spouse, (B) any dependent of the taxpayer and any other taxpayer with respect to whom the taxpayer is a dependent, (C) any individual, corporation, partnership, trust, or estate which controls, or is controlled by, (within the meaning of section 954(d)(3)) the taxpayer or any individual described in subparagraph (A) or (B) with respect to the taxpayer (or any combination thereof), (D) any individual retirement plan, Archer MSA (as defined in section 220(d)), or health savings account (as defined in section 223(d)), of the taxpayer or of any individual described in subparagraph (A) or (B) with respect to the taxpayer, (E) any account under a qualified tuition program described in section 529 or a Coverdell education savings account (as defined in section 530(b)) if the taxpayer, or any individual described in subparagraph (A) or (B) with respect to the taxpayer, is the designated beneficiary of such account or has the right to make any decision with respect to the investment of any amount in such account, and (F) any account under— (i) a plan described in section 401(a), (ii) an annuity plan described in section 403(a), (iii) an annuity contract described in section 403(b), or (iv) an eligible deferred compensation plan described in section 457(b) and maintained by an employer described in section 457(e)(1)(A), if the taxpayer or any individual described in subparagraph (A) or (B) with respect to the taxpayer has the right to make any decision with respect to the investment of any amount in such account. (2) Rules for determining status (A) Relationships determined at time of acquisition Determinations under paragraph (1) shall be made as of the time of the purchase or exchange referred to in subsection (a) except that determinations under subparagraphs (A) and (B) of paragraph (1) shall be made for the taxable year which includes such purchase or exchange. (B) Determination of marital status (i) In general Except as provided in clause (ii), marital status shall be determined under section 7703. (ii) Special rule for married individuals filing separately and living apart A husband and wife who— (I) file separate returns for any taxable year, and (II) live apart at all times during such taxable year, shall not be treated as married individuals. (3) Regulations The Secretary shall issue such regulations or other guidance as may be necessary to prevent the avoidance of the purposes of this subsection, including regulations which treat persons as related parties if such persons are formed or availed of to avoid the purposes of this subsection. . (d) Effective date The amendments made by this section shall apply to sales and other dispositions after December 31, 2014. 3423. Nonrecognition for derivative transactions by a corporation with respect to its stock (a) In general Section 1032 is amended to read as follows: 1032. Derivative transactions by a corporation with respect to its stock (a) In general Except as otherwise provided in this section or section 76, section 1032 derivative items of a corporation shall not be taken into account in determining such corporation’s liability for tax under this subtitle. (b) Income recognition on certain forward contracts (1) In general If— (A) a corporation acquires its stock, and (B) such acquisition is part of a plan (or series of related transactions) pursuant to which the corporation enters into a forward contract with respect to its stock, such corporation shall include amounts in income as if the excess of the amount to be received under the forward contract over the fair market value of the stock as of the date the corporation entered into the forward contract were original issue discount on a debt instrument acquired on such date. The preceding sentence shall apply only to the extent that the amount of stock involved in the forward contract does not exceed the amount acquired as described in subparagraph (A). (2) Plan presumed to exist If a corporation enters into a forward contract with respect to its stock within the 60-day period beginning on the date which is 30 days before the date that the corporation acquires its stock, such acquisition shall be treated as pursuant to a plan described in paragraph (1)(B) unless it is established that entering into such contract and such acquisition are not pursuant to a plan or series of related transactions. (c) Section 1032 derivative items For purposes of this section, the term section 1032 derivative item means any item of income, gain, loss, or deduction if— (1) such item arises out of the rights or obligations under any derivative (as defined in section 486) to the extent such derivative relates to the corporation’s stock (or is attributable to any transfer or extinguishment of any such right or obligation), or (2) such item arises under any other contract or position but only to the extent that such item reflects (or is determined by reference to) changes in the value of such stock or distributions thereon. Such term shall not include any deduction with respect to which section 83(h) applies and shall not include any deduction for any item which is in the nature of compensation for services rendered. For purposes of this subparagraph, de minimis relationships, as determined by the Secretary, shall be disregarded. (d) Treasury stock treated as stock Any reference in this section to stock shall be treated as including a reference to treasury stock. (e) Regulations The Secretary shall prescribe such regulations or other guidance as may be appropriate to carry out the purposes of this section, including regulations or other guidance which— (1) treat the portion of an instrument which is described in subsection (c)(1) separately from the portion of such instrument which is not so described, and (2) treat section 1032 derivative items as contributions to the capital of the corporation to the extent that the application of this section would be inconsistent with the purposes of section 76(b). . (b) Clerical amendment The item relating to section 1032 in the table of sections for part III of subchapter O of chapter 1 is amended to read as follows: Sec. 1032. Derivative transactions by a corporation with respect to its stock. . (c) Effective date The amendments made by this section shall apply to transactions entered into after the date of the enactment of this Act. 4 Tax favored bonds 3431. Termination of private activity bonds (a) In general Paragraph (1) of section 103(b) is amended— (1) by striking which is not a qualified bond (within the meaning of section 141) , and (2) by striking which is not a qualified bond in the heading thereof. (b) Conforming amendments (1) Section 141 is amended by striking subsection (e). (2) Subpart A of part IV of subchapter B of chapter 1 is amended by striking sections 142, 143, 144, 145, 146, and 147 (and by striking each of the items relating to such sections in the table of sections for such subpart). (3) Section 25 is amended by adding at the end the following new subsection: (j) Coordination with repeal of private activity bonds Any reference to section 143, 144, or 146 shall be treated as a reference to such section as in effect before its repeal by the Tax Reform Act of 2014 . . (4) Section 26(b)(2) is amended by striking subparagraph (D). (5) Section 141(b) is amended by striking paragraphs (5) and (9) and by redesignating paragraphs (6), (7), and (8) as paragraphs (5), (6), and (7), respectively. (6) Section 141(d) is amended by striking paragraph (5) and by redesignating paragraphs (6) and (7) as paragraphs (5) and (6). (7) Section 148(b)(2)(E) is amended by striking in the case of a bond other than a private activity bond, . (8) Section 148(b)(3) is amended to read as follows: (3) Tax-exempt bonds not treated as investment property The term investment property does not include any tax-exempt bond. . (9) Section 148(f)(3) is amended by striking or is a private activity bond in the fourth sentence. (10) Section 148(f)(4) is amended— (A) by striking (determined in accordance with section 147(b)(2)(A)) in the flush matter following subparagraph (A)(ii), (B) by striking the last sentence of subparagraph (D)(v), and (C) by adding at the end the following new subparagraph: (E) Average maturity For purposes of this paragraph, the average maturity of any issue shall be determined by taking into account the respective issue prices of the bonds issued as part of such issue. . (11) Section 148(f)(4)(A) is amended in the flush matter after clause (ii) by striking In the case of an issue no bond of which is a private activity bond, clause and inserting Clause . (12) Section 148(f)(4)(B)(ii) is amended— (A) by striking subclause (II), and (B) by striking certain bonds.— and all that follows through issue described in subclause (II) and inserting certain bonds.— In the case of an issue no bond of which is a tax or revenue anticipation bond . (13) (A) Section 148(f)(4)(C)(iv) is amended to read as follows: (iv) Construction issue For purposes of this subparagraph, the term construction issue means any issue if at least 75 percent of the available construction proceeds of such issue are to be used for construction expenditures with respect to property which is to be owned by a governmental unit. . (B) Section 148(f)(4)(C) is amended by redesignating clauses (v) through (xvii) as clauses (viii) through (xx), respectively, and by inserting after clause (iv) the following new clauses: (v) Construction For purposes of this subparagraph, the term construction includes reconstruction and rehabilitation. (vi) Safe harbor for leases and management contracts For purposes of this subparagraph, property leased by a governmental unit shall be treated as owned by such governmental unit if— (I) the lessee makes an irrevocable election (binding on the lessee and all successors in interest under the lease) not to claim depreciation or an investment credit with respect to such property, (II) the lease term (as defined in section 168(h)(1)) is not more than 80 percent of the reasonably expected economic life of the property, and (III) the lessee has no option to purchase the property other than at fair market value (as of the time such option is exercised). (vii) Determination of economic life For purposes of clause (vi), the reasonably expected economic life of any facility shall be determined as of the later of— (I) the date on which the bonds are issued, or (II) the date on which the facility is placed in service (or expected to be placed in service). . (C) Section 148(f)(4)(D) is amended by striking subparagraph (C)(iv) each place it appears and inserting subparagraph (C)(v) . (14) Section 148(f)(4)(D)(i) is amended— (A) by striking subclause (II), (B) by striking (other than private activity bonds) in subclause (IV), and (C) by redesignating subclauses (III) and (IV) (as amended by subparagraph (B)) as subclauses (II) and (III). (15) Section 148(f)(4)(D)(ii) is amended by striking subclause (IV) both places it appears and inserting subclause (III) . (16) Section 148(f)(4)(D)(iii) is amended by striking subclause (IV) and inserting subclause (III) . (17) Section 148(f)(4)(D)(iv)(II) is amended by striking clause (i)(IV) and inserting clause (i)(III) . (18) Section 148(f)(4)(D)(vi) is amended by striking the last sentence. (19) Section 148(f)(7) is amended by striking subparagraph (A) and by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B). (20) Section 149(b)(3) is amended— (A) by striking subparagraph (C) and by redesignating subparagraphs (D) and (E) as subparagraphs (C) and (D), and (B) by striking subparagraph (E) in subparagraph (A)(iv) and inserting subparagraph (D) . (21) Section 149(e)(2) is amended— (A) by striking subparagraphs (C), (D), and (F) and by redesignating subparagraphs (E) and (G) as subparagraphs (C) and (D), respectively, and (B) by striking the second sentence. (22) Section 149(f)(6) is amended— (A) by striking subparagraph (B), and (B) by striking For purposes of this subsection and all that follows through The term and inserting the following: For purposes of this subsection, the term . (23) Section 150 is amended by striking subsections (b) and (c) and by redesignating subsections (d) and (e) as subsections (b) and (c), respectively. (24) Section 150(e)(3) is amended to read as follows: (3) Public approval requirement A bond shall not be treated as part of an issue which meets the requirements of paragraph (1) unless such bond satisfies the requirements of section 147(f)(2) (as in effect before its repeal by the Tax Reform Act of 2014 ). . (25) Section 269A(b)(3) is amended by striking 144(a)(3) and inserting 414(n)(6)(A) . (26) Section 414(m)(5) is amended by striking section 144(a)(3) and inserting subsection (n)(6)(A) . (27) Section 414(n)(6)(A) is amended to read as follows: (A) Related persons A person is a related person to another person if— (i) the relationship between such persons would result in a disallowance of losses under section 267 or 707(b), or (ii) such persons are members of the same controlled group of corporations (as defined in section 1563(a), except that more than 50 percent shall be substituted for at least 80 percent each place it appears therein). . (28) Section 6045(e)(4)(B) is amended by inserting (as in effect before its repeal by the Tax Reform Act of 2014 ) after section 143(m)(3) . (29) Section 6654(f)(1) is amended by inserting (as in effect before its repeal by the Tax Reform Act of 2014 ) after section 143(m) . (30) Section 7871(c) is amended— (A) by striking paragraphs (2) and (3), and (B) by striking tax-exempt bonds.— and all that follows through Subsection (a) of section 103 and inserting the following: tax-exempt bonds.— Subsection (a) of section 103 . (c) Effective date The amendments made by this section shall apply to bonds issued after December 31, 2014. 3432. Termination of credit for interest on certain home mortgages (a) In general Section 25, as amended by the preceding provisions of this Act, is amended by adding at the end the following new subsection: (k) Termination No credit shall be allowed under this section with respect to any mortgage credit certificate issued after December 31, 2014. . (b) Effective date The amendments made by this section shall apply to taxable years ending after December 31, 2014. 3433. Repeal of advance refunding bonds (a) In general Paragraph (1) of section 149(d) is amended by striking as part of an issue described in paragraph (2), (3), or (4). and inserting to advance refund a bond. . (b) Conforming amendments (1) Section 149(d) is amended by striking paragraphs (2), (3), (4), and (6) and by redesignating paragraphs (5) and (7) as paragraphs (2) and (3). (2) Section 148(f)(4)(C), as amended by the preceding provisions of this Act, is amended by striking clause (xvii) and by redesignating clauses (xviii), (xix), and (xx) as clauses (xvii), (xviii), and (xix), respectively. (c) Effective date The amendments made by this section shall apply to advance refunding bonds issued after December 31, 2014. 3434. Repeal of tax credit bond rules (a) In general Part IV of subchapter A of chapter 1 is amended by striking subparts H, I, and J (and by striking the items relating to such subparts in the table of subparts for such part). (b) Payments to issuers Subchapter B of chapter 65 is amended by striking section 6431 (and by striking the item relating to such section in the table of sections for such subchapter). (c) Conforming amendments (1) Section 6211(b)(4)(A) is amended by striking and 6431 . (2) Section 6401(b)(1) is amended by striking G, H, I, and J and inserting and G . (d) Effective date The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act. F Insurance reforms 3501. Exception to pro rata interest expense disallowance for corporate-owned life insurance restricted to 20-percent owners (a) In general Subparagraph (A) of section 264(f)(4) is amended— (1) by striking policy or contract)— and all that follows through A policy or contract and inserting policy or contract) a 20-percent owner of such entity. A policy or contract , and (2) by striking , officers, directors, and employees in the heading. (b) Conforming amendment Section 264(f)(4) is amended by striking subparagraph (E). (c) Effective date The amendment made by this section shall apply to contracts issued after December 31, 2014. For purposes of the preceding sentence, any material increase in the death benefit or other material change in the contract shall be treated as a new contract. 3502. Net operating losses of life insurance companies (a) In general Paragraph (5) of section 805(a) is amended to read as follows: (5) Net operating loss deduction The deduction allowed under section 172, determined— (A) by treating the net operating loss for any taxable year as equal to the excess (if any) of— (i) the life insurance deductions for such taxable year, over (ii) the life insurance gross income for such taxable year, and (B) by applying subsection (d)(5) thereof with the modifications described in paragraph (4) of this subsection. . (b) Conforming amendments (1) Part I of subchapter L of chapter 1 is amended by striking section 810 (and by striking the item relating to such section in the table of sections for such part). (2) Part III of subchapter L of chapter 1 is amended by striking section 844 (and by striking the item relating to such section in the table of sections for such part). (3) Section 381 is amended by striking subsection (d). (4) Section 805(a)(4)(B)(i), as redesignated by the preceding provisions of this Act, is amended to read as follows: (ii) the net operating loss deduction provided by paragraph (5), . (5) Section 805(b)(2)(A)(iii), as redesignated by the preceding provisions of this Act, is amended to read as follows: (iv) any net operating loss carryback to the taxable year under section 172 (as applied pursuant to subsection (a)(5)), and . (6) Section 805(b) is amended by striking paragraph (4) and redesignating paragraph (5) as paragraph (4). (7) Section 953(b)(1)(A), as redesignated by the preceding provisions of this Act, is amended by striking operations and inserting net operating . (8) Section 1351(i)(3) is amended by striking or the operations loss deduction under section 810, . (c) Effective date The amendments made by this section shall apply to losses arising in taxable years beginning after December 31, 2014. 3503. Repeal of small life insurance company deduction (a) In general Part I of subchapter L of chapter 1 is amended by striking section 806 (and by striking the item relating to such section in the table of sections for such part). (b) Conforming amendments (1) Section 453B(e) is amended— (A) by striking (as defined in section 806(b)(3)) in paragraph (2)(B), and (B) by adding at the end the following new paragraph: (3) Noninsurance business (A) In general For purposes of this subsection, the term noninsurance business means any activity which is not an insurance business. (B) Certain activities treated as insurance businesses For purposes of subparagraph (A), any activity which is not an insurance business shall be treated as an insurance business if— (i) it is of a type traditionally carried on by life insurance companies for investment purposes, but only if the carrying on of such activity (other than in the case of real estate) does not constitute the active conduct of a trade or business, or (ii) it involves the performance of administrative services in connection with plans providing life insurance, pension, or accident and health benefits. . (2) Section 465(c)(7)(D)(v)(II) is amended by striking section 806(b)(3) and inserting section 453B(e)(3) . (3) Section 801(a)(2) is amended by striking subparagraph (C). (4) Section 804 is amended by striking means— and all that follows and inserting means the general deductions provided in section 805. . (5) Section 805(a)(4)(B) is amended by striking clause (i) and by redesignating clauses (ii), (iii), and (iv) as clauses (i), (ii), and (iii), respectively. (6) Section 805(b)(2)(A) is amended by striking clause (iii) and by redesignating clauses (iv) and (v) as clauses (iii) and (iv), respectively. (7) Section 815(c)(2)(A) is amended by inserting and at the end of clause (i), by striking clause (ii), and by redesignating clause (iii) as clause (ii). (8) Section 842(c) is amended by striking paragraph (1) and by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively. (9) Section 953(b)(1) is amended by striking subparagraph (A) and by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively. (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3504. Computation of life insurance tax reserves (a) In general Subparagraph (B) of section 807(d)(2) is amended to read as follows: (B) an interest rate equal to the sum of— (i) the applicable Federal interest rate, plus (ii) 3.5 percentage points, and . (b) Conforming amendments (1) Paragraph (4) of section 807(d) is amended to read as follows: (4) Applicable Federal interest rate (A) In general Except as provided in subparagraph (B), the term applicable Federal interest rate means the annual rate determined by the Secretary under subparagraph (C) for the calendar year in which the contract was issued. (B) Election to recompute Federal interest rate every 5 years For purposes of this subsection— (i) In general In computing the amount of the reserve with respect to any contract to which an election under this subparagraph applies for periods during any recomputation period, the applicable Federal interest rate shall be the annual rate determined by the Secretary under subparagraph (C) for the 1st year of such period. No change in the applicable Federal interest rate shall be made under the preceding sentence unless such change would equal or exceed 1/2 of 1 percentage point. (ii) Recomputation period For purposes of clause (i), the term recomputation period means, with respect to any contract, the 5 calendar year period beginning with the 5th calendar year beginning after the calendar year in which the contract was issued (and each subsequent 5 calendar year period). (iii) Election An election under this subparagraph shall apply to all contracts issued during the calendar year for which the election was made or during any subsequent calendar year unless such election is revoked with the consent of the Secretary. (iv) Spread not available Subsection (f) shall not apply to any adjustment required under this paragraph. (C) Rate of interest (i) In general For purposes of this paragraph, the rate of interest determined under this subparagraph shall be the annual rate determined by the Secretary under clause (ii). (ii) Determination of annual rate (I) In general The annual rate determined by the Secretary under this clause for any calendar year shall be a rate equal to the average of the applicable Federal mid-term rates (as defined in section 1274(d) but based on annual compounding) effective as of the beginning of each of the calendar months in the test period. (II) Test period For purposes of subclause (I), the test period is the most recent 60-calendar-month period ending before the beginning of the calendar year for which the determination is made. . (2) The first sentence following paragraph (6) in section 807(c) is amended by striking the applicable Federal interest rate under subsection (d)(2)(B)(i), the prevailing State assumed interest rate under subsection (d)(2)(B)(ii), and inserting the interest rate determined under subsection (d)(2)(B) . (3) Section 808 is amended by adding at the end the following new subsection: (g) Prevailing State assumed interest rate For purposes of this subchapter— (1) In general The term prevailing State assumed interest rate means, with respect to any contract, the highest assumed interest rate permitted to be used in computing life insurance reserves for insurance contracts or annuity contracts (as the case may be) under the insurance laws of at least 26 States. For purposes of the preceding sentence, the effect of nonforfeiture laws of a State on interest rates for reserves shall not be taken into account. (2) When rate determined The prevailing State assumed interest rate with respect to any contract shall be determined as of the beginning of the calendar year in which the contract was issued. . (4) Paragraph (1) of section 811(d) is amended by striking the greater of the prevailing State assumed interest rate or applicable Federal interest rate in effect under section 807 and inserting the interest rate in effect under section 807(d)(2)(B) . (5) Subparagraph (A) of section 846(f)(6) is amended by striking except that and all that follows and inserting except that the limitation of subsection (a)(3) shall apply in lieu of the limitation of the last sentence of section 807(d)(1), and . (6) Subparagraph (B) of section 954(i)(5) is amended by striking shall be substituted for the prevailing State assumed interest rate and inserting shall, if higher, be substituted for the interest rate in effect under section 807(d)(2)(B) . (c) Effective date (1) In general The amendments made by this section shall apply to taxable years beginning after December 31, 2014. (2) Transition rule For the first taxable year beginning after December 31, 2014, the reserve with respect to any contract (as determined under section 807(d)(2) of the Internal Revenue Code of 1986) at the end of the preceding taxable year shall be determined as if the amendments made by this section had applied to such reserve in such preceding taxable year and by using the interest rate applicable to such reserves under section 807(d)(2) of the Internal Revenue Code of 1986 for calendar year 2015. For subsequent taxable years, such amendments shall be applied with respect to such reserve by using the interest rate applicable under such section for calendar year 2015. (3) Transition relief (A) In general If— (i) the reserve determined under section 807(d)(2) of the Internal Revenue Code of 1986 with respect to any contract as of the close of the year preceding the first taxable year beginning after December 31, 2014, differs from (ii) the reserve which would have been determined with respect to such contract as of the close of such taxable year under such section determined without regard to paragraph (2), then the difference between the amount of the reserve described in clause (i) and the amount of the reserve described in clause (ii) shall be taken into account under the method provided in subparagraph (B). (B) Method The method provided in this subparagraph is as follows: (i) if the amount determined under subparagraph (A)(i) exceeds the amount determined under subparagraph (A)(ii), 1/8 of such excess shall be taken into account, for each of the 8 succeeding taxable years, as a deduction under section 805(a)(2) of such Code, or (ii) if the amount determined under subparagraph (A)(ii) exceeds the amount determined under subparagraph (A)(i), 1/8 of such excess shall be included in gross income, for each of the 8 succeeding taxable years, under section 803(a)(2) of such Code. 3505. Adjustment for change in computing reserves (a) In general Paragraph (1) of section 807(f) is amended to read as follows: (1) Treatment as change in method of accounting If the basis for determining any item referred to in subsection (c) as of the close of any taxable year differs from the basis for such determination as of the close of the preceding taxable year, then so much of the difference between— (A) the amount of the item at the close of the taxable year, computed on the new basis, and (B) the amount of the item at the close of the taxable year, computed on the old basis, as is attributable to contracts issued before the taxable year shall be taken into account under section 481 as adjustments attributable to a change in method of accounting initiated by the taxpayer and made with the consent of the Secretary. . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3506. Modification of rules for life insurance proration for purposes of determining the dividends received deduction (a) In general Section 812 is amended to read as follows: 812. Determination of company’s and policyholder’s share on account by account basis (a) Determination on account by account basis Sections 805(a)(4) and 807 shall be applied on an account by account basis. (b) Company’s share For purposes of section 805(a)(4), the term company’s share means, with respect to any account for any taxable year, the ratio (expressed as a percentage) of— (1) the excess of— (A) the mean assets of such account for such taxable year, over (B) the mean reserves with respect to such account for such taxable year, divided by (2) the mean assets of such account for such taxable year. (c) Policyholder’s share For purposes of section 807, the term policyholder’s share means, with respect to any account for any taxable year, the excess of 100 percent over the percentage determined under paragraph (2). (d) Mean assets and mean reserves defined For purposes of this subsection— (1) Mean assets The term mean assets means, with respect to any account for any taxable year, 50 percent of the sum of— (A) the fair market value of the assets of such account determined as of the beginning of such taxable year, and (B) the fair market value of the assets of such account determined as of the close of such taxable year. (2) Mean reserves The term mean reserves means, with respect to any account for any taxable year, 50 percent of the sum of— (A) the reserves with respect to such account as determined under section 807 as of the beginning of such taxable year, and (B) the reserves with respect to such account as determined under section 807 as of the close of such taxable year. (3) Certain dividends not taken into account Dividends described in section 246(c) shall not be taken into account for purposes of determining mean assets or mean reserves. (4) Fees and expenses not taken into account Fees and expenses shall not be taken into account for purposes of determining mean assets or mean reserves. . (b) Conforming amendment Section 817A(e)(2) is amended by striking , 807(d)(2)(B), and 812 and inserting and 807(d)(2)(B) (c) Clerical amendment The table of sections for subpart D of part I of subchapter L of chapter 1 is amended by striking the item relating to section 812 and inserting the following: Sec. 812. Determination of company’s and policyholder’s share on account by account basis. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3507. Repeal of special rule for distributions to shareholders from pre-1984 policyholders surplus account (a) In general Subpart D of part I of subchapter L is amended by striking section 815 (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendment Section 801 is amended by striking subsection (c). (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. (d) Phased inclusion of remaining balance of policyholders surplus accounts In the case of any stock life insurance company which has a balance (determined as of the close of such company’s last taxable year beginning before January 1, 2015) in an existing policyholders surplus account (as defined in section 815 of the Internal Revenue Code of 1986, as in effect before its repeal), the tax imposed by section 801 of such Code for the first 8 taxable years beginning after December 31, 2014, shall be the amount which would be imposed by such section for such year on the sum of— (1) life insurance company taxable income for such year (within the meaning of such section 801 but not less than zero), plus (2) 1/8 of such balance. 3508. Modification of proration rules for property and casualty insurance companies (a) In general Section 832(b)(5)(B) is amended by striking 15 percent and inserting the percentage determined under subparagraph (F)) . (b) Determination of percentage Section 832(b)(5) is amended by adding at the end the following new subparagraph: (F) Determination of percentage (i) In general For purposes of subparagraph (B), the percentage determined under this subparagraph is the ratio (expressed as a percentage) of— (I) the average adjusted bases (within the meaning of section 1016) of tax-exempt assets of the company, to (II) such average adjusted bases of all assets of the company. (ii) Tax-exempt assets For purposes of clause (i)(I), the term tax-exempt assets means assets of the type which give rise to income described in subparagraph (B). . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3509. Repeal of special treatment of Blue Cross and Blue Shield organizations, etc (a) Transitional repeal of special rules (1) In general Section 833 is amended by striking subsection (b), by redesignating subsection (c) as subsection (b), and by amending subsection (a) to read as follows: (a) In general An organization to which this section applies shall be taxable under this part in the same manner as if it were a stock insurance company. . (2) Tax status not dependent on medical loss ratio Subsection (b) of section 833, as redesignated by subsection (a), is amended by striking paragraph (5). (3) Effective date The amendments made by this subsection shall apply to taxable years beginning after December 31, 2014. (b) Repeal of statutory treatment as a stock insurance company (1) In general Part II of subchapter L of chapter is amended by striking section 833 (and by striking the item relating to such section in the table of sections for such part). (2) Effective date The amendments made by this subsection shall apply to taxable years beginning after December 31, 2016. 3510. Modification of discounting rules for property and casualty insurance companies (a) Modification of rate of interest used To discount unpaid losses Paragraph (2) of section 846(c) is amended to read as follows: (2) Determination of annual rate The annual rate determined by the Secretary under this paragraph for any calendar year shall be a rate determined on the basis of the corporate bond yield curve (as defined in section 430(h)(2)(D)(i)). . (b) Modification of computational rules for loss payment patterns Section 846(d)(3) is amended by striking subparagraphs (B) through (G) and inserting the following new subparagraphs: (B) Treatment of certain losses Losses which would have been treated as paid in the last year of the period applicable under subparagraph (A)(i) or (A)(ii) shall be treated as paid in the following manner: (i) 3-year loss payment pattern (I) In general The period taken into account under subparagraph (A)(i) shall be extended to the extent required under subclause (II). (II) Computation of extension The amount of losses which would have been treated as paid in the 3d year after the accident year shall be treated as paid in such 3d year and each subsequent year in an amount equal to the amount of the losses treated as paid in the 2d year after the accident year (or, if lesser, the portion of the unpaid losses not theretofore taken into account). (ii) 10-year loss payment pattern (I) In general The period taken into account under subparagraph (A)(ii) shall be extended to the extent required under subclause (II). (II) Computation of extension The amount of losses which would have been treated as paid in the 10th year after the accident year shall be treated as paid in such 10th year and each subsequent year in an amount equal to the amount of the losses treated as paid in the 9th year after the accident year (or, if lesser, the portion of the unpaid losses not theretofore taken into account). (C) Special rule for international and reinsurance lines of business Except as otherwise provided by regulations, any determination made under subsection (a) with respect to unpaid losses relating to the international or reinsurance lines of business shall be made using, in lieu of the loss payment pattern applicable to the respective lines of business, a pattern determined by the Secretary under paragraphs (1) and (2) based on the combined losses for all lines of business described in subparagraph (A)(ii). (D) Special rule for 2d or 9th year if negative or zero (i) 3-year loss payment pattern If the amount of the losses treated as paid in the 2d year after the accident year is zero or a negative amount, subparagraph (B)(i)(II) shall be applied by substituting the average of the losses treated as paid in the 1st and 2d years after the accident year for the losses treated as paid in the 2d year after the accident year. (ii) 10-year loss payment pattern If the amount of the losses treated as paid in the 9th year after the accident year is zero or a negative amount, subparagraph (B)(ii)(II) shall be applied by substituting the average of the losses treated as paid in the 7th, 8th, and 9th years after the accident year for the losses treated as paid in the 9th year after the accident year. . (c) Repeal of historical payment pattern election Section 846 is amended by striking subsection (e) and by redesignating subsections (f) and (g) as subsections (e) and (f), respectively. (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. (e) Transitional rule For the first taxable year beginning after December 31, 2014— (1) the unpaid losses and the expenses unpaid (as defined in paragraphs (5)(B) and (6) of section 832(b) of the Internal Revenue Code of 1986) at the end of the preceding taxable year, and (2) the unpaid losses as defined in sections 807(c)(2) and 805(a)(1) of such Code at the end of the preceding taxable year, shall be determined as if the amendments made by this section had applied to such unpaid losses and expenses unpaid in the preceding taxable year and by using the interest rate and loss payment patterns applicable to accident years ending with calendar year 2015, and any adjustment shall be taken into account ratably in such first taxable year and the 7 succeeding taxable years. For subsequent taxable years, such amendments shall be applied with respect to such unpaid losses and expenses unpaid by using the interest rate and loss payment patterns applicable to accident years ending with calendar year 2015. 3511. Repeal of special estimated tax payments (a) In general Part III of subchapter L of chapter 1 is amended by striking section 847 (and by striking the item relating to such section in the table of sections for such part). (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3512. Capitalization of certain policy acquisition expenses (a) In general Paragraph (1) of section 848(c) is amended by striking subparagraphs (A), (B), and (C) and inserting the following new subparagraphs: (A) 5 percent of the net premiums for such taxable year on specified insurance contracts which are group contracts, and (B) 12 percent of the net premiums for such taxable year on specified insurance contracts not described in subparagraph (A). . (b) Group contracts So much of paragraph (2) of section 848(e) as precedes subparagraph (A) thereof is amended to read as follows: (2) Group contract The term group contract means any specified insurance contract— . (c) Conforming amendments Section 848(e) is amended by striking paragraphs (3) and (6) and by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively. (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3513. Tax reporting for life settlement transactions (a) In general Subpart B of part III of subchapter A of chapter 61 is amended by adding at the end the following new section: 6050X. Returns relating to certain life insurance contract transactions (a) Requirement of reporting of certain payments (1) In general Every person who acquires a life insurance contract or any interest in a life insurance contract in a reportable policy sale during any taxable year shall make a return for such taxable year (at such time and in such manner as the Secretary shall prescribe) setting forth— (A) the name, address, and TIN of such person, (B) the name, address, and TIN of each recipient of payment in the reportable policy sale, (C) the date of such sale, (D) the name of the issuer of the life insurance contract sold and the policy number of such contract, and (E) the amount of each payment. (2) Statement to be furnished to persons with respect to whom information is required Every person required to make a return under this subsection shall furnish to each person whose name is required to be set forth in such return a written statement showing— (A) the name, address, and phone number of the information contact of the person required to make such return, and (B) the information required to be shown on such return with respect to such person, except that in the case of an issuer of a life insurance contract, such statement is not required to include the information specified in paragraph (1)(E). (b) Requirement of reporting of seller's basis in life insurance contracts (1) In general Upon receipt of the statement required under subsection (a)(2) or upon notice of a transfer of a life insurance contract to a foreign person, each issuer of a life insurance contract shall make a return (at such time and in such manner as the Secretary shall prescribe) setting forth— (A) the name, address, and TIN of the seller who transfers any interest in such contract in such sale, (B) the investment in the contract (as defined in section 72(e)(6)) with respect to such seller, and (C) the policy number of such contract. (2) Statement to be furnished to persons with respect to whom information is required Every person required to make a return under this subsection shall furnish to each person whose name is required to be set forth in such return a written statement showing— (A) the name, address, and phone number of the information contact of the person required to make such return, and (B) the information required to be shown on such return with respect to each seller whose name is required to be set forth in such return. (c) Requirement of reporting with respect to reportable death benefits (1) In general Every person who makes a payment of reportable death benefits during any taxable year shall make a return for such taxable year (at such time and in such manner as the Secretary shall prescribe) setting forth— (A) the name, address, and TIN of the person making such payment, (B) the name, address, and TIN of each recipient of such payment, (C) the date of each such payment, and (D) the amount of each such payment. (2) Statement to be furnished to persons with respect to whom information is required Every person required to make a return under this subsection shall furnish to each person whose name is required to be set forth in such return a written statement showing— (A) the name, address, and phone number of the information contact of the person required to make such return, and (B) the information required to be shown on such return with respect to each recipient of payment whose name is required to be set forth in such return. (d) Definitions For purposes of this section: (1) Payment The term payment means the amount of cash and the fair market value of any consideration transferred in a reportable policy sale. (2) Reportable policy sale The term reportable policy sale has the meaning given such term in section 101(a)(3)(B). (3) Issuer The term issuer means any life insurance company that bears the risk with respect to a life insurance contract on the date any return or statement is required to be made under this section. (4) Reportable death benefits The term reportable death benefits means amounts paid by reason of the death of the insured under a life insurance contract that has been transferred in a reportable policy sale. . (b) Clerical amendment The table of sections for subpart B of part III of subchapter A of chapter 61 is amended by inserting after the item relating to section 6050W the following new item: Sec. 6050X. Returns relating to certain life insurance contract transactions. . (c) Conforming amendments (1) Subsection (d) of section 6724 is amended— (A) by striking or at the end of clause (xxiv) of paragraph (1)(B), by striking and at the end of clause (xxv) of such paragraph and inserting or , and by inserting after such clause (xxv) the following new clause: (xxvi) section 6050X (relating to returns relating to certain life insurance contract transactions), and , and (B) by striking or at the end of subparagraph (GG) of paragraph (2), by striking the period at the end of subparagraph (HH) of such paragraph and inserting , or , and by inserting after such subparagraph (HH) the following new subparagraph: (II) subsection (a)(2), (b)(2), or (c)(2) of section 6050X (relating to returns relating to certain life insurance contract transactions). . (2) Section 6047 is amended— (A) by redesignating subsection (g) as subsection (h), (B) by inserting after subsection (f) the following new subsection: (g) Information relating to life insurance contract transactions This section shall not apply to any information which is required to be reported under section 6050X. , and (C) by adding at the end of subsection (h), as so redesignated, the following new paragraph: (4) For provisions requiring reporting of information relating to certain life insurance contract transactions, see section 6050X. . (d) Effective date The amendments made by this section shall apply to— (1) reportable policy sales (as defined in section 6050X(d)(2) of the Internal Revenue Code of 1986 (as added by subsection (a)) after December 31, 2014, and (2) reportable death benefits (as defined in section 6050X(d)(4) of such Code (as added by subsection (a)) paid after December 31, 2014. 3514. Clarification of tax basis of life insurance contracts (a) Clarification with respect to adjustments Paragraph (1) of section 1016(a) is amended by striking subparagraph (A) and all that follows and inserting the following: (A) for— (i) taxes or other carrying charges described in section 266; or (ii) expenditures described in section 173 (relating to circulation expenditures), for which deductions have been taken by the taxpayer in determining taxable income for the taxable year or prior taxable years; or (B) for mortality, expense, or other reasonable charges incurred under an annuity or life insurance contract; . (b) Effective date The amendment made by this section shall apply to transactions entered into after August 25, 2009. 3515. Exception to transfer for valuable consideration rules (a) In general Subsection (a) of section 101 is amended by inserting after paragraph (2) the following new paragraph: (3) Exception to valuable consideration rules for commercial transfers (A) In general The second sentence of paragraph (2) shall not apply in the case of a transfer of a life insurance contract, or any interest therein, which is a reportable policy sale. (B) Reportable policy sale For purposes of this paragraph, the term reportable policy sale means the acquisition of an interest in a life insurance contract, directly or indirectly, if the acquirer has no substantial family, business, or financial relationship with the insured apart from the acquirer's interest in such life insurance contract. For purposes of the preceding sentence, the term indirectly applies to the acquisition of an interest in a partnership, trust, or other entity that holds an interest in the life insurance contract. . (b) Conforming amendment Paragraph (1) of section 101(a) is amended by striking paragraph (2) and inserting paragraphs (2) and (3) . (c) Effective date The amendments made by this section shall apply to transfers after December 31, 2014. G Pass-Thru and certain other entities 1 S Corporations 3601. Reduced recognition period for built-in gains made permanent (a) In general Paragraph (7) of section 1374(d) (relating to definitions and special rules) is amended to read as follows: (7) Recognition period (A) In general The term recognition period means the 5-year period beginning with the 1st day of the 1st taxable year for which the corporation was an S corporation. For purposes of applying this section to any amount includible in income by reason of distributions to shareholders pursuant to section 593(e), the preceding sentence shall be applied without regard to the phrase 5-year . (B) Installment sales If an S corporation sells an asset and reports the income from the sale using the installment method under section 453, the treatment of all payments received shall be governed by the provisions of this paragraph applicable to the taxable year in which such sale was made. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2013. 3602. Modifications to S corporation passive investment income rules (a) Increased percentage limit Paragraph (2) of section 1375(a) is amended by striking 25 percent and inserting 60 percent . (b) Repeal of excessive passive income as a termination event Section 1362(d) is amended by striking paragraph (3). (c) Conforming amendments (1) Subsection (b) of section 1375 is amended by striking paragraphs (3) and (4) and inserting the following new paragraph: (3) Passive investment income defined (A) In general Except as otherwise provided in this paragraph, the term passive investment income means gross receipts derived from royalties, rents, dividends, interest, and annuities. (B) Exception for interest on notes from sales of inventory The term passive investment income shall not include interest on any obligation acquired in the ordinary course of the corporation’s trade or business from its sale of property described in section 1221(a)(1). (C) Treatment of certain lending or finance companies If the S corporation meets the requirements of section 542(c)(6) for the taxable year, the term passive investment income shall not include gross receipts for the taxable year which are derived directly from the active and regular conduct of a lending or finance business (as defined in section 542(d)(1)). (D) Treatment of certain dividends If an S corporation holds stock in a C corporation meeting the requirements of section 1504(a)(2), the term passive investment income shall not include dividends from such C corporation to the extent such dividends are attributable to the earnings and profits of such C corporation derived from the active conduct of a trade or business. (E) Exception for banks, etc In the case of a bank (as defined in section 581) or a depository institution holding company (as defined in section 3(w)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1813(w)(1)), the term passive investment income shall not include— (i) interest income earned by such bank or company, or (ii) dividends on assets required to be held by such bank or company, including stock in the Federal Reserve Bank, the Federal Home Loan Bank, or the Federal Agricultural Mortgage Bank or participation certificates issued by a Federal Intermediate Credit Bank. (F) Gross receipts from the sales of certain assets For purposes of this paragraph— (i) Capital assets other than stock and securities In the case of dispositions of capital assets (other than stock and securities), gross receipts from such dispositions shall be taken into account only to the extent of capital gain net income therefrom. (ii) Stock and securities In the case of sales or exchanges of stock or securities, gross receipts shall be taken into account only to the extent of the gain therefrom. (G) Coordination with section 1374 The amount of passive investment income shall be determined by not taking into account any recognized built-in gain or loss of the S corporation for any taxable year in the recognition period. Terms used in the preceding sentence shall have the same respective meanings as when used in section 1374. . (2) (A) Subparagraph (J) of section 26(b)(2) is amended by striking 25 percent and inserting 60 percent . (B) Clause (i) of section 1375(b)(1)(A) is amended by striking 25 percent and inserting 60 percent . (C) The heading for section 1375 is amended by striking 25 percent and inserting 60 percent . (D) The item relating to section 1375 in the table of sections for part III of subchapter S of chapter 1 is amended by striking 25 percent and inserting 60 percent . (3) Subparagraph (B) of section 1362(f)(1) is amended by striking paragraph (2) or (3) of subsection (d) and inserting subsection (d)(2) . (d) Effective Date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3603. Expansion of qualifying beneficiaries of an electing small business trust (a) No look-Through for eligibility purposes Subparagraph (C) of section 1361(b)(1) is amended by inserting (determined without regard to subsection (c)(2)(B)(v)) after shareholder . (b) Effective date The amendment made by this section shall take effect on January 1, 2015. 3604. Charitable contribution deduction for electing small business trusts (a) In general Paragraph (2) of section 641(c), as amended by the preceding provisions of this Act, is amended by inserting after subparagraph (C) the following new subparagraph: (D) (i) Section 642(c) shall not apply. (ii) For purposes of section 170(b)(1)(E), adjusted gross income shall be computed in the same manner as in the case of an individual, except that the deductions for costs which are paid or incurred in connection with the administration of the trust and which would not have been incurred if the property were not held in such trust shall be treated as allowable in arriving at adjusted gross income. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2014. 3605. Permanent rule regarding basis adjustment to stock of S corporations making charitable contributions of property (a) In general Section 1367(a)(2) (relating to decreases in basis) is amended by striking the last sentence. (b) Effective date The amendment made by this section shall apply to contributions made in taxable years beginning after December 31, 2013. 3606. Extension of time for making S corporation elections (a) In general Subsection (b) of section 1362 is amended to read as follows: (b) When made (1) In general An election under subsection (a) may be made by a small business corporation for any taxable year not later than the due date for filing the return of the S corporation for such taxable year (including extensions). (2) Certain elections treated as made for next taxable year If— (A) an election under subsection (a) is made for any taxable year within the period described in paragraph (1), but (B) either— (i) on 1 or more days in such taxable year and before the day on which the election was made the corporation did not meet the requirements of subsection (b) of section 1361, or (ii) 1 or more of the persons who held stock in the corporation during such taxable year and before the election was made did not consent to the election, then such election shall be treated as made for the following taxable year. (3) Authority to treat late elections, etc., as timely If— (A) an election under subsection (a) is made for any taxable year after the date prescribed by this subsection for making such election for such taxable year or no such election is made for any taxable year, and (B) the Secretary determines that there was reasonable cause for the failure to timely make such election, the Secretary may treat such an election as timely made for such taxable year. (4) Election on timely filed returns Except as otherwise provided by the Secretary, an election under subsection (a) for any taxable year may be made on a timely filed return of the S corporation for such taxable year. (5) Secretarial authority The Secretary may prescribe such regulations, rules, or other guidance as may be necessary or appropriate for purposes of applying this subsection. . (b) Coordination with certain other provisions (1) Qualified subchapter S subsidiaries Section 1361(b)(3)(B) is amended by adding at the end the following flush sentence: Rules similar to the rules of section 1362(b) shall apply with respect to any election under clause (ii). . (2) Qualified subchapter S trusts Section 1361(d)(2) is amended by striking subparagraph (D). (c) Revocations Paragraph (1) of section 1362(d) is amended— (1) by striking subparagraph (D) in subparagraph (C) and inserting subparagraphs (D) and (E) , and (2) by adding at the end the following new subparagraph: (E) Authority to treat late revocations as timely If— (i) a revocation under subparagraph (A) is made for any taxable year after the date prescribed by this paragraph for making such revocation for such taxable year or no such revocation is made for any taxable year, and (ii) the Secretary determines that there was reasonable cause for the failure to timely make such revocation, the Secretary may treat such a revocation as timely made for such taxable year. . (d) Effective date (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall apply to elections for taxable years beginning after December 31, 2014. (2) Revocations The amendments made by subsection (c) shall apply to revocations after December 31, 2014. 3607. Relocation of C corporation definition (a) In general Subsection (a) of section 1361 is amended— (1) by striking paragraph (2), and (2) by striking S corporation defined. — and all that follows through For purposes of this title, the term S corporation means and inserting the following: In general. —For purposes of this title, the term S corporation means . (b) Conforming amendment Section 7701(a)(3) is amended— (1) by striking Corporation. —The term corporation means and inserting the following: Corporations.— (1) In general The term corporation means , and (2) by adding at the end the following new paragraph: (2) C corporations The term C corporation means, with respect to any taxable year, a corporation which is not an S corporation for such year. . (c) Effective date The amendments made by this section shall take effect on the date of the enactment of this Act. 2 Partnerships 3611. Repeal of rules relating to guaranteed payments and liquidating distributions (a) Payment to partner for services or use of capital (1) In general Section 707 is amended by striking subsection (c). (2) Conforming amendments (A) Section 267(e) is amended by striking paragraph (4). (B) Section 706(a) is amended by striking and 707(c) . (C) Section 1402(a) is amended, in the matter following paragraph (17)— (i) by striking (after such gross income has been reduced by the sum of all payments to which section 707(c) applies) in clauses (iii) and (iv), and (ii) by striking (after such gross income has been so reduced) in clause (iv). (D) Section 2701(c)(1)(B) is amended by inserting or at the end of clause (i), by striking , or at the end of clause (ii) and inserting a period, and by striking clause (iii). (E) Section 7519(d) is amended by striking paragraph (5). (3) Effective dates (A) In general Except as otherwise provided in this paragraph, the amendments made by this subsection shall apply to partnership taxable years beginning after December 31, 2014. (B) Transfers The amendment made by paragraph (2)(E) shall apply to transfers after December 31, 2014. (b) Payments made in liquidation of retiring or deceased partner (1) In general Subpart B of part II of subchapter K of chapter 1 is amended by striking section 736 (and by striking the item relating to such section in the table of sections for such subpart). (2) Retired partners and successors in interest of deceased partners treated as partners until liquidation Section 761(d) is amended by adding at the end the following: For purposes of this subchapter, any retired partner or a deceased partner’s successor in interest shall be treated as a partner until the complete liquidation of such interest. (3) Conforming amendment (A) Section 357(c)(3)(A) is amended by striking payment of which either— and all that follows through then, for purposes of and inserting payment of which would give rise to a deduction, then, for purposes of . (B) Section 731(d) is amended— (i) by striking section 736 (relating to payments to a retiring partner or a deceased partner’s successor in interest), , and (ii) by striking items), and and inserting items) and . (C) Section 751(b)(2) is amended— (i) by striking subparagraph (B), and (ii) by striking shall not apply to— and all that follows through a distribution of property and inserting the following: shall not apply to a distribution of property . (D) (i) Section 753 is amended by striking The amount includible and all that follows and inserting For treatment of income in respect of a decedent, see section 691. (ii) Section 691 is amended by striking subsection (e). (4) Effective date The amendments made by this subsection shall apply to partners retiring or dying after December 31, 2014. 3612. Mandatory adjustments to basis of partnership property in case of transfer of partnership interests (a) In general Section 743 is amended— (1) by striking subsections (a), (c), (d), (e), and (f) and by redesignating subsection (b) as subsection (a), (2) in subsection (a) (as so redesignated) by striking with respect to which the election provided in section 754 is in effect or which has a substantial built-in loss immediately after such transfer , and (3) by adding at the end the following new subsection: (b) Allocation of basis (1) General rule Any increase or decrease in the adjusted basis of partnership property under subsection (a) shall, except as provided in paragraph (2), be allocated— (A) in a manner which has the effect of reducing the difference between the fair market value and the adjusted basis of partnership properties, or (B) in any other manner permitted by regulations prescribed by the Secretary. (2) Special rule In applying the allocation rules provided in paragraph (1), increases or decreases in the adjusted basis of partnership property arising from a transfer of an interest attributable to property consisting of— (A) capital assets and property described in section 1231(b), or (B) any other property of the partnership, shall be allocated to partnership property of a like character except that the basis of any such partnership property shall not be reduced below zero. . (b) Conforming amendments (1) Section 704(c)(1) is amended— (A) by adding and at the end of subparagraph (A), (B) by striking , and at the end of subparagraph (B) and inserting a period, and (C) by striking all that follows subparagraph (B). (2) Section 732 is amended by striking subsection (d) and by redesignating subsections (e) and (f) as subsections (d) and (e), respectively. (3) Section 761(e)(2) is amended by striking optional . (4) Section 6031 is amended by striking subsection (f). (5) The heading for section 743 is amended to read as follows: Adjustment to basis of partnership property. (6) The heading for subsection (a) (as redesignated by the preceding provisions of this Act) of section 743 is amended by striking Adjustment to basis of partnership property and inserting In general . (c) Effective date The amendments made by this section shall apply to transfers after December 31, 2014. 3613. Mandatory adjustments to basis of undistributed partnership property (a) In general Section 734 is amended to read as follows: 734. Adjustment to basis of undistributed partnership property (a) In general In the case of any distribution to a partner, the partnership shall adjust the basis of partnership property such that each remaining partner’s net liquidation amount immediately after such distribution is equal to such partner’s net liquidation amount immediately before such distribution. (b) Distributions other than in liquidation of a partner’s interest In the case of any distribution to a partner other than in liquidation of such partner’s interest, proper adjustment shall be made under subsection (a) with respect to such partner to take into account— (1) the amount of any gain recognized by such partner with respect to such distribution under section 731(a), and (2) the amount of any gain or loss which would be recognized by such partner if such partner sold the property distributed at fair market value immediately after such distribution. (c) Net liquidation amount For purposes of this section, the term net liquidation amount means, with respect to any partner, the net amount of gain or loss (if any) which would be taken into account by the partner under section 702 if the partnership sold all of its assets at fair market value (and no other amounts were taken into account under such section). (d) Allocation of basis (1) Decreases in basis Any decrease in the adjusted basis of partnership property which is required under this section— (A) shall be made in accordance with paragraph (3) of section 732(c), and (B) shall be made first with respect to property other than unrealized receivables (as defined in section 751(c)) and inventory (as defined in section 751(d)) to the extent thereof. If any such decrease is prevented by the absence of sufficient adjusted basis of partnership property, each partner shall recognize gain in the amount of such partner’s distributive share of such prevented decrease. Such gain shall be treated as gain from the sale of the partner’s partnership interest. (2) Increases in basis Any increase in the adjusted basis of partnership property which is required under this section— (A) shall be made in accordance with paragraph (2) of section 732(c), and (B) shall be made only with respect to property other than unrealized receivables (as defined in section 751(c)) and inventory (as defined in section 751(d)). If any such increase is prevented by the absence of property described in subparagraph (B), each partners shall recognize a loss in the amount of such partner’s distributive share of such prevented increase. Such loss shall be treated as a loss from the sale of the partner’s partnership interest. (e) No allocation of basis decrease to stock of corporate partner In making an allocation under subsection (d) of any decrease in the adjusted basis of partnership property required under subsection (a)— (1) no allocation may be made to stock in a corporation (or any person related (within the meaning of section 267(b) or 707(b)(1)) to such corporation) which is a partner in the partnership, and (2) any amount not allocable to stock by reason of paragraph (1) shall be allocated under subsection (d) to other partnership property. Gain shall be recognized by the partnership to the extent that the amount required to be allocated to other partnership property under subsection (e)(2) exceeds the aggregate adjusted basis of such other property immediately before the allocation required by subsection (a). . (b) Conforming amendments (1) (A) Subpart D of part II of subchapter K of chapter 1 is amended by striking sections 754 and 755 (and by striking items relating to such sections in the table of sections of such subpart). (B) Clause (ii) of section 706(d)(2)(D) is amended by striking section 755 and inserting section 743(b) . (2) Subsection (d) of section 1060 is amended— (A) by striking section 755 in paragraph (1) and inserting sections 734 and 743 , and (B) by striking section 755 in paragraph (2) and inserting section 734 or 743 . (c) Effective date The amendments made by this section shall apply to distributions after December 31, 2014. 3614. Corresponding adjustments to basis of properties held by partnership where partnership basis adjusted (a) In general Subpart B of part II of subchapter K of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after section 735 the following new section: 736. Corresponding adjustment to basis of properties held by lower-tier partnership in case of upper-tier partnership basis adjustments (a) Distributions by upper-Tier partnership In the case of any distribution of property to a partner by an upper-tier partnership, if such distribution results in an adjustment in the upper-tier partnership’s adjusted basis in an interest in a lower-tier partnership under section 734, then such lower-tier partnership shall make a corresponding adjustment to the adjusted basis of its partnership property. (b) Distributions of interests in lower-Tier partnership In the case of any distribution of an interest in a lower-tier partnership by an upper-tier partnership— (1) if the adjusted basis of such interest in the hands of the upper-tier partnership (determined immediately before such distribution) exceeds the adjusted basis of such interest in the hands of the distributee partner (determined immediately after such distribution), then such lower-tier partnership shall decrease the adjusted basis of its partnership property by the amount of such excess, or (2) if the adjusted basis of such interest in the hands of the distributee partner (determined immediately after such distribution) exceeds the adjusted basis of such interest in the hands of the upper-tier partnership (determined immediately before such distribution), then such lower-tier partnership shall increase the adjusted basis of its partnership property by the amount of such excess. (c) Dispositions of interests in upper-Tier partnership In the case of a disposition of an interest in an upper-tier partnership which holds an interest in a lower-tier partnership, if there is an adjustment to the adjusted basis of the lower-tier partnership under section 743, then such lower-tier partnership shall make a corresponding adjustment to the adjusted basis of its partnership property. (d) Multi-Tiered partnerships In the case of any adjustment under subsection (a), (b), or (c) in the adjusted basis of an interest in another partnership, such other partnership shall make a corresponding adjustment in the adjusted basis of its partnership property. (e) Allocation of basis; recognition of gain In the case of any adjustment in the adjusted basis of partnership property— (1) under subsection (a), (b), (c), or (d), such adjustment shall be made only with respect to the upper-tier partnership’s proportionate share (as determined under section 743(a)) of the adjusted basis of the lower-tier partnership’s property, (2) under subsection (a) or (b) (or so much of subsection (d) as relates to either such subsection), rules similar to the rules of section 734(d) shall apply, and (3) under subsection (c) (or so much of subsection (d) as relates to such subsection), rules similar to the rules of section 743(b) shall apply. (f) Reporting In the case of any adjustment in the adjusted basis of partnership property by a lower-tier partnership under this section by reason of a distribution by, or a disposition of an interest in, an upper-tier partnership, such upper-tier partnership shall furnish (in such manner as the Secretary shall prescribe) to such lower-tier partnership such information as is necessary to enable such lower-tier partnership to make such adjustment. (g) Upper- and lower-Tier partnerships For purposes of this section— (1) Upper-tier partnership The term upper-tier partnership means a partnership owning an interest in another partnership. (2) Lower-tier partnership The term lower-tier partnership means the partnership referred to in paragraph (1) an interest in which is owned by the upper-tier partnership. . (b) Effective dates The amendments made by this section shall apply to distributions and transfers after December 31, 2014. 3615. Charitable contributions and foreign taxes taken into account in determining limitation on allowance of partner’s share of loss (a) In general Subsection (d) of section 704 is amended— (1) by striking A partner’s distributive share and inserting the following: (1) In general A partner’s distributive share , (2) by striking Any excess of such loss and inserting the following: (2) Carryover Any excess of such loss , and (3) by adding at the end the following new paragraph: (3) Special rules In determining the amount of any loss under paragraph (1), there shall be taken into account as a deduction the partner’s distributive share of— (A) the adjusted basis of charitable contributions described in paragraph (4) of section 702(a), and (B) the amount of taxes described in paragraph (6) of such section. . (b) Effective date The amendments made by this section shall apply to partnership taxable years beginning after December 31, 2014. 3616. Revisions related to unrealized receivables and inventory items (a) Repeal of requirement that inventory be substantially appreciated in certain partnership distributions treated as sale or exchange (1) In general Clause (ii) of section 751(b)(1)(A) is amended by striking which have appreciated substantially in value . (2) Conforming amendment Section 751(b) is amended by striking paragraph (3). (3) Effective date The amendments made by this subsection shall apply to distributions after December 31, 2014. (b) Revision of regulations relating to treatment of unrealized receivables and inventory items The Secretary of the Treasury shall revise regulations issued under section 751(b) of the Internal Revenue Code of 1986 to take into account the partner’s share of income and gain rather than the partner’s share of partnership assets. (c) Simplification of definition of unrealized receivables (1) In general Section 751(c) is amended by striking all that follows paragraph (2) and inserting the following: For purposes of this section and sections 731, 732, 734, and 741, such term also includes any property other than inventory items, but only to the extent of the amount which would be treated as ordinary income if (at the time of the transaction described in the applicable section) such property had been sold by the partnership for its fair market value. . (2) Effective date The amendment made by this subsection shall apply to partnership taxable years beginning after December 31, 2014. 3617. Repeal of time limitation on taxing precontribution gain (a) In general Subparagraph (B) of section 704(c)(1) is amended by striking within 7 years of being contributed . (b) Conforming amendment Paragraph (1) of section 737(b) is amended by striking within 7 years of the distribution . (c) Effective date The amendments made by this section shall apply to property contributed to a partnership after December 31, 2014. 3618. Partnership interests created by gift (a) In general Section 761(b) is amended by adding at the end the following: In the case of a capital interest in a partnership in which capital is a material income-producing factor, whether a person is a partner with respect to such interest shall be determined without regard to whether such interest was derived by gift from any other person. . (b) Conforming amendments Section 704(e) is amended— (1) by striking paragraph (1) and by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively, (2) by striking this section in paragraph (2) (as so redesignated) and inserting this subsection , and (3) by striking Family partnerships in the heading and inserting Partnership interests created by gift . (c) Effective date The amendments made by this section shall apply to partnership taxable years beginning after December 31, 2014. 3619. Repeal of technical termination (a) In general Paragraph (1) of section 708(b) is amended— (1) by striking , or and all that follows and inserting a period, and (2) by striking only if— and all that follows through no part of any business and inserting the following: only if no part of any business . (b) Effective date The amendments made by this section shall apply to partnership taxable years beginning after December 31, 2014. 3620. Publicly traded partnership exception restricted to mining and natural resources partnerships (a) In general Subsection (d) of section 7704 is amended to read as follows: (d) Qualifying income For purposes of this section, the term qualifying income means— (1) income and gains derived from the exploration, development, mining or production, processing, refining, transportation (including pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resource (including geothermal energy and excluding fertilizer and timber) or industrial source carbon dioxide, and (2) any gain from the sale or disposition of a capital asset (or property described in section 1231(b)) held for the production of income described in paragraph (1). For purposes of this subsection, the term mineral or natural resource means any product of a character with respect to which a deduction for depletion is allowable under section 611 (other than minerals from sea water or the air (or similar inexhaustible sources), soil, sod, dirt, turf, water, or mosses). . (b) Conforming amendments Section 988(c)(1)(E) is amended— (1) by striking income or gains described in subparagraph (A), (B), or (G) of section 7704(d)(1) in clause (iii)(III) and inserting qualifying income or gains , (2) by striking subclause (III) of clause (vi) and by redesignating subclause (IV) as subclause (III), (3) by redesignating clause (vi) (as amended by this subparagraph) as clause (viii), and (4) by inserting after clause (v) the following new clauses: (vi) Qualifying income or gains The term qualifying income or gains means— (I) interest, (II) dividends, and (III) in the case of a partnership described in the second sentence of section 7704(c)(3), income and gains from commodities (not described in section 1221(a)(1)) or futures, forwards, and options with respect to commodities. (vii) Inadvertent terminations If— (I) A partnership fails to meet the gross income requirements of this subparagraph, (II) the Secretary determines that such failure was inadvertent, (III) no later than a reasonable time after the discovery of such failure, steps are taken so that such partnership once more meets such gross income requirements, and (IV) such partnership agrees to make such adjustments (including adjustments with respect to the partners) or to pay such amounts as may be required by the Secretary with respect to such period, then, notwithstanding such failure, such entity shall be treated as continuing to meet such gross income requirements for such period. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2016. 3621. Ordinary income treatment in the case of partnership interests held in connection with performance of services (a) In general Part IV of subchapter O of chapter 1 is amended— (1) by redesignating section 1061 as section 1062, and (2) by inserting after section 1060 the following new section: 1061. Partnership interests held in connection with performance of services (a) In general If one or more applicable partnership interests are held by a taxpayer at any time during the taxable year, so much of— (1) the taxpayer’s net capital gain with respect to such interests for such taxable year, as does not exceed (2) the taxpayer’s recharacterization account balance for such taxable year, shall be treated as ordinary income. (b) Net capital gain (1) In general For purposes of subsection (a)(1), net capital gain shall be determined under section 1222, except that such section shall be applied— (A) without regard to the recharacterization of any item as ordinary income under this section, (B) by only taking into account items of gain and loss— (i) taken into account by the taxpayer under section 702 with respect to any applicable partnership interest, (ii) recognized by the taxpayer on the disposition of any such interest, or (iii) recognized by the taxpayer under paragraph (4) on a distribution of property with respect to such interest, and (C) in the case of a taxable year for which section 1231 gains (as defined in section 1231(a)(3)(A)) exceed section 1231 losses (as defined in section 1231(a)(3)(B)), by treating property which is taken into account in determining such gains and losses as capital assets held for more than 1 year. (2) Allocation to items of gain The amount treated as ordinary income under subsection (a) shall be allocated ratably among the items of long-term capital gain taken into account in determining net capital gain under paragraph (1). (3) Recognition of gain on disposition of applicable partnership interests Any gain on the disposition of any applicable partnership interest shall be recognized notwithstanding any other provision of this title. (4) Recognition of gain on distributions of partnership property (A) In general In the case of any distribution of property by a partnership with respect to any applicable partnership interest, the partner receiving such property shall recognize gain equal to the excess (if any) of— (i) the fair market value of such property at the time of such distribution, over (ii) the adjusted basis of such property in the hands of such partner (determined without regard to subparagraph (B)). (B) Adjustment of basis In the case of a distribution to which subparagraph (A) applies, the basis of the distributed property in the hands of the distributee partner shall be the amount determined under subparagraph (A)(i). (c) Recharacterization account balance (1) In general For purposes of this section, the term recharacterization account balance means, with respect to any taxpayer for any taxable year, the excess (if any) of— (A) the sum of— (i) the taxpayer’s aggregate annual recharacterization amounts with respect to applicable partnership interests for such taxable year, plus (ii) the taxpayer’s recharacterization account balance for the taxable year preceding such taxable year, over (B) the sum of— (i) the taxpayer’s net ordinary income with respect to applicable partnership interests for such taxable year (determined without regard to this section), plus (ii) the amount treated as ordinary income of the taxpayer under this section for the taxable year preceding such taxable year. (2) Annual recharacterization amount For purposes of this subsection— (A) In general The term annual recharacterization amount means, with respect to any applicable partnership interest for any partnership taxable year, an amount equal to the product of— (i) the specified rate determined under subparagraph (B) for the calendar year in which such taxable year begins, multiplied by (ii) the excess (if any) of— (I) an amount equal to the applicable percentage of the partnership’s aggregate invested capital for such taxable year, over (II) the specified capital contribution of the partner with respect to the applicable partnership interest for such taxable year. If a taxpayer holds an applicable partnership interest for less than the entire taxable year, the amount determined under the preceding sentence shall be ratably reduced. (B) Specified rate For purposes of subparagraph (A), the term specified rate means, with respect to any calendar year, a percentage equal to— (i) the Federal long-term rate determined under section 1274(d)(1) for the last month of the calendar year, plus (ii) 10 percentage points. (C) Applicable percentage (i) In general The term applicable percentage means, with respect to any applicable partnership interest, the highest percentage of profits of the partnership that could be allocated with respect to such interest for the taxable year (consistent with the partnership agreement and assuming such facts and circumstances with respect to such taxable year as would result in such highest percentage). (ii) Secretarial authority The Secretary shall prescribe rules for the determination of the applicable percentage in cases in which the percentage of profits of a partnership that are to be allocated with respect to an applicable partnership interest varies on the basis of the aggregate amount of such profits. Such rules may provide a percentage which may be used in lieu of the highest percentage determined under clause (i) in cases where such other percentage is consistent with the purposes of this section. (D) Aggregate invested capital (i) In general The term aggregate invested capital means, with respect to any taxable year, the average daily amount of invested capital of the partnership for such taxable year. (ii) Invested capital The term invested capital means, with respect to any partnership as of any day, the total cumulative value, determined at the time of contribution, of all money or other property contributed to the partnership on or before such day. (iii) Reduction for liquidation of partnership interests The invested capital of a partnership shall be reduced by the aggregate amount distributed in liquidation of interests in the partnership. (iv) Treatment of certain indebtedness as invested capital The following amounts shall be treated as invested capital: (I) Partner loans The aggregate value (determined as of the time of the loan) of money or other property which a partner loans to the partnership. (II) Indebtedness eligible to share in equity of the partnership The face amount of any convertible debt of the partnership or any debt obligation providing equity participation in the partnership. (E) Specified capital contribution (i) In general The term specified capital contribution means, with respect to any applicable partnership interest for any taxable year, the average daily amount of contributed capital with respect to such interest for such year. (ii) Contributed capital The term contributed capital means, with respect to applicable partnership interest as of any day, the excess (if any) of— (I) the total cumulative value, determined at the time of contribution, of all money or other property contributed by the partner to the partnership with respect to such interest as of such day, over (II) the total cumulative value, determined at the time of distribution, of all money or other property distributed by the partnership to the partner with respect to such interest as of such day. (iii) Treatment of related party borrowings Any amount borrowed directly or indirectly from the partnership or any other partner of the partnership or any person related to such other partner or such partnership shall not be taken into account under this subparagraph. For purposes of the preceding sentence, a person shall be treated as related to another person if the relationship between such persons would be described in section 267(b) or 707(b) if such sections and section 267(f) were applied by substituting 10 percent for 50 percent each place it appears. (F) Multiple interests If at any time during a taxable year a taxpayer holds directly or indirectly more than 1 applicable partnership interest in a single partnership, such interests shall be treated as 1 applicable partnership interest for purposes of applying this paragraph. (3) Net ordinary income For purposes of this subsection, the net ordinary income with respect to applicable partnership interests for any taxable year is the excess (if any) of— (A) the taxpayer’s distributive share of items of income and gain under section 702 with respect to applicable partnership interests for such taxable year (determined without regard to any items of gain taken into account in determining net capital gain under subsection (b)(1)), over (B) the taxpayer’s distributive share of items of deduction and loss under section 702 with respect to such interests for such taxable year (determined without regard to any items of loss taken into account in determining net capital gain under subsection (b)(1)). (d) Applicable partnership interest For purposes of this section— (1) In general The term applicable partnership interest means any interest in a partnership which, directly or indirectly, is transferred to (or is held by) the taxpayer in connection with the performance of services by the taxpayer, or any other person, in any applicable trade or business. (2) Applicable trade or business (A) In general The term applicable trade or business means any trade or business conducted on a regular, continuous, and substantial basis which, regardless of whether the activities are conducted in one or more entities, consists, in whole or in part, of— (i) raising or returning capital, (ii) investing in (or disposing of) trades or businesses (or identifying trades or businesses for such investing or disposition), and (iii) developing such trades or businesses. (B) Treatment of research and experimentation activities Any activity involving research or experimentation (within the meaning of section 469(c)(4)) shall be treated as a trade or business for purposes of clauses (ii) and (iii) of subparagraph (A). (e) Transfer of applicable partnership interest to related person (1) In general If a taxpayer transfers any applicable partnership interest, directly or indirectly, to a person related to the taxpayer, the taxpayer shall include in gross income (as ordinary income) so much of the taxpayer’s recharacterization account balance for such taxable year as is allocable to such interest (determined in such manner as the Secretary may provide and reduced by any amount treated as ordinary income under subsection (a) with respect to the transfer of such interest). (2) Related person For purposes of this paragraph, a person is related to the taxpayer if— (A) the person is a member of the taxpayer’s family within the meaning of section 318(a)(1), or (B) the person performed a service within the current calendar year or the preceding three calendar years in any applicable trade or business in which or for which the taxpayer performed a service. (f) Reporting by entity of taxpayer’s annual recharacterization amount A partnership shall report to the Secretary, and include with the information required to be furnished under section 6031(b) to each partner, the amount of the partner’s annual recharacterization amount for the taxable year, if any. A similar rule applies to any entity that receives a report of an annual recharacterization amount for the taxable year. (g) Regulations The Secretary shall issue such regulations or other guidance as necessary to carry out this section, including regulations— (1) to prevent the abuse of the purposes of this section, including through— (A) the allocation of income to tax indifferent parties, or (B) a reduction in the invested capital of the partnership (including attempts to undervalue contributed or loaned property), (2) which provide that partnership interests shall not fail to be treated as transferred or held in connection with the performance of services merely because the taxpayer also made contributions to the partnership, (3) which provide for the application of this section in cases where the taxpayer has more than 1 applicable interest in a partnership, and (4) which provide for the application of this section in cases of tiered structures of entities. . (b) Coordination with section 83 Subsection (e) of section 83 is amended by striking or at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting , or , and by adding at the end the following new paragraph: (6) a transfer of a partnership interest to which section 1061 applies. . (c) Clerical amendment The table of sections for part IV of subchapter O of chapter 1 is amended by striking the item relating to 1061 and inserting the following new items: Sec. 1061. Partnership interests held in connection with performance of services. Sec. 1062. Cross references. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3622. Partnership audits and adjustments (a) Repeal of TEFRA partnership audit rules Chapter 63 is amended by striking subchapter C (and by striking the item relating to such subchapter in the table of subchapters for such chapter). (b) Repeal of electing large partnership rules (1) In general Subchapter K of chapter 1 is amended by striking part IV (and by striking the item relating to such part in the table of parts for such subchapter). (2) Assessment rules relating to electing large partnerships Chapter 63 is amended by striking subchapter D (and by striking the item relating to such subchapter in the table of subchapters for such chapter). (3) Effective date The amendments made by this section shall apply to returns filed after December 31, 2014. (c) Partnership audit reform (1) In general Chapter 63, as amended by the preceding provisions of this Act, is amended by inserting after subchapter B the following new subchapter: C Treatment of partnerships Part I—In general Part II—Partnership adjustments Part III—Procedure Part IV—Definitions and special rules I In general Sec. 6221. Determination at partnership level. Sec. 6222. Partner’s return must be consistent with partnership return. Sec. 6223. Designation of partnership representative. 6221. Determination at partnership level (a) In general Items of income, gain, loss, deduction, or credit of a partnership for a partnership taxable year (and any partner’s distributive share thereof) shall be audited, any tax attributable thereto shall be assessed and collected, and the applicability of any penalty, addition to tax, or additional amount which relates to an adjustment to any such item or share shall be determined, at the partnership level pursuant to this subchapter. (b) Election out for certain partnerships with 100 or fewer partners This subchapter shall not apply with respect to any partnership for any taxable year if— (1) the partnership elects the application of this subsection for such taxable year, (2) the partnership has 100 or fewer partners on the last day of such taxable year, (3) each of the partners of such partnership is an individual, a C corporation (other than a real estate investment trust or a regulated investment company), any foreign entity that would be treated as a C corporation were it domestic, or an estate of a deceased partner, (4) the election— (A) is made with a timely filed return for such taxable year, and (B) includes (in the manner prescribed by the Secretary) a disclosure of the name and taxpayer identification number of each partner of such partnership, and (5) the partnership notifies each such partner of such election in the manner prescribed by the Secretary. For purposes of paragraph (4)(B), the Secretary may provide for alternative identification of any foreign partners. 6222. Partner’s return must be consistent with partnership return (a) In general A partner of any partnership shall, on the partner’s return, treat each item of income, gain, loss, deduction, or credit attributable to such partnership in a manner which is consistent with the treatment of such income, gain, loss, deduction, or credit on the partnership return. (b) Underpayment due to inconsistent treatment assessed as math error Any underpayment of tax by a partner by reason of failing to comply with the requirements of subsection (a) shall be assessed and collected in the same manner as if such underpayment were on account of a mathematical or clerical error appearing on the partner’s return. Paragraph (2) of section 6213(b) shall not apply to any assessment of an underpayment referred to in the preceding sentence. (c) Addition to tax for failure To comply with section For addition to tax in the case of partner’s disregard of the requirements of this section, see part II of subchapter A of chapter 68. 6223. Partners bound by actions of partnership (a) Designation of partner Each partnership shall designate (in the manner prescribed by the Secretary) a partner (or other person) as the partnership representative who shall have the sole authority to act on behalf of the partnership under this subchapter. In any case in which such a designation is not in effect, the Secretary may select any partner as the partnership representative. (b) Binding effect A partnership and all partners of such partnership shall be bound— (1) by actions taken under this subchapter by the partnership, and (2) by any decision in a proceeding brought under this subchapter. II Partnership adjustments Sec. 6225. Partnership adjustment by Secretary. Sec. 6226. Administrative adjustment request by partnership. 6225. Partnership adjustment by Secretary (a) In general In the case of any adjustment by the Secretary in the amount of any item of income, gain, loss, deduction, or credit of a partnership, or any partner’s distributive share thereof— (1) the partnership shall pay any imputed underpayment with respect to such adjustment in the adjustment year as provided in section 6232, and (2) any imputed overpayment shall be taken into account by the partnership in the adjustment year as a reduction in non-separately stated income or an increase in non-separately stated loss (whichever is appropriate) under section 702(a)(8). (b) Determination of imputed underpayments and overpayments For purposes of this subchapter— (1) In general Except as provided in subsection (c), any imputed underpayment or imputed overpayment with respect to any partnership adjustment for any reviewed year shall be determined— (A) by netting all adjustments of items of income, gain, loss, or deduction and multiplying such net amount by the highest rate of tax in effect for the reviewed year under section 1 or 11, (B) by treating any net increase or decrease in loss under subparagraph (A) as a decrease or increase, respectively, in income, and (C) by taking into account any adjustments to items of credit as an increase or decrease, as the case may be, in the amount determined under subparagraph (A). (2) Adjustments to distributive shares of partners not netted In the case of any adjustment which reallocates the distributive share of any item from one partner to another, such adjustment shall be taken into account under paragraph (1) by disregarding— (A) any decrease in any item of income or gain, and (B) any increase in any item of deduction, loss, or credit. (c) Modification of imputed underpayments (1) Method in general The Secretary shall establish procedures under which the imputed underpayment amount may be modified consistent with the requirements of this subsection. (2) Amended returns of partners Such procedures shall provide that if— (A) one or more partners file returns for the taxable year of the partners which includes the end of the reviewed year of the partnership, (B) such returns take into account all adjustments under subsection (a) properly allocable to such partners (and for any other taxable year with respect to which any tax attribute is affected by reason of such adjustments), and (C) payment of any tax due is included with such return, then the imputed underpayment amount shall be determined without regard to the portion of the adjustments so taken into account. (3) Reallocation of distributive share In the case of any adjustment which reallocates the distributive share of any item from one partner to another, paragraph (2) shall apply only if returns are filed by all partners affected by such adjustment. (4) Year and day for submission to Secretary Anything required to be submitted pursuant to paragraph (1) shall be submitted to the Secretary not later than the close the 180-day period beginning on the date on which the notice of a proposed partnership adjustment is mailed under section 6231 unless such period is extended with the consent of the Secretary. (5) Decision of Secretary Any modification of the imputed underpayment amount under this subsection shall be made only upon approval of such modification by the Secretary. (d) Definitions and special rule For purposes of this subchapter— (1) Reviewed year The term reviewed year means the partnership taxable year to which the item being adjusted relates. (2) Adjustment year The term adjustment year means the partnership taxable year in which— (A) in the case of an adjustment pursuant to the decision of a court in a proceeding brought under section 6234, such decision becomes final, (B) in the case of an administrative adjustment request under section 6226, such administrative adjustment request is made, or (C) in any other case, notice of the final partnership adjustment is mailed under section 6231. 6226. Administrative adjustment request by partnership (a) In general A partnership may file a request for an administrative adjustment in the amount of any item of income, gain, loss, deduction, or credit of the partnership for any partnership taxable year, but only to the extent such adjustment results in an imputed underpayment. (b) Adjustment Any adjustment under subsection (a) shall be determined and taken into account by the partnership under rules similar to the rules of section 6225 (other than subsection (c) thereof) for the partnership taxable year in which the administrative adjustment request is made. (c) Period of limitations A partnership may not file such a request— (1) more than 3 years after the later of— (A) the date on which the partnership return for such year is filed, or (B) the last day for filing the partnership return for such year (determined without regard to extensions), and (2) after any notice of an administrative proceeding with respect to the taxable year is mailed under section 6231. III Procedure Sec. 6231. Notice of proceedings and adjustment. Sec. 6232. Assessment, collection, and payment. Sec. 6233. Penalties and interest. Sec. 6234. Judicial review of partnership adjustment. Sec. 6235. Period of limitations on making adjustments. 6231. Notice of proceedings and adjustment (a) In general The Secretary shall mail to the partnership and the partnership representative— (1) notice of any administrative proceeding initiated at the partnership level with respect to an adjustment of any item of income, gain, loss, deduction, or credit of a partnership for a partnership taxable year, or any partner’s distributive share thereof, (2) notice of any proposed partnership adjustment resulting from such proceeding, and (3) notice of any final partnership adjustment resulting from such proceeding. Any notice of a final partnership adjustment shall not be mailed earlier than 180 days after the date on which the notice of the proposed partnership adjustment is mailed. Such notices shall be sufficient if mailed to the last known address of the partnership representative or the partnership (even if the partnership has terminated its existence). The first sentence shall apply to any proceeding with respect to an administrative adjustment request filed by a partnership under section 6226. (b) Further notices restricted If the Secretary mails a notice of a final partnership adjustment to any partnership for any partnership taxable year and the partnership files a petition under section 6234 with respect to such notice, in the absence of a showing of fraud, malfeasance, or misrepresentation of a material fact, the Secretary shall not mail another such notice to such partnership with respect to such taxable year. (c) Authority To rescind notice with partnership consent The Secretary may, with the consent of the partnership, rescind any notice of a partnership adjustment mailed to such partnership. Any notice so rescinded shall not be treated as a notice of a partnership adjustment for purposes of this subchapter, and the taxpayer shall have no right to bring a proceeding under section 6234 with respect to such notice. 6232. Assessment, collection, and payment (a) In general Any imputed underpayment— (1) shall be assessed and collected in the same manner as if it were a tax imposed for the adjustment year by subtitle A, and (2) shall be paid on or before the return due date for the adjustment year. (b) Limitation on assessment Except as otherwise provided in this chapter, no assessment of a deficiency may be made (and no levy or proceeding in any court for the collection of any amount resulting from such adjustment may be made, begun or prosecuted) before— (1) the close of the 90th day after the day on which a notice of a final partnership adjustment was mailed, and (2) if a petition is filed under section 6234 with respect to such notice, the decision of the court has become final. (c) Premature action may be enjoined Notwithstanding section 7421(a), any action which violates subsection (b) may be enjoined in the proper court, including the Tax Court. The Tax Court shall have no jurisdiction to enjoin any action under this subsection unless a timely petition has been filed under section 6234 and then only in respect of the adjustments that are the subject of such petition. (d) Exceptions to restrictions on adjustments (1) Adjustments arising out of math or clerical errors (A) In general If the partnership is notified that, on account of a mathematical or clerical error appearing on the partnership return, an adjustment to a partnership item is required, rules similar to the rules of paragraphs (1) and (2) of section 6213(b) shall apply to such adjustment. (B) Special rule If a partnership is a partner in another partnership, any adjustment on account of such partnership’s failure to comply with the requirements of section 6222(a) with respect to its interest in such other partnership shall be treated as an adjustment referred to in subparagraph (A), except that paragraph (2) of section 6213(b) shall not apply to such adjustment. (2) Partnership may waive restrictions The partnership may at any time (whether or not any notice of partnership adjustment has been issued), by a signed notice in writing filed with the Secretary, waive the restrictions provided in subsection (b) on the making of any partnership adjustment. (e) Limit where no proceeding begun If no proceeding under section 6234 is begun with respect to any notice of a final partnership adjustment during the 90-day period described in subsection (b) thereof, the amount for which the partnership is liable under section 6225 shall not exceed the amount determined in accordance with such notice. 6233. Penalties and interest (a) Penalties and interest determined from reviewed year (1) In general In the case of an imputed underpayment with respect to a partnership adjustment for a reviewed year, the partnership— (A) shall pay to the Secretary interest computed under paragraph (2), and (B) shall be liable for any penalty, addition to tax, or additional amount as provided in paragraph (3). (2) Determination of amount of interest The interest computed under this paragraph with respect to any partnership adjustment is the interest which would be determined under chapter 67— (A) on the imputed underpayment determined with respect to such adjustment, (B) for the period beginning on the day after the return due date for the reviewed year and ending on the return due date for the adjustment year (or, if earlier, the date payment of the imputed underpayment is made). Proper adjustments in the amount determined under the preceding sentence shall be made for adjustments required for partnership taxable years after the reviewed year and before the adjustment year by reason of such partnership adjustment. (3) Penalties A partnership shall be liable for any penalty, addition to tax, or additional amount for which it would have been liable if such partnership had been an individual subject to tax under chapter 1 for the reviewed year and the imputed underpayment were an actual underpayment (or understatement) for such year. (b) Interest and penalties with respect to adjustment year return (1) In general In the case of any failure to pay an imputed underpayment on the date prescribed therefor, the partnership shall be liable— (A) for interest as determined under paragraph (2), and (B) for any penalty, addition to tax, or additional amount as determined under paragraph (3). (2) Interest Interest determined under this paragraph is the interest that would be determined by treating the imputed underpayment as an underpayment of tax imposed in the adjustment year. (3) Penalties Penalties, additions to tax, or additional amounts determined under this paragraph are the penalties, additions to tax, or additional amounts that would be determined— (A) by applying section 6651(a)(2) to such failure to pay. (B) by treating the imputed underpayment as an underpayment of tax for purposes of part II of subchapter A of chapter 68. 6234. Judicial review of partnership adjustment (a) In general Within 90 days after the date on which a notice of a final partnership adjustment is mailed under section 6231 with respect to any partnership taxable year, the partnership may file a petition for a readjustment for such taxable year with— (1) the Tax Court, (2) the district court of the United States for the district in which the partnership’s principal place of business is located, or (3) the Claims Court. (b) Jurisdictional requirement for bringing action in district court or Claims Court (1) In general A readjustment petition under this section may be filed in a district court of the United States or the Claims Court only if the partnership filing the petition deposits with the Secretary, on or before the date the petition is filed, the amount of the imputed underpayment (as of the date of the filing of the petition) if the partnership adjustment was made as provided by the notice of final partnership adjustment. The court may by order provide that the jurisdictional requirements of this paragraph are satisfied where there has been a good faith attempt to satisfy such requirement and any shortfall of the amount required to be deposited is timely corrected. (2) Interest payable Any amount deposited under paragraph (1), while deposited, shall not be treated as a payment of tax for purposes of this title (other than chapter 67). (c) Scope of judicial review A court with which a petition is filed in accordance with this section shall have jurisdiction to determine all items of income, gain, loss, deduction, or credit of the partnership for the partnership taxable year to which the notice of final partnership adjustment relates, the proper allocation of such items among the partners, and the applicability of any penalty, addition to tax, or additional amount for which the partnership may be liable under this subchapter. (d) Determination of court reviewable Any determination by a court under this section shall have the force and effect of a decision of the Tax Court or a final judgment or decree of the district court or the Claims Court, as the case may be, and shall be reviewable as such. The date of any such determination shall be treated as being the date of the court’s order entering the decision. (e) Effect of decision dismissing action If an action brought under this section is dismissed other than by reason of a rescission under section 6231(c), the decision of the court dismissing the action shall be considered as its decision that the notice of final partnership adjustment is correct, and an appropriate order shall be entered in the records of the court. 6235. Period of limitations on making adjustments (a) In general Except as otherwise provided in this section, no adjustment under this subpart for any partnership taxable year may be made after the date which is 3 years after the latest of— (1) the date on which the partnership return for such taxable year was filed, (2) the return due date for the taxable year, or (3) the date on which the partnership filed an administrative adjustment request with respect to such year under section 6226. (b) Extension by agreement The period described in subsection (a) (including an extension period under this subsection) may be extended by an agreement entered into by the Secretary and the partnership before the expiration of such period. (c) Special rule in case of fraud, etc (1) False return In the case of a false or fraudulent partnership return with intent to evade tax, the adjustment may be made at any time. (2) Substantial omission of income If any partnership omits from gross income an amount properly includible therein and such amount is described in section 6501(e)(1)(A), subsection (a) shall be applied by substituting 6 years for 3 years . (3) No return In the case of a failure by a partnership to file a return for any taxable year, the adjustment may be made at any time. (4) Return filed by Secretary For purposes of this section, a return executed by the Secretary under subsection (b) of section 6020 on behalf of the partnership shall not be treated as a return of the partnership. (d) Suspension when Secretary mails notice of adjustment If notice of a final partnership adjustment with respect to any taxable year is mailed under section 6231, the running of the period specified in subsection (a) (as modified by the other provisions of this section) shall be suspended— (1) for the period during which an action may be brought under section 6234 (and, if a petition is filed under such section with respect to such notice, until the decision of the court becomes final), and (2) for 1 year thereafter. IV Definitions and special rules Sec. 6241. Definitions and special rules. 6241. Definitions and special rules (a) Definitions and special rules For purposes of this subchapter— (1) Partnership The term partnership means any partnership required to file a return under section 6031(a). (2) Partner The term partner means— (A) a partner in the partnership, and (B) any other person whose income tax liability under subtitle A is determined in whole or in part by taking into account directly or indirectly income, gain, deduction, or loss of the partnership. (b) Partnership adjustment The term partnership adjustment means any adjustment in the amount of any item of income, gain, loss, deduction, or credit of a partnership, or any partner’s distributive share thereof. (c) Return due date The term return due date means, with respect to the taxable year, the date prescribed for filing the partnership return for such taxable year (determined without regard to extensions). (d) Joint and several liability (1) In general The partnership and any partner of the partnership shall be jointly and severally liable for any imputed underpayment and any penalty, addition to tax, or additional amount attributable thereto. (2) Period for assessment of partners The period for assessment of an imputed underpayment with respect to a partner of a partnership shall not expire earlier than 3 years after the date on which an assessment of such imputed underpayment was made with respect to the partnership. (3) Determining partners A person shall be treated as partner of the partnership if such person is a partner of such partnership at any time during the reviewed or adjustment year. (e) Payments nondeductible No deduction shall be allowed under subtitle A for any payment required to be made by a partnership under this subchapter. (f) Special rule for deductions, losses, and credits of foreign partnerships Except to the extent otherwise provided in regulations, in the case of any partnership the partnership representative of which resides outside the United States or the books of which are maintained outside the United States, no deduction, loss, or credit shall be allowable to any partner unless section 6031 is complied with for the partnership’s taxable year in which such deduction, loss, or credit arose at such time as the Secretary prescribes by regulations. (g) Partnerships having principal place of business outside United States For purposes of sections 6234, a principal place of business located outside the United States shall be treated as located in the District of Columbia. (h) Partnerships in cases under title 11 of United States Code (1) Suspension of period of limitations on making adjustment, assessment, or collection The running of any period of limitations provided in this subchapter on making a partnership adjustment (or provided by section 6501 or 6502 on the assessment or collection of any imputed underpayment determined under this subchapter) shall, in a case under title 11 of the United States Code, be suspended during the period during which the Secretary is prohibited by reason of such case from making the adjustment (or assessment or collection) and— (A) for adjustment or assessment, 60 days thereafter, and (B) for collection, 6 months thereafter. A rule similar to the rule of section 6213(f)(2) shall apply for purposes of section 6232(b). (2) Suspension of period of limitation for filing for judicial review The running of the period specified in section 6234 shall, in a case under title 11 of the United States Code, be suspended during the period during which the partnership is prohibited by reason of such case from filing a petition under section 6234 and for 60 days thereafter. . (2) Clerical amendment The table of subchapters for chapter 63 is amended by inserting after the item relating to subchapter B the following new items: Subchapter C. Treatment of partnerships. . (d) Conforming amendments (1) Section 6422 is amended by striking paragraph (12). (2) Section 6501(n) is amended by striking paragraphs (2) and (3) and by striking Cross references and all that follows through For period of limitations and inserting Cross reference.— For period of limitations . (3) Section 6503(a)(1) is amended by striking (or section 6229 and all that follows through of section 6230(a)) . (4) Section 6504 is amended by striking paragraph (11). (5) Section 6511 is amended by striking subsection (g). (6) Section 6512(b)(3) is amended by striking the second sentence. (7) Section 6515 is amended by striking paragraph (6). (8) Section 6601(c) is amended by striking the last sentence. (9) Section 7421(a) is amended by striking 6225(b), 6246(b) and inserting 6232(c) . (10) Section 7422 is amended by striking subsection (h). (11) Section 7459(c) is amended by striking section 6226 and all that follows through or 6252 and inserting section 6234 . (12) Section 7482(b)(1) is amended— (A) in subparagraph (E), by striking section 6226, 6228, 6247, or 6252 and inserting section 6234 , (B) by striking subparagraph (F), by striking or at the end of subparagraph (E) and inserting a period, and by inserting or at the end of subparagraph (D), and (C) in the last sentence, by striking section 6226, 6228(a), or 6234(c) and inserting section 6234 . (13) Section 7485(b) is amended by striking section 6226, 6228(a), 6247, or 6252 and inserting section 6234 . (e) Effective date The amendments made by this section shall apply to returns filed for partnership taxable years ending after December 31, 2014, except that a partnership may elect (at such time and in such form and manner as the Secretary of the Treasury may prescribe) for such amendments to apply to any return of the partnership filed for partnership taxable years ending after the date of the enactment of this Act and before January 1, 2015. 3 REITs and RICs 3631. Prevention of tax-free spinoffs involving REITs (a) In general Section 355 is amended by adding at the end the following new subsection: (h) Section not To apply to distributions involving real estate investment trusts This section (and so much of section 356 as relates to this section) shall not apply to any distribution if either the distributing corporation or controlled corporation is a real estate investment trust. . (b) Prevention of REIT election following tax-Free spin off Section 856(c) is amended by redesignating paragraph (8) as paragraph (9) and by inserting after paragraph (7) the following new paragraph: (8) Election after tax-free reorganization If a corporation was a distributing corporation or a controlled corporation with respect to any distribution to which section 355 applied, such corporation (and any successor corporation) shall not be eligible to make any election under subsection (c)(1) for any taxable year prior to the 10th taxable year which begins after the taxable year in which such distribution was made. . (c) Effective date (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall apply to distributions on or after February 26, 2014. (2) Transition rule The amendments made by this section shall not apply to any distribution made pursuant to an agreement which was binding on February 26, 2014, and at all times thereafter. 3632. Extension of period for prevention of REIT election following revocation or termination (a) In general Section 856(g)(3) is amended by striking fifth and inserting 10th . (b) Effective date The amendments made by this section shall apply to terminations and revocations after December 31, 2014. 3633. Certain short-life property not treated as real property for purposes of REIT provisions (a) In general Section 856(c)(5) is amended by adding at the end the following new subparagraph: (L) Real property The term real property shall not include any tangible property with a class life of less than 27.5 years. For purposes of the preceding sentence, class life of tangible property for any taxable year shall be the greater of— (i) the class life of such property in the hands of the real estate investment trust, or (ii) the class life which would be applicable to such property if such property was placed in service in the taxable year. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2016. 3634. Repeal of special rules for timber held by REITs (a) In general Section 856(c)(5)(L), as added by this Act, is amended by inserting timber or after shall not include . (b) Conforming amendments (1) Section 856(c)(2) is amended by inserting and at the end of subparagraph (G), by striking and at the end of subparagraph (H), and by striking subparagraph (I). (2) Section 856(c)(5), as amended by the preceding provisions of this Act, is amended by striking subparagraphs (H) and (I) and by redesignating subparagraphs (J), (K), and (L) as subparagraphs (H), (I) and (J), respectively. (3) Section 856(c), as amended by the preceding provisions of this Act, is amended by striking paragraph (9). (4) Section 857(b)(6) is amended by striking subparagraphs (D), (G), and (H), and by redesignating subparagraphs (E) and (F) as subparagraphs (D) and (E), respectively. (5) Section 857(b)(6)(D), as redesignated by paragraph (4), is amended by striking subparagraphs (C) and (D) and inserting subparagraph (C) . (6) Section 857(b)(6)(E), as redesignated by paragraph (4), is amended— (A) by striking subparagraph (C) or (D) and inserting subparagraph (C) , and (B) by striking subparagraphs (C), (D), and (E) and inserting subparagraphs (C) and (D) . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2016. 3635. Limitation on fixed percentage rent and interest exceptions for REIT income tests (a) In general Section 856 is amended by adding at the end the following new subsection: (o) Limitation on fixed percentage rent and interest exceptions (1) In general If the fixed percentage rent and interest income received or accrued by a real estate investment trust from a single C corporation (other than a taxable REIT subsidiary of such real estate investment trust) for any taxable year exceeds either— (A) 25 percent of the fixed percentage rent income received or accrued by such real estate investment trust for such taxable year, or (B) 25 percent of the fixed percentage interest income received or accrued by such real estate investment trust for such taxable year, then, notwithstanding subsection (d)(2), none of the fixed percentage rent income received or accrued from such corporation which is attributable to leases entered into after December 31, 2014, shall be treated as rents from real property and, notwithstanding subsection (f), none of the fixed percentage interest income received or accrued from such corporation which is attributable to debt instruments acquired after December 31, 2014, shall be treated as interest. (2) Fixed percentage rent and interest income For purposes of this subsection— (A) Fixed percentage rent and interest income The term fixed percentage rent and interest income means the sum of the fixed percentage rent income plus the fixed percentage interest income. (B) Fixed percentage rent income The term fixed percentage rent income means amounts described in subsection (d)(2)(A) which are based on a fixed percentage or percentages of receipts or sales. (C) Fixed percentage interest income The term fixed percentage interest income means amounts described in subsection (f)(1) which are based on a fixed percentage or percentages of receipts or sales. (3) Aggregation rule Members of the same affiliated group (as defined in section 1504, applied by substituting 50 percent for 80 percent each place it appears therein) shall be treated as 1 corporation for purposes of paragraph (1). (4) Treatment of modifications For purposes of paragraph (1), any material modification (including any extension of the term) of a lease or debt instrument shall be treated as a new lease or debt instrument, as the case may be, entered into on the date of such modification. . (b) Effective date The amendment made by this section shall apply to taxable years ending after December 31, 2014. 3636. Repeal of preferential dividend rule for publicly offered REITs (a) In general Paragraph (1) of section 562(c), as amended by the preceding provisions of this Act, is amended by inserting or a publicly offered REIT after a publicly offered regulated investment company . (b) Publicly offered REIT Subsection (c) of section 562, as so amended, is amended by adding at the end the following new paragraph: (3) Publicly offered REIT For purposes of this subsection, the term publicly offered REIT means a real estate investment trust which is required to file annual and periodic reports with the Securities and Exchange Commission under the Securities Exchange Act of 1934. . (c) Effective date The amendment made by this section shall apply to distributions in taxable years beginning after December 31, 2014. 3637. Authority for alternative remedies to address certain REIT distribution failures (a) In general Subsection (e) of section 562 is amended— (1) by striking In the case of a real estate investment trust and inserting the following: (1) Determination of earnings and profits for purposes of dividends paid deduction In the case of a real estate investment trust , and (2) by adding at the end the following new paragraph: (2) Authority to provide alternative remedies for certain failures In the case of a failure of a distribution by a real estate investment trust to comply with the requirements of subsection (c), the Secretary may provide an appropriate remedy to cure such failure in lieu of not considering the distribution to be a dividend for purposes of computing the dividends paid deduction if— (A) the Secretary determines that such failure is inadvertent or is due to reasonable cause and not due to willful neglect, or (B) such failure is of a type of failure which the Secretary has identified for purposes of this paragraph as being described in subparagraph (A). . (b) Effective date The amendments made by this section shall apply to distributions in taxable years beginning after December 31, 2014. 3638. Limitations on designation of dividends by REITs (a) In general Section 857 is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection: (g) Limitations on designation of dividends (1) Overall limitation The aggregate amount of dividends designated by a real estate investment trust under subsections (b)(3)(C) and (c)(2)(A) with respect to any taxable year may not exceed the dividends paid by such trust with respect to such year. For purposes of the preceding sentence, dividends paid after the close of the taxable year described in section 858 shall be treated as paid with respect to such year. (2) Proportionality The Secretary may prescribe regulations or other guidance requiring the proportionality of the designation of particular types of dividends among shares or beneficial interests of a real estate investment trust. . (b) Effective date The amendments made by this section shall apply to distributions in taxable years beginning after December 31, 2014. 3639. Non-REIT earnings and profits required to be distributed by REIT in cash (a) In general Section 857, as amended by the preceding provisions of this Act, is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: (h) Determination of earnings and profits accumulated in non-REIT years (1) In general For purposes of subsection (a)(2)(B), distributions during the transition period shall be taken into account in determining accumulated earning and profits only if such distributions are made in cash. (2) Transition period For purposes of this subsection, the term transition period means the period of taxable years beginning with the last taxable year (other than a short taxable year) which was a non-REIT year (as defined in subsection (a)) and ending with the first taxable year to which the provisions of this part apply. . (b) Conforming amendment Section 857(a)(2)(B) is amended by inserting (determined as provided in subsection (h)) before the period at the end. (c) Effective date The amendments made by this section shall apply to distributions made on or after February 26, 2014. 3640. Debt instruments of publicly offered REITs and mortgages treated as real estate assets (a) Debt instruments of publicly offered REITs treated as real estate assets (1) In general Subparagraph (B) of section 856(c)(5) is amended— (A) by striking and shares and inserting , shares , and (B) by inserting , and debt instruments issued by publicly offered REITs before the period at the end of the first sentence. (2) Income from nonqualified debt instruments of publicly offered REITs not qualified for purposes of satisfying the 75 percent gross income test Subparagraph (H) of section 856(c)(3) is amended by inserting (other than a nonqualified publicly offered REIT debt instrument) after real estate asset . (3) 25 percent asset limitation on holding of nonqualified debt instruments of publicly offered REITs Subparagraph (B) of section 856(c)(4) is amended by redesignating clause (iii) as clause (iv) and by inserting after clause (ii) the following new clause: (iii) not more than 25 percent of the value of its total assets is represented by nonqualified publicly offered REIT debt instruments, and . (4) Definitions related to debt instruments of publicly offered REITs Paragraph (5) of section 856(c), as amended by the preceding provisions of this Act, is amended by adding at the end the following new subparagraph: (K) Definitions related to debt instruments of publicly offered REITs (i) Publicly offered REIT The term publicly offered REIT has the meaning given such term by section 562(c)(3). (ii) Nonqualified publicly offered REIT debt instrument The term nonqualified publicly offered REIT debt instrument means any real estate asset which would cease to be a real estate asset if subparagraph (B) were applied without regard to the reference to debt instruments issued by publicly offered REITs . . (b) Interests in mortgages on interests in real property treated as real estate assets Subparagraph (B) of section 856(c)(5) is amended by inserting or on interests in real property after interests in mortgages on real property . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3641. Asset and income test clarification regarding ancillary personal property (a) In general Subsection (c) of section 856 is amended by adding at the end the following new paragraph: (9) Special rules for certain personal property which is ancillary to real property (A) Certain personal property leased in connection with real property Personal property shall be treated as a real estate asset for purposes of paragraph (4)(A) to the extent that rents attributable to such personal property are treated as rents from real property under subsection (d)(1)(C). (B) Certain personal property mortgaged in connection with real property In the case of an obligation secured by a mortgage on both real property and personal property, if the fair market value of such personal property does not exceed 15 percent of the total fair market value of all such property, such personal property shall be treated as real property for purposes of applying paragraphs (3)(B) and (4)(A). For purposes of the preceding sentence, the fair market value of all such property shall be determined in the same manner as the fair market value of real property is determined for purposes of apportioning interest income between real property and personal property under paragraph (3)(B). . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3642. Hedging provisions (a) Modification To permit the termination of a hedging transaction using an additional hedging instrument Subparagraph (G) of section 856(c)(5) is amended by striking and at the end of clause (i), by striking the period at the end of clause (ii) and inserting , and , and by adding at the end the following new clause: (iii) if— (I) a real estate investment trust enters into one or more positions described in clause (i) with respect to indebtedness described in clause (i) or one or more positions described in clause (ii) with respect to property which generates income or gain described in paragraph (2) or (3), (II) any portion of such indebtedness is extinguished or any portion of such property is disposed of, and (III) in connection with such extinguishment or disposition, such trust enters into one or more transactions which would be hedging transactions described in subparagraph (B) or (C) of section 1221(b)(2) with respect to any position referred to in subclause (I) if such position were ordinary property, any income of such trust from any position referred to in subclause (I) and from any transaction referred to in subclause (III) (including gain from the termination of any such position or transaction) shall not constitute gross income under paragraphs (2) and (3) to the extent that such transaction hedges such position. . (b) Identification requirements (1) In general Subparagraph (G) of section 856(c)(5), as amended by subsection (a), is amended by striking and at the end of clause (ii), by striking the period at the end of clause (iii) and inserting , and , and by adding at the end the following new clause: (iv) clauses (i), (ii), and (iii) shall not apply with respect to any transaction unless such transaction satisfies the identification requirement described in section 1221(b)(3)(A) (determined after taking into account any curative provisions provided under the regulations referred to therein). . (2) Conforming amendments Subparagraph (G) of section 856(c)(5) is amended— (A) by striking which is clearly identified pursuant to section 1221(a)(7) in clause (i), and (B) by striking , but only if such transaction is clearly identified as such before the close of the day on which it was acquired, originated, or entered into (or such other time as the Secretary may prescribe) in clause (ii). (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3643. Modification of REIT earnings and profits calculation to avoid duplicate taxation (a) Earnings and profits not increased by amounts allowed in computing taxable income in prior years (1) In general Paragraph (1) of section 857(d) is amended to read as follows: (1) In general The earnings and profits of a real estate investment trust for any taxable year (but not its accumulated earnings) shall not be reduced by any amount which— (A) is not allowable in computing its taxable income for such taxable year, and (B) was not allowable in computing its taxable income for any prior taxable year. . (2) Exception for purposes of determining dividends paid deduction Paragraph (1) of section 562(e), as amended by the preceding provisions of this Act, is amended— (A) by striking deduction, the earnings and inserting the following: deduction— (A) the earnings , (B) by striking the period at the end and inserting , and , and (C) by adding at the end the following new subparagraph: (B) section 857(d)(1) shall be applied without regard to subparagraph (B) thereof. . (3) Conforming amendments Subsection (d) of section 857 is amended by adding at the end the following new paragraphs: (4) Real estate investment trust For purposes of this subsection, the term real estate investment trust includes a domestic corporation, trust, or association which is a real estate investment trust determined without regard to the requirements of subsection (a). (5) Special rules for determining earnings and profits for purposes of the deduction for dividends paid For special rules for determining the earnings and profits of a real estate investment trust for purposes of the deduction for dividends paid, see section 562(e)(1). . (b) Treatment of gain on sales of real property Subparagraph (A) of section 562(e)(1), as amended by the preceding provisions of this Act, is amended to read as follows: (A) the earnings and profits of such trust for any taxable year (but not its accumulated earnings) shall be increased by the amount of gain (if any) on the sale or exchange of real property which is taken into account in determining the taxable income of such trust for such taxable year (and not otherwise taken into account in determining such earnings and profits), and . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3644. Reduction in percentage limitation on assets of REIT which may be taxable REIT subsidiaries (a) In general Section 856(c)(4)(B)(ii) is amended by striking 25 percent and inserting 20 percent . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2016. 3645. Treatment of certain services provided by taxable REIT subsidiaries (a) Taxable REIT subsidiaries treated in same manner as independent contractors for certain purposes (1) Marketing and development expenses under rental property safe harbor Clause (v) of section 857(b)(6)(C) is amended by inserting or by a taxable REIT subsidiary before the period at the end. (2) Foreclosure property grace period Subparagraph (C) of section 856(e)(4) is amended by inserting or through a taxable REIT subsidiary after receive any income . (b) Tax on redetermined TRS service income (1) In general Subparagraph (A) of section 857(b)(7) is amended by striking and excess interest and inserting excess interest, and redetermined TRS service income . (2) Redetermined TRS service income Paragraph (7) of section 857(b) is amended by redesignating subparagraphs (E) and (F) as subparagraphs (F) and (G), respectively, and inserting after subparagraph (D) the following new subparagraph: (E) Redetermined TRS service income (i) In general The term redetermined TRS service income means gross income of a taxable REIT subsidiary of a real estate investment trust attributable to services provided to, or on behalf of, such trust (less deductions properly allocable thereto) to the extent the amount of such income (less such deductions) would (but for subparagraph (F)) be increased on distribution, apportionment, or allocation under section 482. (ii) Coordination with redetermined rents Clause (i) shall not apply with respect to gross income attributable to services furnished or rendered to a tenant of the real estate investment trust (or to deductions properly allocable thereto). . (3) Conforming amendments Subparagraphs (B)(i) and (C) of section 857(b)(7) are each amended by striking subparagraph (E) and inserting subparagraph (F) . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3646. Study relating to taxable REIT subsidiaries The Secretary of the Treasury (or the Secretary’s designee) shall, biannually— (1) conduct a study to determine— (A) how many taxable REIT subsidiaries are in existence and the aggregate amount of taxes paid by such subsidiaries, and (B) the amount by which transactions between a REIT and a taxable REIT subsidiary reduce taxable income of the taxable REIT subsidiary (whether or not such transactions are conducted at arms length), and (2) submit a report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate describing the results of such study. 3647. C corporation election to become, or transfer assets to, a RIC or REIT (a) In general Part IV of subchapter O of chapter 1, as amended by the preceding provisions of this Act, is amended by redesignating section 1062 as section 1063 and by inserting after section 1061 the following new section: 1062. Recognition of gain or loss upon C corporation election to become, or transfer assets to, a regulated investment company or a real estate investment trust (a) In general If a C corporation elects to become a regulated investment company or a real estate investment trust for a taxable year, such corporation shall recognize gain or loss as if all its assets were sold by such corporation at their fair market value immediately before the close of the last taxable year before such corporation becomes a regulated investment company or real estate investment trust (as the case may be). (b) Application to transfers of assets In the case of a C corporation which transfers to a regulated investment company or a real estate investment trust one or more assets the basis of which is determined (in whole or in part) by reference to the basis of such asset or assets in the hands of the C corporation, such corporation shall recognize gain or loss as if such assets were sold by such corporation at their fair market value as of the end of the day before the day of the transfer. (c) Nonapplication to net loss Subsections (a) and (b) shall not apply if their application would result in the recognition of a net loss. For purposes of the preceding sentence, the term net loss means the excess of aggregate losses over aggregate gains (including items of income) without regard to character. (d) Basis adjustment If any asset is treated as sold under subsection (a) or (b), the basis of such asset immediately after such deemed sale shall be equal to the fair market value of such asset as determined under such subsection. (e) C corporation For purposes of this section, the term C corporation does not include a regulated investment company or a real estate investment trust. . (b) Clerical amendment The table of sections for part IV of subchapter O of chapter 1 is amended by redesignating the item relating to section 1062 as an item relating to section 1063 and by inserting after the item relating to section 1061 the following new item: Sec. 1062. Recognition of gain or loss upon C corporation election to become, or transfer assets to, a regulated investment company or a real estate investment trust. . (c) Effective date The amendment made by this section shall apply to elections and transfers on or after February 26, 2014. 3648. Interests in RICs and REITs not excluded from definition of United States real property interests (a) In general Section 897(c)(1)(B) is amended by striking and at the end of clause (i), by striking the period at the end of clause (ii)(II) and inserting , and , and by adding at the end the following new clause: (iii) neither such corporation nor any predecessor of such corporation was a regulated investment company or a real estate investment company at any time during the period described in subparagraph (A)(ii). . (b) Effective date The amendment made by this section shall apply to dispositions after December 31, 2014. 3649. Dividends derived from RICs and REITs ineligible for deduction for United States source portion of dividends from certain foreign corporations (a) In general Section 245(a) is amended by adding at the end the following new paragraph: (12) Dividends derived from RICs and REITs ineligible for deduction Regulated investment companies and real estate investment trusts shall not be treated as domestic corporations for purposes of paragraph (5)(B). . (b) Effective date The amendment made by this section shall apply to dividends received from regulated investment companies and real estate investment trusts on or after February 26, 2014. 4 Personal holding companies 3661. Exclusion of dividends from controlled foreign corporations from the definition of personal holding company income for purposes of the personal holding company rules (a) In general Paragraph (1) of section 543(a) is amended— (1) by redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively, and (2) by inserting after subparagraph (B) the following: (C) dividends received by a United States shareholder (as defined in section 951(b)) from a controlled foreign corporation (as defined in section 957(a)), . (b) Effective date The amendments made by this Act shall apply to taxable years beginning after December 31, 2014. H Taxation of foreign persons 3701. Prevention of avoidance of tax through reinsurance with non-taxed affiliates (a) In general Part III of subchapter L of chapter 1 is amended by adding at the end the following new section: 849. Special rules for reinsurance of non-life contracts with non-taxed affiliates (a) In general The taxable income under section 831(a) or the life insurance company taxable income under section 801(b) (as the case may be) of an insurance company shall be determined by not taking into account— (1) any non-taxed reinsurance premium, (2) any additional amount paid by such insurance company with respect to the reinsurance for which such non-taxed reinsurance premium is paid, to the extent such additional amount is properly allocable to such non-taxed reinsurance premium, and (3) any return premium, ceding commission, reinsurance recovered, or other amount received by such insurance company with respect to the reinsurance for which such non-taxed reinsurance premium is paid, to the extent such return premium, ceding commission, reinsurance recovered, or other amount is properly allocable to such non-taxed reinsurance premium. (b) Non-Taxed reinsurance premiums For purposes of this section— (1) In general The term non-taxed reinsurance premium means any reinsurance premium paid directly or indirectly to an affiliated corporation with respect to reinsurance of risks (other than excepted risks), to the extent that the income attributable to the premium is not subject to tax under this subtitle (either as the income of the affiliated corporation or as amounts included in gross income by a United States shareholder under section 951). (2) Excepted risks The term excepted risks means any risk with respect to which reserves described in section 816(b)(1) are established. (c) Affiliated corporations For purposes of this section, a corporation shall be treated as affiliated with an insurance company if both corporations would be members of the same controlled group of corporations (as defined in section 1563(a)) if section 1563 were applied— (1) by substituting at least 50 percent for at least 80 percent each place it appears in subsection (a)(1), and (2) without regard to subsections (a)(4), (b)(2)(C), (b)(2)(D), and (e)(3)(C). (d) Election To treat reinsurance income as effectively connected (1) In general A specified affiliated corporation may elect for any taxable year to treat specified reinsurance income as— (A) income effectively connected with the conduct of a trade or business in the United States, and (B) for purposes of any treaty between the United States and any foreign country, income attributable to a permanent establishment in the United States. (2) Effect of election In the case of any specified reinsurance income with respect to which the election under this subsection applies— (A) Deduction allowed for reinsurance premiums For exemption from subsection (a), see definition of non-taxed reinsurance premiums in subsection (b). (B) Exception from excise tax The tax imposed by section 4371 shall not apply with respect to any income treated as effectively connected with the conduct of a trade or business in the United States under paragraph (1). (C) Taxation under this subchapter Such income shall be subject to tax under this subchapter to the same extent and in the same manner as if such income were the income of a domestic insurance company. (D) Coordination with foreign tax credit provisions For purposes of subpart A of part III of subchapter N and sections 78 and 960— (i) such specified reinsurance income shall be treated as derived from sources without the United States, and (ii) subsections (a), (b), and (c) of section 904, and section 960, shall be applied separately with respect to each item of such income. The Secretary may issue regulations or other guidance which provide that related items of specified reinsurance income may be aggregated for purposes of applying clause (ii). (3) Specified affiliated corporation For purposes of this subsection, the term specified affiliated corporation means any affiliated corporation which is a foreign corporation and which meets such requirements as the Secretary shall prescribe to ensure that tax on the specified reinsurance income of such corporation is properly determined and paid. (4) Specified reinsurance income For purposes of this paragraph, the term specified reinsurance income means all income of a specified affiliated corporation which is attributable to reinsurance with respect to which subsection (a) would (but for the election under this subsection) apply. (5) Rules related to election Any election under paragraph (1) shall— (A) be made at such time and in such form and manner as the Secretary may provide, and (B) apply for the taxable year for which made and all subsequent taxable years unless revoked with the consent of the Secretary. (e) Exception for amounts subject to foreign tax An amount shall not be treated as described in paragraph (1), (2), or (3) of subsection (a) if the taxpayer demonstrates to the satisfaction of the Secretary that such amount was subject to an effective rate of income tax imposed by a foreign country which is not less than 100 percent of the maximum rate of tax specified in section 11. (f) Regulations The Secretary shall prescribe such regulations or other guidance as may be appropriate to carry out, or to prevent the avoidance of the purposes of, this section, including regulations or other guidance which provide for the application of this section to alternative reinsurance transactions, fronting transactions, conduit and reciprocal transactions, and any economically equivalent transactions. . (b) Clerical amendment The table of sections for part III of subchapter L of chapter 1 is amended by adding at the end the following new item: Sec. 849. Special rules for reinsurance of non-life contracts with non-taxed affiliates. . (c) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2014. 3702. Taxation of passenger cruise gross income of foreign corporations and nonresident alien individuals (a) In general Section 882 is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection: (f) Treatment of passenger cruise gross income (1) In general For purposes of this title, the effectively connected passenger cruise gross income of a foreign corporation shall be treated as gross income which is effectively connected with the conduct of a trade or business in the United States. (2) Effectively connected passenger cruise gross income For purposes of this subsection, the term effectively connected passenger cruise gross income means, with respect to the operation of any ship in a covered voyage, the United States territorial waters percentage of the gross income (determined without regard to section 883(a)(1)) derived from such operation, including any amount received with respect to the provision of any on- or off-board activities, services, or sales, with respect to passengers incidental to such operation (or with respect to any agreement with any person with respect to the provision of any such activities, services, or sales). (3) United States territorial waters percentage For purposes of this subsection— (A) In general The term United States territorial waters percentage means, with respect to the operation of any ship in any covered voyage, the ratio (expressed as a percentage) of— (i) the number of days during such voyage such ship was operated in the territorial waters of the United States, divided by (ii) the total number of days of such voyage. (B) Calendar day rule If a ship— (i) is operated in a covered voyage, or (ii) is operated in the territorial waters of the United States during a covered voyage, for any portion of a calendar day, such ship shall be treated as having operated in a covered voyage, or as having operated in such territorial waters, respectively, for the entirety of such day. (C) Territorial waters The territorial waters of the United States shall be treated as consisting of those waters which are— (i) within the international boundary line between the United States and any contiguous foreign country, or (ii) within 12 nautical miles from low tide on the coastline of the United States. (4) Covered voyage For purposes of this subsection— (A) In general The term covered voyage has the meaning given such term by section 4472(1). (B) Anti-abuse rule Except as otherwise provided by the Secretary, if passengers embark a ship in the United States and more than 10 percent of such passengers disembark in the United States, the operation of such ship at all times between such events shall be treated as a covered voyage. Nothing in the preceding sentence shall preclude any operation of a ship (including any operation of a ship before or after such events) which would otherwise be treated as part of a covered voyage from being so treated. (5) Treatment of otherwise effectively connected income Gross income which would, without regard to this subsection, be gross income which is effectively connected with the conduct of a trade or business in the United States— (A) shall be so treated, and (B) shall not be taken into account as gross income under paragraph (2). . (b) Application to nonresident alien individuals Section 871 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection: (n) Treatment of passenger cruise gross income (1) In general For purposes of this title, the effectively connected passenger cruise gross income of a nonresident alien individual shall be treated as gross income which is effectively connected with the conduct of a trade or business in the United States. (2) Definitions and special rules For purposes of this subsection— (A) Definitions Terms used in this subsection which are also used in section 882(f) shall have the same meaning as when used in such section, except that section 882(f)(2) shall be applied by substituting section 872(b)(1) for section 883(a)(1) . (B) Treatment of otherwise effectively connected income Rules similar to the rules of section 882(f)(5) shall apply for purposes of this subsection. . (c) Coordination with reciprocal exemptions for shipping income (1) In general Section 883(a)(1) is amended by striking Gross income and inserting Except as provided in section 882(f), gross income . (2) Nonresident alien individuals Section 872(b)(1) is amended by striking Gross income and inserting Except as provided in section 871(n), gross income . (d) Coordination with tax on gross transportation income Section 887(b)(4) is amended by adding at the end the following new flush text: The preceding sentence shall not apply to any United States source gross transportation income which is effectively connected passenger cruise gross income (within the meaning of section 871(n) or 882(f)). . (e) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3703. Restriction on insurance business exception to passive foreign investment company rules (a) In general Section 1297(b)(2)(B) is amended to read as follows: (B) derived in the active conduct of an insurance business by a corporation if— (i) such corporation would be subject to tax under subchapter L if such corporation were a domestic corporation, (ii) more than 50 percent of such corporation’s gross receipts for the taxable year consist of premiums, and (iii) the applicable insurance liabilities of such corporation constitute more than 35 percent of its total assets as reported on the corporation’s applicable financial statement for the year with which or in which the taxable year ends, . (b) Applicable insurance liabilities; applicable financial statement (1) In general Section 1297(b) is amended by adding at the end the following new paragraph: (3) Definitions For purposes of this subsection— (A) Applicable insurance liabilities The term applicable insurance liabilities means, with respect to any life or property and casualty insurance business— (i) loss and loss adjustment expenses, (ii) unearned premiums, and (iii) reserves (other than deficiency or contingency reserves) for life and health insurance risks and life and health insurance claims with respect to contracts providing coverage for mortality or morbidity risks (not to exceed the amount of such reserve that is required to be reported to the home country insurance regulatory body). (B) Applicable financial statement The term applicable financial statement means a statement for financial reporting purposes which— (i) is made on the basis of generally accepted accounting principles, (ii) is made on the basis of international financial reporting standards, but only if there is no statement that meets the requirement of clause (i), or (iii) except as otherwise provided by the Secretary in regulations, is the annual statement which is required to be filed with the home country insurance regulatory body, but only if there is no statement which meets the requirements of clause (i) or (ii). . (2) Conforming amendment Section 1297(b) is amended— (A) by striking the last sentence in paragraph (2) thereof, and (B) by adding at the end of paragraph (3) thereof (as added by paragraph (1)), the following new subparagraph: (C) Related person The term related person has the meaning given such term by section 954(d)(3) determined by substituting foreign corporation for controlled foreign corporation each place it appears therein. . (c) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2014. 3704. Modification of limitation on earnings stripping (a) In general Section 163(j)(2)(B)(i)(II) is amended by striking 50 percent and inserting 40 percent . (b) No new excess limitation carryforwards Section 163(j)(2)(B)(ii) is amended by striking for any taxable year and inserting for any taxable year beginning before January 1, 2015 . (c) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2014. 3705. Limitation on treaty benefits for certain deductible payments (a) In general Section 894 of the Internal Revenue Code of 1986 (relating to income affected by treaty) is amended by adding at the end the following new subsection: (d) Limitation on treaty benefits for certain deductible payments (1) In general In the case of any deductible related-party payment, any withholding tax imposed under chapter 3 (and any tax imposed under subpart A or B of this part) with respect to such payment may not be reduced under any treaty of the United States unless any such withholding tax would be reduced under a treaty of the United States if such payment were made directly to the foreign parent corporation. (2) Deductible related-party payment For purposes of this subsection, the term deductible related-party payment means any payment made, directly or indirectly, by any person to any other person if the payment is allowable as a deduction under this chapter and both persons are members of the same foreign controlled group of entities. (3) Foreign controlled group of entities For purposes of this subsection— (A) In general The term foreign controlled group of entities means a controlled group of entities the common parent of which is a foreign corporation. (B) Controlled group of entities The term controlled group of entities means a controlled group of corporations as defined in section 1563(a)(1), except that— (i) more than 50 percent shall be substituted for at least 80 percent each place it appears therein, and (ii) the determination shall be made without regard to subsections (a)(4) and (b)(2) of section 1563. A partnership or any other entity (other than a corporation) shall be treated as a member of a controlled group of entities if such entity is controlled (within the meaning of section 954(d)(3)) by members of such group (including any entity treated as a member of such group by reason of this sentence). (4) Foreign parent corporation For purposes of this subsection, the term foreign parent corporation means, with respect to any deductible related-party payment, the common parent of the foreign controlled group of entities referred to in paragraph (3)(A). (5) Regulations The Secretary may prescribe such regulations or other guidance as are necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance which provide for— (A) the treatment of two or more persons as members of a foreign controlled group of entities if such persons would be the common parent of such group if treated as one corporation, and (B) the treatment of any member of a foreign controlled group of entities as the common parent of such group if such treatment is appropriate taking into account the economic relationships among such entities. . (b) Effective date The amendment made by this section shall apply to payments made after the date of the enactment of this Act. I Provisions related to compensation 1 Executive compensation 3801. Nonqualified deferred compensation (a) In general Subpart A of part I of subchapter D of chapter 1 is amended by adding at the end the following new section: 409B. Nonqualified deferred compensation (a) In general Any compensation which is deferred under a nonqualified deferred compensation plan shall be includible in gross income when there is no substantial risk of forfeiture of the rights to such compensation. (b) Definitions For purposes of this section— (1) Substantial risk of forfeiture The rights of a person to compensation shall be treated as subject to a substantial risk of forfeiture only if such person’s rights to such compensation are conditioned upon the future performance of substantial services by any individual. (2) Nonqualified deferred compensation plan For purposes of this section: (A) Nonqualified deferred compensation plan The term nonqualified deferred compensation plan means any plan that provides for the deferral of compensation, other than— (i) a qualified employer plan, (ii) any bona fide vacation leave, sick leave, compensatory time, disability pay, or death benefit plan, and (iii) any other plan or arrangement designated by the Secretary consistent with the purposes of this section. (B) Equity-based compensation The term nonqualified deferred compensation plan shall include any plan that provides a right to compensation based on the appreciation in value of a specified number of equity units of the service recipient or stock options. (3) Qualified employer plan The term qualified employer plan means any plan, contract, pension, account, or trust described in 408(p)(2)(D)(ii). (4) Plan includes arrangements, etc The term plan includes any agreement or arrangement, including an agreement or arrangement that includes one person. (5) Exception Compensation shall not be treated as deferred for purposes of this section if the service provider receives payment of such compensation not later than 6 months after the end of the taxable year of the service recipient during which the right to the payment of such compensation is no longer subject to a substantial risk of forfeiture. (6) Treatment of earnings References to deferred compensation shall be treated as including references to income (whether actual or notional) attributable to such compensation or such income. (7) Aggregation rules Except as provided by the Secretary, rules similar to the rules of subsections (b) and (c) of section 414 shall apply. (c) No inference on earlier income inclusion or requirement of later inclusion Nothing in this section shall be construed to prevent the inclusion of amounts in gross income under any other provision of this chapter or any other rule of law earlier than the time provided in this section. Any amount included in gross income under this section shall not be required to be included in gross income under any other provision of this chapter or any other rule of law later than the time provided in this section. (d) Regulations The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including regulations disregarding a substantial risk of forfeiture in cases where necessary to carry out the purposes of this section. . (b) Termination of certain other nonqualified deferred compensation rules (1) Nonqualified deferred compensation (A) In general Subpart A of part I of subchapter D of chapter 1 is amended by striking section 409A (and by striking the item relating to such section in the table of sections for such subpart). (B) Conforming amendments (i) Section 26(b)(2) is amended by striking subparagraph (V). (ii) Section 3401(a) is amended by striking the flush sentence at the end. (iii) Section 6041 is amended by striking subsection (g). (iv) Section 6051(a), as amended by the preceding provisions of this Act, is amended by striking paragraph (12), by inserting and at the end of paragraph (11), and by redesignating paragraph (13) as paragraph (12). (2) 457(b) plans of tax exempt organizations Section 457 is amended by adding at the end the following new subsection: (h) Termination of certain plans (1) Tax-exempt organization plans This section shall not apply to amounts deferred which are attributable to services performed after December 31, 2014, under a plan maintained by an employer described in subsection (e)(1)(B). (2) Ineligible deferred compensation plans Subsection (f) shall not apply to amounts deferred which are attributable to services performed after December 31, 2014. . (3) Nonqualified deferred compensation from certain tax indifferent parties (A) In general Subpart B of part II of subchapter E of chapter 1 is amended by striking section 457A (and by striking the item relating to such section in the table of sections for such subpart). (B) Conforming amendment Section 26(b)(2) is amended by striking subparagraph (X). (c) Clerical amendment The table of sections for part I of subchapter D of chapter 1 is amended by adding at the end the following new item: Sec. 409B. Nonqualified deferred compensation. . (d) Effective date (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall apply to amounts which are attributable to services performed after December 31, 2014. (2) Application to existing deferrals In the case of any amount deferred to which the amendments made by this section do no apply solely by reason of the fact that the amount is attributable to services performed before January 1, 2015, to the extent such amount is not includible in gross income in a taxable year beginning before 2023, such amounts shall be includible in gross income in the later of— (A) the last taxable year beginning before 2023, or (B) the taxable year in which there is no substantial risk of forfeiture of the rights to such compensation (determined in the same manner as determined for purposes of section 409B of the Internal Revenue Code of 1986, as added by this section). (3) Accelerated payments No later than 120 days after the date of the enactment of this Act, the Secretary shall issue guidance providing a limited period of time during which a nonqualified deferred compensation arrangement attributable to services performed on or before December 31, 2014, may, without violating the requirements of section 409A of the Internal Revenue Code of 1986, be amended to conform the date of distribution to the date the amounts are required to be included in income. (4) Certain back-to-back arrangements If the taxpayer is also a service recipient and maintains one or more nonqualified deferred compensation arrangements for its service providers under which any amount is attributable to services performed on or before December 31, 2014, the guidance issued under paragraph (3) shall permit such arrangements to be amended to conform the dates of distribution under such arrangement to the date amounts are required to be included in the income of such taxpayer under this subsection. (5) Accelerated payment not treated as material modification Any amendment to a nonqualified deferred compensation arrangement made pursuant to paragraph (3) or (4) shall not be treated as a material modification of the arrangement for purposes of section 409A of the Internal Revenue Code of 1986. 3802. Modification of limitation on excessive employee remuneration (a) Repeal of performance-Based compensation and commission exceptions for limitation on excessive employee remuneration (1) In general Paragraph (4) of section 162(m) is amended by striking subparagraphs (B) and (C) and by redesignating subparagraphs (D), (E), (F), and (G) as subparagraphs (B), (C), (D), and (E), respectively. (2) Conforming amendments (A) Paragraphs (5)(E) and (6)(D) of section 162(m) are each amended by striking subparagraphs (B), (C), and (D) and inserting subparagraph (B) . (B) Paragraphs (5)(G) and (6)(G) of section 162(m) are each amended by striking (F) and (G) and inserting (D) and (E) . (b) Modification of definition of covered employees Paragraph (3) of section 162(m) is amended— (1) in subparagraph (A), by striking as of the close of the taxable year, such employee is the chief executive officer of the taxpayer or is and inserting such employee is the chief executive officer or the chief financial officer of the taxpayer at any time during the taxable year, or was , (2) in subparagraph (B)— (A) by striking 4 and inserting 3 , and (B) by striking (other than the chief executive officer) and inserting (other than any individual described in subparagraph (A)) , and (3) by striking or at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting , or , and by adding at the end the following: (C) was a covered employee of the taxpayer (or any predecessor) for any preceding taxable year beginning after December 31, 2013. . (c) Special rule for remuneration paid to beneficiaries, etc Paragraph (4) of section 162(m), as amended by subsection (a), is amended by adding at the end the following new subparagraph: (F) Special rule for remuneration paid to beneficiaries, etc Remuneration shall not fail to be applicable employee remuneration merely because it is includible in the income of, or paid to, a person other than the covered employee, including after the death of the covered employee. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3803. Excise tax on excess tax-exempt organization executive compensation (a) In general Subchapter D of chapter 42 is amended by adding at the end the following new section: 4960. Tax on excess tax-exempt organization executive compensation (a) Tax imposed There is hereby imposed a tax equal to 25 percent of the sum of— (1) so much of the remuneration paid (other than any excess parachute payment) by an applicable tax-exempt organization for the taxable year with respect to employment of any covered employee in excess of $1,000,000, plus (2) any excess parachute payment paid by such an organization to any covered employee. (b) Liability for tax The employer shall be liable for the tax imposed under subsection (a). (c) Definitions and special rules For purposes of this section— (1) Applicable tax-exempt organization The term applicable tax-exempt organization means any organization that for the taxable year— (A) is exempt from taxation under section 501(a), (B) is a farmers’ cooperative organization described in section 521(b)(1), or (C) has income excluded from taxation under section 115(1). (2) Covered employee For purposes of this section, the term covered employee means any employee (including any former employee) of an applicable tax-exempt organization if the employee— (A) is one of the 5 highest compensated employees of the organization for the taxable year, or (B) was a covered employee of the organization (or any predecessor) for any preceding taxable year beginning after December 31, 2013. (3) Remuneration For purposes of this section, the term remuneration means wages (as defined in section 3401(a)), except that such term shall not include any designated Roth contribution (as defined in section 402A(c)). (4) Remuneration from related organizations (A) In general Remuneration of a covered employee by an applicable tax-exempt organization shall include any remuneration paid with respect to employment of such employee by any related person or governmental entity. (B) Related organizations A person or governmental entity shall be treated as related to an applicable tax-exempt organization if such person or governmental entity— (i) controls, or is controlled by, the organization, (ii) is controlled by one or more persons that control the organization, (iii) is a supported organization (as defined in section 509(f)(2)) during the taxable year with respect to the organization, (iv) is a supporting organization described in section 509(a)(3) during the taxable year with respect to the organization, or (v) in the case of an organization that is a voluntary employees’ beneficiary association described in section 501(a)(9), establishes, maintains, or makes contributions to such voluntary employees’ beneficiary association. (C) Liability for tax In any case in which remuneration from more than one employer is taken into account under this paragraph in determining the tax imposed by subsection (a), each such employer shall be liable for such tax in an amount which bears the same ratio to the total tax determined under subsection (a) with respect to such remuneration as— (i) the amount of remuneration paid by such employer with respect to such employee, bears to (ii) the amount of remuneration paid by all such employers to such employee. (5) Excess parachute payment For purposes determining the tax imposed by subsection (a)(2)— (A) In general The term excess parachute payment means an amount equal to the excess of any parachute payment over the portion of the base amount allocated to such payment. (B) Parachute payment The term parachute payment means any payment in the nature of compensation to (or for the benefit of) a covered employee if— (i) such payment is contingent on such employee’s separation from employment with the employer, and (ii) the aggregate present value of the payments in the nature of compensation to (or for the benefit of) such individual which are contingent on such separation equals or exceeds an amount equal to 3 times the base amount. Such term does not include any payment described in section 280G(b)(6) (relating to exemption for payments under qualified plans) or any payment made under or to an annuity contract described in section 403(b) or a plan described in section 457(b). (C) Base amount Rules similar to the rules of 280G(b)(3) shall apply for purposes of determining the base amount. (D) Property transfers; present value Rules similar to the rules of paragraphs (3) and (4) of section 280G(d) shall apply. (6) Coordination with deduction limitation Remuneration the deduction for which is not allowed by reason of section 162(m) shall not be taken into account for purposes of this section. . (b) Clerical amendment The table of sections for subchapter D of chapter 42 is amended by adding at the end the following new item: Sec. 4960. Tax on excess exempt organization executive compensation. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 3804. Denial of deduction as research expenditure for stock transferred pursuant to an incentive stock option (a) In general Paragraph (2) of section 421(a) is amended by striking under section 162 (relating to trade or business expenses) . (b) Effective date The amendment made by this section shall apply to stock transferred on or after February 26, 2014. 2 Worker classification 3811. Determination of worker classification (a) In general Chapter 79, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section: 7707. Determination of worker classification (a) In general For purposes of this title (and notwithstanding any provision of this title not contained in this section to the contrary), if the requirements of subsections (b), (c), and (d) are met with respect to any service performed by a service provider, then with respect to such service— (1) the service provider shall not be treated as an employee, (2) the service recipient shall not be treated as an employer, (3) any payor shall not be treated as an employer, and (4) the compensation paid or received for such service shall not be treated as paid or received with respect to employment. (b) General service provider requirements (1) In general The requirements of this subsection are met with respect to any service if the service provider either— (A) meets the requirements of paragraph (2) with respect to such service, or (B) in the case a service provider engaged in the trade or business of selling (or soliciting the sale of) goods or services, meets the requirements of paragraph (3) with respect to such service. (2) General requirements The requirements of this paragraph are met with respect to any service if the service provider, in connection with performing the service— (A) incurs significant unreimbursed expenses, (B) agrees to perform the service for a particular amount of time, to achieve a specific result, or to complete a specific task, (C) is primarily compensated on a basis not tied to the number of hours worked, and (D) at least one of the following: (i) has a significant investment in assets or training, (ii) is not required to perform services exclusively for the service recipient, or (iii) has not performed services for the service recipient as an employee during the 1-year period ending with the date of the commencement of services under the contract described in subsection (d). (3) Alternative requirements with respect to sales persons In the case of a service provider engaged in the trade or business of selling (or soliciting the sale of) goods or services, the requirements of this paragraph are met with respect to any service provided in the ordinary course of such trade or business if— (A) the service provider is compensated primarily on a commission basis, and (B) substantially all the compensation for such service is directly related to sales of goods or services rather than to the number of hours worked. (c) Place of business or own equipment requirement The requirement of this subsection is met with respect to any service if the service provider— (1) has a principal place of business, (2) does not primarily provide the service in the service recipient’s place of business, (3) pays a fair market rent for use of the service recipient’s place of business, or (4) provides the service primarily using equipment supplied by the service provider. (d) Written contract requirement The requirements of this subsection are met with respect to any service if such service is performed pursuant to a written contract between the service provider and the service recipient (or payor) which meets the following requirements: (1) The contract includes each of the following: (A) The service provider’s name, taxpayer identification number, and address. (B) A statement that the service provider will not be treated as an employee with respect to the services provided pursuant to the contract for purposes of this title. (C) A statement that the service recipient (or the payor) will withhold upon and report to the Internal Revenue Service the compensation payable pursuant to the contract consistent with the requirements of this title. (D) A statement that the service provider is responsible for payment of Federal, State, and local taxes, including self-employment taxes, on compensation payable pursuant to the contract. (E) A statement that the contract is intended to be considered a contract described in this subsection. (2) The term of the contract does not exceed 1 year. The preceding sentence shall not prevent one or more subsequent written renewals of the contract from satisfying the requirements of this subsection if the term of each such renewal does not exceed 1 year and if the information required under paragraph (1)(A) is updated in connection with each such renewal. (3) The contract (or renewal) is signed by both the service recipient (or payor) and the service provider not later than the date on which the aggregate payments made by the service recipient to the service provider exceeds $600 for the year covered by the contract (or renewal). (e) Reporting requirements If any service recipient or payor fails to meet the applicable reporting requirements of section 6041(a) or 6041A(a) for any taxable year with respect to any service provider, this section shall not apply for purposes of making any determination with respect to the liability of such service recipient or payor for any tax with respect to such service provider for such period. For purposes of the preceding sentence, such reporting requirements shall be treated as met if the failure to satisfy such requirements is due to reasonable cause and not willful neglect. (f) Exception for services provided by owner This section shall not apply with respect to any service provided by a service provider to a service recipient if the service provider owns any interest in the service recipient or any payor with respect to the service provided. The preceding sentence shall not apply in the case of a service recipient the stock of which is regularly traded on an established securities market. (g) Exception for services not received in course of a trade or business This section shall not apply with respect to any service unless such service is performed in the ordinary course of a trade or business of the service recipient. (h) Limitation on reclassification by Secretary For purposes of this title— (1) Effect of reclassification on recipients and payors A determination by the Secretary that a service recipient or a payor should have treated a service provider as an employee shall be effective with respect to the service recipient or payor no earlier than the notice date if— (A) the service recipient or the payor entered into a written contract with the service provider which meets the requirements of subsection (d), (B) the service recipient or the payor satisfied the applicable reporting requirements of section 6041(a) or 6041A(a) for all relevant taxable years with respect to the service provider, (C) the service recipient or the payor collected and paid over all applicable taxes imposed under subtitle C for all relevant taxable years with respect to the service provider, (D) the service recipient or the payor demonstrates a reasonable basis for having determined that the service provider should not be treated as an employee under this section and that such determination was made in good faith. (2) Effect of reclassification on service providers A determination by the Secretary that a service provider should have been treated as an employee shall be effective with respect to the service provider no earlier than the notice date if— (A) the service provider entered into a written contract with the service recipient or payor which meets the requirements of subsection (d), (B) the service provider satisfied the applicable reporting requirements of sections 6012(a) and 6017 for all relevant taxable years with respect to the service recipient or payor, and (C) the service provider demonstrates a reasonable basis for determining that the service provider is not an employee under this section and that such determination was made in good faith. (3) Notice date For purposes of this subsection, the term notice date means the 30th day after the earliest of— (A) the date on which the first letter of proposed deficiency which allows the service provider, the service recipient, or the payor an opportunity for administrative review in the Internal Revenue Service Office of Appeals is sent, (B) the date on which a deficiency notice under section 6212 is sent, or (C) the date on which a notice of determination under section 7436(b)(2) is sent. (4) Reasonable cause exception The requirements of paragraphs (1)(B) and (2)(B) shall be treated as met if the failure to satisfy such requirements is due to reasonable cause and not willful neglect. (5) No restriction on administrative or judicial review Nothing in this subsection shall be construed as limiting any provision of law which provides an opportunity for administrative or judicial review of a determination by the Secretary. (i) Definitions For purposes of this section— (1) Service provider (A) In general The term service provider means any qualified person who performs service for another person. (B) Qualified person The term qualified person means— (i) any natural person, and (ii) any entity if any of the services referred to in subparagraph (A) are performed by one or more natural persons who directly own interests in such entity. (2) Service recipient The term service recipient means the person for whom the service provider performs such service. (3) Payor The term payor means any person who pays the service provider for performing such service. (j) Regulations Notwithstanding section 530(d) of the Revenue Act of 1978, the Secretary shall issue such regulations as the Secretary determines are necessary to carry out the purposes of this section. . (b) Withholding by payor in case of certain persons classified as not employees Section 3402 is amended by redesignating subsection (s) as subsection (t) and inserting after subsection (r) the following new subsection: (s) Extension of withholding to payments to certain persons classified as not employees (1) In general For purposes of this chapter and so much of subtitle F as relates to this chapter, compensation paid pursuant to a contract described in section 7707(d) shall be treated as if it were a payment of wages by an employer to an employee. (2) Amount withheld Except as otherwise provided under subsection (i), the amount to be deducted and withheld pursuant to paragraph (1) with respect to compensation paid pursuant to any such contract during any calendar year shall be an amount equal to 5 percent of so much of the amount of such compensation as does not exceed $10,000. . (c) Reporting Section 6041A is amended by adding at the end the following new subsection: (g) Special rules for certain persons classified as not employees In the case of any service recipient required to make a return under subsection (a) with respect to compensation to which section 7707(a) applies— (1) such return shall include— (A) the aggregate amount of such compensation paid to each person whose name is required to be included on such return, (B) the aggregate amount deducted and withheld under section 3402(s) with respect to such compensation, and (C) an indication of whether a copy of the contract described in section 7707(d) is on file with the service recipient or payor, and (2) the statement required to be furnished under subsection (e) shall include the information described in paragraph (1) with respect to the service provider to whom such statement is furnished. Terms used in this subsection which are also used in section 7707 shall have the same meaning as when used in such section. . (d) Clerical amendment The table of sections for chapter 79, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item: Sec. 7707. Determination of worker classification. . (e) Effective date The amendments made by this section shall apply to services performed after December 31, 2014 (and to payments made for such services after such date). J Zones and Short-Term Regional Benefits 3821. Repeal of provisions relating to Empowerment Zones and Enterprise Communities (a) In general Chapter 1 is amended by striking subchapter U (and by striking the item relating to such subchapter in the table of subchapters for such chapter). (b) Conforming amendments (1) (A) Section 38(b) is amended by striking paragraph (9). (B) Section 280C(a) is amended by striking 1396(a), . (2) Section 179(e) is amended by striking paragraph (3) and by redesignating paragraph (4) as paragraph (3). (3) Section 1202(a)(2)(A) is amended by inserting (as in effect before its repeal by the Tax Reform Act of 2014 ) after section 1397C(b) . (c) Effective date (1) In general Except as otherwise provided in this subsection, the amendment made by this section shall take effect on the date of the enactment of this Act. (2) Rollovers So much of subsection (a) as relates to the repeal of section 1397B of the Internal Revenue Code of 1986 shall apply to sales after the date of the enactment of this Act. (3) Savings provision The amendments made by this section shall not apply to obligations described in section 1394 of the Internal Revenue Code of 1986 (as in effect before its repeal) which were issued before January 1, 2014. 3822. Repeal of DC Zone provisions (a) In general Chapter 1 is amended by striking subchapter W (and by striking the item relating to such subchapter in the table of subchapters for such chapter). (b) Conforming amendments (1) (A) Section 1202(a)(2)(B) is amended by inserting (as in effect before its repeal by the Tax Reform Act of 2014 ) after 1400B(b) . (2) Section 25(e)(1)(C) is amended by striking sections 23, 25D, and 1400C and inserting section 23 . (3) Section 1016(a) is amended by striking paragraph (27). (c) Effective date (1) In general Except as otherwise provided in paragraph (2), the amendments made by this section shall take effect on the date of the enactment of this Act. (2) Savings provision The amendments made by this section shall not apply to— (A) in the case of the repeal of section 1400A of the Internal Revenue Code of 1986, obligations described in section 1394 of such Code (as in effect before its repeal) which were issued before January 1, 2012, (B) in the case of the repeal of section 1400B of such Code, DC Zone assets (as defined in such section, as in effect before its repeal) which were acquired by the taxpayer before January 1, 2012, and (C) in the case of the repeal of section 1400C of such Code, principal residences acquired before January 1, 2012. 3823. Repeal of provisions relating to renewal communities (a) In general Chapter 1 is amended by striking subchapter X (and by striking the item relating to such subchapter in the table of subchapters for such chapter). (b) Conforming amendments (1) (A) Section 469(i)(3), as amended by the preceding provisions of this Act, is amended by striking subparagraph (C) and by redesignating subparagraphs (D), (E), and (F) as subparagraphs (B), (C), and (D). (B) Section 469(i)(3)(C), as so redesignated, is amended to read as follows: (C) Ordering rule If subparagraph (B) applies for a taxable year, paragraph (1) shall be applied— (i) first to the portion of the passive activity loss to which such subparagraph does not apply, and (ii) then to the portion of such loss to which such subparagraph does apply. . (C) Section 469(i)(6)(B), as amended by the preceding provisions of this Act, is amended— (i) by striking commercial revitalization deduction in the heading, (ii) by striking in the case of— and all that follows through any credit in clause (i), (iii) by striking year, or in clause (i) and inserting year. , and (iv) by striking clause (iii). (c) Effective date (1) In general Except as provided in paragraph (2), the amendments made by this section shall take effect on the date of the enactment of this Act. (2) Savings provision The amendments made by this section shall not apply to— (A) in the case of the repeal of section 1400F of the Internal Revenue Code of 1986, qualified community assets (as defined in such section, as in effect before its repeal) which were acquired by the taxpayer before January 1, 2010, (B) in the case of the repeal section 1400H of such Code, wages paid or incurred before January 1, 2010, (C) in the case of the repeal of section 1400I of such Code, qualified revitalization buildings (as defined in such section, as in effect before its repeal) which were placed in service before January 1, 2010, and (D) in the case of the repeal of section 1400J of such Code, property acquired before January 1, 2010. 3824. Repeal of various short-term regional benefits (a) In general Chapter 1 is amended by striking subchapter Y (and by striking the item relating to such subchapter in the table of subchapters for such chapter). (b) Conforming amendments Section 38(b) is amended by striking paragraphs (27), (28), (29) and (30). (c) Effective dates (1) In general Except as provided in paragraph (2), the amendments made by this section shall take effect on the date of the enactment of this Act. (2) Savings provision The amendments made by this section shall not apply to— (A) in the case of the repeal of section 1400L(a) of the Internal Revenue Code of 1986, qualified wages (as defined in such section, as in effect before its repeal) which were paid or incurred before January 1, 2004, (B) in the case of the repeal of subsections (b) and (f) of section 1400L of such Code, qualified New York Liberty Zone property (as defined in section 1400L(b) of such Code, as in effect before its repeal) placed in service before January 1, 2010, (C) in the case of the repeal of section 1400L(c) of such Code, qualified New York Liberty Zone leasehold improvement property (as defined in such section, as in effect before its repeal) placed in service before January 1, 2007, (D) in the case of the repeal of section 1400L(d) of such Code, qualified New York Liberty bonds (as defined in such section, as in effect before its repeal) issued before January 1, 2014, (E) in the case of the repeal of section 1400L(e) of such Code, advanced refundings before January 1, 2006, (F) in the case of the repeal of section 1400L(g) of such Code, property which is compulsorily or involuntarily converted as a result of the terrorist attacks on September 11, 2001, (G) in the case of the repeal of section 1400N(a) of such Code, obligations issued before January 1, 2012, (H) in the case of the repeal of section 1400N(b) of such Code, advanced refundings before January 1, 2011, (I) in the case of the repeal of section 1400N(d) of such Code, property placed in service before January 1, 2012, (J) in the case of the repeal of section 1400N(e) of such Code, property placed in service before January 1, 2009, (K) in the case of the repeal of subsections (f) and (g) of section 1400N of such Code, amounts paid or incurred before January 1, 2008, (L) in the case of the repeal of section 1400N(h) of such Code, amounts paid or incurred before January 1, 2012, (M) in the case of the repeal of section 1400N(l) of such Code, bonds issued before January 1, 2007, (N) in the case of the repeal of section 1400Q(a) of such Code, distributions before January 1, 2007, (O) in the case of the repeal of section 1400Q(b) of such Code, contributions before March 1, 2006, (P) in the case of the repeal of section 1400Q(c) of such Code, loans made before January 1, 2007, (Q) in the case of the repeal of section 1400R of such Code, wages paid or incurred before January 1, 2006, (R) in the case of the repeal of section 1400S(a) of such Code, contributions paid before January 1, 2006, (S) in the case of the repeal of section 1400T of such Code, financing provided before January 1, 2011, and (T) in the case of the repeal of part III of subchapter Y of chapter 1 of such Code, obligations issued before January 1, 2011. IV Participation exemption system for the taxation of foreign income A Establishment of exemption system 4001. Deduction for dividends received by domestic corporations from certain foreign corporations (a) In general Part VIII of subchapter B of chapter 1 is amended by inserting after section 245 the following new section: 245A. Dividends received by domestic corporations from certain foreign corporations (a) In general In the case of any dividend received from a specified 10-percent owned foreign corporation by a domestic corporation which is a United States shareholder with respect to such foreign corporation, there shall be allowed as a deduction an amount equal to 95 percent of the foreign-source portion of such dividend. (b) Specified 10-Percent owned foreign corporation For purposes of this section, the term specified 10-percent owned foreign corporation means any foreign corporation if any domestic corporation owns directly, or indirectly through a chain of ownership described under section 958(a), 10 percent or more of the voting stock of such foreign corporation. (c) Foreign-Source portion For purposes of this section— (1) In general The foreign-source portion of any dividend is an amount which bears the same ratio to such dividends as— (A) the post-1986 undistributed foreign earnings, bears to (B) the total post-1986 undistributed earnings. (2) Post-1986 undistributed earnings The term post-1986 undistributed earnings means the amount of the earnings and profits of the specified 10-percent owned foreign corporation (computed in accordance with sections 964(a) and 986) accumulated in taxable years beginning after December 31, 1986— (A) as of the close of the taxable year of the specified 10-percent owned foreign corporation in which the dividend is distributed, and (B) without diminution by reason of dividends distributed during such taxable year. (3) Post-1986 undistributed foreign earnings The term post-1986 undistributed foreign earnings means the portion of the post-1986 undistributed earnings which is attributable to neither— (A) income described in subparagraph (A) of section 245(a)(5), nor (B) dividends described in subparagraph (B) of such section (determined without regard to section 245(a)(12)). (4) Treatment of distributions from earnings before 1987 (A) In general In the case of any dividend paid out of earnings and profits of the specified 10-percent owned foreign corporation (computed in accordance with sections 964(a) and 986) accumulated in taxable years beginning before January 1, 1987— (i) paragraphs (1), (2), and (3) shall be applied without regard to the phrase post-1986 each place it appears, and (ii) paragraph (2) shall be applied without regard to the phrase in taxable years beginning after December 31, 1986 . (B) Dividends paid first out of post-1986 earnings Dividends shall be treated as paid out of post-1986 undistributed earnings to the extent thereof. (d) Disallowance of foreign tax credit, etc (1) In general No credit shall be allowed under section 901 for any taxes paid or accrued (or treated as paid or accrued) with respect to any dividend for which a deduction is allowed under this section. (2) Denial of deduction No deduction shall be allowed under this chapter for any tax for which credit is not allowable under section 901 by reason of paragraph (1) (determined by treating the taxpayer as having elected the benefits of subpart A of part III of subchapter N). (e) Regulations The Secretary may prescribe such regulations or other guidance as may be necessary or appropriate to carry out the provisions of this section. . (b) Application of holding period requirement Subsection (c) of section 246 is amended— (1) by striking or 245 in paragraph (1) and inserting 245, or 245A , and (2) by adding at the end the following new paragraph: (5) Special rules for foreign source portion of dividends received from specified 10-percent owned foreign corporations (A) 6-month holding period requirement For purposes of section 245A— (i) paragraph (1)(A) shall be applied— (I) by substituting 180 days for 45 days each place it appears, and (II) by substituting 361-day period for 91-day period , and (ii) paragraph (2) shall not apply. (B) Status must be maintained during holding period For purposes of section 245A, the holding period requirement of this subsection shall be treated as met only if— (i) the specified 10-percent owned corporation referred to in section 245A(a) is a specified 10-percent owned corporation at all times during such period, and (ii) the taxpayer is a United States shareholder with respect to such specified 10-percent owned corporation at all times during such period. . (c) Application of rules generally applicable to deductions for dividends received (1) Treatment of dividends from certain corporations Paragraph (1) of section 246(a) is amended by striking and 245 and inserting 245, and 245A . (2) Assets generating tax-exempt portion of dividend not taken into account in allocating and apportioning deductible expenses Paragraph (3) of section 864(e) is amended by striking or 245(a) and inserting , 245(a), or 245A . (3) Coordination with section 1059 Subparagraph (B) of section 1059(b)(2) is amended by striking or 245 and inserting 245, or 245A . (d) Coordination with foreign tax credit limitation Subsection (b) of section 904, as amended by the preceding provisions of this Act, is amended by redesignating paragraph (2) as paragraph (1) and by adding at the end the following new paragraph: (2) Treatment of dividends for which deduction is allowed under section 245A For purposes of subsection (a), in the case of a domestic corporation which is a United States shareholder with respect to a specified 10-percent owned foreign corporation, such domestic corporation’s taxable income from sources without the United States shall be determined without regard to— (A) the foreign-source portion of any dividend received from such foreign corporation, and (B) any deductions properly allocable to such portion. Any term which is used in section 245A and in this paragraph shall have the same meaning for purposes of this paragraph as when used in such section. . (e) Conforming amendments (1) Paragraph (4) of section 245(a) is amended by striking section 902(c)(1) and inserting section 245A(c)(2) . (2) Subsection (b) of section 951 is amended by striking subpart and inserting title . (3) Subsection (a) of section 957 is amended by striking subpart in the matter preceding paragraph (1) and inserting title . (4) The table of sections for part VIII of subchapter B of chapter 1 is amended by inserting after the item relating to section 245 the following new item: Sec. 245A. Dividends received by domestic corporations from certain foreign corporations. . (f) Effective date The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2014, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end. 4002. Limitation on losses with respect to specified 10-percent owned foreign corporations (a) Basis in specified 10-Percent owned foreign corporation reduced by nontaxed portion of dividend for purposes of determining loss (1) In general Section 961 is amended by adding at the end the following new subsection: (d) Basis in specified 10-Percent owned foreign corporation reduced by nontaxed portion of dividend for purposes of determining loss If a domestic corporation received a dividend from a specified 10-percent owned foreign corporation (as defined in section 245A) in any taxable year, solely for purposes of determining loss on any disposition in such taxable year or any subsequent taxable year, the basis of such domestic corporation in the stock of such foreign corporation shall be reduced by the amount of any deduction allowable to such domestic corporation under section 245A with respect to such stock. . (2) Effective date The amendments made by this subsection shall apply to dividends received in taxable years beginning after December 31, 2014. (b) Treatment of foreign branch losses transferred to specified 10-Percent owned foreign corporations (1) In general Part II of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section: 92. Certain foreign branch losses transferred to specified 10-percent owned foreign corporations (a) In general If a domestic corporation transfers substantially all of the assets of a foreign branch (within the meaning of section 367(a)(3)(C)) to a specified 10-percent owned foreign corporation (as defined in section 245A) with respect to which it is a United States shareholder after such transfer, such domestic corporation shall include in gross income for the taxable year which includes such transfer an amount equal to the transferred loss amount with respect to such transfer. (b) Limitation and carryforward based on foreign-Source dividends received (1) In general The amount included in the gross income of the taxpayer under subsection (a) for any taxable year shall not exceed the amount allowed as a deduction under section 245A for such taxable year (taking into account dividends received from all specified 10-percent owned foreign corporations with respect to which the taxpayer is a United States shareholder). (2) Amounts not included carried forward Any amount not included in gross income for any taxable year by reason of paragraph (1) shall, subject to the application of paragraph (1) to the succeeding taxable year, be included in gross income for the succeeding taxable year. (c) Transferred loss amount For purposes of this section, the term transferred loss amount means, with respect to any transfer of substantially all of the assets of a foreign branch, the excess (if any) of— (1) the sum of losses— (A) which were incurred by the foreign branch after December 31, 2014, and before the transfer, and (B) with respect to which a deduction was allowed to the taxpayer, over (2) the sum of— (A) any taxable income of such branch for a taxable year after the taxable year in which the loss was incurred and through the close of the taxable year of the transfer, and (B) any amount which is recognized under section 904(f)(3) on account of the transfer. (d) Reduction for recognized gains (1) In general In the case of a transfer not described in section 367(a)(3)(C), the transferred loss amount shall be reduced (but not below zero) by the amount of gain recognized by the taxpayer on account of the transfer (other than amounts taken into account under subsection (c)(2)(B)). (2) Coordination with recognition under section 367 In the case of a transfer described in section 367(a)(3)(C), the transferred loss amount shall not exceed the excess (if any) of— (A) the excess of the amount described in section 367(a)(3)(C)(i) over the amount described in section 367(a)(3)(C)(ii) with respect to such transfer, over (B) the amount of gain recognized under section 367(a)(3)(C) with respect to such transfer. (e) Source of income Amounts included in gross income under this section shall be treated as derived from sources within the United States. (f) Basis adjustments Consistent with such regulations or other guidance as the Secretary may prescribe, proper adjustments shall be made in the adjusted basis of the taxpayer’s stock in the specified 10-percent owned foreign corporation to which the transfer is made, and in the transferee’s adjusted basis in the property transferred, to reflect amounts included in gross income under this section. . (2) Amounts recognized under section 367 on transfer of foreign branch with previously deducted losses treated as United States source Subparagraph (C) of section 367(a)(3) is amended by striking outside in the last sentence and inserting within . (3) Clerical amendment The table of subparts for such part, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item: Sec. 92. Certain foreign branch losses transferred to specified 10-percent owned foreign corporations. . (4) Effective date The amendments made by this subsection shall apply to transfers after December 31, 2014. 4003. Treatment of deferred foreign income upon transition to participation exemption system of taxation (a) In general Section 965 is amended to read as follows: 965. Treatment of deferred foreign income upon transition to participation exemption system of taxation (a) Treatment of deferred foreign income as subpart F income In the case of the last taxable year of a deferred foreign income corporation which begins before January 1, 2015, the subpart F income of such foreign corporation (as otherwise determined for such taxable year under section 952) shall be increased by the accumulated post-1986 deferred foreign income of such corporation determined as of the close of such taxable year. (b) Reduction in amounts included in gross income of United States shareholders of specified foreign corporations with deficits in earnings and profits (1) In general In the case of a taxpayer which is a United States shareholder with respect to at least one deferred foreign income corporation and at least one E&P deficit foreign corporation, the amount which would (but for this subsection) be taken into account under section 951(a)(1) by reason of subsection (a) as such United States shareholder’s pro rata share of the subpart F income of each deferred foreign income corporation shall be reduced (but not below zero) by the amount of such United States shareholder’s aggregate foreign E&P deficit which is allocated under paragraph (2) to such deferred foreign income corporation. (2) Allocation of aggregate foreign E&P deficit The aggregate foreign E&P deficit of any United States shareholder shall be allocated among the deferred foreign income corporations of such United States shareholder in an amount which bears the same proportion to such aggregate as— (A) such United States shareholder’s pro rata share of the accumulated post-1986 deferred foreign income of each such deferred foreign income corporation, bears to (B) the aggregate of such United States shareholder’s pro rata share of the accumulated post-1986 deferred foreign income of all deferred foreign income corporations of such United States shareholder. (3) Definitions related to E&P deficits For purposes of this subsection— (A) Aggregate foreign E&P deficit The term aggregate foreign E&P deficit means, with respect to any United States shareholder, the aggregate of such shareholder’s pro rata shares of the specified E&P deficits of the E&P deficit foreign corporations of such shareholder. (B) E&P deficit foreign corporation The term E&P deficit foreign corporation means, with respect to any taxpayer, any specified foreign corporation with respect to which such taxpayer is a United States shareholder, if— (i) such specified foreign corporation has a deficit in post-1986 earnings and profits, and (ii) as of February 26, 2014— (I) such corporation was a specified foreign corporation, and (II) such taxpayer was a United States shareholder of such corporation. (C) Specified E&P deficit The term specified E&P deficit means, with respect to any E&P deficit foreign corporation, the amount of the deficit referred to in subparagraph (B). (c) Application of participation exemption to included income (1) In general In the case of a United States shareholder of a deferred foreign income corporation, there shall be allowed as a deduction for the taxable year in which an amount is included in the gross income of such United States shareholder under section 951(a)(1) by reason of this section an amount equal to the sum of— (A) 90 percent of the excess (if any) of— (i) the amount so included as gross income, over (ii) the amount of such United States shareholder’s aggregate foreign cash position, plus (B) 75 percent of so much of the amount described in subparagraph (A)(ii) as does not exceed the amount described in subparagraph (A)(i). (2) Aggregate foreign cash position For purposes of this subsection— (A) In general The term aggregate foreign cash position means, with respect to any United States shareholder, the greater of— (i) the aggregate of such United States shareholder’s pro rata share of the cash position of each specified foreign corporation of such United States shareholder determined as of the close of the last taxable year of such specified foreign corporation which begins before January 1, 2015, or (ii) one half of the sum of— (I) the aggregate described in clause (i) determined as of the close of the last taxable year of each such specified foreign corporation which ends before February 26, 2014, plus (II) the aggregate described in clause (i) determined as of the close of the taxable year of each such specified foreign corporation which precedes the taxable year referred to in subclause (I). (B) Cash position For purposes of this paragraph, the cash position of any specified foreign corporation is the sum of— (i) cash and foreign currency held by such foreign corporation, (ii) the net accounts receivable of such foreign corporation, plus (iii) the fair market value of the following assets held by such corporation: (I) Actively traded personal property for which there is an established financial market. (II) Commercial paper, certificates of deposit, the securities of the Federal government and of any State or foreign government (III) Any obligation with a term of less than one year. (IV) Any asset which the Secretary identifies as being economically equivalent to any asset described in this subparagraph. (C) Net accounts receivable For purposes of this paragraph, the term net accounts receivable means, with respect to any specified foreign corporation, the excess (if any) of— (i) such corporation’s accounts receivable, over (ii) such corporation’s accounts payable (determined consistent with the rules of section 461). (D) Prevention of double counting Cash positions of a specified foreign corporation described in clause (ii) or (iii)(III) of subparagraph (B) shall not be taken into account by a United States shareholder under subparagraph (A) to the extent that such United States shareholder demonstrates to the satisfaction of the Secretary that such amount is so taken into account by such United States shareholder with respect to another specified foreign corporation. (E) Cash positions of foreign pass-thru entities taken into account Any foreign entity which would be a specified foreign corporation of a United States shareholder if such entity were a corporation shall be treated as a specified foreign corporation of such United States shareholder for purposes of determining such United States shareholder’s aggregate foreign cash position. (F) Anti-abuse If the Secretary determines that the principal purpose of any transaction was to reduce the aggregate foreign cash position taken into account under this subsection, such transaction shall be disregarded for purposes of this subsection. (d) Deferred foreign income corporation; accumulated post-1986 deferred foreign income For purposes of this section— (1) Deferred foreign income corporation The term deferred foreign income corporation means, with respect to any United States shareholder, any specified foreign corporation of such United States shareholder which has accumulated post-1986 deferred foreign income (as of the close of the taxable year referred to in subsection (a)) greater than zero. (2) Accumulated post-1986 deferred foreign income The term accumulated post-1986 deferred foreign income means the post-1986 earnings and profits except to the extent such earnings— (A) are attributable to income of the specified foreign corporation which is effectively connected with the conduct of a trade or business within the United States and subject to tax under this chapter, (B) if distributed, would— (i) in the case of a controlled foreign corporation, be excluded from the gross income of a United States shareholder under section 959, or (ii) in the case of any passive foreign investment company (as defined in section 1297) other than a controlled foreign corporation, be treated as a distribution which is not a dividend, or (C) in the case of any passive foreign investment company (as so defined), is properly attributable to an unreversed inclusion of a United States person under section 1296. To the extent provided in regulations or other guidance prescribed by the Secretary, in the case of any controlled foreign corporation which has shareholders which are not United States shareholders, accumulated post-1986 deferred foreign income shall be appropriately reduced by amounts which would be described in subparagraph (B)(i) is such shareholders were United States shareholders. Such regulations or other guidance may provide a similar rule for purposes of subparagraph (B)(ii) and (C). (3) Post-1986 earnings and profits The term post-1986 earnings and profits means the earnings and profits of the foreign corporation (computed in accordance with sections 964(a) and 986) accumulated in taxable years beginning after December 31, 1986, and determined— (A) as of the close the taxable year referred to in subsection (a), and (B) without diminution by reason of dividends distributed during such taxable year. (e) Specified foreign corporation (1) In general For purposes of this section, the term specified foreign corporation means— (A) any controlled foreign corporation, and (B) any section 902 corporation (as defined in section 909(d)(5) as in effect before the date of the enactment of the Tax Reform Act of 2014 ). (2) Application to section 902 corporations For purposes of section 951, a section 902 corporation (as so defined) shall be treated as a controlled foreign corporation solely for purposes of taking into account the subpart F income of such corporation under subsection (a) (and for purposes of applying subsection (f)). (f) Determinations of pro rata share For purposes of this section, the determination of any United States shareholder’s pro rata share of any amount with respect to any specified foreign corporation shall be determined under rules similar to the rules of section 951(a)(2) by treating such amount in the same manner as subpart F income (and by treating such specified foreign corporation as a controlled foreign corporation). (g) Disallowance of foreign tax credit, etc (1) In general No credit shall be allowed under section 901 for the applicable percentage of any taxes paid or accrued (or treated as paid or accrued) with respect to any amount for which a deduction is allowed under this section. (2) Applicable percentage For purposes of this subsection, the term applicable percentage means the amount (expressed as a percentage) equal to the sum of— (A) 0.9 multiplied by the ratio of— (i) the excess to which subsection (c)(1)(A) applies, divided by (ii) the sum of such excess plus the amount to which subsection (c)(1)(B) applies, plus (B) 0.75 multiplied by the ratio of— (i) the amount to which subsection (c)(1)(B) applies, divided by (ii) the sum described in subparagraph (A)(ii). (3) Denial of deduction No deduction shall be allowed under this chapter for any tax for which credit is not allowable under section 901 by reason of paragraph (1) (determined by treating the taxpayer as having elected the benefits of subpart A of part III of subchapter N). (4) Coordination with section 78 Section 78 shall not apply to any tax for which credit is not allowable under section 901 by reason of paragraph (1). (h) Election To pay liability in installments (1) In general In the case of a United States shareholder of a deferred foreign income corporation, such United States shareholder may elect to pay the net tax liability under this section in 8 installments of the following amounts: (A) 8 percent of the net tax liability in the case of each of the first 5 of such installments, (B) 15 percent of the net tax liability in the case of the 6th such installment, (C) 20 percent of the net tax liability in the case of the 7th such installment, and (D) 25 percent of the net tax liability in the case of the 8th such installment. (2) Date for payment of installments If an election is made under paragraph (1), the first installment shall be paid on the due date (determined without regard to any extension of time for filing the return) for the return of tax for the taxable year described in subsection (b) and each succeeding installment shall be paid on the due date (as so determined) for the return of tax for the taxable year following the taxable year with respect to which the preceding installment was made. (3) Acceleration of payment If there is an addition to tax for failure to pay timely assessed with respect to any installment required under this subsection, a liquidation or sale of substantially all the assets of the taxpayer (including in a title 11 or similar case), a cessation of business by the taxpayer, or any similar circumstance, then the unpaid portion of all remaining installments shall be due on the date of such event (or in the case of a title 11 or similar case, the day before the petition is filed). The preceding sentence shall not apply to the sale of substantially all the assets of a taxpayer to a buyer if such buyer enters into an agreement with the Secretary under which such buyer is liable for the remaining installments due under this subsection in the same manner as if such buyer were the taxpayer. (4) Proration of deficiency to installments If an election is made under paragraph (1) to pay the net tax liability under this section in installments and a deficiency has been assessed with respect to such net tax liability, the deficiency shall be prorated to the installments payable under paragraph (1). The part of the deficiency so prorated to any installment the date for payment of which has not arrived shall be collected at the same time as, and as a part of, such installment. The part of the deficiency so prorated to any installment the date for payment of which has arrived shall be paid upon notice and demand from the Secretary. This subsection shall not apply if the deficiency is due to negligence, to intentional disregard of rules and regulations, or to fraud with intent to evade tax. (5) Election Any election under paragraph (1) shall be made not later than the due date for the return of tax for the taxable year described in subsection (a) and shall be made in such manner as the Secretary may provide. (6) Net tax liability under this section For purposes of this subsection— (A) In general The net tax liability under this section with respect to any United States shareholder is the excess (if any) of— (i) such taxpayer’s net income tax for the taxable year described in subsection (a), over (ii) such taxpayer’s net income tax for such taxable year determined without regard to this section. (B) Net income tax The term net income tax means the regular tax liability reduced by the credits allowed under subparts A, B, and D of part IV of subchapter A. (i) Special rules for S corporation shareholders (1) In general In the case of any S corporation which is a United States shareholder of a deferred foreign income corporation, each shareholder of such S corporation may elect to defer payment of such shareholder’s net tax liability under this section with respect to such S corporation until the shareholder’s taxable year which includes the triggering event with respect to such liability. (2) Triggering event (A) In general In the case of any shareholder’s net tax liability under this section with respect to any S corporation, the triggering event with respect to such liability is whichever of the following occurs first: (i) Such corporation ceases to be an S corporation (determined as of the first day of the first taxable year that such corporation is not an S corporation). (ii) A liquidation or sale of substantially all the assets of such S corporation (including in a title 11 or similar case), a cessation of business by such S corporation, such S corporation ceases to exist, or any similar circumstance. (iii) A transfer of any share of stock in such S corporation by the taxpayer (including by reason of death, or otherwise). (B) Partial transfers of stock In the case of a transfer of less than all of the taxpayer’s shares of stock in the S corporation, such transfer shall only be a triggering event with respect to so much of the taxpayer’s net tax liability under this section with respect to such S corporation as is properly allocable to such stock. (C) Transfer of liability A transfer described in clause (iii) shall not be treated as a triggering event if the transferee enters into an agreement with the Secretary under which such transferee is liable for net tax liability with respect to such stock in the same manner as if such transferee were the taxpayer. (3) Net tax liability A shareholder’s net tax liability under this section with respect to any S corporation is the net tax liability under this section which would be determined under subsection (h)(6) if the only subpart F income taken into account by such shareholder by reason of this section were allocations from such S corporation. (4) Election to pay deferred liability in installments In the case of a taxpayer which elects to defer payment under paragraph (1), subsection (h) shall be applied— (A) separately with respect to the liability to which such election applies, (B) an election under subsection (h) with respect to such liability shall be treated as timely made if made not later than the due date for the return of tax for the taxable year in which the triggering event with respect to such liability occurs, (C) the first installment under subsection (h) with respect to such liability shall be paid not later than such due date (but determined without regard to any extension of time for filing the return), and (D) if the triggering event with respect to any net tax liability is described in paragraph (2)(A)(ii), an election under subsection (h) with respect to such liability may be made only with the consent of the Secretary. (5) Joint and several liability of S corporation If any shareholder of an S corporation elects to defer payment under paragraph (1), such S corporation shall be jointly and severally liable for such payment and any penalty, addition to tax, or additional amount attributable thereto. (6) Extension of limitation on collection Notwithstanding any other provision of law, any limitation on the time period for the collection of a liability deferred under this subsection shall not be treated as beginning before the date of the triggering event with respect to such liability. (7) Election Any election under paragraph (1) shall be made not later than the due date for the return of tax for the taxable year described in subsection (a) and shall be made in such manner as the Secretary may provide. (j) Inclusion of deferred foreign income under this section not To trigger recapture of overall foreign loss For purposes of section 904(f)(1), in the case of a United States shareholder of a deferred foreign income corporation, such United States shareholder’s taxable income from sources without the United States shall be determined without regard to this section. (k) Regulations The Secretary may prescribe such regulations or other guidance as may be necessary or appropriate to carry out the provisions of this section. . (b) Dedication of revenues to highway trust fund (1) In general Section 9503(f) is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph: (5) Appropriation to trust fund of net tax liabilities received under section 965 (A) In general Out of money in the Treasury not otherwise appropriated, there are hereby appropriated to the Highway Trust Fund amounts equivalent to the aggregate net tax liabilities under section 965 (as defined in such section) received in the Treasury. (B) Monthly transfers based on estimates For rule providing for the monthly transfer of amounts appropriated under subparagraph (A) based on estimates of the Secretary, see section 9601. . (2) Transfers to Mass Transit Account Section 9503(e)(2) is amended by striking the mass transit portion and inserting , 20 percent of the amounts appropriated to the Highway Trust Fund under subsection (f)(5), and the mass transit portion . (c) Clerical amendment The table of section for subpart F of part III of subchapter N of chapter 1 is amended by striking the item relating to section 965 and inserting the following: Sec. 965. Treatment of deferred foreign income upon transition to participation exemption system of taxation. . 4004. Look-thru rule for related controlled foreign corporations made permanent (a) In general Paragraph (6) of section 954(c) is amended by striking subparagraph (C). (b) Effective date The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2013, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end. B Modifications related to foreign tax credit system 4101. Repeal of section 902 indirect foreign tax credits; determination of section 960 credit on current year basis (a) Repeal of section 902 indirect foreign tax credits Subpart A of part III of subchapter N of chapter 1 is amended by striking section 902. (b) Determination of section 960 credit on current year basis Section 960 is amended— (1) by striking subsection (c), by redesignating subsection (b) as subsection (c), by striking all that precedes subsection (c) (as so redesignated) and inserting the following: 960. Deemed paid credit for subpart F inclusions (a) In general For purposes of this subpart, if there is included in the gross income of a domestic corporation any item of income under section 951(a)(1) with respect to any controlled foreign corporation with respect to which such domestic corporation is a United States shareholder, such domestic corporation shall be deemed to have paid so much of such foreign corporation’s foreign income taxes as are properly attributable to the item of income so included. (b) Special rules for distributions from previously taxed earnings and profits For purposes of this subpart— (1) In general If any portion of a distribution from a controlled foreign corporation to a domestic corporation which is a United States shareholder with respect to such controlled foreign corporation is excluded from gross income under section 959(a), such domestic corporation shall be deemed to have paid so much of such foreign corporation’s foreign income taxes as— (A) are properly attributable to such portion, and (B) have not been deemed to have to been paid by such domestic corporation under this section for any prior taxable year. (2) Tiered controlled foreign corporations If section 959(b) applies to any portion of a distribution from a controlled foreign corporation to another controlled foreign corporation, such controlled foreign corporation shall be deemed to have paid so much of such other controlled foreign corporation’s foreign income taxes as— (A) are properly attributable to such portion, and (B) have not been deemed to have been paid by a domestic corporation under this section for any prior taxable year. , (2) and by adding after subsection (c) (as so redesignated) the following new subsections: (d) Foreign income taxes The term foreign income taxes means any income, war profits, or excess profits taxes paid or accrued to any foreign country or possession of the United States. (e) Regulations The Secretary shall provide such regulations as may be necessary or appropriate to carry out the provisions of this section. . (c) Conforming amendments (1) Section 78 is amended to read as follows: 78. Gross up for deemed paid foreign tax credit If a domestic corporation chooses to have the benefits of subpart A of part III of subchapter N (relating to foreign tax credit) for any taxable year, an amount equal to the taxes deemed to be paid by such corporation under section 960 (relating to deemed paid credit for subpart F inclusions) for such taxable year shall be treated for purposes of this title (other than section 960) as an item of income required to be included in the gross income of such domestic corporation under section 951(a). . (2) Section 245(a)(10) is amended by striking 902, . (3) Sections 535(b)(1) and 545(b)(1) are each amended by striking section 902(a) or 960(a)(1) and inserting section 960 . (4) Paragraph (1) of section 814(f) is amended— (A) by striking subparagraph (B), and (B) by striking all that precedes No income and inserting the following: (1) Treatment of foreign taxes . (5) Subparagraph (B) of section 864(h)(1) is amended by striking 902, . (6) Subsection (a) of section 901 is amended by striking sections 902 and 960 and inserting section 960 . (7) Paragraph (2) of section 901(e) is amended by striking but is not limited to— and all that follows through that portion and inserting but is not limited to that portion . (8) Subsection (f) of section 901 is amended by striking sections 902 and 960 and inserting section 960 . (9) Subparagraph (A) of section 901(j)(1) is amended by striking 902 or . (10) Subparagraph (B) of section 901(j)(1) is amended by striking sections 902 and 960 and inserting section 960 . (11) Paragraph (2) of section 901(k) is amended by striking 902, . (12) Paragraph (6) of section 901(k) is amended by striking 902 or . (13) Subparagraph (A) of section 904(h)(10) is amended by striking sections 902, 907, and 960 and inserting sections 907 and 960 . (14) Section 904 is amended by striking subsection (k). (15) Paragraph (1) of section 905(c) is amended by striking the last sentence. (16) Subclause (I) of section 905(c)(2)(B)(i) is amended by striking section 902 or . (17) Subsection (a) of section 906 is amended by striking (or deemed, under section 902, paid or accrued during the taxable year) . (18) Subsection (b) of section 906 is amended by striking paragraphs (4) and (5). (19) Subparagraph (B) of section 907(b)(2) is amended by striking 902 or . (20) Paragraph (3) of section 907(c) is amended— (A) by striking subparagraph (A) and redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively, and (B) by striking section 960(a) in subparagraph (A) (as so redesignated) and inserting section 960 . (21) Paragraph (5) of section 907(c) is amended by striking 902 or . (22) Clause (i) of section 907(f)(2)(B) is amended by striking 902 or . (23) Subsection (a) of section 908 is amended by striking 902 or . (24) Subsection (b) of section 909 is amended— (A) by striking section 902 corporation in the matter preceding paragraph (1) and inserting specified 10-percent owned foreign corporation , (B) by striking 902 or in paragraph (1), (C) by striking by such section 902 corporation and all that follows in the matter following paragraph (2) and inserting by such specified 10-percent owned foreign corporation or a domestic corporation which is a United States shareholder with respect to such specified 10-percent owned foreign corporation. , and (D) by striking section 902 corporations in the heading thereof and inserting specified 10-percent owned foreign corporations . (25) Subsection (d) of section 909 is amended by striking paragraph (5). (26) Paragraph (1) of section 958(a) is amended by striking 960(a)(1) and inserting 960 . (27) Subsection (d) of section 959 is amended by striking Except as provided in section 960(a)(3), any and inserting Any . (28) Subsection (e) of section 959 is amended by striking and section 960(b) . (29) Subparagraph (A) of section 1291(g)(2) is amended by striking any distribution— and all that follows through but only if and inserting any distribution, any withholding tax imposed with respect to such distribution, but only if . (30) Section 1293 is amended by striking subsection (f). (31) Subparagraph (B) of section 6038(c)(1) is amended by striking sections 902 (relating to foreign tax credit for corporate stockholder in foreign corporation) and 960 (relating to special rules for foreign tax credit) and inserting section 960 . (32) Paragraph (4) of section 6038(c) is amended by striking subparagraph (C). (33) The table of sections for subpart A of part III of subchapter N of chapter 1 is amended by striking the item relating to section 902. (34) The table of sections for subpart F of part III of subchapter N of chapter 1 is amended by striking the item relating to section 960 and inserting the following: Sec. 960. Deemed paid credit for subpart F inclusions. . (d) Effective date The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2014, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end. 4102. Foreign tax credit limitation applied by allocating only directly allocable deductions to foreign source income (a) In general Subsection (b) of section 904, as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph: (3) Deductions allocable to foreign source income only if directly allocable For purposes of subsection (a), the taxpayer’s taxable income from sources without the United States shall be determined by allocating deductions to such income only if such deductions are directly allocable to such income. . (b) Effective date The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2014, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end. 4103. Passive category income expanded to include other mobile income (a) Treatment of foreign base company intangible income and foreign base company sales income as mobile category income Clause (i) of section 904(d)(2)(A) is amended by striking and specified passive category income and inserting specified passive category income, foreign base company sales income (as defined in section 954(d)), and foreign base company intangible income (as defined in section 954(f)) . (b) Repeal of special rules treating financial services income as general category income Paragraph (2) of section 904(d) is amended by striking subparagraphs (C) and (D) and by redesignating subparagraphs (E) through (K) as subparagraphs (C) through (I), respectively. (c) Conforming amendments (1) Relating to references to passive income (A) Section 904(d)(1)(A) is amended by striking passive category income and inserting mobile category income . (B) Section 904(d)(2)(A)(i), as amended by subsection (a), is amended— (i) by striking Passive category income in the heading thereof and inserting Mobile category income , (ii) by striking passive category income and inserting mobile category income , (iii) by striking passive income and inserting mobile income , and (iv) by striking specified passive category income and inserting specified mobile category income . (C) Section 904(d)(2)(A)(ii) is amended by striking passive category income and inserting mobile category income . (D) Section 904(d)(2)(B) is amended— (i) by striking Passive income in the heading thereof and inserting Mobile income , (ii) by striking passive income in clauses (i), (ii), and (iii) and inserting mobile income , (iii) by striking Specified passive category income in the heading of clause (iv) and inserting Specified mobile category income , and (iv) by striking specified passive category income in clause (iv) and inserting specified mobile category income . (E) Section 904(d)(2)(D), as redesignated by subsection (b), is amended by striking passive income and inserting mobile income . (F) Section 904(d)(3)(A) is amended by striking passive category income and inserting mobile category income . (G) Section 904(d)(3)(B) is amended by striking passive category income both places it appears and inserting mobile category income . (H) Section 904(d)(3)(C) is amended by striking passive category income both places it appears and inserting mobile category income . (I) Section 904(d)(3)(D) is amended by striking passive category income both places it appears and inserting mobile category income . (J) Section 904(d)(3)(E) is amended— (i) by striking passive category income both places it appears and inserting mobile category income , and (ii) by striking passive income and inserting mobile income . (K) Section 904(d)(3)(F) is amended by striking passive category income both places it appears and inserting mobile category income . (2) Other conforming amendments (A) Subparagraph (B) of section 864(f)(5) is amended by inserting (as in effect before its repeal) after section 904(d)(2)(D)(ii) . (B) Subparagraph (B) of section 954(c)(2) is amended by striking section 904(d)(2)(G) and inserting section 904(d)(2)(E) . (d) Effective date (1) In general The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2014, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end. (2) Treatment of carryforwards and carrybacks For purposes of section 904 of the Internal Revenue Code of 1986— (A) the amendments made by this section shall apply to any taxes carried from any taxable year beginning before January 1, 2015, to any taxable year beginning on or after such date, and (B) the Secretary of the Treasury, or his designee, may by regulations provide for the allocation of any carryback of taxes with respect to income from a taxable year beginning on or after January 1, 2015, to a taxable year beginning before such date for purposes of allocating such income among the separate categories in effect under section 904(d) for the taxable year to which carried. 4104. Source of income from sales of inventory determined solely on basis of production activities (a) In general Subsection (b) of section 863 is amended by adding at the end the following: Gains, profits, and income from the sale or exchange of inventory property described in paragraph (2) shall be allocated and apportioned between sources within and without the United States solely on the basis of the production activities with respect to the property. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2014. C Rules related to passive and mobile income 1 Modification of subpart F provisions 4201. Subpart F income to only include low-taxed foreign income (a) In general Subsection (a) of section 954 is amended— (1) by redesignating paragraphs (1), (2), (3), and (5) as subparagraphs (A) through (D), respectively, (2) by striking For purposes of and inserting the following: (1) In general For purposes of , and (3) by adding at the end the following new paragraph: (2) Application only to foreign base company income subject to a low foreign effective rate of tax (A) In general Foreign base company income shall only include items of income received by a controlled foreign corporation which are subject to an effective rate of income tax imposed by a foreign country which is less than 100 percent of the maximum rate of tax specified in section 11. (B) Application to foreign base company income subject to reduced domestic rate of tax (i) Foreign base company sales income In the case of foreign base company sales income, subparagraph (A) shall be applied by substituting 50 percent for 100 percent . (ii) Foreign base company intangible income In the case of foreign base company intangible income, subparagraph (A) shall be applied— (I) by substituting the applicable percentage of the foreign percentage (determined under section 250(c) with respect to the controlled foreign corporation) for 100 percent , and (II) by treating the foreign base company intangible income as a single item of income. (iii) Applicable percentage For purposes of clause (ii)(I), the term applicable percentage means, with respect to any taxable year of a controlled foreign corporation, the percentage determined in accordance with the following table: In the case of any taxable year beginning in: The applicable percentage is: 2015 45 percent 2016 48 percent 2017 52 percent 2018 56 percent 2019 or thereafter 60 percent. . (b) Insurance income Subsection (a) of section 953 is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph: (2) Application only to insurance income subject to a low foreign effective rate of tax Insurance income shall only include items of income received by a controlled foreign corporation which are subject to an effective rate of income tax imposed by a foreign country which is less than the maximum rate of tax specified in section 11. . (c) Conforming amendments (1) Section 954(b)(3)(B) is amended by striking paragraphs (4) and (5) and inserting subsection (a)(2), section 953(a)(2), and paragraph (5) (2) Section 954(b) is amended by striking paragraph (4). (3) Section 954(c)(1) is amended by striking subsection (a)(1) and inserting this section . (4) Section 954(d)(1) is amended by striking subsection (a)(2) and inserting this section . (5) Section 954(e)(1) is amended by striking subsection (a)(3) and inserting this section . (d) Effective date The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2014, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end. 4202. Foreign base company sales income (a) 50-Percent exclusion for low-Taxed foreign base company sales income (1) In general Subparagraph (B) of section 954(a)(1), as amended by the preceding provisions of this Act, is amended by inserting 50 percent of before the foreign base company sales income . (2) Preservation of deemed paid foreign tax credit on low-taxed foreign base company income Section 960, as amended by this Act, is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: (c) Deemed paid credit determined without regard to certain exclusions from subpart F income Solely for purposes of subsection (a), section 954(a)(1)(B) shall be applied by substituting 100 percent for 50 percent in determining amounts included under section 951(a)(1). . (b) Exception from foreign base company sales income for foreign corporations eligible for benefits under comprehensive income tax treaties Section 954(d) is amended by adding at the end the following new paragraph: (5) Exception for foreign corporations eligible for benefits under comprehensive income tax treaties No portion of the gross income of a controlled foreign corporation shall be treated as foreign base company sales income if such controlled foreign corporation is eligible as a qualified resident for all of the benefits provided under a comprehensive income tax treaty with the United States. . (c) Effective date The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2014, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end. 4203. Inflation adjustment of de minimis exception for foreign base company income (a) In general Paragraph (3) of section 954(b) is amended by adding at the end the following new subparagraph: (D) Inflation adjustment In the case of any taxable year beginning after 2015, the dollar amount in subparagraph (A)(ii) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting calendar year 2014 for calendar year 2012 in clause (ii) thereof. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $50,000. . (b) Effective date The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2014, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end. 4204. Active financing exception extended with limitation for low-taxed foreign income (a) Extension of active financing exception (1) In general Paragraph (9) of section 954(h) is amended by striking January 1, 2014 and inserting January 1, 2019 . (2) Exempt insurance income Paragraph (10) of section 953(e) is amended— (A) by striking January 1, 2014 and inserting January 1, 2019 , and (B) by striking December 31, 2013 and inserting December 31, 2018 . (b) Limitation for low-Taxed foreign income (1) In general Paragraph (1) of section 954(h) is amended to read as follows: (1) In general For purposes of subsection (c)(1), in the case of an eligible controlled foreign corporation, foreign personal holding company income shall not include— (A) qualified banking or financing income which is subject to an effective rate of income tax imposed by a foreign country which is at least 50 percent of the maximum rate of tax specified in section 11, and (B) 50 percent of any other qualified banking or financing income of such eligible controlled foreign corporation. . (2) Insurance business income Paragraph (1) of section 954(i) is amended to read as follows: (1) In general For purposes of subsection (c)(1), in the case of a qualifying insurance company, foreign personal holding company income shall not include— (A) any qualified insurance income which is subject to an effective rate of income tax imposed by a foreign country which is at least 50 percent of the maximum rate of tax specified in section 11, and (B) 50 percent of any other qualified insurance income of such qualifying insurance company. . (3) Preservation of deemed paid foreign tax credit on high-taxed foreign income Subsection (c) of section 960, as amended by the preceding provisions of this Act, is amended by striking Solely for purposes of subsection (a) and all that following and inserting the following: Solely for purposes of subsection (a)— (1) section 954(a)(1)(B) shall be applied by substituting 100 percent for 50 percent , and (2) the exclusions under subsections (h)(1)(B) and (i)(1)(B) of section 954 shall not apply, in determining amounts included under section 951(a)(1). . (c) Effective date The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2013, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end. 4205. Repeal of inclusion based on withdrawal of previously excluded subpart F income from qualified investment (a) In general Subpart F of part III of subchapter N of chapter 1 is amended by striking section 955. (b) Conforming amendments (1) (A) Subparagraph (A) of section 951(a)(1), as amended by this Act, is amended to read as follows: (A) his pro rata share (determined under paragraph (2)) of the corporation’s subpart F income for such year, and . (B) Paragraph (3) of section 851(b) is amended by striking section 951(a)(1)(A)(i) in the flush language at the end and inserting section 951(a)(1)(A) . (C) Clause (i) of section 952(c)(1)(B) is amended by striking section 951(a)(1)(A)(i) and inserting section 951(a)(1)(A) . (D) Subparagraph (C) of section 953(c)(1) is amended by striking section 951(a)(1)(A)(i) and inserting section 951(a)(1)(A) . (2) Subsection (a) of section 951 is amended by striking paragraph (3). (3) Subclause (II) of section 953(d)(4)(B)(iv) is amended by striking or amounts referred to in clause (ii) or (iii) of section 951(a)(1)(A) . (4) Subsection (b) of section 964 is amended by striking , 955, . (5) Section 970 is amended by striking subsection (b). (6) The table of sections for subpart F of part III of subchapter N of chapter 1 is amended by striking the item relating to section 955. (c) Effective date The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2014, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end. 2 Prevention of base erosion 4211. Foreign intangible income subject to taxation at reduced rate; intangible income treated as subpart F income (a) Foreign base company intangible income treated as subpart F income (1) Treatment as subpart F income Paragraph (1) of section 954(a), as amended by the preceding provisions of this Act, is amended by redesignating subparagraph (D) as subparagraph (E) and by inserting after subparagraph (C) the following new subparagraph: (D) the foreign base company intangible income for the taxable year (determined under subsection (f) and reduced as provided in subsection (b)(5)), and . (2) Foreign base company intangible income defined Section 954 of such Code is amended by inserting after subsection (e) the following new subsection: (f) Foreign base company intangible income For purposes of this section— (1) In general The term foreign base company intangible income means, with respect to any corporation for any taxable year, the excess of— (A) so much of the adjusted gross income of the corporation as exceeds 10 percent of the corporation’s qualified business asset investment, over (B) the applicable percentage of such corporation’s foreign personal holding company income, foreign base company sales income, foreign base company services income, and foreign base company oil related income. (2) Applicable percentage For purposes of paragraph (1), the term applicable percentage means, with respect to any corporation for any taxable year, the ratio (expressed as a percentage) of— (A) the excess described in paragraph (1)(A), divided by (B) the adjusted gross income of the corporation. (3) Qualified business asset investment (A) In general The term qualified business asset investment means, with respect to any corporation for any taxable year, the aggregate of the corporation’s adjusted bases (determined as of the close of such taxable year and after any adjustments with respect to such taxable year) in specified tangible property— (i) used in a trade or business of the corporation, and (ii) of a type with respect to which a deduction is allowable under section 168. (B) Determination of adjusted basis For purposes of subparagraph (A), the adjusted basis in any property shall be determined without regard to any provision of this title (or any other provision of law) which is enacted after the date of the enactment of this section. (C) Regulations The Secretary shall issue such regulations or other guidance as the Secretary determines appropriate to prevent the avoidance of the purposes of this paragraph, including regulations or other guidance which provide for the treatment of property if— (i) such property is transferred, or held, temporarily, or (ii) the avoidance of the purposes of this paragraph is a factor in the transfer or holding of such property. (4) Adjusted gross income; specified tangible property For purposes of this subsection— (A) Adjusted gross income (i) In general The term adjusted gross income means, with respect to any corporation, the gross income of such corporation reduced by such corporation’s commodities gross income. (ii) Commodities gross income The term commodities gross income means, with respect to any corporation, the gross income of such corporation which is derived from commodities which are produced or extracted by such corporation. (B) Specified tangible property The term specified tangible property means any tangible property unless such property is used in the production of commodities gross income. In the case of property which is used in the production of commodities gross income and other gross income, such property shall be treated as specified tangible property in the same proportion that the adjusted gross income produced with respect to such property bears to the total gross income produced with respect to such property. (C) Commodity The term commodity means any commodity described in section 475(e)(2). . (3) Application only to foreign base company intangible income subject to a low foreign effective rate of tax Paragraph (2) of section 954(a), as amended by preceding provisions of this Act, is amended by inserting or foreign base company intangible income after foreign base company sales income . (4) Conforming amendment Paragraph (5) of section 954(b) is amended by inserting the foreign base company intangible income, before and the foreign base company oil related income . (b) Deduction for foreign intangible income (1) In general Part VIII of subchapter B of chapter 1 is amended by adding at the end the following new section: 250. Foreign intangible income (a) In general In the case of a domestic corporation for any taxable year, there shall be allowed as a deduction an amount equal to the applicable percentage of the lesser of— (1) the sum of— (A) the foreign percentage multiplied by the net imputed intangible income of such domestic corporation for such taxable year, plus (B) in the case of a domestic corporation which is a United States shareholder with respect to any controlled foreign corporation, the foreign percentage (determined with respect to such controlled foreign corporation) multiplied by any foreign base company intangible income (as defined in section 954(f)) of such controlled foreign corporation which is included in the gross income of such domestic corporation under section 951 for such taxable year, or (2) taxable income of such domestic corporation (determined without regard to this section) for the taxable year. (b) Net imputed intangible income For purposes of this subsection, the term net imputed intangible income means the excess of— (1) the excess described in section 954(f)(1)(A), over (2) the deductions properly allocable to the amount described in paragraph (1). (c) Foreign percentage For purposes of this section— (1) In general The term foreign percentage means, with respect to any corporation for any taxable year, the ratio (expressed as a percentage) of— (A) the foreign-derived adjusted gross income of such corporation for such taxable year, over (B) the adjusted gross income of such corporation for such taxable year. (2) Foreign-derived adjusted gross income (A) In general The term foreign-derived adjusted gross income means, with respect to any corporation for any taxable year, any adjusted gross income of such corporation which is derived in connection with— (i) property which is sold for use, consumption, or disposition outside the United States, or (ii) services provided with respect to persons or property located outside the United States. (B) Special rules (i) Ultimate disposition Property shall not be treated as sold for use, consumption, or disposition outside the United States if the taxpayer knew, or had reason to know, that such property would be ultimately sold for use, consumption, or disposition in the United States. (ii) Sales to related parties If property is sold to a related party, such sale shall not be treated as for use, consumption or disposition outside the United States unless— (I) such property is ultimately sold for use, consumption or disposition outside the United States, or (II) such property is resold to an unrelated party outside the United States and no related party knew or had reason to know that such property would be ultimately sold for use, consumption, or disposition in the United States. (iii) Application to services Rules similar to the rules of clauses (i) and (ii) shall apply with respect to services described in subparagraph (A)(ii). (C) Related party For purposes of this paragraph, the term related party means any member of an affiliated group as defined in section 1504(a), determined— (i) by substituting more than 50 percent for at least 80 percent each place it appears, and (ii) without regard to paragraphs (2) and (3) of section 1504(b). Any person (other than a corporation) shall be treated as a member of such group if such person is controlled by members of such group (including any entity treated as a member of such group by reason of this sentence) or controls any such member. For purposes of the preceding sentence, control shall be determined under the rules of section 954(d)(3). (3) Adjusted gross income The term adjusted gross income has the meaning given such term by section 954(f)(4). (d) Applicable percentage For purposes of this section, the term applicable percentage means, with respect to any taxable year of the domestic corporation referred to in subsection (a), the percentage determined in accordance with the following table: In the case of any taxable year beginning in: The applicable percentage is: 2015 55 percent 2016 52 percent 2017 48 percent 2018 44 percent 2019 or thereafter 40 percent. (e) Regulations The Secretary may prescribe such regulations or other guidance as may be necessary or appropriate to carry out the provisions of this section. . (2) Conforming amendments (A) Clause (i) of section 163(j)(6)(A), as amended by the preceding provisions of this Act, is amended by striking and at the end of subclause (II) and by adding at the end the following new subclause: (IV) any deduction allowable under section 250, and . (B) Subparagraph (C) of section 170(b)(2) is amended by striking and at the end of clause (iv), by redesignating clause (v) as clause (vi), and by inserting after clause (iv) the following new clause: (v) section 250, and . (C) Subsection (d) of section 172, as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph: (7) Deduction for foreign intangible income The deduction under section 250 shall not be allowed. . (D) Paragraph (1) of section 246(b) is amended by striking and 247 and inserting 247, and 250 . (E) Clause (iii) of section 469(i)(3)(D), as amended by the preceding provisions of this Act, is amended by striking and 222 and inserting 222, and 250 . (c) Effective date (1) Treatment as subpart F income The amendments made by subsection (a) shall apply to taxable years of foreign corporations beginning after December 31, 2014, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end. (2) Deduction for foreign intangible income The amendments made by subsection (b) shall apply to taxable years beginning after December 31, 2014. 4212. Denial of deduction for interest expense of United States shareholders which are members of worldwide affiliated groups with excess domestic indebtedness (a) In general Section 163 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection: (n) Disallowance of deduction for interest expense of United States shareholders which are members of worldwide affiliated groups with excess domestic indebtedness (1) In general In the case of any domestic corporation which is a United States shareholder (as defined in section 951(b)) with respect to any foreign corporation both of which are members of the same worldwide affiliated group, the deduction allowed under this chapter for interest paid or accrued by such domestic corporation during the taxable year shall be reduced by the lesser of— (A) the product of— (i) the net interest expense of such domestic corporation, multiplied by (ii) the debt-to-equity differential percentage of such worldwide affiliated group, or (B) the excess (if any) of— (i) such net interest expense, over (ii) 40 percent of the adjusted taxable income (as defined in subsection (j)(6)(A)) of such domestic corporation. (2) Carryforward Any amount disallowed under paragraph (1) for any taxable year shall be treated as interest paid or accrued in the succeeding taxable year (and shall not be treated as disqualified interest for purposes of applying subsection (j)). (3) Debt-to-equity differential percentage (A) In general For purposes of this subsection, the term debt-to-equity differential percentage means, with respect to any worldwide affiliated group, the percentage which the excess domestic indebtedness of such group bears to the total indebtedness of the domestic corporations which are members of such group. (B) Excess domestic indebtedness For purposes of subparagraph (A), the term excess domestic indebtedness means, with respect to any worldwide affiliated group, the excess (if any) of— (i) the total indebtedness of the domestic corporations which are members of such group, over (ii) 110 percent of the amount which the total indebtedness of such domestic corporations would be if the ratio of such indebtedness to the total equity of such domestic corporations equaled the ratio which— (I) the total indebtedness of such group, bears to (II) the total equity of such group. (C) Total equity For purposes of subparagraph (B), the term total equity means, with respect to one or more corporations, the excess (if any) of— (i) the money and all other assets of such corporations, over (ii) the total indebtedness of such corporations. (D) Special rules for determining debt and equity For purposes of this paragraph— (i) Application of certain general rules Rules similar to the rules of clauses (i), (ii), and (iii) of subsection (j)(2)(C) shall apply. (ii) Intragroup debt and equity interests disregarded The total indebtedness, and the assets, of any group of corporations shall be determined by treating all members of such group as one corporation. (iii) Determination of assets of domestic group The assets of the domestic corporations which are members of any worldwide affiliated group shall be determined by disregarding any interest held by any such domestic corporation in any foreign corporation which is a member of such group. (4) Other definitions For purposes of this subsection— (A) Worldwide affiliated group The term worldwide affiliated group has the meaning which would be given such term by section 864(f)(1)(C) if section 1504(a) were applied by substituting more than 50 percent for at least 80 percent each place it appears. (B) Net interest expense The term net interest expense has the meaning given such term by subsection (j)(6)(B). (5) Treatment of affiliated group For purposes of this subsection, all members of the same affiliated group (within the meaning of section 1504(a) applied by substituting more than 50 percent for at least 80 percent each place it appears) shall be treated as 1 taxpayer. (6) Regulations The Secretary shall prescribe such regulations or other guidance as may be appropriate to carry out the purposes of this subsection, including regulations or other guidance— (A) to prevent the avoidance of the purposes of this subsection, (B) providing such adjustments in the case of corporations which are members of an affiliated group as may be appropriate to carry out the purposes of this subsection, (C) providing for the coordination of this subsection with section 884, and (D) providing for the reallocation of shares of partnership indebtedness, or distributive shares of the partnership’s interest income or interest expense. . (b) Coordination with limitation on related party indebtedness Paragraph (1) of section 163(j) is amended by adding at the end the following new subparagraph: (C) Coordination with limitation on excess domestic indebtedness The amount disallowed under subparagraph (A) with respect to any corporation for any taxable year shall be reduced by any amount disallowed under subsection (n)(1) with respect to such corporation for such taxable year. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. V Tax Exempt Entities A Unrelated Business Income Tax 5001. Clarification of unrelated business income tax treatment of entities treated as exempt from taxation under section 501(a) (a) In general Subparagraph (A) of section 511(a)(2) is amended by adding at the end the following: For purposes of the preceding sentence, an organization shall not fail to be treated as exempt from taxation under this subtitle by reason of section 501(a) solely because such organization is also so exempt, or excludes amounts from gross income, by reason of any other provision of this title. . (b) Clerical amendment The heading for subparagraph (A) of section 511(a)(2) is amended to read as follows: Organizations exempt from taxation by reason of section 501(a). (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 5002. Name and logo royalties treated as unrelated business taxable income (a) In general Section 513 is amended by adding at the end the following new subsection: (k) Name and logo royalties Any sale or licensing by an organization of any name or logo of the organization (including any trademark or copyright relating to such name or logo) shall be treated as an unrelated trade or business regularly carried on by such organization. . (b) Calculation of unrelated business taxable income Subsection (b) of section 512 is amended by adding at the end the following new paragraph: (20) Special rule for name and logo royalties Notwithstanding paragraph (1), (2), (3), or (5), any income derived from any sale or licensing described in section 513(k) shall be included as an item of gross income derived from an unrelated trade or business. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 5003. Unrelated business taxable income separately computed for each trade or business activity (a) In general Subsection (a) of section 512 is amended by adding at the end the following new paragraph: (6) Special rule for organization with more than 1 unrelated trade or business In the case of any organization with more than 1 unrelated trade or business— (A) unrelated business taxable income shall be computed separately with respect to each such trade or business and without regard to subsection (b)(12), (B) the unrelated business taxable income of such organization shall be the sum of the unrelated business taxable income so computed with respect to each such trade or business, less a specific deduction under subsection (b)(12), and (C) for purposes of subparagraph (B), unrelated business taxable income with respect to any such trade or business shall not be less than zero, and (D) the net operating loss deduction shall only be allowed with respect to the trade or business from which the net operating loss arose. . (b) Effective date (1) In general Except to the extent provided in paragraph (2), the amendment made by this section shall apply to taxable years beginning after December 31, 2014. (2) Net operating losses (A) Certain carryovers In the case of any net operating loss arising in a taxable year beginning before January 1, 2015, that is carried over to a taxable year beginning on or after such date, section 512(a)(6)(D) of the Internal Revenue Code of 1986, as added by this Act, shall not apply. (B) Certain carrybacks In the case of any net operating loss arising in a taxable year beginning after December 31, 2014, and carried back to any taxable year beginning on or before such date, in computing unrelated business taxable income of an organization under section 512(a) of such Code for the taxable year, the net operating loss deduction shall be allowed only with respect to the trade or business from which the net operating loss arose. 5004. Exclusion of research income limited to publicly available research (a) In general Paragraph (9) of section 512(b) is amended by striking from research and inserting from such research . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 5005. Parity of charitable contribution limitation between trusts and corporations (a) In general Paragraph (11) of section 512(b) is amended by striking the second sentence and inserting the following: The deduction allowed by this paragraph shall not exceed 10 percent of the unrelated business taxable income computed without the benefit of this paragraph. (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2014. 5006. Increased specific deduction (a) In general Paragraph (12) of section 512(b) is amended by striking $1,000 each place it appears and inserting $10,000 . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 5007. Repeal of exclusion of gain or loss from disposition of distressed property (a) In general Subsection (b) of section 512 is amended by striking paragraph (16). (b) Effective date The amendment made by this section shall apply to property acquired after December 31, 2014. 5008. Qualified sponsorship payments (a) Repeal of use or acknowledgment of product lines for qualified sponsorship payments Subparagraphs (A) and (B)(ii)(I) of section 513(i)(2) are each amended by striking (or product lines) . (b) Use or acknowledgment limited in case of certain events Subparagraph (B) of section 513(i)(2) is amended by adding at the end the following new clause: (iii) Use or acknowledgment limited in case of certain events In the case of an event with respect to which an organization receives an aggregate amount of qualified sponsorship payments greater than $25,000, a payment shall not be treated as a qualified sponsorship payment for purposes of paragraph (1) unless the use or acknowledgment of the sponsor’s name or logo appears with, and in substantially the same manner as, the names of a significant portion of other donors to the organization. For purposes of the preceding sentence, whether a number of donors is a significant portion shall be determined based on the total number of donors and the total contributed with respect to the event, but in no event shall fewer than 2 other donors be treated as a significant portion of other donors. . (c) Clerical amendment The heading for clause (ii) of section 513(i)(2)(B) is amended to read as follows: Periodicals and qualified convention and trade show activities. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. B Penalties 5101. Increase in information return penalties (a) Failure To file return (1) Organization Subparagraph (A) of section 6652(c)(1) is amended— (A) by striking $20 each place it appears and inserting $40 , and (B) by striking $100 and inserting $200 . (2) Managers Clause (ii) of section 6652(c)(1)(B) is amended by striking $10 and inserting $20 . (b) Failure To make returns, reports, and applications available for public inspection Subparagraphs (C) and (D) of section 6652(c)(1) are each amended by striking $20 and inserting $40 . (c) Failure To file returns under section 6034 or 6043 Paragraph (2) of section 6652(c) is amended— (1) by striking $10 each place it appears in subparagraphs (A) and (B) and inserting $20 , and (2) by striking substituting $100 for $20 , in subparagraph (C)(ii) and inserting substituting $200 for $40 , . (d) Failure To file disclosure under section 6033(a)(2) (1) Organization Subparagraph (A) of section 6652(c)(3) is amended by striking $100 and inserting $200 . (2) Managers Subparagraph (B) of section 6652(c)(3) is amended by striking $100 and inserting $200 . (e) Effective date The amendments made by this section shall apply with respect to information returns required to be filed on or after January 1, 2015. 5102. Manager-level accuracy-related penalty on underpayment of unrelated business income tax (a) In general Section 6662 is amended by adding at the end the following new subsection: (k) Manager-Level penalty for substantial underpayment of unrelated business income tax (1) In general In the case of any substantial underpayment of income tax which is attributable to the tax imposed by section 511 on the unrelated business taxable income of an organization for the taxable year, there is hereby imposed a tax with respect to such organization an amount equal to 5 percent of such underpayment to which the underpayment relates. Such tax shall be paid by any manager of the organization. (2) Manager For purposes of this subsection, the term manager means any officer, director, trustee, employee, or other individual who is under a duty to perform an act in respect of which the underpayment relates. (3) Joint and several liability If more than one person is liable under paragraph (1) with respect to an underpayment, all such persons shall be jointly and severally liable under such paragraph with respect to such underpayment (4) Limit With respect to any substantial underpayment of income tax for a taxable year, the maximum amount of the tax added by paragraph (1) shall not exceed $20,000. . (b) Reportable transactions Section 6662A is amended by adding at the end the following new subsection: (f) Manager-Level penalty in case of unrelated business income tax (1) In general In the case of any portion of a reportable transaction understatement of the tax imposed by section 511 to which this section applies, there is hereby imposed a tax in an amount equal to 10 percent of such portion of the underpayment to which the reportable transaction understatement occurs. Such tax shall be paid by any manager of the organization. (2) Manager For purposes of this subsection, the term manager means any officer, director, trustee, employee, or other individual who is under a duty to perform an act in respect of which such understatement occurs. (3) Joint and several liability If more than one person is liable under paragraph (1) with respect to an understatement, all such persons shall be jointly and severally liable under such paragraph with respect to such understatement. (4) Limit With respect to any understatement of tax to which this section applies, the maximum amount of the tax added by paragraph (1) shall not exceed $40,000 . (c) Coordination Section 6662 is amended— (1) by striking the flush matter at the end of subsection (b), and (2) by adding at the end the following new subsection: (l) Coordination with other penalties This section shall not apply to any portion of an underpayment on which a penalty is imposed under section 6663. Except as provided in paragraph (1) or (2)(B) of section 6662A(e), this section shall not apply to the portion of any underpayment which is attributable to a reportable transaction understatement on which a penalty is imposed under section 6662A. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. C Excise Taxes 5201. Modification of intermediate sanctions (a) Organization level tax Subsection (a) of section 4958 is amended by adding at the end the following new paragraph: (3) On the organization In any case in which a tax is imposed by paragraph (1), there is hereby imposed on the organization a tax equal to 10 percent of the excess benefit. . (b) Minimum standards of organization due diligence Subsection (d) of section 4958 is amended by adding at the end the following new paragraph: (3) Minimum standards of organization due diligence (A) In general Subsection (a)(3) shall not apply to a transaction, if— (i) the organization establishes that the minimum standards of due diligence described in subparagraph (B) were met with respect to the transaction, or (ii) the organization establishes to the satisfaction of the Secretary that such other reasonable procedures were used to ensure that no excess benefit was provided. (B) Minimum standards An organization shall be treated as satisfying the minimum standards of due diligence described in this subparagraph with respect to any transaction, if— (i) the transaction was approved in advance by an authorized body of the organization composed entirely of individuals who did not have a conflict of interest with respect to the transaction, (ii) the authorized body obtained and relied upon appropriate data as to comparability prior to approval of the transaction, and (iii) the authorizing body adequately and concurrently documented the basis for approving the transaction. (C) No presumption as to reasonableness Meeting the requirements of clause (i) or (ii) of subparagraph (A) with respect to a transaction shall not give rise to a presumption of reasonableness for purposes of the taxes imposed by paragraphs (1) or (2) of subsection (a) and shall not, by itself, support a conclusion that a manager did not act knowingly for purposes of subsection (a)(2). . (c) Repeal of exception for manager reliance on professional advice Section 4958 is amended by adding at the end the following new subsection: (g) No safe harbor for reliance on professional advice An organization manager’s reliance on a written opinion of a professional with respect to elements of a transaction within the professional’s expertise shall not, by itself, preclude the manager from being treated as participating in the transaction knowingly. . (d) Athletic coaches and investment managers treated as disqualified persons (1) Athletic coaches (A) In general Paragraph (1) of section 4958(f) is amended by striking and at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting , and , and by adding at the end the following new subparagraph: (G) any person who performs services as an athletic coach for the organization. . (B) Family members Subparagraph (B) of section 4958(f)(1) is amended by inserting or (G) after subparagraph (A) . (2) Investment advisors (A) In general Subparagraph (F) of section 4958(f)(1) is amended— (i) by striking which involves a sponsoring organization (as defined in section 4966(d)(1)), , and (ii) by striking such sponsoring organization (as so defined) and inserting the organization . (B) Investment advisor definition Subparagraph (B) of section 4958(f)(8) is amended to read as follows: (B) Investment advisor defined For purposes of subparagraph (A), the term investment advisor means— (i) with respect to any organization, any person who is compensated by such organization and is primarily responsible for managing the investment of, or providing investment advice with respect to, assets of such organization, and (ii) with respect to any sponsoring organization (as defined in section 4966(d)(1)), any person (other than an employee of such organization) compensated by such organization for managing the investment of, or providing investment advice with respect to, assets maintained in donor advised funds (as defined in section 4966(d)(2)) owned by such organization. . (e) Application to unions and trade associations Paragraph (1) of section 4958(e) is amended by inserting (5), (6), after (4), . (f) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 5202. Modification of taxes on self-dealing (a) Organization level tax Subsection (a) of section 4941 is amended by adding at the end the following new paragraph: (3) On the foundation In any case in which a tax is imposed by paragraph (1), there is hereby imposed on the foundation a tax equal to 2.5 percent (10 percent in the case payment of compensation) of the amount involved with respect to the act of self-dealing for each year (or part thereof) in the taxable period. . (b) Repeal of exception for manager reliance on advice from counsel Section 4941 is amended by adding at the end the following new subsection: (f) No safe harbor for reliance on advice of counsel A foundation manager’s reliance on a written legal opinion by legal counsel that an act is not an act of self-dealing shall not, by itself, preclude the manager from being treated as participating in the act knowingly. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 5203. Excise tax on failure to distribute within 5 years contribution to donor advised fund (a) In general Subchapter G of chapter 42 is amended by adding at the end the following new section: 4968. Failure to distribute contributions within 5 years (a) In general In the case of a contribution which is held in a donor advised fund, there is hereby imposed a tax equal to 20 percent of so much of the portion of such contribution as has not been distributed by the sponsoring organization in an eligible distribution before the beginning of the 6th (or succeeding) taxable year beginning after the taxable year during which such contribution was made. The tax imposed by this subsection shall be paid by such sponsoring organization. (b) Treatment of distributions For purposes of this section— (1) Eligible distribution The term eligible distribution means any distribution to an organization described in section 170(b)(1)(A) (other than an organization described in section 509(a)(3) or any fund or account described in section 4966(d)(2). (2) Accounting Distributions shall be treated as made from contributions (and any earnings attributable thereto) on a first-in, first-out basis. . (b) Conforming amendment The table of sections for subchapter G of chapter 42 is amended by adding at the end the following new item: Sec. 4968. Failure to distribute contributions within 5 years. . (c) Effective date (1) In general Except as provided in paragraph (2), the amendments made by this section shall apply to contributions made after December 31, 2014. (2) Transition rule In the case of any contribution— (A) which was made before January 1, 2015, and (B) any portion of which (including any earnings attributable thereto) is held in a donor advised fund on such date, such portion shall be treated as contributed on such date. 5204. Simplification of excise tax on private foundation investment income (a) Rate reduction Subsection (a) of section 4940 is amended by striking 2 percent and inserting 1 percent . (b) Repeal of special rules for certain private foundations Section 4940 is amended by striking subsections (d) and (e). (c) Conforming amendment Section 4945(d)(4)(A) is amended by striking clause (iii) and by inserting or at the end of clause (i). (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 5205. Repeal of exception for private operating foundation failure to distribute income (a) In general Subsection (a) of section 4942 is amended— (1) by striking a private foundation— and all that follows through (2) to the extent and inserting a private foundation to the extent , and (2) by redesignating subparagraphs (A), (B), (C), and (D) as paragraphs (1), (2), (3), and (4), respectively, and by moving such paragraphs, as so redesignated, two ems to the left. (b) Conforming amendments (1) Section 4942(j) is amended by striking paragraphs (3), (4), and (5). (2) Section 170(b)(1)(F)(i) is amended by striking (as defined in section 4942(j)(3)) , (3) Section 170(b)(1) is amended by adding at the end the following new subparagraphs: (H) Private operating foundation For purposes of this paragraph, the term private operating foundation means any organization— (i) which makes qualifying distributions (within the meaning of paragraph (1) or (2) of section 4942(g)) directly for the active conduct of the activities constituting the purpose or function for which it is organized and operated equal to substantially all of the lesser of— (I) its adjusted net income (as defined in subsection section 4942(f)), or (II) its minimum investment return, and (ii) (I) substantially more than half of the assets of which are devoted directly to such activities or to functionally related businesses, or to both, or are stock of a corporation which is controlled by the foundation and substantially all of the assets of which are so devoted, (II) which normally makes qualifying distributions (within the meaning of paragraph (1) or (2) of section 4942(g)) directly for the active conduct of the activities constituting the purpose or function for which it is organized and operated in an amount not less than two-thirds of its minimum investment return (as defined in section 4942(e)), or (III) substantially all of the support (other than gross investment income as defined in section 509(e)) of which is normally received from the general public and from 5 or more exempt organizations which are not described in section 4946(a)(1)(H) with respect to each other or the recipient foundation; not more than 25 percent of the support (other than gross investment income) of which is normally received from any one such exempt organization; and not more than half of the support of which is normally received from gross investment income. Notwithstanding the provisions of clause (i), if the qualifying distributions (within the meaning of paragraph (1) or (2) of section 4942(g)) of an organization for the taxable year exceed the minimum investment return for the taxable year, subclause (II) of clause (i) shall not apply unless substantially all of such qualifying distributions are made directly for the active conduct of the activities constituting the purpose or function for which it is organized and operated. (I) Functionally related business For purposes of subparagraph (H), the term functionally related business means— (i) a trade or business which is not an unrelated trade or business (as defined in section 513), or (ii) an activity which is carried on within a larger aggregate of similar activities or within a larger complex of other endeavors which is related (aside from the need of the organization for income or funds or the use it makes of the profits derived) to the exempt purposes of the organization. . (4) Section 170(e)(3)(A) is amended by striking as defined in section 4942(j)(3) and inserting as defined in subsection (b)(1)(H) . (5) Section 150(b)(3)(F), as redesignated by this Act, is amended— (A) by striking 4942 (relating to the excise tax on a failure to distribute income) and , (B) by striking section 4942(j)(4) and inserting section 170(b)(1)(I) . (6) Section 2055(e)(4)(D) is amended by striking section 4942(j)(3) and inserting section 170(b)(1)(H) . (7) Section 2503(g)(2)(B) is amended by striking section 4942(j)(3) and inserting section 170(b)(1)(H) . (8) Section 4942(g)(1)(A) is amended by striking which is not an operating foundation (as defined in subsection (j)(3)) . (9) Section 4942(g)(3)(A) is amended by striking which is not an operating foundation . (10) Section 4942(g)(4)(A) is amended by striking which is not an operating foundation . (11) Section 4943(d)(3)(A) is amended by striking section 4942(j)(4) and inserting section 170(b)(1)(I) . (12) Section 6110(l)(2)(A) is amended by striking section 4942(j)(3) and inserting section 170(b)(1)(H) . (13) Section 7428(a)(1)(C) is amended by striking section 4942(j)(3) and inserting section 170(b)(1)(H) . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 5206. Excise tax based on investment income of private colleges and universities (a) In general Chapter 42 is amended by adding at the end the following new subchapter: H Excise tax based on investment income of private colleges and universities Sec. 4969. Excise tax based on investment income of private colleges and universities. 4969. Excise tax based on investment income of private colleges and universities (a) Tax imposed There is hereby imposed on each applicable educational institution for the taxable year a tax equal to 1 percent of the net investment income of such institution for the taxable year. (b) Applicable educational institution For purposes of this subchapter— (1) In general The term applicable educational institution means an eligible educational institution (as defined in section 25A(e)(3))— (A) which is not described in the first sentence of section 511(a)(2)(B) (relating to State colleges and universities), and (B) the aggregate fair market value of the assets of which at the end of the preceding taxable year (other than those assets which are used (or held for use) directly in carrying out the institution’s exempt purpose) is at least $100,000 per student of the institution. (2) Students For purposes of paragraph (1)(B), the number of students of an institution shall be based on the daily average number of full-time students attending such institution (with part-time students taken into account on a full-time student equivalent basis). (c) Net investment income For purposes of this section, net investment income shall be determined under rules similar to the rules of section 4940(c). . (b) Clerical amendment The table of subchapters for chapter 42 is amended by adding at the end the following new item: Subchapter H—Excise tax based on investment income of private colleges and universities . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. D Requirements for Organizations Exempt From Tax 5301. Repeal of tax-exempt status for professional sports leagues (a) In general Paragraph (6) of section 501(c) is amended— (1) by striking , boards of trade, or professional and all that follows through players) and inserting , or boards of trade , and (2) by adding at the end the following: This paragraph shall not apply to any professional sports league (whether or not administering a pension fund for players). . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 5302. Repeal of exemption from tax for certain insurance companies and co-op health insurance issuers (a) In general Section 501(c) is amended by striking paragraphs (15) and (29). (b) Conforming amendments (1) Section 831(d), as amended by the preceding provisions of this Act, is amended to read as follows: (d) Cross reference For taxation of foreign corporations carrying on an insurance business within the United States, see section 842. . (2) Section 4958(e)(1) is amended by striking (4), or (29) and inserting or (4) . (3) Section 6033 is amended by striking subsection (m) and redesignating subsection (n) as subsection (m). (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. (d) Transition rules In the case of any organization described in paragraph (15) or (29) of section 501(c) of the Internal Revenue Code of 1986 (as in effect immediately before the enactment of this Act)— (1) no adjustment shall be made under section 481 (or any other provision) of the Internal Revenue Code of 1986 on account of a change in its method of accounting for its 1st taxable year beginning after December 31, 2014, and (2) for purposes of determining gain or loss, the adjusted basis of any asset held on the 1st day of such taxable year shall be treated as equal to its fair market value as of such day. 5303. In-State requirement for workmen’s compensation insurance organization (a) In general Clause (ii) of section 501(c)(27)(B) is amended by inserting before the comma at the end the following: , and must not offer any other insurance . (b) Effective date The amendment made by this section shall apply to insurance policies issued, and renewals, after December 31, 2014. 5304. Repeal of Type II and Type III supporting organizations (a) In general Subparagraph (B) of section 509(a)(3) is amended— (1) by inserting and at the end of clause (i), (2) by striking clauses (ii) and (iii), and (3) by striking is— and all that follows through operated, supervised, or controlled and inserting is operated, supervised, or controlled . (b) Conforming amendments (1) Section 170(f)(18)(A) is amended by striking is not— and all that follows through , and and inserting the following: is not described in paragraph (3), (4), or (5) of subsection (c), and . (2) (A) (i) Section 509(f) is amended by striking paragraph (1) and by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively. (ii) Section 4942(g)(4)(A)(ii)(I) is amended by striking section 509(f)(3) and inserting section 509(f)(2) . (iii) Section 4958(c)(3)(C)(ii)(II) is amended by striking section 509(f)(3) and inserting section 509(f)(2) . (iv) Section 4966(d)(4)(A)(ii)(I) is amended by striking section 509(f)(3) and inserting section 509(f)(2) . (B) Section 509(f)(1)(A), as so redesignated, is amended by striking shall not be considered to be— and all that follows through if such organization and inserting the following: shall not be considered to be operated, supervised, or controlled by any organization described in paragraph (1) or (2) of subsection (a), if such organization . (3) Section 2055(e)(5)(A) is amended by striking is not— and all that follows through , and and inserting the following: is not described in paragraph (3) or (4) of subsection (a), and . (4) Section 2522(c)(5)(A) is amended by striking is not— and all that follows through , and and inserting the following: is not described in paragraph (3) or (4) of subsection (a), and . (5) (A) Section 4942(g)(4)(A), as amended by the preceding provision of this Act, is amended— (i) by redesignating subclauses (I) and (II) of clause (ii) as clauses (i) and (ii), respectively, and moving such redesignated clauses 2 ems to the left, (ii) by striking paid by a private foundation to— and all that follows through any organization which and inserting the following: paid by a private foundation to any organization which , and (iii) by striking subparagraph (B) or (C) and inserting subparagraph (B) . (B) Section 4942(g)(4)(B) is amended— (i) by striking clause (ii), (ii) by striking section 509(a), or and inserting section 509(a). , (iii) by striking and is— and all that follows through operated, supervised, or controlled by and inserting the following: and is operated, supervised, or controlled by , and (iv) by striking Type I and type II in the heading thereof. (C) Section 4942(g)(4) is amended by striking subparagraph (C). (D) Section 4945(d)(4)(A)(ii) is amended by striking clause (i) or (ii) of section 4942(g)(4)(A) and inserting section 4942(g)(4)(A) . (6) Section 4943 is amended by striking subsection (f). (7) (A) Section 4966(d)(4)(A), as amended by this Act, is amended— (i) by redesignating subclauses (I) and (II) of clause (ii) as clauses (i) and (ii), respectively, and moving such redesignated clauses 2 ems to the left, (ii) by striking with respect to any distribution— and all that follows through any organization which and inserting the following: with respect to any distribution, any organization which , and (iii) by striking subparagraph (B) or (C) and inserting subparagraph (B) . (B) Section 4966(d)(4)(B) is amended— (i) by striking clause (ii), (ii) by striking section 509(a), or and inserting section 509(a). , (iii) by striking and is— and all that follows through operated, supervised, or controlled by and inserting the following: and is operated, supervised, or controlled by , and (iv) by striking Type I and type II in the heading thereof. (C) Section 4966(d)(4) is amended by striking subparagraph (C). (8) Section 6033(l) is amended by inserting and at the end of paragraph (1), by striking paragraph (2), and by redesignating paragraph (3) as paragraph (2). (c) Effective date (1) In general Except as provided in paragraph (2), the amendments made by this section shall take effect on the date of the enactment of this Act. (2) Delay for current supporting organizations In the case of an organization which, as of the date of the enactment of this Act, meets the requirements of subparagraphs (A) and (C) of section 509(a)(3) of the Internal Revenue Code of 1986 and is— (A) supervised or controlled in connection with one or more organizations described in paragraph (1) or (2) of section 509(a) of such Code, or (B) is operated in connection with one or more such organizations, the amendments made by this section shall apply to taxable years beginning after December 31, 2015. VI Tax administration and compliance A IRS Investigation-Related Reforms 6001. Organizations required to notify Secretary of intent to operate as 501(c)(4) (a) In general Part I of subchapter F of chapter 1 is amended by adding at the end the following new section: 506. Organizations required to notify Secretary of intent to operate as 501(c)(4) (a) In general An organization described in section 501(c)(4) shall, not later than 60 days after the organization is established, notify the Secretary (in such manner as the Secretary shall by regulation prescribe) that it is operating as such. (b) Contents of notice The notice required under subsection (a) shall include the following information: (1) The name, address, and taxpayer identification number of the organization. (2) The date on which, and the State under the laws of which, the organization was organized. (3) A statement of the purpose of the organization. (c) Acknowledgment of receipt Not later than 60 days after receipt of such a notice, the Secretary shall send to the organization an acknowledgment of such receipt. (d) Extension for reasonable cause The Secretary may, for reasonable cause, extend the 60-day period described in subsection (a). (e) User fee The Secretary shall impose a reasonable user fee for submission of the notice under subsection (a). (f) Request for determination Upon request by an organization to be treated as an organization described in section 501(c)(4), the Secretary may issue a determination with respect to such treatment. Such request shall be treated for purposes of section 6104 as an application for exemption from taxation under section 501(a). . (b) Supporting information with first return Paragraph (1) of section 6033(f) is amended— (1) by striking the period at the end and inserting , and , (2) by striking include on the return required under subsection (a) the information and inserting the following: include on the return required under subsection (a)— (1) the information , and (3) by adding at the end the following new paragraph: (2) in the case of the first such return filed by such an organization after submitting a notice to the Secretary under section 506(a), such information as the Secretary shall by regulation require in support of the organization’s treatment as an organization described in section 501(c)(4). . (c) Failure To file initial notification Subsection (c) of section 6652 is amended by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively, and by inserting after paragraph (3) the following new paragraph: (4) Notices under section 506 (A) Penalty on organization In the case of a failure to submit a notice required under section 506(a) (relating to organizations required to notify Secretary of intent to operate as 501(c)(4)) on the date and in the manner prescribed therefor, there shall be paid by the organization failing to so submit $20 for each day during which such failure continues, but the total amount imposed under this subparagraph on any organization for failure to submit any one notice shall not exceed $5,000. (B) Managers The Secretary may make written demand on an organization subject to penalty under subparagraph (A) specifying in such demand a reasonable future date by which the notice shall be submitted for purposes of this subparagraph. If such notice is not submitted on or before such date, there shall be paid by the person failing to so submit $20 for each day after the expiration of the time specified in the written demand during which such failure continues, but the total amount imposed under this subparagraph on all persons for failure to submit any one notice shall not exceed $5,000. . (d) Clerical amendment The table of sections for part I of subchapter F of chapter 1 is amended by adding at the end the following new item: Sec. 506. Organizations required to notify Secretary of intent to operate as 501(c)(4) . . (e) Effective date (1) In general The amendments made by this section shall apply to organizations which are described in section 501(c)(4) of the Internal Revenue Code of 1986 and organized after December 31, 2014. (2) Certain existing organizations In the case of any other organization described in section 501(c)(4) of such Code, the amendments made by this section shall apply to such organization only if, on or before the date of the enactment of this Act— (A) such organization has not applied for a written determination of recognition as an organization described in section 501(c)(4) of such Code, and (B) such organization has not filed at least one annual return or notice required under subsection (a)(1) or (i) (as the case may be) of section 6033 of such Code. In the case of any organization to which the amendments made by this section apply by reason of the preceding sentence, such organization shall submit the notice required by section 506(a) of such Code, as added by this Act, not later than 180 days after the date of the enactment of this Act. 6002. Declaratory judgments for 501(c)(4) organizations (a) In general Paragraph (1) of section 7428(a) is amended by striking or at the end of subparagraph (C) and by inserting after subparagraph (D) the following new subparagraph: (E) with respect to the initial classification or continuing classification of an organization described in section 501(c)(4) which is exempt from tax under section 501(a), or . (b) Effective date The amendments made by this section shall apply to pleadings filed after the date of the enactment of this Act. 6003. Restriction on donation reporting for certain 501(c)(4) organizations (a) In general Subsection (f) of section 6033, as amended by this Act, is amended— (1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and by moving such subparagraphs 2 ems to the right, (2) by striking in section 501(c)(4).— Every organization and inserting the following: in section 501(c)(4).— (1) In general Every organization , and (3) by adding at the end the following new paragraph: (2) Restriction on donation reporting In the case of any such organization, information relating to contributions and gifts may only be required to be included on a return required under subsection (a) if the contribution or gift is made by an officer or director of the organization (or an individual having powers or responsibilities similar to those of officers or directors) or any covered employee (as defined in section 4960(c)(2)) of the organization. . (b) Effective date The amendments made by this section shall apply to returns for taxable years beginning after December 31, 2013. 6004. Mandatory electronic filing for annual returns of exempt organizations (a) In general Section 6033, as amended by the preceding provisions of this Act, is amended by redesignating subsection (m) as subsection (n) and by inserting after subsection (l) the following new subsection: (m) Mandatory electronic filing Any organization required to file a return under this section shall file such return in electronic form. . (b) Inspection of electronically filed annual returns Subsection (b) of section 6104 is amended by adding at the end the following: Any annual return required to be filed electronically under section 6033(m) shall be made available by the Secretary to the public in machine readable format as soon as practicable. . (c) Effective date (1) In general Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. (2) Transitional relief (A) Small organizations (i) In general In the case of any small organizations, or any other organizations for which the Secretary determines the application of the amendments made by subsection (a) would cause undue burden without a delay, the Secretary may delay the application of such amendments, but not later than taxable years beginning 2 years after the date of the enactment of this Act. (ii) Small organization For purposes of clause (i), the term small organization means any organization— (I) the gross receipts of which for the taxable year are less than $200,000, and (II) the aggregate gross assets of which at the end of the taxable year are less than $500,000. (B) Organizations filing form 990–T In the case of any organization described in section 511(a)(2) of the Internal Revenue Code of 1986 which is subject to the tax imposed by section 511(a)(1) of such Code on its unrelated business taxable income, or any organization required to file a return under section 6033 of such Code and include information under subsection (e) thereof, the Secretary may delay the application of the amendments made by this section, but not later than taxable years beginning 2 years after the date of the enactment of this Act. 6005. Duty to ensure that IRS employees are familiar with and act in accord with certain taxpayer rights Section 7803(a) is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph: (3) Execution of Duties in Accord with Taxpayer Rights In discharging his duties, the Commissioner shall ensure that employees of the Internal Revenue Service are familiar with and act in accord with taxpayer rights as afforded by other provisions of this title, including— (A) the right to be informed, (B) the right to be assisted, (C) the right to be heard, (D) the right to pay no more than the correct amount of tax, (E) the right of appeal, (F) the right to certainty, (G) the right to privacy, (H) the right to confidentiality, (I) the right to representation, and (J) the right to a fair and just tax system. . 6006. Termination of employment of IRS employees for taking official actions for political purposes Paragraph (10) of section 1203(b) of the Internal Revenue Service Restructuring and Reform Act of 1998 is amended to read as follows: (10) performing, delaying, or failing to perform (or threatening to perform, delay, or fail to perform) any official action (including any audit) with respect to a taxpayer for purpose of extracting personal gain or benefit or for a political purpose. . 6007. Release of information regarding the status of certain investigations (a) In general Subsection (e) of section 6103 is amended by adding at the end the following new paragraph: (11) Disclosure of information regarding status of investigation of violation of this section In the case of a person who provides to the Secretary information indicating a violation of section 7213, 7213A, or 7214 with respect to any return or return information of such person, the Secretary may disclose to such person (or such person’s designee)— (A) whether an investigation based on the person’s provision of such information has been initiated and whether it is open or closed, (B) whether any such investigation substantiated such a violation by any individual, and (C) whether any action has been taken with respect to such individual (including whether a referral has been made for prosecution of such individual). . (b) Effective date The amendment made by this section shall take effect on the date of the enactment of this Act. 6008. Review of IRS examination selection procedures (a) In general The Comptroller General of the United States shall conduct a study of each Internal Revenue Service operating division to assess the process used for determining how enforcement cases are selected and processed. Such study shall include a review of the following: (1) The standards each such operating division has established for enforcement case selection (including any automated or discretionary selection processes) and case work, and whether such standards meet the objectives of impartiality, objectivity, compliance, and minimizing taxpayer burden. (2) The extent to which any cases are initiated by referrals or complaints from inside or outside of the operating division (including from outside of the Internal Revenue Service). (3) The Internal Revenue Service controls (including management reviews and regular updates) for assuring that its standards for enforcement cases (and handling of referrals and complaints) in each operating division are sufficient for achieving the objectives described in paragraph (1). (4) The Internal Revenue Service controls (including training, monitoring, and quality assessments) for assuring that its standards are adhered to by all division personnel and the effectiveness of such controls. (5) Whether the existing standards and controls provide reasonable assurance that each division’s enforcement processes meet the Internal Revenue Service objectives of impartiality, objectivity, compliance, and minimizing taxpayer burden. (b) Initial report Not later than 1 year after the date of the enactment of this section, the Comptroller General shall submit to the Committee on Ways and Means of the House of Representatives, the Committee on Finance of the Senate, and the Secretary of the Treasury a report on the results of such study. Such report shall include such recommendations as the Comptroller General may deem advisable. (c) Follow-Up on recommendations Not later than 180 days after a report is submitted with respect to an operating division under subsection (b), the Comptroller General shall conduct a follow-up study, and submit to the Committee on Ways and Means of the House of Representatives, the Committee on Finance of the Senate, and the Secretary of the Treasury a report, on whether any recommendations to improve case selection and case work processes have been implemented and are working as intended. (d) Continuing case management studies and reports (1) In general After a report is submitted under subsection (b), the Comptroller General shall conduct follow-up studies and reports in the same manner as provided in subsections (a) and (b) with respect to each operating division of the Internal Revenue Service and shall include in such study and report a review of whether any previous recommendations to improve case selection and case work processes have been implemented and are working as intended. (2) Frequency Each such report with respect to an operating division shall be submitted not later than 4 years after the date the most recent report was submitted with respect to such operating division under subsection (b) or this subsection. The Comptroller General shall submit no fewer than 1 such report each year. 6009. IRS employees prohibited from using personal email accounts for official business No officer or employee of the Internal Revenue Service may use a personal email account to conduct any official business of the Government. 6010. Moratorium on IRS conferences The Internal Revenue Service shall not hold any conference until the Treasury Inspector General for Tax Administration submits a report to Congress— (1) certifying that the Internal Revenue Service has implemented all of the recommendations set out in such Inspector General’s report titled Review of the August 2010 Small Business/Self-Employed Division’s Conference in Anaheim, California , and (2) describing such implementation. 6011. Applicable standard for determinations of whether an organization is operated exclusively for the promotion of social welfare (a) In general The standard and definitions as in effect on January 1, 2010, which are used to determine whether an organization is operated exclusively for the promotion of social welfare for purposes of section 501(c)(4) of the Internal Revenue Code of 1986 shall apply for purposes of determining the status of organizations under section 501(c)(4) of the Internal Revenue Code of 1986 after the date of the enactment of this Act. (b) Prohibition on modification of standard The Secretary of the Treasury may not (nor may any delegate of such Secretary) issue, revise, or finalize any regulation (including the proposed regulations published at 78 Fed. Reg. 71535 (November 29, 2013)), revenue ruling, or other guidance not limited to a particular taxpayer relating to the standard and definitions specified in subsection (a). (c) Application to organizations Except as provided in subsection (d), this section shall apply with respect to any organization claiming tax exempt status under section 501(c)(4) of the Internal Revenue Code of 1986 which was created on, before, or after the date of the enactment of this Act. (d) Sunset This section shall not apply after the one-year period beginning on the date of the enactment of this Act. B Taxpayer Protection and Service Reforms 6101. Extension of IRS authority to require truncated Social Security numbers on Form W–2 (a) In general Paragraph (2) of section 6051(a) is amended by striking his social security number and inserting an identifying number for the employee . (b) Effective date The amendment made by this section shall take effect on the date of the enactment of this Act. 6102. Free electronic filing (a) In general The Secretary of the Treasury shall, in cooperation with the private sector technology industry, maintain a program that provides free individual income tax preparation and electronic filing services to low-income taxpayers and elderly taxpayers. (b) Requirements of program The Secretary shall by regulation or other guidance prescribe with respect to the program— (1) the qualifications, selection process, and contract term for businesses participating in the program, (2) a process for periodic review of businesses participating in the program, (3) procedures for terminating business participation in the program for failure to comply with any program requirements, and (4) such other procedures as the Secretary determines are necessary or appropriate to carry out the purposes of the program. (c) Free File program The Internal Revenue Service Free File program, as set forth in the notice published in the Federal Register on November 4, 2002 (67 Fed. Reg. 67247), shall be treated as meeting the requirements of subsection (a). 6103. Pre-populated returns prohibited Except to the extent provided in section 6014, 6020, or 6201(d) of the Internal Revenue Code of 1986, the Secretary of the Treasury shall not provide to any person a proposed final return or statement for use by such person to satisfy a filing or reporting requirement under such Code. 6104. Form 1040SR for seniors (a) In general The Secretary of the Treasury (or the Secretary’s delegate) shall make available a form, to be known as Form 1040SR , for use by individuals to file the return of tax imposed by chapter 1 of the Internal Revenue Code of 1986. Such form shall be as similar as practicable to Form 1040EZ, except that— (1) the form shall be available to individuals who have attained age 65 as of the close of the taxable year, (2) the form may be used even if income for the taxable year includes— (A) social security benefits (as defined in section 86(d) of the Internal Revenue Code of 1986), (B) distributions from qualified retirement plans (as defined in section 4974(c) of such Code), annuities or other such deferred payment arrangements, (C) interest and dividends, or (D) capital gains and losses taken into account in determining the deduction for adjusted net capital gain under section 169 of such Code, and (3) the form shall be available without regard to the amount of any item of taxable income or the total amount of taxable income for the taxable year. (b) Effective date The form required by subsection (a) shall be made available for taxable years beginning after December 31, 2014. 6105. Increased refund and credit threshold for Joint Committee on Taxation review of C corporation return (a) In general Subsections (a) and (b) of section 6405 are each amended by inserting ($5,000,000 in the case of a C corporation) after $2,000,000 . (b) Effective date The amendment made by this section shall take effect on the date of the enactment of this Act, except that such amendment shall not apply with respect to any refund or credit with respect to a report that has been made before such date under section 6405 of the Internal Revenue Code of 1986. C Tax return due date simplification 6201. Due dates for returns of partnerships, S corporations, and C corporations (a) Partnerships and S corporations (1) In general So much of subsection (b) of 6072 as precedes the second sentence thereof is amended to read as follows: (b) Returns of partnerships and S corporations Returns of partnerships under section 6031 and returns of S corporations under sections 6012 and 6037 made on the basis of the calendar year shall be filed on or before the 15th day of March following the close of the calendar year, and such returns made on the basis of a fiscal year shall be filed on or before the 15th day of the third month following the close of the fiscal year. . (2) Conforming amendment Section 6072(a) is amended by striking 6017, or 6031 and inserting or 6017 . (b) Conforming amendments relating to C corporation due date of 15th day of fourth month following taxable year (1) Section 170(a)(3)(B), as redesignated by the preceding provisions of this Act, is amended by striking third month and inserting fourth month . (2) Section 563 is amended by striking third month each place it appears and inserting fourth month . (3) Section 1354(d)(1)(B)(i) is amended by striking 3d month and inserting 4th month . (4) Subsection (a) and (c) of section 6167 are each amended by striking third month and inserting fourth month . (5) Section 6425(a)(1) is amended by striking third month and inserting fourth month . (6) Subsections (b)(2)(A), (g)(3), and (h)(1) of section 6655 are each amended by striking 3rd month and inserting 4th month . (c) Effective dates (1) In general Except as provided in paragraph (2), the amendments made by this section shall apply to returns for taxable years beginning after December 31, 2014. (2) Special rule for c corporations with fiscal years ending on June 30 In the case of any C corporation with a fiscal year ending on June 30, the amendments made by this section shall not apply to any taxable year beginning in 2022. 6202. Modification of due dates by regulation In the case of returns for taxable years beginning after December 31, 2014, the Secretary of the Treasury, or the Secretary's designee, shall modify appropriate regulations to provide as follows: (1) The maximum extension for the returns of partnerships filing Form 1065 shall be a 6-month period ending on September 15 for calendar year taxpayers. (2) The maximum extension for the returns of trusts filing Form 1041 shall be a 5½-month period ending on September 30 for calendar year taxpayers. (3) The maximum extension for the returns of employee benefit plans filing Form 5500 shall be an automatic 3½-month period ending on November 15 for calendar year plans. (4) The maximum extension for the returns of organizations exempt from income tax filing Form 990 shall be an automatic 6-month period ending on November 15 for calendar year filers. (5) The due date of Form 3520–A (relating to the Annual Information Return of Foreign Trust with a United States Owner) for calendar year filers shall be April 15 with a maximum extension for a 6-month period ending on October 15. (6) The due date of Form TD F 90–22.1 (relating to Report of Foreign Bank and Financial Accounts) shall be April 15 with a maximum extension for a 6-month period ending on October 15 and with provision for an extension under rules similar to the rules in Treas. Reg. section 1.6081–5. For any taxpayer required to file such Form for the first time, any penalty for failure to timely request for, or file, an extension, may be waived by the Secretary. 6203. Corporations permitted statutory automatic 6-month extension of income tax returns (a) In general Section 6081(b) is amended by striking 3 months and inserting 6 months . (b) Effective date The amendments made by this section shall apply to returns for taxable years beginning after December 31, 2014. D Compliance Reforms 6301. Penalty for failure to file (a) In general Section 6651(a) is amended by striking $135 in the flush material at the end and inserting $400 . (b) Effective date The amendments made by this section shall apply to returns the due date for the filing of which (including extension) is after December 31, 2014. 6302. Penalty for failure to file correct information returns and provide payee statements (a) In general Section 6721(a)(1) is amended— (1) by striking $100 and inserting $250 , and (2) by striking $1,500,000 and inserting $3,000,000 . (b) Reduction where correction in specified period (1) Correction within 30 days Section 6721(b)(1) is amended— (A) by striking $30 and inserting $50 , (B) by striking $100 and inserting $250 , and (C) by striking $250,000 and inserting $500,000 . (2) Failures corrected on or before August 1 Section 6721(b)(2) is amended— (A) by striking $60 and inserting $100 , (B) by striking $100 (prior to amendment by subparagraph (A)) and inserting $250 , and (C) by striking $500,000 and inserting $1,500,000 . (c) Lower limitation for persons with gross receipts of not more than $5,000,000 Section 6721(d)(1) is amended— (1) in subparagraph (A)— (A) by striking $500,000 and inserting $1,000,000 , and (B) by striking $1,500,000 and inserting $3,000,000 , (2) in subparagraph (B)— (A) by striking $75,000 and inserting $175,000 , and (B) by striking $250,000 and inserting $500,000 , and (3) in subparagraph (C)— (A) by striking $200,000 and inserting $500,000 , and (B) by striking $500,000 (prior to amendment by subparagraph (A)) and inserting $1,500,000 . (d) Penalty in case of intentional disregard Section 6721(e) is amended— (1) by striking $250 in paragraph (2) and inserting $500 , and (2) by striking $1,500,000 in paragraph (3)(A) and inserting $3,000,000 . (e) Failure To furnish correct payee statements (1) In general Section 6722(a)(1) is amended— (A) by striking $100 and inserting $250 , and (B) by striking $1,500,000 and inserting $3,000,000 . (2) Reduction where correction in specified period (A) Correction within 30 days Section 6722(b)(1) is amended— (i) by striking $30 and inserting $50 , (ii) by striking $100 and inserting $250 , and (iii) by striking $250,000 and inserting $500,000 . (B) Failures corrected on or before August 1 Section 6722(b)(2) is amended— (i) by striking $60 and inserting $100 , (ii) by striking $100 (prior to amendment by clause (i)) and inserting $250 , and (iii) by striking $500,000 and inserting $1,500,000 . (3) Lower limitation for persons with gross receipts of not more than $5,000,000 Section 6722(d)(1) is amended— (A) in subparagraph (A)— (i) by striking $500,000 and inserting $1,000,000 , and (ii) by striking $1,500,000 and inserting $3,000,000 , (B) in subparagraph (B)— (i) by striking $75,000 and inserting $175,000 , and (ii) by striking $250,000 and inserting $500,000 , and (C) in subparagraph (C)— (i) by striking $200,000 and inserting $500,000 , and (ii) by striking $500,000 (prior to amendment by subparagraph (A)) and inserting $1,500,000 . (4) Penalty in case of intentional disregard Section 6722(e) is amended— (A) by striking $250 in paragraph (2) and inserting $500 , and (B) by striking $1,500,000 in paragraph (3)(A) and inserting $3,000,000 . (f) Effective date The amendments made by this section shall apply with respect to returns and statements required to be filed after December 31, 2014. 6303. Clarification of 6-year statute of limitations in case of overstatement of basis (a) In general Subparagraph (B) of section 6501(e)(1) is amended— (1) by striking and at the end of clause (i), by redesignating clause (ii) as clause (iii), and by inserting after clause (i) the following new clause: (ii) An understatement of gross income by reason of an overstatement of unrecovered cost or other basis is an omission from gross income; and , and (2) by inserting (other than in the case of an overstatement of unrecovered cost or other basis) in clause (iii) (as so redesignated) after In determining the amount omitted from gross income . (b) Effective date The amendments made by this section shall apply to— (1) returns filed after the date of the enactment of this Act, and (2) returns filed on or before such date if the period specified in section 6501 of the Internal Revenue Code of 1986 (determined without regard to such amendments) for assessment of the taxes with respect to which such return relates has not expired as of such date. 6304. Reform of rules related to qualified tax collection contracts (a) Requirement To collect certain inactive tax receivables under qualified tax collection contracts Section 6306 is amended by redesignating subsections (c) through (f) as subsections (d) through (g), respectively, and by inserting after subsection (b) the following new subsection: (c) Collection of inactive tax receivables (1) In general Notwithstanding any other provision of law, the Secretary shall enter into one or more qualified tax collection contracts for the collection of all outstanding inactive tax receivables. (2) Inactive tax receivables For purposes of this section— (A) In general The term inactive tax receivable means any tax receivable if— (i) at any time after assessment, the Internal Revenue Service removes such receivable from the active inventory for lack of resources or inability to locate the taxpayer, (ii) more than 1/3 of the period of the applicable statute of limitation has lapsed and no employee of the Internal Revenue Service has been assigned such receivable for collection, or (iii) in the case of a receivable which has been assigned for collection, more than 365 days have passed without interaction with the taxpayer or a third party for purposes of furthering the collection of such receivable. (B) Tax receivable The term tax receivable means any outstanding assessment which the Internal Revenue Service includes in potentially collectible inventory. . (b) Certain tax receivables not eligible for collection under qualified tax collection contracts Section 6306, as amended by subsection (a), is amended by redesignating subsections (d) through (g) as subsections (e) through (h), respectively, and by inserting after subsection (c) the following new subsection: (d) Certain tax receivables not eligible for collection under qualified tax collections contracts A tax receivable shall not be eligible for collection pursuant to a qualified tax collection contract if such receivable— (1) is subject to a pending or active offer-in-compromise or installment agreement, (2) is classified as an innocent spouse case, (3) involves a taxpayer identified by the Secretary as being— (A) deceased, (B) under the age of 18, (C) in a designated combat zone, or (D) a victim of identity theft, (4) is currently under examination, litigation, criminal investigation, or levy, or (5) is currently subject to a proper exercise of a right of appeal under this title. . (c) Contracting priority Section 6306, as amended by the preceding provisions of this section, is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: (h) Contracting priority In contracting for the services of any person under this section, the Secretary shall give priority to private collection contractors and debt collection centers on the schedule required under section 3711(g) of title 31, United States Code, to the extent such private collection contractors and debt collection centers are appropriate to carry out the purposes of this section. . (d) Disclosure of return information Section 6103(k) is amended by adding at the end the following new paragraph: (11) Qualified tax collection contractors Persons providing services pursuant to a qualified tax collection contract under section 6306 may, if speaking to a person who has identified himself or herself as having the name of the taxpayer to which a tax receivable (within the meaning of such section) relates, identify themselves as contractors of the Internal Revenue Service and disclose the business name of the contractor, and the nature, subject, and reason for the contact. Disclosures under this paragraph shall be made only in such situations and under such conditions as have been approved by the Secretary. . (e) Taxpayers affected by federally declared disasters Section 6306, as amended by the preceding provisions of this section, is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection: (i) Taxpayers in Presidentially declared disaster areas The Secretary may prescribe procedures under which a taxpayer determined to be affected by a federally declared disaster (as defined by section 165(i)(5)) may request— (1) relief from immediate collection measures by contractors under this section, and (2) a return of the inactive tax receivable to the Internal Revenue Service for collection. . (f) Report to Congress (1) In general Section 6306, as amended by the preceding provisions of this section, is amended by redesignating subsection (j) as subsection (k) and by inserting after subsection (i) the following new subsection: (j) Report to Congress Not later than 90 days after each fiscal year ending on September 30, the Secretary shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report with respect to qualified tax collection contracts under this section which shall include— (1) annually (with respect to each such fiscal year beginning with the first such fiscal year ending after the date of the enactment of this subsection)— (A) the total number and amount of tax receivables provided to each contractor for collection under this section, (B) the total amounts collected (and amounts of installment agreements entered into under subsection (b)(1)(B)) with respect to each contractor and the collection costs incurred (directly and indirectly) by the Internal Revenue Service with respect to such amounts, (C) the impact of such contracts on the total number and amount of unpaid assessments, and on the number and amount of assessments collected by Internal Revenue Service personnel after initial contact by a contractor, (D) the amount of fees retained by the Secretary under subsection (e) and a description of the use of such funds, and (E) a disclosure safeguard report in a form similar to that required under section 6103(p)(5), and (2) biannually (beginning with the second report submitted under this subsection)— (A) an independent evaluation of contractor performance; and (B) a measurement plan that includes a comparison of the best practices used by the private collectors to the collection techniques used by the Internal Revenue Service and mechanisms to identify and capture information on successful collection techniques used by the contractors that could be adopted by the Internal Revenue Service. . (2) Repeal of existing reporting requirements with respect to qualified tax collection contracts Section 881 of the American Jobs Creation Act of 2004 is amended by striking subsection (e). (g) Effective dates (1) In general The amendments made by subsections (a) and (b) shall apply to tax receivables identified by the Secretary after the date of the enactment of this Act. (2) Contracting priority The amendments made by subsection (c) shall apply to contracts and agreements entered into after the date of the enactment of this Act. (3) Disclosures The amendments made by subsection (d) shall apply to disclosures made after the date of the enactment of this Act. (4) Procedures; Report to Congress The amendments made by subsections (e) and (f) shall take effect on the date of the enactment of this Act. 6305. 100 percent continuous levy on payments to Medicare providers and suppliers (a) In general Paragraph (3) of section 6331(h) is amended by striking the period at the end and inserting , or to a Medicare provider or supplier under title XVIII of the Social Security Act. . (b) Effective date The amendment made by this section shall apply to levies issued after the date of the enactment of this Act. 6306. Treatment of refundable credits for purposes of certain penalties (a) Application of underpayment penalties Section 6664(a) is amended by adding at the end the following: A rule similar to the rule of section 6211(b)(4) shall apply for purposes of this subsection. . (b) Penalty for erroneous claim of credit made applicable to earned income credit Section 6676(a) is amended by striking (other than a claim for a refund or credit relating to the earned income credit under section 32) . (c) Effective dates (1) Underpayment penalties The amendment made by subsection (a) shall apply to— (A) returns filed after February 26, 2014, and (B) returns filed on or before such date if the period specified in section 6501 of the Internal Revenue Code of 1986 for assessment of the taxes with respect to which such return relates has not expired as of such date. (2) Penalty for erroneous claim of credit The amendment made by subsection (b) shall apply to claims filed after February 26, 2014. VII Excise taxes 7001. Repeal of medical device excise tax (a) In general Chapter 32 is amended by striking subchapter E. (b) Conforming amendments (1) Subsection (a) of section 4221 is amended by striking the last sentence. (2) Paragraph (2) of section 6416(b) is amended by striking the last sentence. (c) Clerical amendment The table of subchapters for chapter 32 is amended by striking the item relating to subchapter E. (d) Effective date The amendments made by this section shall apply to sales after the date of the enactment of this Act. 7002. Modifications relating to oil spill liability trust fund (a) Extension of Oil Spill Liability Trust Fund financing rate Paragraph (2) of section 4611(f) is amended by striking December 31, 2017 and inserting December 31, 2023 . (b) Application with respect to bitumen and bituminous mixtures and shale oil Paragraph (1) of section 4612(a) is amended to read as follows: (1) Crude oil The term crude oil includes crude oil condensates, natural gasoline, any bitumen or bituminous mixture, any oil derived from a bitumen or bituminous mixture, shale oil, and any oil derived from kerogen-bearing sources. . (c) Conforming amendment Paragraph (2) of section 4612(a) is amended by striking from a well located . (d) Effective date The amendments made by this section shall apply to oil and petroleum products received or entered during calendar quarters beginning more than 60 days after the date of the enactment of this Act. 7003. Modification relating to inland waterways trust fund financing rate (a) In general Section 4042(b)(2)(A) is amended to read as follows: (A) The Inland Waterways Trust Fund financing rate is 26 cents per gallon. . (b) Effective date The amendment made by this section shall apply to fuel used after December 31, 2014. 7004. Excise tax on systemically important financial institutions (a) In general Chapter 36 is amended by adding at the end the following new subchapter: E Tax on systemically important financial institutions Sec. 4491. Tax on systemically important financial institutions. 4491. Tax on systemically important financial institutions (a) In general There is hereby imposed a tax on the excess total consolidated assets of any systemically important financial institution on the close of each calendar quarter. (b) Amount of tax The rate of tax imposed by subsection (a) is 0.035 percent of such excess total consolidated assets. (c) By whom paid The tax imposed by subsection (a) shall be paid by the systemically important financial institution. (d) Due date The tax imposed by subsection (a) for a calendar quarter shall be due on the first day of the third month beginning after the close of such quarter. (e) Systemically important financial institution For purposes of this section, the term systemically important financial institution means any person subject to section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. (f) Excess total consolidated assets For purposes of this section, the term excess total consolidated assets means the excess of— (1) total consolidated assets (within the meaning of section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act), over (2) $500,000,000,000. (g) Adjustment of dollar amount (1) In general In the case of any calendar year beginning after 2015, there shall be substituted for the dollar amount in subsection (f)(2) a dollar amount which bears the same ratio to such amount (determined without regard to this subsection) as— (A) the GDP for the preceding calendar year, bears to (B) the GDP for 2014. Any dollar amount determined under this paragraph for substitution in subsection (f)(2) which is not a multiple of $1,000,000,000 shall be rounded to the nearest multiple of $1,000,000,000. (2) GDP For purposes of this subsection, the GDP for any calendar year means the latest estimate of the gross domestic product published by the Department of Commerce for the preceding calendar year. (h) Treatment of certain references Any reference in this section to any provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act shall be treated as a reference to such provision as in effect on the date of the enactment of this section. . (b) Clerical amendment The table of subchapters for chapter 36 is amended by adding at the end the following new item: Subchapter E. Tax on systemically important financial institutions. . (c) Effective date The amendments made by this section shall apply to calendar quarters beginning after December 31, 2014. 7005. Clarification of orphan drug exception to annual fee on branded prescription pharmaceutical manufacturers and importers (a) In general Paragraph (3) of section 9008(e) of the Patient Protection and Affordable Care Act (Public Law 111–148) is amended to read as follows: (3) Exclusion of orphan drug sales (A) In general The term branded prescription drug sales shall not include sales of any drug or biological product— (i) with respect to which a credit was allowed for any taxable year under section 45C of the Internal Revenue Code of 1986 (as in effect before its repeal by the Tax Reform Act of 2014 ); or (ii) which is approved or licensed by the Food and Drug Administration for marketing solely for one or more rare diseases or conditions. (B) Limitation Subparagraph (A) shall not apply with respect to any drug or biological product after the date on which the drug or biological product is approved or licensed by the Food and Drug Administration for marketing for any indication other than the treatment of a rare disease or condition. (C) Rare disease or condition (i) In general For purposes of this paragraph, the term rare disease or condition means any disease or condition which— (I) affects less than 200,000 persons in the United States, or (II) affects more than 200,000 persons in the United States but for which there is no reasonable expectation that the cost of developing and making available in the United States a drug or biological product for such disease or condition will be recovered from sales in the United States of such drug or biological product. (ii) Time of determination Determinations under the preceding sentence with respect to any drug or biological product shall be made on the basis of the facts and circumstances as of— (I) in the case a drug or biological product that has been designated under section 526 of the Federal Food, Drug, and Cosmetic Act for a particular indication, the date of such designation, and (II) in any other case, the date such drug or biological product is approved or licensed by the Food and Drug Administration for marketing for the treatment of the disease or condition referred to in clause (i). . (b) Effective date The amendment made by this section shall apply to fees imposed under section 9008(a)(1) of the Patient Protection and Affordable Care Act with annual payment dates after 2013. VIII Deadwood and technical provisions A Repeal of Deadwood 8001. Repeal of Puerto Rico economic activity credit Subpart B of part IV of subchapter A of chapter 1 is amended by striking section 30A (and by striking the item relating to such section in the table of sections of such subpart). 8002. Repeal of making work pay credit (a) In general Subpart C of part IV of subchapter A of chapter 1 is amended by striking section 36A (and by striking the item relating to such section in the table of sections of such subpart). (b) Conforming amendments (1) Section 6211(b)(4)(A) is amended by striking 36A, . (2) Section 6213(g)(2) is amended by striking subparagraph (N). 8003. General business credit Subsection (d) of section 38 is amended by striking paragraph (3). 8004. Environmental tax (a) In general Subchapter A of chapter 1 is amended by striking part VII (and the table of parts for such chapter is amended by striking the item relating to part VII). (b) Conforming amendments (1) Section 26(b)(2) is amended by striking subparagraph (B). (2) Section 164(a) is amended by striking paragraph (5). (3) Section 275(a) is amended by striking the last sentence. (4) Section 882(a)(1) is amended by striking 59A, . (5) Section 6425(c)(1)(A), as amended by the preceding provisions of this Act, is amended to read as follows: (A) the tax imposed by section 11 or 1201(a), or subchapter L of chapter 1, whichever is applicable, over . (6) Section 6655(g)(1)(A), as amended by the preceding provisions of this Act, is amended by adding plus at the end of clause (i) and by striking clause (ii). 8005. Annuities; certain proceeds of endowment and life insurance contracts Section 72 is amended— (1) in subsection (c)(4) by striking ; except that if such date was before January 1, 1954, then the annuity starting date is January 1, 1954 , and (2) in subsection (g)(3) by striking January 1, 1954, or and , whichever is later . 8006. Unemployment compensation Section 85 is amended by striking subsection (c). 8007. Flexible spending arrangements Section 106(c)(1) is amended by striking Effective on and after January 1, 1997, gross and inserting Gross . 8008. Certain combat zone compensation of members of the armed forces Subsection (c) of section 112 is amended— (1) by striking (after June 24, 1950) in paragraph (2), and (2) striking such zone; and all that follows in paragraph (3) and inserting such zone. . 8009. Qualified group legal services plans (a) In general Part III of subchapter B of chapter 1 is amended by striking section 120 (and by striking the item relating to such section in the table of sections for such part). (b) Tax-Exemption of group legal services plans Section 501(c) is amended by striking paragraph (20). (c) Conforming amendments (1) Section 414(n)(3)(C) is amended by striking 120, . (2) Section 414(t)(2) is amended by striking 120, . (3) Section 3121(a) is amended by striking paragraph (17). (4) Section 3231(e) is amended by striking paragraph (7). (5) Section 3306(b) is amended by striking paragraph (12). (6) Section 6039D(d)(1) is amended by striking 120, . (7) Section 209(a)(14) of the Social Security Act is amended— (A) by striking subparagraph (B), and (B) by striking (14)(A) and inserting (14) . 8010. Certain reduced uniformed services retirement pay Section 122(b)(1) is amended by striking after December 31, 1965, . 8011. Great plains conservation program Section 126(a) is amended by striking paragraph (6) and by redesignating paragraphs (7),(8), (9), and (10) as paragraphs (6), (7), (8), and (9), respectively. 8012. State legislators’ travel expenses away from home Paragraph (4) of section 162(h) is amended by striking For taxable years beginning after December 31, 1980, this and inserting This . 8013. Treble damage payments under the antitrust law Section 162(g) is amended by striking the last sentence. 8014. Phase-in of limitation on investment interest Section 163(d) is amended by striking paragraph (6). 8015. Charitable, etc., contributions and gifts Section 170 is amended by striking subsection (k). 8016. Amortizable bond premium (a) In general Subparagraph (B) of section 171(b)(1) is amended to read as follows: (B) (i) with reference to the amount payable on maturity (or if it results in a smaller amortizable bond premium attributable to the period before the call date, with reference to the amount payable on the earlier call date), in the case of a bond described in subsection (a)(1), and (ii) with reference to the amount payable on maturity or on an earlier call date, in the case of a bond described in subsection (a)(2). . (b) Conforming amendments Paragraphs (2)(B) and (3)(B) of section 171(b) are each amended by striking paragraph (1)(B)(ii) and inserting paragraph (1)(B)(i) . 8017. Repeal of deduction for clean-fuel vehicles and certain refueling property (a) In general Part VI of subchapter B of chapter 1 is amended by striking section 179A (and by striking the item relating to such section in the table of sections for such part). (b) Conforming amendment (1) Section 62(a) is amended by striking paragraph (14). (2) Section 280F(a)(1) is amended by striking subparagraph (C). (3) Section 312(k)(3), as amended by this Act, is amended by striking , 179A each place it appears. (4) Section 1016(a) is amended by striking paragraph (24). (c) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2005. 8018. Repeal of deduction for capital costs incurred in complying with environmental protection agency sulfur regulations (a) In general Part VI of subchapter B of chapter 1 is amended by striking section 179B (and by striking the item relating to such section in the table of sections for such part). (b) Conforming amendments (1) Section 312(k)(3), as amended by this Act, is amended by striking , 179B each place it appears. (2) Section 1016(a) is amended by striking paragraph (30). (c) Effective date The amendments made by this section shall apply to amounts paid or incurred after December 31, 2009. 8019. Activities not engaged in for profit Section 183(e)(1) is amended by striking the last sentence. 8020. Dividends received on certain preferred stock; and dividends paid on certain preferred stock of public utilities (a) In general Sections 244 and 247 are hereby repealed, and the table of sections for part VIII of subchapter B of chapter 1 is amended by striking the items relating to sections 244 and 247. (b) Conforming amendments (1) Paragraph (5) of section 172(d) is amended to read as follows: (5) Computation of deduction for dividends received The deductions allowed by section 243 (relating to dividends received by corporations) and 245 (relating to dividends received from certain foreign corporations) shall be computed without regard to section 246(b) (relating to limitation on aggregate amount of deductions). . (2) Paragraph (1) of section 243(c) is amended to read as follows: (1) In general In the case of any dividend received from a 20-percent owned corporation, subsection (a)(1) shall be applied by substituting 80 percent for 70 percent .’’. (3) Section 243(d) is amended by striking paragraph (4). (4) Section 246 is amended— (A) by striking , 244, in subsection (a)(1), (B) in subsection (b)(1)— (i) by striking sections 243(a)(1), 244(a), the first place it appears and inserting section 243(a)(1) , (ii) by striking 244(a), the second place it appears, and (iii) by striking subsection (a) or (b) of section 245, and 247, and inserting and subsection (a) or (b) of section 245, , and (C) by striking , 244, in subsection (c)(1). (5) Section 246A is amended by striking , 244, both places it appears in subsections (a) and (e). (6) Sections 263(g)(2)(B)(iii), 277(a), 301(e)(2), 469(e)(4), 512(a)(3)(A), 805(a)(4)(A), (C), and (D), 805(b)(4) (as redesignated by this Act), 832(b)(5)(B)(ii), (D)(i), and (D)(ii)(I), 833(b)(3)(E), and 1059(b)(2)(B) are each amended by striking , 244, each place it appears. (7) Section 805(a)(4)(B) is amended by striking , 244(a), each place it appears. (8) Section 810(c)(2)(B) is amended by striking 244 (relating to dividends on certain preferred stock of public utilities), . (9) Section 1244(c)(2)(C) is amended by striking 244, . 8021. Acquisitions made to evade or avoid income tax Paragraphs (1) and (2) of section 269(a) are each amended by striking or acquired on or after October 8, 1940, . 8022. Distributions of property Paragraph (3) of section 301(c) is amended to read as follows: (3) Amounts in excess of basis That portion of the distribution which is not a dividend, to the extent that it exceeds the adjusted basis of the stock, shall be treated as gain from the sale or exchange of property. . 8023. Effect on earnings and profits Subsection (d) of section 312 is amended by striking paragraph (2) and redesignating paragraph (3) as paragraph (2). 8024. Basis to corporations Section 362(a) is amended by striking on or after June 22, 1954, . 8025. Tax credit employee stock ownership plans Section 409 is amended by striking subsection (q). 8026. Employee stock purchase plans Section 423(a) is amended by striking after December 31, 1963 . 8027. Transition rules (a) Paragraph (5) of section 430(c) is amended by striking subparagraph (B) and by striking (A) In general.— . (b) Paragraph (2) of section 430(h) is amended by striking subparagraph (G). (c) Paragraph (3) of section 436(j) is amended by striking subparagraphs (B) and (C) and by striking (A) In general.— (d) Section 436 is amended by striking subsection (m). 8028. Limitation on deductions for certain farming (a) In general Section 464 is amended by striking any farming syndicate (as defined in subsection (c)) both places it appears in subsections (a) and (b) and inserting any taxpayer to whom subsection (d) applies . (b) Farming syndicate (1) Subsection (c) of section 464 is hereby moved to the end of section 461 and redesignated as subsection (j). (2) Such subsection (j) is amended— (A) by striking For purposes of this section in paragraph (1) and inserting For purposes of subsection (i)(4) , and (B) by adding at the end the following new paragraphs: (3) Farming For purposes of this subsection, the term farming has the meaning given to such term by section 464(e). (4) Limited entrepreneur For purposes of this subsection, the term limited entrepreneur means a person who— (A) has an interest in an enterprise other than as a limited partner, and (B) does not actively participate in the management of such enterprise. . (C) Paragraph (4) of section 461(i) is amended by striking section 464(c) and inserting subsection (j) . (c) Section 464 is amended— (1) by striking subsections (e) and (g) and redesignating subsections (d) and (f) as subsections (c) and (d), respectively, and (2) by inserting after subsection (d) the following new subsection: (e) Farming For purposes of this section, the term farming means the cultivation of land or the raising or harvesting of any agricultural or horticultural commodity including the raising, shearing, feeding, caring for, training, and management of animals. For purposes of the preceding sentence, trees (other than trees bearing fruit or nuts) shall not be treated as an agricultural or horticultural commodity. . (d) Subsection (d) of section 464 of such Code, as redesignated by subsection (c), is amended— (1) by striking paragraph (1) and redesignating paragraphs (2), (3), and (4) as paragraphs (1), (2), and (3), respectively, and (2) by striking SUBSECTIONS (a) AND (b) TO APPLY TO in the subsection heading. (e) Subparagraph (A) of section 58(a)(2) is amended by striking section 464(c) and inserting section 461(j) . 8029. Deductions limited to amount at risk Paragraph (3) of section 465(c) is amended by striking In the case of taxable years beginning after December 31, 1978, this and inserting This . 8030. Passive activity losses and credits limited Section 469 is amended by striking subsection (m). 8031. Adjustments required by changes in method of accounting Section 481(b)(3) is amended by striking subparagraph (C). 8032. Exemption from tax on corporations, certain trusts, etc Section 501 is amended by striking subsection (s). 8033. Requirements for exemption (a) Section 503(a)(1) is amended to read as follows: (1) General rule An organization described in paragraph (17) or (18) of section 501(c) or described in section 401(a) and referred to in section 4975(g)(2) or (3) shall not be exempt from taxation under section 501(a) if it has engaged in a prohibited transaction. . (b) Paragraph (2) of section 503(a) is amended by striking described in section 501(c)(17) or (18) or paragraph (a)(1)(B) and inserting described in paragraph (1) . (c) Subsection (c) of section 503 is amended by striking described in section 501(c)(17) or (18) or subsection (a)(1)(B) and inserting described in subsection (a)(1) . 8034. Repeal of special treatment for religious broadcasting company (a) In general Subsection (b) of section 512 is amended by striking paragraph (15). (b) Effective date The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 8035. Repeal of exclusion of gain or loss from disposition of brownfield property (a) In general Subsection (b) of section 512 is amended by striking paragraph (19). (b) Effective date The amendment made by this section shall apply to property acquired after December 31, 2009. 8036. Accumulated taxable income Paragraph (1) of section 535(b) and paragraph (1) of section 545(b) are each amended by striking section 531 and all that follows and inserting section 531 or the personal holding company tax imposed by section 541. . 8037. Certain provisions related to depletion (a) Section 614(b)(3) (before being redesignated by title III) is amended by striking subparagraph (C). (b) Section 614(b)(4) (before being redesignated by title III) is amended by striking whichever of the following taxable years is the later: The first taxable year beginning after December 31, 1963, or . (c) Section 614(b) (before being redesignated by title III) is amended by striking paragraph (5). 8038. Amounts received by surviving annuitant under joint and survivor annuity contract Subparagraph (A) of section 691(d)(1) is amended by striking after December 31, 1953, and . 8039. Income taxes of members of armed forces on death Section 692(a)(1) is amended by striking after June 24, 1950 . 8040. Special rules for computing reserves Paragraph (7) of section 807(e) is amended by striking subparagraph (B) and redesignating subparagraph (C) as subparagraph (B). 8041. Insurance company taxable income (a) Section 832(e) is amended by striking of taxable years beginning after December 31, 1966, . (b) Section 832(e)(6) is amended by striking In the case of any taxable year beginning after December 31, 1970, the and inserting The . 8042. Capitalization of certain policy acquisition expenses Section 848 (as amended by title II) is amended by striking subsection (i). 8043. Repeal of provision on expatriation to avoid tax (a) In general Subpart A of part II of subchapter N of chapter 1 is amended by striking section 877 (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 2(d) is amended by striking or 877 . (2) Section 121 is amended by striking subsection (e). (3) Section 865(j)(3) is amended by inserting as in effect before its repeal after section 877 . (4) Paragraph (2) of section 871(o) (as amended by this Act) is amended to read as follows: (2) For taxation of covered expatriates, see section 877A. . (5) (A) Section 877A(g)(1)(A) is amended to read as follows: (A) In general The term covered expatriate means any expatriate if— (i) the average annual net income tax of such individual for the period of 5 taxable years ending before the date of the loss of United States citizenship is greater than $124,000, (ii) the net worth of the individual as of such date is $2,000,000 or more, or (iii) such individual fails to certify under penalty of perjury that he has met the requirements of this title for the 5 preceding taxable years or fails to submit such evidence of such compliance as the Secretary may require. . (B) Section 877A(g)(1)(B) is amended by striking shall not be treated as meeting the requirements of subparagraph (A) or (B) of section 877(a)(2) and inserting shall not be treated as described in clause (i) or (ii) of subparagraph (A) . (C) Section 877A(g)(1) is amended by redesignating subparagraph (C) as subparagraph (D) and inserting after subparagraph (B) the following new subparagraph: (C) Net income tax For purposes of subparagraph (A), the term net income tax means the regular tax liability reduced by the credits allowed under subparts A, B, and D of part IV of subchapter A. . (D) Section 877A(g)(1), as amended by subparagraph (C), is amended by adding at the end the following new subparagraph: (E) Inflation adjustment In the case of the loss of United States citizenship in any calendar year after 2007, the dollar amount in subparagraph (A)(i) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(c)(2)(A) for the calendar year in which such loss of United States citizenship occurs determined by substituting calendar year 2003 for calendar year 2012 in clause (ii) thereof. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $1,000. . (E) Section 877A(g)(5) is amended to read as follows: (5) Long-term resident The term long-term resident means any individual (other than a citizen of the United States) who is a lawful permanent resident of the United States in at least 8 taxable years during the period of 15 taxable years ending with the taxable year during which the event described in subparagraph (A) or (B) of paragraph (2) occurs. For purposes of the preceding sentence, an individual shall not be treated as a lawful permanent resident for any taxable year if such individual is treated as a resident of a foreign country for the taxable year under the provisions of a tax treaty between the United States and the foreign country and does not waive the benefits of such treaty applicable to residents of the foreign country. . (6) Section 894(b) is amended by striking the last sentence. (7) Section 2107 is amended by striking subsection (e). (8) Section 2501(a) is amended by striking paragraphs (3) and (5) and by redesignating paragraph (4) as paragraph (3). (9) Section 3405(e)(13)(B) is amended by striking that such person is not— and all that follows and inserting that such person is not a United States citizen or a resident alien of the United States. . (10) Section 6039G(a) is amended by striking section 877(b) or 877A and inserting section 877A . (11) Section 6039G(d) is amended by striking section 877(a) or 877A and inserting section 877A . (12) Section 7701(b) is amended by striking paragraph (10) and by redesignating paragraph (11) as paragraph (10). (c) Effective date The amendments made by this subsection shall apply to individuals whose expatriation date (as defined in section 877A(g)(3) of the Internal Revenue Code of 1986) is on or after June 17, 2008. 8044. Repeal of certain transition rules on income from sources without United States (a) Limitation on credit Paragraph (2) of section 904(d) is amended by striking subparagraph (J). (b) Foreign earned income Clause (i) of section 911(b)(2)(D) is amended to read as follows: (i) In general The exclusion amount for any calendar year is $80,000. . 8045. Repeal of Puerto Rico and possession tax credit (a) In general Subpart D of part III of subchapter N of chapter 1 is amended by striking section 936 (and by striking the item relating to such section in the table of sections of such subpart). (b) Conforming amendments (1) (A) Section 27 is amended to read as follows: 27. Taxes of foreign countries and possessions of the United States The amount of taxes imposed by foreign countries and possessions of the United States shall be allowed as a credit against the tax imposed by this chapter to the extent provided in section 901. . (B) The item relating to section 27 in the table of sections for subpart B of part IV of subchapter A of chapter 1 is amended to read as follows: Sec. 27. Taxes of foreign countries and possessions of the United States. . (2) Section 243(b)(1)(B) is amended to read as follows: (B) if such dividend is distributed out of the earnings and profits of a taxable year of the distributing corporation which ends after December 31, 1963, and on each day of which the distributing corporation and the corporation receiving the dividend were members of such affiliated group. . (3) Section 246 is amended by striking subsection (e). (4) Section 338(h)(6)(B)(i) is amended by striking , a DISC, or a corporation to which an election under section 936 applies and inserting or a DISC . (5) Section 861(a)(2) is amended— (A) by striking subparagraph (A) and by redesignating subparagraphs (B), (C), and (D) as subparagraphs (A), (B), and (C), respectively, and (B) by striking subparagraph (B) each place it appears and inserting subparagraph (A) . (6) Section 864(d)(5) is amended to read as follows: (5) Certain provisions not to apply The following provisions shall not apply to any amount treated as interest under paragraph (1) or (6): (A) Section 904(d)(2)(B)(iii)(I) (relating to exceptions for export financing interest). (B) Subparagraph (A) of section 954(b)(3) (relating to exception where foreign base company income is less than 5 percent or $1,000,000). (C) Subparagraph (B) of section 954(c)(2) (relating to certain export financing). (D) Clause (i) of section 954(c)(3)(A) (relating to certain income received from related persons). . (7) Section 865(j)(3) is amended by striking , 933, and 936 and inserting and 933 . (8) Section 901(g)(2) is amended by inserting (as in effect before its repeal) after 936 . (9) Section 904(b) is amended by striking paragraph (4). (10) Section 1202(e)(4) is amended by striking subparagraph (B) and by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively. (11) Section 1361(b)(2) is amended by adding or at the end of subparagraph (B), by striking subparagraph (C), and by redesignating subparagraph (D) as subparagraph (C). (12) Section 1504(b) is amended by striking paragraph (4). (13) Section 6091(b)(2)(B) is amended by striking clause (ii) and by redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively. (14) Section 6654(d)(2)(D) is amended— (A) by striking 936(h) or in clause (i), and (B) by striking “ and section 936 ” in the heading. (15) Section 6655(e)(4) is amended— (A) by striking 936(h) or in subparagraph (A), and (B) by striking “ and section 936 ” in the heading. (16) (A) Section 367(d) is amended by adding at the end the following new paragraph: (4) Intangible property For purposes of this subsection, the term intangible property means any— (A) patent, invention, formula, process, design, pattern, or know-how, (B) copyright, literary, musical, or artistic composition, (C) trademark, trade name, or brand name, (D) franchise, license, or contract, (E) method, program, system, procedure, campaign, survey, study, forecast, estimate, customer list, or technical data, or (F) any similar item, which has substantial value independent of the services of any individual. . (B) Section 367(a)(3)(B)(iv) is amended by striking section 936(h)(3)(B) and inserting subsection (d)(4) . (C) Sections 482 and 1298(e)(2)(A) are each amended by striking section 936(h)(4)(B) and inserting section 367(d)(4) . 8046. Basis of property acquired from decedent Section 1014 is amended— (1) by striking either and by striking or section 811(j) of the Internal Revenue Code of 1939 where the decedent died after October 21, 1942 in subsection (a)(2), and (2) by striking paragraphs (7) and (8) of subsection (b). 8047. Property on which lessee has made improvements Section 1019 is amended by striking the last sentence. 8048. Involuntary conversion Section 1033 is amended by striking subsection (j) and by redesignating subsection (k) as subsection (j). 8049. Property acquired during affiliation Section 1051 is hereby repealed, and the table of sections for part IV of subchapter O of chapter 1 is amended by striking the item relating to section 1051. 8050. Repeal of special holding period rules for certain commodity futures transactions Section 1222 is amended by striking the last sentence. 8051. Holding period of property (a) Paragraph (1) of section 1223 is amended by striking , in the case of such exchanges after March 1, 1954, . (b) Paragraph (4) of section 1223 is amended by striking (or under so much of section 1052(c) as refers to section 113(a)(23) of the Internal Revenue Code of 1939) . (c) Paragraph (6) of section 1223 is repealed. (d) Paragraph (8) of section 1223 is repealed. 8052. Property used in the trade or business and involuntary conversions Subparagraph (A) of section 1231(c)(2) is amended by striking beginning after December 31, 1981 . 8053. Sale of patents Subsection (a) of section 1249 is amended by striking after December 31, 1962, . 8054. Gain from disposition of farmland (a) Paragraph (1) of section 1252(a), as amended by the preceding provisions of this Act, is amended— (1) by striking beginning after December 31, 1969 in the matter preceding subparagraph (A), and (2) by amending subparagraph (A) to read as follows: (A) the applicable percentage of the aggregate deductions allowed under section 175 (as in effect before its repeal by the Tax Reform Act of 2014 ) with respect to the farmland, or . (b) Paragraph (2) of section 1252(a) is amended by striking sections 175 and all that follows and inserting section 175 (as in effect before its repeal by the Tax Reform Act of 2014 ). . 8055. Transition rules related to the treatment of amounts received on retirement or sale or exchange of debt instruments (a) Section 1271 is amended by striking subsection (c). (b) Section 1271(a)(2)(B) is amended by striking (and paragraph (2) of subsection (c)) . 8056. Certain rules with respect to debt instruments issued before July 2, 1982 (a) Section 1272 is amended by striking subsection (b). (b) Section 163(j)(2)(C)(ii) is amended by striking or (b)(4) . (c) Section 1271(a)(2)(A)(ii) is amended by striking subsection (a)(7) or (b)(4) of section 1272 and inserting section 1272(a)(7) . (d) Section 1271(b)(1) is amended to read as follows: (1) In general This section shall not apply to any obligation issued by a natural person before June 9, 1997. . (e) Section 1279(a)(4)(A)(ii), as amended by the preceding provisions of this Act, is amended by striking or (b)(4) . (f) The amendments made by this section shall apply to debt instruments issued after July 1, 1982. 8057. Certain rules with respect to stripped bonds purchased before July 2, 1982 (a) Section 1286 is amended by striking subsection (c). (b) Section 1286(e)(5) is amended by striking the last sentence. (c) Subsections (a) and (b) of section 1286 are each amended by striking after July 1, 1982, . (d) The amendments made by this section shall apply to bonds and coupons purchased after July 1, 1982. 8058. Amount and method of adjustment Section 1314 is amended by striking subsection (d) and by redesignating subsection (e) as subsection (d). 8059. Old-age, survivors, and disability insurance Subsection (a) of section 1401 is amended by striking the following percent and all that follows and inserting 12.4 percent of the amount of the self-employment income for such taxable year. . 8060. Hospital insurance Paragraph (1) of section 1401(b) is amended by striking the following percent and all that follows and inserting 2.9 percent of the amount of the self-employment income for such taxable year. . 8061. Ministers, members of religious orders, and christian science practitioners Paragraph (3) of section 1402(e) is amended by striking whichever of the following dates is later: (A) and by striking ; or (B) and all that follows and inserting a period. 8062. Affiliated group defined Subparagraph (A) of section 1504(a)(3) is amended by striking for a taxable year which includes any period after December 31, 1984 in clause (i) and by striking in a taxable year beginning after December 31, 1984 in clause (ii). 8063. Credit for state death taxes (a) Part II of subchapter A of chapter 11 is amended by striking section 2011 (and by striking the item relating to such section in the table of sections for such subpart). (b) Subchapter A of chapter 13 is amended by striking section 2604 (and by striking the item relating to such section in the table of sections for such subpart). 8064. Family-owned business interest Part IV of subchapter A of chapter 11 is amended by striking section 2057 (and by striking the item relating to such section in the table of sections for such part). 8065. Property within the united states Subsection (c) of section 2104 is amended by striking With respect to estates of decedents dying after December 31, 1969, deposits and inserting Deposits . 8066. Repeal of deadwood provisions relating to employment taxes (a) Tax on employees Subsection (a) of section 3101 is amended by striking the following percentages and all that follows and inserting 6.2 percent of the wages (as defined in section 3121(a)) received by him with respect to employment (as defined in section 3121(b)). . (b) Tax on employers (1) Subsection (a) of section 3111 is amended by striking the following percentages and all that follows and inserting 6.2 percent of the wages (as defined in section 3121(a)) paid by him with respect to employment (as defined in section 3121(b)). (2) Subsection (b) of section 3111 is amended by striking the following percentages and all that follows and inserting 1.45 percent of the wages (as defined in section 3121(a)) paid by him with respect to employment (as defined in section 3121(b)). (3) Section 3111 is amended by striking subsection (d) and redesignating subsection (e) as subsection (d). (c) Tier 2 tax on employees Subsection (b) of section 3201 is amended to read as follows: (b) Tier 2 tax In addition to other taxes, there is hereby imposed on the income of each employee a tax equal to the percentage determined under section 3241 for any calendar year of the compensation received during such calendar year by such employee for services rendered by such employee. . (d) Rate of Tier 2 tax on employee representatives Subsection (b) of section 3211 is amended to read as follows: (b) Tier 2 tax In addition to other taxes, there is hereby imposed on the income of each employee representative a tax equal to the percentage determined under section 3241 for any calendar year of the compensation received during such calendar year by such employee representative for services rendered by such employee representative. . (e) Tier 2 tax on employers (1) Subsection (b) of section 3221 is amended to read as follows: (b) Tier 2 tax In addition to other taxes, there is hereby imposed on the income of each employer a tax equal to the percentage determined under section 3241 for any calendar year of the compensation paid during such calendar year by such employer for services rendered for such employer. . (2) Section 3221 is amended by striking subsection (d) and redesignating subsection (e) as subsection (d). (f) Employee under Railroad Retirement System Subsection (b) of section 3231 is amended by is amended by striking ; except and all that follows and inserting a period. (g) Definition of wages (1) Section 3121(b) is amended by striking paragraph (17). (2) Section 210(a) of the Social Security Act is amended by striking paragraph (17). (h) Credits against unemployment tax (1) Paragraph (4) of section 3302(f) is amended— (A) by striking subsection— and all that follows through (A) in general—The and inserting subsection, the , (B) by striking subparagraph (B), (C) by redesignating clauses (i) and(ii) as subparagraphs (A) and (B), respectively, and (D) by moving the text of such subparagraphs (as so redesignated) 2 ems to the left. (2) Paragraph (5) of section 3302(f) is amended by striking subparagraph (D) and by redesignating subparagraph (E) as subparagraph (D). (i) Domestic service employment taxes Section 3510(b) is amended by striking paragraph (4). 8067. Luxury passenger automobiles (a) In general Chapter 31 is amended by striking subchapter A (and by striking the item relating to such subchapter in the table of sections for such chapter). (b) Conforming amendments (1) Section 4293 is amended by striking subchapter A of chapter 31, . (2) Section 4221 is amended— (A) in subsections (a) and (d)(1), by striking subchapter A or and inserting subchapter , (B) in subsection (a), by striking In the case of taxes imposed by subchapter A of chapter 31, paragraphs (1), (3), (4), and (5) shall not apply. , and (C) in subsection (c), by striking 4001(c), 4001(d) . (3) Section 4222 is amended by striking 4001(c), 4001(d), . 8068. Transportation by air Section 4261(e) is amended— (1) in paragraph (1) by striking subparagraph (C), and (2) by striking paragraph (5). 8069. Taxes on failure to distribute income (a) Paragraph (2) of section 4942(f) is amended by striking the semicolon at the end of subparagraph (B) and inserting , and , by striking ; and at the end of subparagraph (C) and inserting a period, and by striking subparagraph (D). (b) Subsection (g) of section 4942 (as amended by this Act) is amended— (1) by striking For all taxable years beginning on or after January 1, 1975, subject in paragraph (2)(A) and inserting Subject , and (2) by striking paragraph (4). (c) Section 4942(i)(2) is amended by striking beginning after December 31, 1969, and . 8070. Taxes on taxable expenditures Section 4945(f) is amended by striking (excluding therefrom any preceding taxable year which begins before January 1, 1970) . 8071. Definitions and special rules Section 4682 is amended by striking subsection (h). 8072. Returns Subsection (a) of section 6039D is amended by striking beginning after December 31, 1984, . 8073. Information returns Subsection (c) of section 6060 is amended by striking year and all that follows and inserting year. . 8074. Abatements Section 6404(f) is amended by striking paragraph (3). 8075. Failure by corporation to pay estimated income tax Clause (i) of section 6655(g)(4)(A) is amended by striking (or the corresponding provisions of prior law) . 8076. Repeal of 2008 recovery rebates (a) In general Subchapter B of chapter 65 is amended by striking section 6428 (and by striking the item relating to such section in the table of sections for such subchapter). (b) Conforming amendments (1) Section 6211(b)(4)(A) is amended by striking 6428, . (2) Section 6213(g)(2)(L) is amended by striking 32, or 6428 and inserting or 32 . (3) Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by striking or 6428 . 8077. Repeal of advance payment of portion of increased child credit for 2003 Subchapter B of chapter 65 is amended by striking section 6429 (and by striking the item relating to such section in the table of sections for such subchapter). 8078. Repeal of provisions related to COBRA premium assistance (a) In general Subchapter B of chapter 65 is amended by striking section 6432 (and by striking the item relating to such section in the table of sections for such subchapter). (b) Notification requirement Part I of subchapter B of chapter 68 is amended by striking section 6720C (and by striking the item relating to such section in the table of sections for such part). (c) Exclusion from gross income Part III of subchapter B of chapter 1 is amended by striking section 139C (and by striking the item relating to such section in the table of sections for such part). 8079. Retirement Section 7447(i)(3)(B)(ii) is amended by striking at 4 percent per annum to December 31, 1947, and at 3 percent per annum thereafter , and inserting at 3 percent per annum . 8080. Annuities to surviving spouses and dependent children of judges (a) Paragraph (2) of section 7448(a) is amended by striking or under section 1106 of the Internal Revenue Code of 1939 and by striking or pursuant to section 1106(d) of the Internal Revenue Code of 1939 . (b) Subsection (g) of section 7448 is amended by striking or other than pursuant to section 1106 of the Internal Revenue Code of 1939 . (c) Subsections (g), (j)(1), and (j)(2) of section 7448 are each amended by striking at 4 percent per annum to December 31, 1947, and at 3 percent per annum thereafter and inserting at 3 percent per annum . 8081. Merchant marine capital construction funds Paragraph (4) of section 7518(g) is amended by striking any nonqualified withdrawal and all that follows through shall be determined and inserting any nonqualified withdrawal shall be determined . 8082. Valuation tables (a) Subsection (c) of section 7520 is amended by striking paragraph (2) and by redesignating paragraph (3) as paragraph (2). (b) Paragraph (2) of section 7520(c) of such Code, as so redesignated, is amended— (1) by striking Not later than December 31, 1989, the and inserting The , and (2) by striking thereafter in the last sentence thereof. 8083. Definition of employee Section 7701(a)(20) is amended by striking chapter 21 and all that follows and inserting chapter 21. . 8084. Effective date (a) General Rule Except as otherwise provided in subsection (b) of this section and the preceding sections of this subtitle, the amendments made by this subtitle shall take effect on the date of enactment of this Act. (b) Savings provision If— (1) any provision amended or repealed by the amendments made by this subtitle applied to— (A) any transaction occurring before the date of the enactment of this Act, (B) any property acquired before such date of enactment, or (C) any item of income, loss, deduction, or credit taken into account before such date of enactment, and (2) the treatment of such transaction, property, or item under such provision would (without regard to the amendments or repeals made by this subtitle) affect the liability for tax for periods ending after such date of enactment, nothing in the amendments or repeals made by this subtitle shall be construed to affect the treatment of such transaction, property, or item for purposes of determining liability for tax for periods ending after such date of enactment. B Conforming Amendments Related to Multiple Sections 8101. Conforming amendments related to multiple sections (a) General business credit Section 38(b), as amended by the preceding provisions of this Act, is amended— (1) by redesignating paragraphs (4), (5), (7), (8), (13), (20), and (33) as paragraphs (3), (4), (5), (6), (7), (8), and (9), respectively, (2) by adding plus at the end of paragraph (8) (as so redesignated), and (3) by striking the comma at the end of paragraph (9) (as so redesignated) and inserting a period. (b) Adjustments to basis Section 1016(a), as amended by the preceding provisions of this Act, is amended— (1) by striking the last two sentences of paragraph (2), (2) in paragraph (4) by striking (not including and all that follows through 1921) , (3) by striking paragraph (12), (4) by redesignating paragraphs (11), (14), (16), (17), (18), (21), (23), (26), (38), and (39) as paragraphs (9), (10), (11), (12), (13), (14), (15), (16), (17), and (18), respectively, and (5) by adding and at the end of paragraph (17) (as so redesignated). (c) Holding period of property Section 1223, as amended by the preceding provisions of this Act, is amended by redesignating paragraphs (9), (10), (11), (12), and (15) as paragraphs (6), (7), (8), (9) and (10), respectively. (d) Corporate preference items (1) In general Subchapter B of chapter 1, as amended by this Act, is amended by striking part XI (and by striking the item relating to such part from the table of parts for such subchapter). (2) Preservation of special rule for treatment of intangible drilling costs Section 263(c) is amended— (A) by striking all that precedes and except as provided in subsection (i) and inserting the following: (c) Intangible drilling and development costs in the case of oil and gas wells and geothermal wells (1) In general Notwithstanding subsection (a), , and (B) by adding at the end the following new paragraph: (2) Reduction for integrated oil companies (A) In general In the case of a corporation which is an integrated oil company, the amount allowable as a deduction for any taxable year (determined without regard to this paragraph) under paragraph (1) shall be reduced by 30 percent. (B) Amortization of disallowed amounts The amount not allowable as a deduction under paragraph (1) for any taxable year by reason of subparagraph (A) shall be allowable as a deduction ratably over the 60-month period beginning with the month in which the costs are paid or incurred. (C) Dispositions For purposes of section 1254, any deduction under subparagraph (B) shall be treated as a deduction allowable under paragraph (1). (D) Integrated oil company For purposes of this paragraph, the term integrated oil company means, with respect to any taxable year, any producer of crude oil to whom subsection (c) of section 613A does not apply by reason of paragraph (2) or (4) of section 613A(d) (as such provisions were in effect before their repeal by the Tax Reform Act of 2014 ). (E) Coordination with cost depletion The portion of the adjusted basis of any property which is attributable to amounts to which subparagraph (A) applied shall not be taken into account for purposes of determining depletion under section 611. . (3) Preservation of limitation on certain interest on indebtedness of financial institutions (A) In general Section 163 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection: (n) Limitation on certain interest on indebtedness of financial institutions (1) In general For purposes of this subtitle, in the case of a corporation, the amount allowable as a deduction under this chapter (determined without regard to this subsection) with respect to the amount described in paragraph (2) shall be reduced by 20 percent. (2) Interest on debt to carry tax-exempt obligations acquired after December 31, 1982, and before August 8, 1986 (A) In general In the case of a financial institution which is a bank (as defined in section 585(a)(2)), the amount described in this paragraph is the amount of interest on indebtedness incurred or continued to purchase or carry obligations acquired after December 31, 1982, and before August 8, 1986, the interest on which is exempt from taxes for the taxable year, to the extent that a deduction would (but for this paragraph or section 265(b)) be allowable with respect to such interest for such taxable year. (B) Determination of interest allocable to indebtedness on tax-exempt obligations Unless the taxpayer (under regulations prescribed by the Secretary) establishes otherwise, the amount determined under subparagraph (A) shall be an amount which bears the same ratio to the aggregate amount allowable (determined without regard to this section and section 265(b)) to the taxpayer as a deduction for interest for the taxable year as— (i) the taxpayer’s average adjusted basis (within the meaning of section 1016) of obligations described in subparagraph (A), bears to (ii) such average adjusted basis for all assets of the taxpayer. (C) Interest For purposes of this paragraph, the term interest includes amounts (whether or not designated as interest) paid in respect of deposits, investment certificates, or withdrawable or repurchasable shares. (D) Application of subparagraph to certain obligations issued after August 7, 1986 For application of this subparagraph to certain obligations issued after August 7, 1986, see section 265(b)(3) (as in effect before the enactment of the Tax Reform Act of 2014 ). That portion of any obligation not taken into account under paragraph (2)(A) of section 265(b) (as so in effect) by reason of paragraph (7) of such section shall be treated for purposes of this section as having been acquired on August 7, 1986. . (B) Conforming amendments (i) Section 1277(c) is amended by striking section 291(e)(1)(B)(ii) and inserting section 163(n)(2)(B) . (ii) Section 1363(b)(3), as amended by the preceding provisions of this Act, is amended by striking section 291 and inserting section 163(n) . (4) Effective date Except as otherwise provided in this Act with respect to amendments made to section 291 of the Internal Revenue Code of 1986, the amendments made this subsection shall apply to taxable years beginning after December 31, 2014.

https://www.govinfo.gov/content/pkg/BILLS-113hr1ih/xml/BILLS-113hr1ih.xml

113-hr-2

I 113th CONGRESS 2d Session H. R. 2 IN THE HOUSE OF REPRESENTATIVES AN ACT To remove Federal Government obstacles to the production of more domestic energy; to ensure transport of that energy reliably to businesses, consumers, and other end users; to lower the cost of energy to consumers; to enable manufacturers and other businesses to access domestically produced energy affordably and reliably in order to create and sustain more secure and well-paying American jobs; and for other purposes. 1. Short title; table of contents (a) Short title This Act may be cited as the American Energy Solutions for Lower Costs and More American Jobs Act . (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Division A—Energy and Commerce Title I—Modernizing Infrastructure Subtitle A—Northern Route Approval Sec. 101. Short title. Sec. 102. Findings. Sec. 103. Keystone XL permit approval. Sec. 104. Judicial review. Sec. 105. American burying beetle. Sec. 106. Right-of-way and temporary use permit. Sec. 107. Permits for activities in navigable waters. Sec. 108. Migratory Bird Treaty Act permit. Sec. 109. Oil spill response plan disclosure. Subtitle B—Natural Gas Pipeline Permitting Reform Sec. 121. Short title. Sec. 122. Regulatory approval of natural gas pipeline projects. Subtitle C—North American Energy Infrastructure Sec. 131. Short title. Sec. 132. Finding. Sec. 133. Authorization of certain energy infrastructure projects at the national boundary of the United States. Sec. 134. Importation or exportation of natural gas to Canada and Mexico. Sec. 135. Transmission of electric energy to Canada and Mexico. Sec. 136. No Presidential permit required. Sec. 137. Modifications to existing projects. Sec. 138. Effective date; rulemaking deadlines. Sec. 139. Definitions. Title II—Maintaining Diverse Electricity Generation and Affordability Subtitle A—Energy Consumers Relief Sec. 201. Short title. Sec. 202. Prohibition against finalizing certain energy-related rules that will cause significant adverse effects to the economy. Sec. 203. Reports and determinations prior to promulgating as final certain energy-related rules. Sec. 204. Definitions. Sec. 205. Prohibition on use of social cost of carbon in analysis. Subtitle B—Electricity Security and Affordability Sec. 211. Short title. Sec. 212. Standards of performance for new fossil fuel-fired electric utility generating units. Sec. 213. Congress To set effective date for standards of performance for existing, modified, and reconstructed fossil fuel-fired electric utility generating units. Sec. 214. Repeal of earlier rules and guidelines. Sec. 215. Definitions. Subtitle C—Report on Energy and Water Savings Potential From Thermal Insulation Sec. 221. Report on energy and water savings potential from thermal insulation. Title III—Unleashing Energy Diplomacy Sec. 301. Short title. Sec. 302. Action on applications. Sec. 303. Public disclosure of export destinations. Division B—Natural Resources Committee Sec. 201. References. Subdivision A—Lowering Gasoline Prices to Fuel an America That Works Act of 2014 Sec. 1. Short title. Title I—Offshore Energy and Jobs Subtitle A—Outer Continental Shelf Leasing Program Reforms Sec. 10101. Outer Continental Shelf leasing program reforms. Sec. 10102. Domestic oil and natural gas production goal. Sec. 10103. Development and submittal of new 5-year oil and gas leasing program. Sec. 10104. Rule of construction. Sec. 10105. Addition of lease sales after finalization of 5-year plan. Subtitle B—Directing the President To Conduct New OCS Sales Sec. 10201. Requirement to conduct proposed oil and gas Lease Sale 220 on the Outer Continental Shelf offshore Virginia. Sec. 10202. South Carolina lease sale. Sec. 10203. Southern California existing infrastructure lease sale. Sec. 10204. Environmental impact statement requirement. Sec. 10205. National defense. Sec. 10206. Eastern Gulf of Mexico not included. Subtitle C—Equitable Sharing of Outer Continental Shelf Revenues Sec. 10301. Disposition of Outer Continental Shelf revenues to coastal States. Subtitle D—Reorganization of Minerals Management Agencies of the Department of the Interior Sec. 10401. Establishment of Under Secretary for Energy, Lands, and Minerals and Assistant Secretary of Ocean Energy and Safety. Sec. 10402. Bureau of Ocean Energy. Sec. 10403. Ocean Energy Safety Service. Sec. 10404. Office of Natural Resources revenue. Sec. 10405. Ethics and drug testing. Sec. 10406. Abolishment of Minerals Management Service. Sec. 10407. Conforming amendments to Executive Schedule pay rates. Sec. 10408. Outer Continental Shelf Energy Safety Advisory Board. Sec. 10409. Outer Continental Shelf inspection fees. Sec. 10410. Prohibition on action based on National Ocean Policy developed under Executive Order No. 13547. Subtitle E—United States Territories Sec. 10501. Application of Outer Continental Shelf Lands Act with respect to territories of the United States. Subtitle F—Miscellaneous Provisions Sec. 10601. Rules regarding distribution of revenues under Gulf of Mexico Energy Security Act of 2006. Sec. 10602. Amount of distributed qualified outer Continental Shelf revenues. Sec. 10603. South Atlantic Outer Continental Shelf Planning Area defined. Sec. 10604. Enhancing geological and geophysical information for America’s energy future. Subtitle G—Judicial Review Sec. 10701. Time for filing complaint. Sec. 10702. District court deadline. Sec. 10703. Ability to seek appellate review. Sec. 10704. Limitation on scope of review and relief. Sec. 10705. Legal fees. Sec. 10706. Exclusion. Sec. 10707. Definitions. Title II—Onshore Federal Lands and Energy Security Subtitle A—Federal Lands Jobs and Energy Security Sec. 21001. Short title. Sec. 21002. Policies regarding buying, building, and working for America. Chapter 1—Onshore oil and gas permit streamlining Sec. 21101. Short title. Subchapter A—Application for Permits to Drill Process Reform Sec. 21111. Permit to drill application timeline. Subchapter B—Administrative Protest Documentation Reform Sec. 21121. Administrative protest documentation reform. Subchapter C—Permit Streamlining Sec. 21131. Making pilot offices permanent to improve energy permitting on Federal lands. Sec. 21132. Administration of current law. Subchapter D—Judicial Review Sec. 21141. Definitions. Sec. 21142. Exclusive venue for certain civil actions relating to covered energy projects. Sec. 21143. Timely filing. Sec. 21144. Expedition in hearing and determining the action. Sec. 21145. Standard of review. Sec. 21146. Limitation on injunction and prospective relief. Sec. 21147. Limitation on attorneys’ fees. Sec. 21148. Legal standing. Subchapter E—Knowing America’s Oil and Gas Resources Sec. 21151. Funding oil and gas resource assessments. Chapter 2—Oil and gas leasing certainty Sec. 21201. Short title. Sec. 21202. Minimum acreage requirement for onshore lease sales. Sec. 21203. Leasing certainty. Sec. 21204. Leasing consistency. Sec. 21205. Reduce redundant policies. Sec. 21206. Streamlined congressional notification. Chapter 3—Oil shale Sec. 21301. Short title. Sec. 21302. Effectiveness of oil shale regulations, amendments to resource management plans, and record of decision. Sec. 21303. Oil shale leasing. Chapter 4—Miscellaneous provisions Sec. 21401. Rule of construction. Subtitle B—Planning for American Energy Sec. 22001. Short title. Sec. 22002. Onshore domestic energy production strategic plan. Subtitle C—National Petroleum Reserve in Alaska access Sec. 23001. Short title. Sec. 23002. Sense of Congress and reaffirming national policy for the National Petroleum Reserve in Alaska. Sec. 23003. National Petroleum Reserve in Alaska: lease sales. Sec. 23004. National Petroleum Reserve in Alaska: planning and permitting pipeline and road construction. Sec. 23005. Issuance of a new integrated activity plan and environmental impact statement. Sec. 23006. Departmental accountability for development. Sec. 23007. Deadlines under new proposed integrated activity plan. Sec. 23008. Updated resource assessment. Subtitle D—BLM Live Internet Auctions Sec. 24001. Short title. Sec. 24002. Internet-based onshore oil and gas lease sales. Subtitle E—Native American Energy Sec. 25001. Short title. Sec. 25002. Appraisals. Sec. 25003. Standardization. Sec. 25004. Environmental reviews of major Federal actions on Indian lands. Sec. 25005. Judicial review. Sec. 25006. Tribal biomass demonstration project. Sec. 25007. Tribal resource management plans. Sec. 25008. Leases of restricted lands for the Navajo Nation. Sec. 25009. Nonapplicability of certain rules. Title III—Miscellaneous provisions Sec. 30101. Establishment of Office of Energy Employment and Training. Subdivision B—Bureau of Reclamation Conduit Hydropower Development Equity and Jobs Act Sec. 1. Short title. Sec. 2. Amendment. Subdivision C—Central Oregon Jobs and Water Security Act Sec. 1. Short title. Sec. 2. Wild and Scenic River; Crooked, Oregon. Sec. 3. City of Prineville Water Supply. Sec. 4. First fill protection. Sec. 5. Ochoco Irrigation District. Subdivision D—State Authority For Hydraulic Fracturing Regulation; EPA Hydraulic Fracturing Research Title I—State Authority For Hydraulic Fracturing Regulation Sec. 101. Short title. Sec. 102. State authority for hydraulic fracturing regulation. Sec. 103. Government Accountability Office study. Sec. 104. Tribal authority on trust land. Title II—EPA HYDRAULIC FRACTURING RESEARCH Sec. 201. Short title. Sec. 202. EPA hydraulic fracturing research. Title III—Miscellaneous provisions Sec. 301. Review of State activities. Subdivision E—Preventing Government Waste and Protecting Coal Mining Jobs in America Sec. 1. Short title. Sec. 2. Incorporation of surface mining stream buffer zone rule into State programs. Division C—Judiciary Sec. 1. Short title. Sec. 2. Coordination of agency administrative operations for efficient decisionmaking. A Energy and Commerce I Modernizing Infrastructure A Northern Route Approval 101. Short title This subtitle may be cited as the Northern Route Approval Act . 102. Findings The Congress finds the following: (1) To maintain our Nation’s competitive edge and ensure an economy built to last, the United States must have fast, reliable, resilient, and environmentally sound means of moving energy. In a global economy, we will compete for the world’s investments based in significant part on the quality of our infrastructure. Investing in the Nation’s infrastructure provides immediate and long-term economic benefits for local communities and the Nation as a whole. (2) The delivery of oil from Canada, a close ally not only in proximity but in shared values and ideals, to domestic markets is in the national interest because of the need to lessen dependence upon insecure foreign sources. (3) The Keystone XL pipeline would provide both short-term and long-term employment opportunities and related labor income benefits, such as government revenues associated with taxes. (4) The State of Nebraska has thoroughly reviewed and approved the proposed Keystone XL pipeline reroute, concluding that the concerns of Nebraskans have had a major influence on the pipeline reroute and that the reroute will have minimal environmental impacts. (5) The Keystone XL is in much the same position today as the Alaska Pipeline in 1973 prior to congressional action. Once again, the Federal regulatory process remains an insurmountable obstacle to a project that is likely to reduce oil imports from insecure foreign sources. 103. Keystone XL permit approval Notwithstanding Executive Order No. 13337 ( 3 U.S.C. 301 note), Executive Order No. 11423 ( 3 U.S.C. 301 note), section 301 of title 3, United States Code, and any other Executive order or provision of law, no Presidential permit shall be required for the pipeline described in the application filed on May 4, 2012, by TransCanada Keystone Pipeline, L.P. to the Department of State for the Keystone XL pipeline, as supplemented to include the Nebraska reroute evaluated in the Final Evaluation Report issued by the Nebraska Department of Environmental Quality in January 2013 and approved by the Nebraska governor. The final environmental impact statement issued by the Secretary of State on January 31, 2014, coupled with the Final Evaluation Report described in the previous sentence, shall be considered to satisfy all requirements of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) and of the National Historic Preservation Act ( 16 U.S.C. 470 et seq. ). 104. Judicial review (a) Exclusive jurisdiction Except for review by the Supreme Court on writ of certiorari, the United States Court of Appeals for the District of Columbia Circuit shall have original and exclusive jurisdiction to determine— (1) the validity of any final order or action (including a failure to act) of any Federal agency or officer with respect to issuance of a permit relating to the construction or maintenance of the Keystone XL pipeline, including any final order or action deemed to be taken, made, granted, or issued; (2) the constitutionality of any provision of this subtitle, or any decision or action taken, made, granted, or issued, or deemed to be taken, made, granted, or issued under this subtitle; or (3) the adequacy of any environmental impact statement prepared under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ), or of any analysis under any other Act, with respect to any action taken, made, granted, or issued, or deemed to be taken, made, granted, or issued under this subtitle. (b) Deadline for filing claim A claim arising under this subtitle may be brought not later than 60 days after the date of the decision or action giving rise to the claim. (c) Expedited consideration The United States Court of Appeals for the District of Columbia Circuit shall set any action brought under subsection (a) for expedited consideration, taking into account the national interest of enhancing national energy security by providing access to the significant oil reserves in Canada that are needed to meet the demand for oil. 105. American burying beetle (a) Findings The Congress finds that— (1) environmental reviews performed for the Keystone XL pipeline project satisfy the requirements of section 7 of the Endangered Species Act of 1973 ( 16 U.S.C. 1536(a)(2) ) in its entirety; and (2) for purposes of that Act, the Keystone XL pipeline project will not jeopardize the continued existence of the American burying beetle or destroy or adversely modify American burying beetle critical habitat. (b) Biological opinion The Secretary of the Interior is deemed to have issued a written statement setting forth the Secretary’s opinion containing such findings under section 7(b)(1)(A) of the Endangered Species Act of 1973 ( 16 U.S.C. 1536(b)(1)(A) ) and any taking of the American burying beetle that is incidental to the construction or operation and maintenance of the Keystone XL pipeline as it may be ultimately defined in its entirety, shall not be considered a prohibited taking of such species under such Act. 106. Right-of-way and temporary use permit The Secretary of the Interior is deemed to have granted or issued a grant of right-of-way and temporary use permit under section 28 of the Mineral Leasing Act ( 30 U.S.C. 185 ) and the Federal Land Policy and Management Act of 1976 ( 43 U.S.C. 1701 et seq. ), as set forth in the application tendered to the Bureau of Land Management for the Keystone XL pipeline. 107. Permits for activities in navigable waters (a) Issuance of permits The Secretary of the Army, not later than 90 days after receipt of an application therefor, shall issue all permits under section 404 of the Federal Water Pollution Control Act ( 33 U.S.C. 1344 ) and section 10 of the Act of March 3, 1899 ( 33 U.S.C. 403 ; commonly known as the Rivers and Harbors Appropriations Act of 1899), necessary for the construction, operation, and maintenance of the pipeline described in the May 4, 2012, application referred to in section 103, as supplemented by the Nebraska reroute. The application shall be based on the administrative record for the pipeline as of the date of enactment of this Act, which shall be considered complete. (b) Waiver of procedural requirements The Secretary may waive any procedural requirement of law or regulation that the Secretary considers desirable to waive in order to accomplish the purposes of this section. (c) Issuance in absence of action by the Secretary If the Secretary has not issued a permit described in subsection (a) on or before the last day of the 90-day period referred to in subsection (a), the permit shall be deemed issued under section 404 of the Federal Water Pollution Control Act ( 33 U.S.C. 1344 ) or section 10 of the Act of March 3, 1899 ( 33 U.S.C. 403 ), as appropriate, on the day following such last day. (d) Limitation The Administrator of the Environmental Protection Agency may not prohibit or restrict an activity or use of an area that is authorized under this section. 108. Migratory Bird Treaty Act permit The Secretary of the Interior is deemed to have issued a special purpose permit under the Migratory Bird Treaty Act ( 16 U.S.C. 703 et seq. ), as described in the application filed with the United States Fish and Wildlife Service for the Keystone XL pipeline on January 11, 2013. 109. Oil spill response plan disclosure (a) In general Any pipeline owner or operator required under Federal law to develop an oil spill response plan for the Keystone XL pipeline shall make such plan available to the Governor of each State in which such pipeline operates to assist with emergency response preparedness. (b) Updates A pipeline owner or operator required to make available to a Governor a plan under subsection (a) shall make available to such Governor any update of such plan not later than 7 days after the date on which such update is made. B Natural Gas Pipeline Permitting Reform 121. Short title This subtitle may be cited as the Natural Gas Pipeline Permitting Reform Act . 122. Regulatory approval of natural gas pipeline projects Section 7 of the Natural Gas Act ( 15 U.S.C. 717f ) is amended by adding at the end the following new subsection: (i) (1) The Commission shall approve or deny an application for a certificate of public convenience and necessity for a prefiled project not later than 12 months after receiving a complete application that is ready to be processed, as defined by the Commission by regulation. (2) The agency responsible for issuing any license, permit, or approval required under Federal law in connection with a prefiled project for which a certificate of public convenience and necessity is sought under this Act shall approve or deny the issuance of the license, permit, or approval not later than 90 days after the Commission issues its final environmental document relating to the project. (3) The Commission may extend the time period under paragraph (2) by 30 days if an agency demonstrates that it cannot otherwise complete the process required to approve or deny the license, permit, or approval, and therefor will be compelled to deny the license, permit, or approval. In granting an extension under this paragraph, the Commission may offer technical assistance to the agency as necessary to address conditions preventing the completion of the review of the application for the license, permit, or approval. (4) If an agency described in paragraph (2) does not approve or deny the issuance of the license, permit, or approval within the time period specified under paragraph (2) or (3), as applicable, such license, permit, or approval shall take effect upon the expiration of 30 days after the end of such period. The Commission shall incorporate into the terms of such license, permit, or approval any conditions proffered by the agency described in paragraph (2) that the Commission does not find are inconsistent with the final environmental document. (5) For purposes of this subsection, the term prefiled project means a project for the siting, construction, expansion, or operation of a natural gas pipeline with respect to which a prefiling docket number has been assigned by the Commission pursuant to a prefiling process established by the Commission for the purpose of facilitating the formal application process for obtaining a certificate of public convenience and necessity. . C North American Energy Infrastructure 131. Short title This subtitle may be cited as the North American Energy Infrastructure Act . 132. Finding Congress finds that the United States should establish a more uniform, transparent, and modern process for the construction, connection, operation, and maintenance of oil and natural gas pipelines and electric transmission facilities for the import and export of oil and natural gas and the transmission of electricity to and from Canada and Mexico, in pursuit of a more secure and efficient North American energy market. 133. Authorization of certain energy infrastructure projects at the national boundary of the United States (a) Authorization Except as provided in subsection (c) and section 137, no person may construct, connect, operate, or maintain a cross-border segment of an oil pipeline or electric transmission facility for the import or export of oil or the transmission of electricity to or from Canada or Mexico without obtaining a certificate of crossing for the construction, connection, operation, or maintenance of the cross-border segment under this section. (b) Certificate of crossing (1) Requirement Not later than 120 days after final action is taken under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) with respect to a cross-border segment for which a request is received under this section, the relevant official identified under paragraph (2), in consultation with appropriate Federal agencies, shall issue a certificate of crossing for the cross-border segment unless the relevant official finds that the construction, connection, operation, or maintenance of the cross-border segment is not in the public interest of the United States. (2) Relevant official The relevant official referred to in paragraph (1) is— (A) the Secretary of State with respect to oil pipelines; and (B) the Secretary of Energy with respect to electric transmission facilities. (3) Additional requirement for electric transmission facilities In the case of a request for a certificate of crossing for the construction, connection, operation, or maintenance of a cross-border segment of an electric transmission facility, the Secretary of Energy shall require, as a condition of issuing the certificate of crossing for the request under paragraph (1), that the cross-border segment of the electric transmission facility be constructed, connected, operated, or maintained consistent with all applicable policies and standards of— (A) the Electric Reliability Organization and the applicable regional entity; and (B) any Regional Transmission Organization or Independent System Operator with operational or functional control over the cross-border segment of the electric transmission facility. (c) Exclusions This section shall not apply to any construction, connection, operation, or maintenance of a cross-border segment of an oil pipeline or electric transmission facility for the import or export of oil or the transmission of electricity to or from Canada or Mexico— (1) if the cross-border segment is operating for such import, export, or transmission as of the date of enactment of this Act; (2) if a permit described in section 136 for such construction, connection, operation, or maintenance has been issued; (3) if a certificate of crossing for such construction, connection, operation, or maintenance has previously been issued under this section; or (4) if an application for a permit described in section 136 for such construction, connection, operation, or maintenance is pending on the date of enactment of this Act, until the earlier of— (A) the date on which such application is denied; or (B) July 1, 2016. (d) Effect of other laws (1) Application to projects Nothing in this section or section 137 shall affect the application of any other Federal statute to a project for which a certificate of crossing for the construction, connection, operation, or maintenance of a cross-border segment is sought under this section. (2) Natural Gas Act Nothing in this section or section 137 shall affect the requirement to obtain approval or authorization under sections 3 and 7 of the Natural Gas Act for the siting, construction, or operation of any facility to import or export natural gas. (3) Energy Policy and Conservation Act Nothing in this section or section 137 shall affect the authority of the President under section 103(a) of the Energy Policy and Conservation Act. 134. Importation or exportation of natural gas to Canada and Mexico Section 3(c) of the Natural Gas Act ( 15 U.S.C. 717b(c) ) is amended by adding at the end the following: No order is required under subsection (a) to authorize the export or import of any natural gas to or from Canada or Mexico. . 135. Transmission of electric energy to Canada and Mexico (a) Repeal of requirement To secure order Section 202(e) of the Federal Power Act ( 16 U.S.C. 824a(e) ) is repealed. (b) Conforming amendments (1) State regulations Section 202(f) of the Federal Power Act ( 16 U.S.C. 824a(f) ) is amended by striking insofar as such State regulation does not conflict with the exercise of the Commission’s powers under or relating to subsection 202(e) . (2) Seasonal diversity electricity exchange Section 602(b) of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 824a–4(b) ) is amended by striking the Commission has conducted hearings and made the findings required under section 202(e) of the Federal Power Act and all that follows through the period at the end and inserting the Secretary has conducted hearings and finds that the proposed transmission facilities would not impair the sufficiency of electric supply within the United States or would not impede or tend to impede the coordination in the public interest of facilities subject to the jurisdiction of the Secretary. . 136. No Presidential permit required No Presidential permit (or similar permit) required under Executive Order No. 13337 ( 3 U.S.C. 301 note), Executive Order No. 11423 ( 3 U.S.C. 301 note), section 301 of title 3, United States Code, Executive Order No. 12038, Executive Order No. 10485, or any other Executive order shall be necessary for the construction, connection, operation, or maintenance of an oil or natural gas pipeline or electric transmission facility, or any cross-border segment thereof. 137. Modifications to existing projects No certificate of crossing under section 133, or permit described in section 136, shall be required for a modification to the construction, connection, operation, or maintenance of an oil or natural gas pipeline or electric transmission facility— (1) that is operating for the import or export of oil or natural gas or the transmission of electricity to or from Canada or Mexico as of the date of enactment of the Act; (2) for which a permit described in section 136 for such construction, connection, operation, or maintenance has been issued; or (3) for which a certificate of crossing for the cross-border segment of the pipeline or facility has previously been issued under section 133. 138. Effective date; rulemaking deadlines (a) Effective date Sections 133 through 137, and the amendments made by such sections, shall take effect on July 1, 2015. (b) Rulemaking deadlines Each relevant official described in section 133(b)(2) shall— (1) not later than 180 days after the date of enactment of this Act, publish in the Federal Register notice of a proposed rulemaking to carry out the applicable requirements of section 133; and (2) not later than 1 year after the date of enactment of this Act, publish in the Federal Register a final rule to carry out the applicable requirements of section 133. 139. Definitions In this subtitle— (1) the term cross-border segment means the portion of an oil or natural gas pipeline or electric transmission facility that is located at the national boundary of the United States with either Canada or Mexico; (2) the term modification includes a reversal of flow direction, change in ownership, volume expansion, downstream or upstream interconnection, or adjustment to maintain flow (such as a reduction or increase in the number of pump or compressor stations); (3) the term natural gas has the meaning given that term in section 2 of the Natural Gas Act ( 15 U.S.C. 717a ); (4) the term oil means petroleum or a petroleum product; (5) the terms Electric Reliability Organization and regional entity have the meanings given those terms in section 215 of the Federal Power Act ( 16 U.S.C. 824o ); and (6) the terms Independent System Operator and Regional Transmission Organization have the meanings given those terms in section 3 of the Federal Power Act ( 16 U.S.C. 796 ). II Maintaining Diverse Electricity Generation and Affordability A Energy Consumers Relief 201. Short title This subtitle may be cited as the Energy Consumers Relief Act of 2014 . 202. Prohibition against finalizing certain energy-related rules that will cause significant adverse effects to the economy Notwithstanding any other provision of law, the Administrator of the Environmental Protection Agency may not promulgate as final an energy-related rule that is estimated to cost more than $1 billion if the Secretary of Energy determines under section 203(3) that the rule will cause significant adverse effects to the economy. 203. Reports and determinations prior to promulgating as final certain energy-related rules Before promulgating as final any energy-related rule that is estimated to cost more than $1 billion: (1) Report to Congress The Administrator of the Environmental Protection Agency shall submit to Congress a report (and transmit a copy to the Secretary of Energy) containing— (A) a copy of the rule; (B) a concise general statement relating to the rule; (C) an estimate of the total costs of the rule, including the direct costs and indirect costs of the rule; (D) (i) an estimate of the total benefits of the rule and when such benefits are expected to be realized; (ii) a description of the modeling, the calculations, the assumptions, and the limitations due to uncertainty, speculation, or lack of information associated with the estimates under this subparagraph; and (iii) a certification that all data and documents relied upon by the Agency in developing such estimates— (I) have been preserved; and (II) are available for review by the public on the Agency’s Web site, except to the extent to which publication of such data and documents would constitute disclosure of confidential information in violation of applicable Federal law; (E) an estimate of the increases in energy prices, including potential increases in gasoline or electricity prices for consumers, that may result from implementation or enforcement of the rule; and (F) a detailed description of the employment effects, including potential job losses and shifts in employment, that may result from implementation or enforcement of the rule. (2) Initial determination on increases and impacts The Secretary of Energy, in consultation with the Federal Energy Regulatory Commission and the Administrator of the Energy Information Administration, shall prepare an independent analysis to determine whether the rule will cause— (A) any increase in energy prices for consumers, including low-income households, small businesses, and manufacturers; (B) any impact on fuel diversity of the Nation’s electricity generation portfolio or on national, regional, or local electric reliability; (C) any adverse effect on energy supply, distribution, or use due to the economic or technical infeasibility of implementing the rule; or (D) any other adverse effect on energy supply, distribution, or use (including a shortfall in supply and increased use of foreign supplies). (3) Subsequent determination on adverse effects to the economy If the Secretary of Energy determines, under paragraph (2), that the rule will cause an increase, impact, or effect described in such paragraph, then the Secretary, in consultation with the Administrator of the Environmental Protection Agency, the Secretary of Commerce, the Secretary of Labor, and the Administrator of the Small Business Administration, shall— (A) determine whether the rule will cause significant adverse effects to the economy, taking into consideration— (i) the costs and benefits of the rule and limitations in calculating such costs and benefits due to uncertainty, speculation, or lack of information; and (ii) the positive and negative impacts of the rule on economic indicators, including those related to gross domestic product, unemployment, wages, consumer prices, and business and manufacturing activity; and (B) publish the results of such determination in the Federal Register. 204. Definitions In this subtitle: (1) The terms direct costs and indirect costs have the meanings given such terms in chapter 8 of the Environmental Protection Agency’s Guidelines for Preparing Economic Analyses dated December 17, 2010. (2) The term energy-related rule that is estimated to cost more than $1 billion means a rule of the Environmental Protection Agency that— (A) regulates any aspect of the production, supply, distribution, or use of energy or provides for such regulation by States or other governmental entities; and (B) is estimated by the Administrator of the Environmental Protection Agency or the Director of the Office of Management and Budget to impose direct costs and indirect costs, in the aggregate, of more than $1,000,000,000. (3) The term rule has the meaning given to such term in section 551 of title 5, United States Code. 205. Prohibition on use of social cost of carbon in analysis (a) In general Notwithstanding any other provision of law or any executive order, the Administrator of the Environmental Protection Agency may not use the social cost of carbon in order to incorporate social benefits of reducing carbon dioxide emissions, or for any other reason, in any cost-benefit analysis relating to an energy-related rule that is estimated to cost more than $1 billion unless and until a Federal law is enacted authorizing such use. (b) Definition In this section, the term social cost of carbon means the social cost of carbon as described in the technical support document entitled Technical Support Document: Technical Update of the Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order 12866 , published by the Interagency Working Group on Social Cost of Carbon, United States Government, in May 2013, or any successor or substantially related document, or any other estimate of the monetized damages associated with an incremental increase in carbon dioxide emissions in a given year. B Electricity Security and Affordability 211. Short title This subtitle may be cited as the Electricity Security and Affordability Act . 212. Standards of performance for new fossil fuel-fired electric utility generating units (a) Limitation The Administrator of the Environmental Protection Agency may not issue, implement, or enforce any proposed or final rule under section 111 of the Clean Air Act ( 42 U.S.C. 7411 ) that establishes a standard of performance for emissions of any greenhouse gas from any new source that is a fossil fuel-fired electric utility generating unit unless such rule meets the requirements under subsections (b) and (c). (b) Requirements In issuing any rule under section 111 of the Clean Air Act ( 42 U.S.C. 7411 ) establishing standards of performance for emissions of any greenhouse gas from new sources that are fossil fuel-fired electric utility generating units, the Administrator of the Environmental Protection Agency (for purposes of establishing such standards)— (1) shall separate sources fueled with coal and natural gas into separate categories; and (2) shall not set a standard based on the best system of emission reduction for new sources within a fossil-fuel category unless— (A) such standard has been achieved on average for at least one continuous 12-month period (excluding planned outages) by each of at least 6 units within such category— (i) each of which is located at a different electric generating station in the United States; (ii) which, collectively, are representative of the operating characteristics of electric generation at different locations in the United States; and (iii) each of which is operated for the entire 12-month period on a full commercial basis; and (B) no results obtained from any demonstration project are used in setting such standard. (c) Coal having a heat content of 8300 or less British Thermal Units per pound (1) Separate subcategory In carrying out subsection (b)(1), the Administrator of the Environmental Protection Agency shall establish a separate subcategory for new sources that are fossil fuel-fired electric utility generating units using coal with an average heat content of 8300 or less British Thermal Units per pound. (2) Standard Notwithstanding subsection (b)(2), in issuing any rule under section 111 of the Clean Air Act ( 42 U.S.C. 7411 ) establishing standards of performance for emissions of any greenhouse gas from new sources in such subcategory, the Administrator of the Environmental Protection Agency shall not set a standard based on the best system of emission reduction unless— (A) such standard has been achieved on average for at least one continuous 12-month period (excluding planned outages) by each of at least 3 units within such subcategory— (i) each of which is located at a different electric generating station in the United States; (ii) which, collectively, are representative of the operating characteristics of electric generation at different locations in the United States; and (iii) each of which is operated for the entire 12-month period on a full commercial basis; and (B) no results obtained from any demonstration project are used in setting such standard. (d) Technologies Nothing in this section shall be construed to preclude the issuance, implementation, or enforcement of a standard of performance that— (1) is based on the use of one or more technologies that are developed in a foreign country, but has been demonstrated to be achievable at fossil fuel-fired electric utility generating units in the United States; and (2) meets the requirements of subsection (b) and (c), as applicable. 213. Congress To set effective date for standards of performance for existing, modified, and reconstructed fossil fuel-fired electric utility generating units (a) Applicability This section applies with respect to any rule or guidelines issued by the Administrator of the Environmental Protection Agency under section 111 of the Clean Air Act ( 42 U.S.C. 7411 ) that— (1) establish any standard of performance for emissions of any greenhouse gas from any modified or reconstructed source that is a fossil fuel-fired electric utility generating unit; or (2) apply to the emissions of any greenhouse gas from an existing source that is a fossil fuel-fired electric utility generating unit. (b) Congress To set effective date A rule or guidelines described in subsection (a) shall not take effect unless a Federal law is enacted specifying such rule’s or guidelines’ effective date. (c) Reporting A rule or guidelines described in subsection (a) shall not take effect unless the Administrator of the Environmental Protection Agency has submitted to Congress a report containing each of the following: (1) The text of such rule or guidelines. (2) The economic impacts of such rule or guidelines, including the potential effects on— (A) economic growth, competitiveness, and jobs in the United States; (B) electricity ratepayers, including low-income ratepayers in affected States; (C) required capital investments and projected costs for operation and maintenance of new equipment required to be installed; and (D) the global economic competitiveness of the United States. (3) The amount of greenhouse gas emissions that such rule or guidelines are projected to reduce as compared to overall global greenhouse gas emissions. (d) Consultation In carrying out subsection (c), the Administrator of the Environmental Protection Agency shall consult with the Administrator of the Energy Information Administration, the Comptroller General of the United States, the Director of the National Energy Technology Laboratory, and the Under Secretary of Commerce for Standards and Technology. 214. Repeal of earlier rules and guidelines The following rules and guidelines shall be of no force or effect, and shall be treated as though such rules and guidelines had never been issued: (1) The proposed rule— (A) entitled Standards of Performance for Greenhouse Gas Emissions for New Stationary Sources: Electric Utility Generating Units , published at 77 Fed. Reg. 22392 (April 13, 2012); and (B) withdrawn pursuant to the notice entitled Withdrawal of Proposed Standards of Performance for Greenhouse Gas Emissions From New Stationary Sources: Electric Utility Generating Units , published at 79 Fed. Reg. 1352 (January 8, 2014). (2) The proposed rule entitled Standards of Performance for Greenhouse Gas Emissions From New Stationary Sources: Electric Utility Generating Units , published at 79 Fed. Reg. 1430 (January 8, 2014). (3) With respect to the proposed rules described in paragraphs (1) and (2), any successor or substantially similar proposed or final rule that— (A) is issued prior to the date of the enactment of this Act; (B) is applicable to any new source that is a fossil fuel-fired electric utility generating unit; and (C) does not meet the requirements under subsections (b) and (c) of section 212. (4) The proposed rule entitled Carbon Pollution Emission Guidelines for Existing Stationary Sources: Electric Utility Generating Units , published at 79 Fed. Reg. 34830 (June 18, 2014). (5) The proposed rule entitled Carbon Pollution Standards for Modified and Reconstructed Stationary Sources: Electric Utility Generating Units , published at 79 Fed. Reg. 34960 (June 18, 2014). (6) With respect to the proposed rules described in paragraphs (4) and (5), any successor or substantially similar proposed or final rule that— (A) is issued prior to the date of the enactment of this Act; and (B) is applicable to any existing, modified, or reconstructed source that is a fossil fuel-fired electric utility generating unit. 215. Definitions In this subtitle: (1) Demonstration project The term demonstration project means a project to test or demonstrate the feasibility of carbon capture and storage technologies that has received Federal Government funding or financial assistance. (2) Existing source The term existing source has the meaning given such term in section 111(a) of the Clean Air Act ( 42 U.S.C. 7411(a) ), except such term shall not include any modified source. (3) Greenhouse gas The term greenhouse gas means any of the following: (A) Carbon dioxide. (B) Methane. (C) Nitrous oxide. (D) Sulfur hexafluoride. (E) Hydrofluorocarbons. (F) Perfluorocarbons. (4) Modification The term modification has the meaning given such term in section 111(a) of the Clean Air Act ( 42 U.S.C. 7411(a) ). (5) Modified source The term modified source means any stationary source, the modification of which is commenced after the date of the enactment of this Act. (6) New source The term new source has the meaning given such term in section 111(a) of the Clean Air Act ( 42 U.S.C. 7411(a) ), except that such term shall not include any modified source. C Report on Energy and Water Savings Potential From Thermal Insulation 221. Report on energy and water savings potential from thermal insulation (a) Report Not later than 1 year after the date of enactment of this Act, the Secretary of Energy, in consultation with appropriate Federal agencies and relevant stakeholders, shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report on the impact of thermal insulation on both energy and water use systems for potable hot and chilled water in Federal buildings, and the return on investment of installing such insulation. (b) Contents The report shall include— (1) an analysis based on the cost of municipal or regional water for delivered water and the avoided cost of new water; and (2) a summary of energy and water savings, including short term and long term (20 years) projections of such savings. III Unleashing Energy Diplomacy 301. Short title This title may be cited as the Domestic Prosperity and Global Freedom Act . 302. Action on applications (a) Decision deadline For proposals that must also obtain authorization from the Federal Energy Regulatory Commission or the United States Maritime Administration to site, construct, expand, or operate LNG export facilities, the Department of Energy shall issue a final decision on any application for the authorization to export natural gas under section 3 of the Natural Gas Act ( 15 U.S.C. 717b ) not later than 30 days after the later of— (1) the conclusion of the review to site, construct, expand, or operate the LNG facilities required by the National Environmental Policy Act of 1969 (42 U.S. C. 4321 et seq.); or (2) the date of enactment of this Act. (b) Conclusion of review For purposes of subsection (a), review required by the National Environmental Policy Act of 1969 shall be considered concluded— (1) for a project requiring an Environmental Impact Statement, 30 days after publication of a Final Environmental Impact Statement; (2) for a project for which an Environmental Assessment has been prepared, 30 days after publication by the Department of Energy of a Finding of No Significant Impact; and (3) upon a determination by the lead agency that an application is eligible for a categorical exclusion pursuant National Environmental Policy Act of 1969 implementing regulations. (c) Judicial action (1) The United States Court of Appeals for the circuit in which the export facility will be located pursuant to an application described in subsection (a) shall have original and exclusive jurisdiction over any civil action for the review of— (A) an order issued by the Department of Energy with respect to such application; or (B) the Department of Energy’s failure to issue a final decision on such application. (2) If the Court in a civil action described in paragraph (1) finds that the Department of Energy has failed to issue a final decision on the application as required under subsection (a), the Court shall order the Department of Energy to issue such final decision not later than 30 days after the Court’s order. (3) The Court shall set any civil action brought under this subsection for expedited consideration and shall set the matter on the docket as soon as practical after the filing date of the initial pleading. 303. Public disclosure of export destinations Section 3 of the Natural Gas Act ( 15 U.S.C. 717b ) is amended by adding at the end the following: (g) Public Disclosure of LNG Export Destinations As a condition for approval of any authorization to export LNG, the Secretary of Energy shall require the applicant to publicly disclose the specific destination or destinations of any such authorized LNG exports. . B Natural Resources Committee 201. References Except as expressly provided otherwise, any reference to this Act in any subdivision of this division shall be treated as referring only to the provisions of that subdivision. A Lowering Gasoline Prices to Fuel an America That Works Act of 2014 1. Short title This subdivision may be cited as the Lowering Gasoline Prices to Fuel an America That Works Act of 2014 . I Offshore Energy and Jobs A Outer Continental Shelf Leasing Program Reforms 10101. Outer Continental Shelf leasing program reforms Section 18(a) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1344(a) ) is amended by adding at the end the following: (5) (A) In each oil and gas leasing program under this section, the Secretary shall make available for leasing and conduct lease sales including at least 50 percent of the available unleased acreage within each outer Continental Shelf planning area considered to have the largest undiscovered, technically recoverable oil and gas resources (on a total btu basis) based upon the most recent national geologic assessment of the outer Continental Shelf, with an emphasis on offering the most geologically prospective parts of the planning area. (B) The Secretary shall include in each proposed oil and gas leasing program under this section any State subdivision of an outer Continental Shelf planning area that the Governor of the State that represents that subdivision requests be made available for leasing. The Secretary may not remove such a subdivision from the program until publication of the final program, and shall include and consider all such subdivisions in any environmental review conducted and statement prepared for such program under section 102(2) of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4332(2) ). (C) In this paragraph the term available unleased acreage means that portion of the outer Continental Shelf that is not under lease at the time of a proposed lease sale, and that has not otherwise been made unavailable for leasing by law. (6) (A) In the 5-year oil and gas leasing program, the Secretary shall make available for leasing any outer Continental Shelf planning areas that— (i) are estimated to contain more than 2,500,000,000 barrels of oil; or (ii) are estimated to contain more than 7,500,000,000,000 cubic feet of natural gas. (B) To determine the planning areas described in subparagraph (A), the Secretary shall use the document entitled Minerals Management Service Assessment of Undiscovered Technically Recoverable Oil and Gas Resources of the Nation’s Outer Continental Shelf, 2006 . . 10102. Domestic oil and natural gas production goal Section 18(b) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1344(b) ) is amended to read as follows: (b) Domestic oil and natural gas production goal – (1) In general In developing a 5-year oil and gas leasing program, and subject to paragraph (2), the Secretary shall determine a domestic strategic production goal for the development of oil and natural gas as a result of that program. Such goal shall be— (A) the best estimate of the possible increase in domestic production of oil and natural gas from the outer Continental Shelf; (B) focused on meeting domestic demand for oil and natural gas and reducing the dependence of the United States on foreign energy; and (C) focused on the production increases achieved by the leasing program at the end of the 15-year period beginning on the effective date of the program. (2) Program goal For purposes of the 5-year oil and gas leasing program, the production goal referred to in paragraph (1) shall be an increase by 2032 of— (A) no less than 3,000,000 barrels in the amount of oil produced per day; and (B) no less than 10,000,000,000 cubic feet in the amount of natural gas produced per day. (3) Reporting The Secretary shall report annually, beginning at the end of the 5-year period for which the program applies, to the Committee on Natural Resources of the House of Representatives and the Committee on Energy and Natural Resources of the Senate on the progress of the program in meeting the production goal. The Secretary shall identify in the report projections for production and any problems with leasing, permitting, or production that will prevent meeting the goal. . 10103. Development and submittal of new 5-year oil and gas leasing program (a) In general The Secretary of the Interior shall— (1) by not later than July 15, 2015, publish and submit to Congress a new proposed oil and gas leasing program under section 18 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1344 ) for the 5-year period beginning on such date and ending July 15, 2021; and (2) by not later than July 15, 2016, approve a final oil and gas leasing program under such section for such period. (b) Consideration of all areas In preparing such program the Secretary shall include consideration of areas of the Continental Shelf off the coasts of all States (as such term is defined in section 2 of that Act, as amended by this title), that are subject to leasing under this title. (c) Technical correction Section 18(d)(3) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1344(d)(3) ) is amended by striking or after eighteen months following the date of enactment of this section, whichever first occurs, . 10104. Rule of construction Nothing in this title shall be construed to authorize the issuance of a lease under the Outer Continental Shelf Lands Act ( 43 U.S.C. 1331 et seq. ) to any person designated for the imposition of sanctions pursuant to— (1) the Iran Sanctions Act of 1996 ( 50 U.S.C. 1701 note), the Comprehensive Iran Sanctions, Accountability and Divestiture Act of 2010 ( 22 U.S.C. 8501 et seq. ), the Iran Threat Reduction and Syria Human Rights Act of 2012 ( 22 U.S.C. 8701 et seq. ), section 1245 of the National Defense Authorization Act for Fiscal Year 2012 ( 22 U.S.C. 8513a ), or the Iran Freedom and Counter-Proliferation Act of 2012 ( 22 U.S.C. 8801 et seq. ); (2) Executive Order No. 13622 (July 30, 2012), Executive Order No. 13628 (October 9, 2012), or Executive Order No. 13645 (June 3, 2013); (3) Executive Order No. 13224 (September 23, 2001) or Executive Order No. 13338 (May 11, 2004); or (4) the Syria Accountability and Lebanese Sovereignty Restoration Act of 2003 ( 22 U.S.C. 2151 note). 10105. Addition of lease sales after finalization of 5-year plan Section 18(d) of the Outer Continental Shelf Lands Act (43 U.S.C.1344(d)) is amended— (1) in paragraph (3), by striking After and inserting Except as provided in paragraph (4), after ; and (2) by adding at the end the following: (4) The Secretary may add to the areas included in an approved leasing program additional areas to be made available for leasing under the program, if all review and documents required under section 102 of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4332 ) have been completed with respect to leasing of each such additional area within the 5-year period preceding such addition. . B Directing the President To Conduct New OCS Sales 10201. Requirement to conduct proposed oil and gas Lease Sale 220 on the Outer Continental Shelf offshore Virginia (a) In general Notwithstanding the exclusion of Lease Sale 220 in the Final Outer Continental Shelf Oil & Gas Leasing Program 2012–2017, the Secretary of the Interior shall conduct offshore oil and gas Lease Sale 220 under section 8 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1337 ) as soon as practicable, but not later than one year after the date of enactment of this Act. (b) Requirement To make replacement lease blocks available For each lease block in a proposed lease sale under this section for which the Secretary of Defense, in consultation with the Secretary of the Interior, under the Memorandum of Agreement referred to in section 10205(b), issues a statement proposing deferral from a lease offering due to defense-related activities that are irreconcilable with mineral exploration and development, the Secretary of the Interior, in consultation with the Secretary of Defense, shall make available in the same lease sale one other lease block in the Virginia lease sale planning area that is acceptable for oil and gas exploration and production in order to mitigate conflict. (c) Balancing military and energy production goals In recognition that the Outer Continental Shelf oil and gas leasing program and the domestic energy resources produced therefrom are integral to national security, the Secretary of the Interior and the Secretary of Defense shall work jointly in implementing this section in order to ensure achievement of the following common goals: (1) Preserving the ability of the Armed Forces of the United States to maintain an optimum state of readiness through their continued use of the Outer Continental Shelf. (2) Allowing effective exploration, development, and production of our Nation’s oil, gas, and renewable energy resources. (d) Definitions In this section: (1) Lease sale 220 The term Lease Sale 220 means such lease sale referred to in the Request for Comments on the Draft Proposed 5-Year Outer Continental Shelf (OCS) Oil and Gas Leasing Program for 2010–2015 and Notice of Intent To Prepare an Environmental Impact Statement (EIS) for the Proposed 5-Year Program published January 21, 2009 (74 Fed. Reg. 3631). (2) Virginia lease sale planning area The term Virginia lease sale planning area means the area of the outer Continental Shelf (as that term is defined in the Outer Continental Shelf Lands Act ( 33 U.S.C. 1331 et seq. )) that is bounded by— (A) a northern boundary consisting of a straight line extending from the northernmost point of Virginia’s seaward boundary to the point on the seaward boundary of the United States exclusive economic zone located at 37 degrees 17 minutes 1 second North latitude, 71 degrees 5 minutes 16 seconds West longitude; and (B) a southern boundary consisting of a straight line extending from the southernmost point of Virginia’s seaward boundary to the point on the seaward boundary of the United States exclusive economic zone located at 36 degrees 31 minutes 58 seconds North latitude, 71 degrees 30 minutes 1 second West longitude. 10202. South Carolina lease sale Notwithstanding exclusion of the South Atlantic Outer Continental Shelf Planning Area from the Final Outer Continental Shelf Oil & Gas Leasing Program 2012–2017, the Secretary of the Interior shall conduct a lease sale not later than 2 years after the date of the enactment of this Act for areas off the coast of South Carolina determined by the Secretary to have the most geologically promising hydrocarbon resources and constituting not less than 25 percent of the leasable area within the South Carolina offshore administrative boundaries depicted in the notice entitled Federal Outer Continental Shelf (OCS) Administrative Boundaries Extending from the Submerged Lands Act Boundary seaward to the Limit of the United States Outer Continental Shelf , published January 3, 2006 (71 Fed. Reg. 127). 10203. Southern California existing infrastructure lease sale (a) In general The Secretary of the Interior shall offer for sale leases of tracts in the Santa Maria and Santa Barbara/Ventura Basins of the Southern California OCS Planning Area as soon as practicable, but not later than December 31, 2015. (b) Use of Existing Structures or Onshore-Based Drilling The Secretary of the Interior shall include in leases offered for sale under this lease sale such terms and conditions as are necessary to require that development and production may occur only from offshore infrastructure in existence on the date of the enactment of this Act or from onshore-based, extended-reach drilling. 10204. Environmental impact statement requirement (a) In General For the purposes of this title, the Secretary of the Interior shall prepare a multisale environmental impact statement under section 102 of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4332 ) for all lease sales required under this subtitle. (b) Actions To be considered Notwithstanding section 102 of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4332 ), in such statement— (1) the Secretary is not required to identify nonleasing alternative courses of action or to analyze the environmental effects of such alternative courses of action; and (2) the Secretary shall only— (A) identify a preferred action for leasing and not more than one alternative leasing proposal; and (B) analyze the environmental effects and potential mitigation measures for such preferred action and such alternative leasing proposal. 10205. National defense (a) National Defense Areas This title does not affect the existing authority of the Secretary of Defense, with the approval of the President, to designate national defense areas on the Outer Continental Shelf pursuant to section 12(d) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1341(d) ). (b) Prohibition on Conflicts With Military Operations No person may engage in any exploration, development, or production of oil or natural gas on the Outer Continental Shelf under a lease issued under this title that would conflict with any military operation, as determined in accordance with the Memorandum of Agreement between the Department of Defense and the Department of the Interior on Mutual Concerns on the Outer Continental Shelf signed July 20, 1983, and any revision or replacement for that agreement that is agreed to by the Secretary of Defense and the Secretary of the Interior after that date but before the date of issuance of the lease under which such exploration, development, or production is conducted. 10206. Eastern Gulf of Mexico not included Nothing in this title affects restrictions on oil and gas leasing under the Gulf of Mexico Energy Security Act of 2006 (title I of division C of Public Law 109–432 ; 43 U.S.C. 1331 note). C Equitable Sharing of Outer Continental Shelf Revenues 10301. Disposition of Outer Continental Shelf revenues to coastal States (a) In general Section 9 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1338 ) is amended— (1) in the existing text— (A) in the first sentence, by striking All rentals, and inserting the following: (c) Disposition of revenue under old leases All rentals, ; and (B) in subsection (c) (as designated by the amendment made by subparagraph (A) of this paragraph), by striking for the period from June 5, 1950, to date, and thereafter and inserting in the period beginning June 5, 1950, and ending on the date of enactment of the Lowering Gasoline Prices to Fuel an America That Works Act of 2014 ; (2) by adding after subsection (c) (as so designated) the following: (d) Definitions In this section: (1) Coastal State The term coastal State includes a territory of the United States. (2) New leasing revenues The term new leasing revenues — (A) means amounts received by the United States as bonuses, rents, and royalties under leases for oil and gas, wind, tidal, or other energy exploration, development, and production on new areas of the outer Continental Shelf that are authorized to be made available for leasing as a result of enactment of the Lowering Gasoline Prices to Fuel an America That Works Act of 2014 and leasing under that Act; and (B) does not include amounts received by the United States under any lease of an area located in the boundaries of the Central Gulf of Mexico and Western Gulf of Mexico Outer Continental Shelf Planning Areas on the date of enactment of the Lowering Gasoline Prices to Fuel an America That Works Act of 2014 , including a lease issued before, on, or after such date of enactment. ; and (3) by inserting before subsection (c) (as so designated) the following: (a) Payment of new leasing revenues to coastal States (1) In general Except as provided in paragraph (2), of the amount of new leasing revenues received by the United States each fiscal year, 37.5 percent shall be allocated and paid in accordance with subsection (b) to coastal States that are affected States with respect to the leases under which those revenues are received by the United States. (2) Phase-in (A) In general Except as provided in subparagraph (B), paragraph (1) shall be applied— (i) with respect to new leasing revenues under leases awarded under the first leasing program under section 18(a) that takes effect after the date of enactment of the Lowering Gasoline Prices to Fuel an America That Works Act of 2014 , by substituting 12.5 percent for 37.5 percent ; and (ii) with respect to new leasing revenues under leases awarded under the second leasing program under section 18(a) that takes effect after the date of enactment of the Lowering Gasoline Prices to Fuel an America That Works Act of 2014 , by substituting 25 percent for 37.5 percent . (B) Exempted lease sales This paragraph shall not apply with respect to any lease issued under subtitle B of the Lowering Gasoline Prices to Fuel an America That Works Act of 2014 . (b) Allocation of payments (1) In general The amount of new leasing revenues received by the United States with respect to a leased tract that are required to be paid to coastal States in accordance with this subsection each fiscal year shall be allocated among and paid to coastal States that are within 200 miles of the leased tract, in amounts that are inversely proportional to the respective distances between the point on the coastline of each such State that is closest to the geographic center of the lease tract, as determined by the Secretary. (2) Minimum and maximum allocation The amount allocated to a coastal State under paragraph (1) each fiscal year with respect to a leased tract shall be— (A) in the case of a coastal State that is the nearest State to the geographic center of the leased tract, not less than 25 percent of the total amounts allocated with respect to the leased tract; (B) in the case of any other coastal State, not less than 10 percent, and not more than 15 percent, of the total amounts allocated with respect to the leased tract; and (C) in the case of a coastal State that is the only coastal State within 200 miles of a leased tract, 100 percent of the total amounts allocated with respect to the leased tract. (3) Administration Amounts allocated to a coastal State under this subsection— (A) shall be available to the coastal State without further appropriation; (B) shall remain available until expended; (C) shall be in addition to any other amounts available to the coastal State under this Act; and (D) shall be distributed in the fiscal year following receipt. (4) Use of funds (A) In general Except as provided in subparagraph (B), a coastal State may use funds allocated and paid to it under this subsection for any purpose as determined by the laws of that State. (B) Restriction on use for matching Funds allocated and paid to a coastal State under this subsection may not be used as matching funds for any other Federal program. . (b) Limitation on application This section and the amendment made by this section shall not affect the application of section 105 of the Gulf of Mexico Energy Security Act of 2006 (title I of division C of Public Law 109–432 ; ( 43 U.S.C. 1331 note)), as in effect before the enactment of this Act, with respect to revenues received by the United States under oil and gas leases issued for tracts located in the Western and Central Gulf of Mexico Outer Continental Shelf Planning Areas, including such leases issued on or after the date of the enactment of this Act. D Reorganization of Minerals Management Agencies of the Department of the Interior 10401. Establishment of Under Secretary for Energy, Lands, and Minerals and Assistant Secretary of Ocean Energy and Safety There shall be in the Department of the Interior— (1) an Under Secretary for Energy, Lands, and Minerals, who shall— (A) be appointed by the President, by and with the advise and consent of the Senate; (B) report to the Secretary of the Interior or, if directed by the Secretary, to the Deputy Secretary of the Interior; (C) be paid at the rate payable for level III of the Executive Schedule; and (D) be responsible for— (i) the safe and responsible development of our energy and mineral resources on Federal lands in appropriate accordance with United States energy demands; and (ii) ensuring multiple-use missions of the Department of the Interior that promote the safe and sustained development of energy and minerals resources on public lands (as that term is defined in the Federal Land Policy and Management Act of 1976 ( 43 U.S.C. 1701 et seq. )); (2) an Assistant Secretary of Ocean Energy and Safety, who shall— (A) be appointed by the President, by and with the advise and consent of the Senate; (B) report to the Under Secretary for Energy, Lands, and Minerals; (C) be paid at the rate payable for level IV of the Executive Schedule; and (D) be responsible for ensuring safe and efficient development of energy and minerals on the Outer Continental Shelf of the United States; and (3) an Assistant Secretary of Land and Minerals Management, who shall— (A) be appointed by the President, by and with the advise and consent of the Senate; (B) report to the Under Secretary for Energy, Lands, and Minerals; (C) be paid at the rate payable for level IV of the Executive Schedule; and (D) be responsible for ensuring safe and efficient development of energy and minerals on public lands and other Federal onshore lands under the jurisdiction of the Department of the Interior, including implementation of the Mineral Leasing Act ( 30 U.S.C. 181 et seq. ) and the Surface Mining Control and Reclamation Act ( 30 U.S.C. 1201 et seq. ) and administration of the Office of Surface Mining. 10402. Bureau of Ocean Energy (a) Establishment There is established in the Department of the Interior a Bureau of Ocean Energy (referred to in this section as the Bureau ), which shall— (1) be headed by a Director of Ocean Energy (referred to in this section as the Director ); and (2) be administered under the direction of the Assistant Secretary of Ocean Energy and Safety. (b) Director (1) Appointment The Director shall be appointed by the Secretary of the Interior. (2) Compensation The Director shall be compensated at the rate provided for level V of the Executive Schedule under section 5316 of title 5, United States Code. (c) Duties (1) In general The Secretary of the Interior shall carry out through the Bureau all functions, powers, and duties vested in the Secretary relating to the administration of a comprehensive program of offshore mineral and renewable energy resources management. (2) Specific authorities The Director shall promulgate and implement regulations— (A) for the proper issuance of leases for the exploration, development, and production of nonrenewable and renewable energy and mineral resources on the Outer Continental Shelf; (B) relating to resource identification, access, evaluation, and utilization; (C) for development of leasing plans, lease sales, and issuance of leases for such resources; and (D) regarding issuance of environmental impact statements related to leasing and post leasing activities including exploration, development, and production, and the use of third party contracting for necessary environmental analysis for the development of such resources. (3) Limitation The Secretary shall not carry out through the Bureau any function, power, or duty that is— (A) required by section 10403 to be carried out through the Ocean Energy Safety Service; or (B) required by section 10404 to be carried out through the Office of Natural Resources Revenue. (d) Responsibilities of land management agencies Nothing in this section shall affect the authorities of the Bureau of Land Management under the Federal Land Policy and Management Act of 1976 ( 43 U.S.C. 1701 et seq. ) or of the Forest Service under the National Forest Management Act of 1976 ( Public Law 94–588 ). 10403. Ocean Energy Safety Service (a) Establishment There is established in the Department of the Interior an Ocean Energy Safety Service (referred to in this section as the Service ), which shall— (1) be headed by a Director of Energy Safety (referred to in this section as the Director ); and (2) be administered under the direction of the Assistant Secretary of Ocean Energy and Safety. (b) Director (1) Appointment The Director shall be appointed by the Secretary of the Interior. (2) Compensation The Director shall be compensated at the rate provided for level V of the Executive Schedule under section 5316 of title 5, United States Code. (c) Duties (1) In general The Secretary of the Interior shall carry out through the Service all functions, powers, and duties vested in the Secretary relating to the administration of safety and environmental enforcement activities related to offshore mineral and renewable energy resources on the Outer Continental Shelf pursuant to the Outer Continental Shelf Lands Act ( 43 U.S.C. 1331 et seq. ) including the authority to develop, promulgate, and enforce regulations to ensure the safe and sound exploration, development, and production of mineral and renewable energy resources on the Outer Continental Shelf in a timely fashion. (2) Specific authorities The Director shall be responsible for all safety activities related to exploration and development of renewable and mineral resources on the Outer Continental Shelf, including— (A) exploration, development, production, and ongoing inspections of infrastructure; (B) the suspending or prohibiting, on a temporary basis, any operation or activity, including production under leases held on the Outer Continental Shelf, in accordance with section 5(a)(1) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1334(a)(1) ); (C) cancelling any lease, permit, or right-of-way on the Outer Continental Shelf, in accordance with section 5(a)(2) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1334(a)(2) ); (D) compelling compliance with applicable Federal laws and regulations relating to worker safety and other matters; (E) requiring comprehensive safety and environmental management programs for persons engaged in activities connected with the exploration, development, and production of mineral or renewable energy resources; (F) developing and implementing regulations for Federal employees to carry out any inspection or investigation to ascertain compliance with applicable regulations, including health, safety, or environmental regulations; (G) implementing the Offshore Technology Research and Risk Assessment Program under section 21 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1347 ); (H) summoning witnesses and directing the production of evidence; (I) levying fines and penalties and disqualifying operators; (J) carrying out any safety, response, and removal preparedness functions; and (K) the processing of permits, exploration plans, development plans. (d) Employees (1) In general The Secretary shall ensure that the inspection force of the Bureau consists of qualified, trained employees who meet qualification requirements and adhere to the highest professional and ethical standards. (2) Qualifications The qualification requirements referred to in paragraph (1)— (A) shall be determined by the Secretary, subject to subparagraph (B); and (B) shall include— (i) 3 years of practical experience in oil and gas exploration, development, or production; or (ii) a degree in an appropriate field of engineering from an accredited institution of higher learning. (3) Assignment In assigning oil and gas inspectors to the inspection and investigation of individual operations, the Secretary shall give due consideration to the extent possible to their previous experience in the particular type of oil and gas operation in which such inspections are to be made. (4) Background checks The Director shall require that an individual to be hired as an inspection officer undergo an employment investigation (including a criminal history record check). (5) Language requirements Individuals hired as inspectors must be able to read, speak, and write English well enough to— (A) carry out written and oral instructions regarding the proper performance of inspection duties; and (B) write inspection reports and statements and log entries in the English language. (6) Veterans preference The Director shall provide a preference for the hiring of an individual as a inspection officer if the individual is a member or former member of the Armed Forces and is entitled, under statute, to retired, retirement, or retainer pay on account of service as a member of the Armed Forces. (7) Annual proficiency review (A) Annual proficiency review The Director shall provide that an annual evaluation of each individual assigned inspection duties is conducted and documented. (B) Continuation of employment An individual employed as an inspector may not continue to be employed in that capacity unless the evaluation demonstrates that the individual— (i) continues to meet all qualifications and standards; (ii) has a satisfactory record of performance and attention to duty based on the standards and requirements in the inspection program; and (iii) demonstrates the current knowledge and skills necessary to courteously, vigilantly, and effectively perform inspection functions. (8) Limitation on right to strike Any individual that conducts permitting or inspections under this section may not participate in a strike, or assert the right to strike. (9) Personnel authority Notwithstanding any other provision of law, the Director may employ, appoint, discipline and terminate for cause, and fix the compensation, terms, and conditions of employment of Federal service for individuals as the employees of the Service in order to restore and maintain the trust of the people of the United States in the accountability of the management of our Nation’s energy safety program. (10) Training Academy (A) In general The Secretary shall establish and maintain a National Offshore Energy Safety Academy (referred to in this paragraph as the Academy ) as an agency of the Ocean Energy Safety Service. (B) Functions of Academy The Secretary, through the Academy, shall be responsible for— (i) the initial and continued training of both newly hired and experienced offshore oil and gas inspectors in all aspects of health, safety, environmental, and operational inspections; (ii) the training of technical support personnel of the Bureau; (iii) any other training programs for offshore oil and gas inspectors, Bureau personnel, Department personnel, or other persons as the Secretary shall designate; and (iv) certification of the successful completion of training programs for newly hired and experienced offshore oil and gas inspectors. (C) Cooperative agreements (i) In general In performing functions under this paragraph, and subject to clause (ii), the Secretary may enter into cooperative educational and training agreements with educational institutions, related Federal academies, other Federal agencies, State governments, safety training firms, and oil and gas operators and related industries. (ii) Training requirement Such training shall be conducted by the Academy in accordance with curriculum needs and assignment of instructional personnel established by the Secretary. (11) Use of Department personnel In performing functions under this subsection, the Secretary shall use, to the extent practicable, the facilities and personnel of the Department of the Interior. The Secretary may appoint or assign to the Academy such officers and employees as the Secretary considers necessary for the performance of the duties and functions of the Academy. (12) Additional training programs (A) In general The Secretary shall work with appropriate educational institutions, operators, and representatives of oil and gas workers to develop and maintain adequate programs with educational institutions and oil and gas operators that are designed— (i) to enable persons to qualify for positions in the administration of this title; and (ii) to provide for the continuing education of inspectors or other appropriate Department of the Interior personnel. (B) Financial and technical assistance The Secretary may provide financial and technical assistance to educational institutions in carrying out this paragraph. (e) Limitation The Secretary shall not carry out through the Service any function, power, or duty that is— (1) required by section 10402 to be carried out through Bureau of Ocean Energy; or (2) required by section 10404 to be carried out through the Office of Natural Resources Revenue. 10404. Office of Natural Resources revenue (a) Establishment There is established in the Department of the Interior an Office of Natural Resources Revenue (referred to in this section as the Office ) to be headed by a Director of Natural Resources Revenue (referred to in this section as the Director ). (b) Appointment and compensation (1) In general The Director shall be appointed by the Secretary of the Interior. (2) Compensation The Director shall be compensated at the rate provided for Level V of the Executive Schedule under section 5316 of title 5, United States Code. (c) Duties (1) In general The Secretary of the Interior shall carry out, through the Office, all functions, powers, and duties vested in the Secretary and relating to the administration of offshore royalty and revenue management functions. (2) Specific authorities The Secretary shall carry out, through the Office, all functions, powers, and duties previously assigned to the Minerals Management Service (including the authority to develop, promulgate, and enforce regulations) regarding offshore royalty and revenue collection; royalty and revenue distribution; auditing and compliance; investigation and enforcement of royalty and revenue regulations; and asset management for onshore and offshore activities. (d) Limitation The Secretary shall not carry out through the Office any function, power, or duty that is— (1) required by section 10402 to be carried out through Bureau of Ocean Energy; or (2) required by section 10403 to be carried out through the Ocean Energy Safety Service. 10405. Ethics and drug testing (a) Certification The Secretary of the Interior shall certify annually that all Department of the Interior officers and employees having regular, direct contact with lessees, contractors, concessionaires, and other businesses interested before the Government as a function of their official duties, or conducting investigations, issuing permits, or responsible for oversight of energy programs, are in full compliance with all Federal employee ethics laws and regulations under the Ethics in Government Act of 1978 (5 U.S.C. App.) and part 2635 of title 5, Code of Federal Regulations, and all guidance issued under subsection (c). (b) Drug Testing The Secretary shall conduct a random drug testing program of all Department of the Interior personnel referred to in subsection (a). (c) Guidance Not later than 90 days after the date of enactment of this Act, the Secretary shall issue supplementary ethics and drug testing guidance for the employees for which certification is required under subsection (a). The Secretary shall update the supplementary ethics guidance not less than once every 3 years thereafter. 10406. Abolishment of Minerals Management Service (a) Abolishment The Minerals Management Service is abolished. (b) Completed administrative actions (1) In general Completed administrative actions of the Minerals Management Service shall not be affected by the enactment of this Act, but shall continue in effect according to their terms until amended, modified, superseded, terminated, set aside, or revoked in accordance with law by an officer of the United States or a court of competent jurisdiction, or by operation of law. (2) Completed administrative action defined For purposes of paragraph (1), the term completed administrative action includes orders, determinations, memoranda of understanding, memoranda of agreements, rules, regulations, personnel actions, permits, agreements, grants, contracts, certificates, licenses, registrations, and privileges. (c) Pending Proceedings Subject to the authority of the Secretary of the Interior and the officers of the Department of the Interior under this title— (1) pending proceedings in the Minerals Management Service, including notices of proposed rulemaking, and applications for licenses, permits, certificates, grants, and financial assistance, shall continue, notwithstanding the enactment of this Act or the vesting of functions of the Service in another agency, unless discontinued or modified under the same terms and conditions and to the same extent that such discontinuance or modification could have occurred if this title had not been enacted; and (2) orders issued in such proceedings, and appeals therefrom, and payments made pursuant to such orders, shall issue in the same manner and on the same terms as if this title had not been enacted, and any such orders shall continue in effect until amended, modified, superseded, terminated, set aside, or revoked by an officer of the United States or a court of competent jurisdiction, or by operation of law. (d) Pending Civil Actions Subject to the authority of the Secretary of the Interior or any officer of the Department of the Interior under this title, pending civil actions shall continue notwithstanding the enactment of this Act, and in such civil actions, proceedings shall be had, appeals taken, and judgments rendered and enforced in the same manner and with the same effect as if such enactment had not occurred. (e) References References relating to the Minerals Management Service in statutes, Executive orders, rules, regulations, directives, or delegations of authority that precede the effective date of this Act are deemed to refer, as appropriate, to the Department, to its officers, employees, or agents, or to its corresponding organizational units or functions. Statutory reporting requirements that applied in relation to the Minerals Management Service immediately before the effective date of this title shall continue to apply. 10407. Conforming amendments to Executive Schedule pay rates (a) Under Secretary for Energy, Lands, and Minerals Section 5314 of title 5, United States Code, is amended by inserting after the item relating to Under Secretaries of the Treasury (3). the following: Under Secretary for Energy, Lands, and Minerals, Department of the Interior. . (b) Assistant Secretaries Section 5315 of title 5, United States Code, is amended by striking Assistant Secretaries of the Interior (6). and inserting the following: Assistant Secretaries, Department of the Interior (7). . (c) Directors Section 5316 of title 5, United States Code, is amended by striking Director, Bureau of Mines, Department of the Interior. and inserting the following new items: Director, Bureau of Ocean Energy, Department of the Interior. Director, Ocean Energy Safety Service, Department of the Interior. Director, Office of Natural Resources Revenue, Department of the Interior. . 10408. Outer Continental Shelf Energy Safety Advisory Board (a) Establishment The Secretary of the Interior shall establish, under the Federal Advisory Committee Act, an Outer Continental Shelf Energy Safety Advisory Board (referred to in this section as the Board )— (1) to provide the Secretary and the Directors established by this title with independent scientific and technical advice on safe, responsible, and timely mineral and renewable energy exploration, development, and production activities; and (2) to review operations of the National Offshore Energy Health and Safety Academy established under section 10403(d), including submitting to the Secretary recommendations of curriculum to ensure training scientific and technical advancements. (b) Membership (1) Size The Board shall consist of not more than 11 members, who— (A) shall be appointed by the Secretary based on their expertise in oil and gas drilling, well design, operations, well containment and oil spill response; and (B) must have significant scientific, engineering, management, and other credentials and a history of working in the field related to safe energy exploration, development, and production activities. (2) Consultation and nominations The Secretary shall consult with the National Academy of Sciences and the National Academy of Engineering to identify potential candidates for the Board and shall take nominations from the public. (3) Term The Secretary shall appoint Board members to staggered terms of not more than 4 years, and shall not appoint a member for more than 2 consecutive terms. (4) Balance In appointing members to the Board, the Secretary shall ensure a balanced representation of industry and research interests. (c) Chair The Secretary shall appoint the Chair for the Board from among its members. (d) Meetings The Board shall meet not less than 3 times per year and shall host, at least once per year, a public forum to review and assess the overall energy safety performance of Outer Continental Shelf mineral and renewable energy resource activities. (e) Offshore drilling safety assessments and recommendations As part of its duties under this section, the Board shall, by not later than 180 days after the date of enactment of this section and every 5 years thereafter, submit to the Secretary a report that— (1) assesses offshore oil and gas well control technologies, practices, voluntary standards, and regulations in the United States and elsewhere; and (2) as appropriate, recommends modifications to the regulations issued under this title to ensure adequate protection of safety and the environment, including recommendations on how to reduce regulations and administrative actions that are duplicative or unnecessary. (f) Reports Reports of the Board shall be submitted by the Board to the Committee on Natural Resources of the House or Representatives and the Committee on Energy and Natural Resources of the Senate and made available to the public in electronically accessible form. (g) Travel expenses Members of the Board, other than full-time employees of the Federal Government, while attending meeting of the Board or while otherwise serving at the request of the Secretary or the Director while serving away from their homes or regular places of business, may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of title 5, United States Code, for individuals in the Government serving without pay. 10409. Outer Continental Shelf inspection fees Section 22 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1348 ) is amended by adding at the end of the section the following: (g) Inspection fees (1) Establishment The Secretary of the Interior shall collect from the operators of facilities subject to inspection under subsection (c) non-refundable fees for such inspections— (A) at an aggregate level equal to the amount necessary to offset the annual expenses of inspections of outer Continental Shelf facilities (including mobile offshore drilling units) by the Department of the Interior; and (B) using a schedule that reflects the differences in complexity among the classes of facilities to be inspected. (2) Ocean energy safety fund There is established in the Treasury a fund, to be known as the Ocean Energy Enforcement Fund (referred to in this subsection as the Fund ), into which shall be deposited all amounts collected as fees under paragraph (1) and which shall be available as provided under paragraph (3). (3) Availability of fees (A) In general Notwithstanding section 3302 of title 31, United States Code, all amounts deposited in the Fund— (i) shall be credited as offsetting collections; (ii) shall be available for expenditure for purposes of carrying out inspections of outer Continental Shelf facilities (including mobile offshore drilling units) and the administration of the inspection program under this section; (iii) shall be available only to the extent provided for in advance in an appropriations Act; and (iv) shall remain available until expended. (B) Use for field offices Not less than 75 percent of amounts in the Fund may be appropriated for use only for the respective Department of the Interior field offices where the amounts were originally assessed as fees. (4) Initial fees Fees shall be established under this subsection for the fiscal year in which this subsection takes effect and the subsequent 10 years, and shall not be raised without advise and consent of the Congress, except as determined by the Secretary to be appropriate as an adjustment equal to the percentage by which the Consumer Price Index for the month of June of the calendar year preceding the adjustment exceeds the Consumer Price Index for the month of June of the calendar year in which the claim was determined or last adjusted. (5) Annual fees Annual fees shall be collected under this subsection for facilities that are above the waterline, excluding drilling rigs, and are in place at the start of the fiscal year. Fees for fiscal year 2013 shall be— (A) $10,500 for facilities with no wells, but with processing equipment or gathering lines; (B) $17,000 for facilities with 1 to 10 wells, with any combination of active or inactive wells; and (C) $31,500 for facilities with more than 10 wells, with any combination of active or inactive wells. (6) Fees for drilling rigs Fees for drilling rigs shall be assessed under this subsection for all inspections completed in fiscal years 2015 through 2024. Fees for fiscal year 2015 shall be— (A) $30,500 per inspection for rigs operating in water depths of 1,000 feet or more; and (B) $16,700 per inspection for rigs operating in water depths of less than 1,000 feet. (7) Billing The Secretary shall bill designated operators under paragraph (5) within 60 days after the date of the inspection, with payment required within 30 days of billing. The Secretary shall bill designated operators under paragraph (6) within 30 days of the end of the month in which the inspection occurred, with payment required within 30 days after billing. (8) Sunset No fee may be collected under this subsection for any fiscal year after fiscal year 2024. (9) Annual reports (A) In general Not later than 60 days after the end of each fiscal year beginning with fiscal year 2015, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Natural Resources of the House of Representatives a report on the operation of the Fund during the fiscal year. (B) Contents Each report shall include, for the fiscal year covered by the report, the following: (i) A statement of the amounts deposited into the Fund. (ii) A description of the expenditures made from the Fund for the fiscal year, including the purpose of the expenditures and the additional hiring of personnel. (iii) A statement of the balance remaining in the Fund at the end of the fiscal year. (iv) An accounting of pace of permit approvals. (v) If fee increases are proposed after the initial 10-year period referred to in paragraph (5), a proper accounting of the potential adverse economic impacts such fee increases will have on offshore economic activity and overall production, conducted by the Secretary. (vi) Recommendations to increase the efficacy and efficiency of offshore inspections. (vii) Any corrective actions levied upon offshore inspectors as a result of any form of misconduct. . 10410. Prohibition on action based on National Ocean Policy developed under Executive Order No. 13547 (a) Prohibition The Bureau of Ocean Energy and the Ocean Energy Safety Service may not develop, propose, finalize, administer, or implement, any limitation on activities under their jurisdiction as a result of the coastal and marine spatial planning component of the National Ocean Policy developed under Executive Order No. 13547. (b) Report on expenditures Not later than 60 days after the date of enactment of this Act, the President shall submit a report to the Committee on Natural Resources of the House of Representatives and the Committee on Energy and Natural Resources of the Senate identifying all Federal expenditures in fiscal years 2011, 2012, 2013, and 2014 by the Bureau of Ocean Energy and the Ocean Energy Safety Service and their predecessor agencies, by agency, account, and any pertinent subaccounts, for the development, administration, or implementation of the coastal and marine spatial planning component of the National Ocean Policy developed under Executive Order No. 13547, including staff time, travel, and other related expenses. E United States Territories 10501. Application of Outer Continental Shelf Lands Act with respect to territories of the United States Section 2 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1331 ) is amended— (1) in paragraph (a), by inserting after control the following: or lying within the United States exclusive economic zone and the Continental Shelf adjacent to any territory of the United States ; (2) in paragraph (p), by striking and after the semicolon at the end; (3) in paragraph (q), by striking the period at the end and inserting ; and ; and (4) by adding at the end the following: (r) The term State includes each territory of the United States. . F Miscellaneous Provisions 10601. Rules regarding distribution of revenues under Gulf of Mexico Energy Security Act of 2006 (a) In general Not later than 60 days after the date of enactment of this Act, the Secretary of the Interior shall issue rules to provide more clarity, certainty, and stability to the revenue streams contemplated by the Gulf of Mexico Energy Security Act of 2006 ( 43 U.S.C. 1331 note). (b) Contents The rules shall include clarification of the timing and methods of disbursements of funds under section 105(b)(2) of such Act. 10602. Amount of distributed qualified outer Continental Shelf revenues Section 105(f)(1) of the Gulf of Mexico Energy Security Act of 2006 (title I of division C of Public Law 109–432 ; 43 U.S.C. 1331 note) shall be applied by substituting 2024, and shall not exceed $999,999,999 for each of fiscal years 2025 through 2055 for 2055 . 10603. South Atlantic Outer Continental Shelf Planning Area defined For the purposes of this Act, the Outer Continental Shelf Lands Act ( 43 U.S.C. 1331 et seq. ), and any regulations or 5-year plan issued under that Act, the term South Atlantic Outer Continental Shelf Planning Area means the area of the outer Continental Shelf (as defined in section 2 of that Act ( 43 U.S.C. 1331 )) that is located between the northern lateral seaward administrative boundary of the State of Virginia and the southernmost lateral seaward administrative boundary of the State of Georgia. 10604. Enhancing geological and geophysical information for America’s energy future Section 11 of the Outer Continental Shelf lands Act ( 43 U.S.C. 1340 ) is amended by adding at the end the following: (i) Enhancing Geological and Geophysical Information for America’s Energy Future (1) The Secretary, acting through the Director of the Bureau of Ocean Energy Management, shall facilitate and support the practical study of geology and geophysics to better understand the oil, gas, and other hydrocarbon potential in the South Atlantic Outer Continental Shelf Planning Area by entering into partnerships to conduct geological and geophysical activities on the outer Continental Shelf. (2) (A) No later than 180 days after the date of enactment of the Lowering Gasoline Prices to Fuel an America That Works Act of 2014, the Governors of the States of Georgia, South Carolina, North Carolina, and Virginia may each nominate for participation in the partnerships— (i) one institution of higher education located within the Governor’s State; and (ii) one institution of higher education within the Governor’s State that is a historically black college or university, as defined in section 631(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1132(a) ). (B) In making nominations, the Governors shall give preference to those institutions of higher education that demonstrate a vigorous rate of admission of veterans of the Armed Forces of the United States. (3) The Secretary shall only select as a partner a nominee that the Secretary determines demonstrates excellence in geophysical sciences curriculum, engineering curriculum, or information technology or other technical studies relating to seismic research (including data processing). (4) Notwithstanding subsection (d), nominees selected as partners by the Secretary may conduct geological and geophysical activities under this section after filing a notice with the Secretary 30-days prior to commencement of the activity without any further authorization by the Secretary except those activities that use solid or liquid explosives shall require a permit. The Secretary may not charge any fee for the provision of data or other information collected under this authority, other than the cost of duplicating any data or information provided. Nominees selected as partners under this section shall provide to the Secretary any data or other information collected under this subsection within 60 days after completion of an initial analysis of the data or other information collected, if so requested by the Secretary. (5) Data or other information produced as a result of activities conducted by nominees selected as partners under this subsection shall not be used or shared for commercial purposes by the nominee, may not be produced for proprietary use or sale, and shall be made available by the Secretary to the public. (6) The Secretary shall submit to the Committee on Natural Resources of the House of Representatives and the Committee on Energy and Natural Resources of the Senate reports on the data or other information produced under the partnerships under this section. Such reports shall be made no less frequently than every 180 days following the conduct of the first geological and geophysical activities under this section. (7) In this subsection the term geological and geophysical activities means any oil- or gas-related investigation conducted on the outer Continental Shelf, including geophysical surveys where magnetic, gravity, seismic, or other systems are used to detect or imply the presence of oil or gas. . G Judicial Review 10701. Time for filing complaint (a) In general Any cause of action that arises from a covered energy decision must be filed not later than the end of the 60-day period beginning on the date of the covered energy decision. Any cause of action not filed within this time period shall be barred. (b) Exception Subsection (a) shall not apply to a cause of action brought by a party to a covered energy lease. 10702. District court deadline (a) In general All proceedings that are subject to section 10701— (1) shall be brought in the United States district court for the district in which the Federal property for which a covered energy lease is issued is located or the United States District Court of the District of Columbia; (2) shall be resolved as expeditiously as possible, and in any event not more than 180 days after such cause or claim is filed; and (3) shall take precedence over all other pending matters before the district court. (b) Failure To comply with deadline If an interlocutory or final judgment, decree, or order has not been issued by the district court by the deadline described under this section, the cause or claim shall be dismissed with prejudice and all rights relating to such cause or claim shall be terminated. 10703. Ability to seek appellate review An interlocutory or final judgment, decree, or order of the district court in a proceeding that is subject to section 10701 may be reviewed by the U.S. Court of Appeals for the District of Columbia Circuit. The D.C. Circuit shall resolve any such appeal as expeditiously as possible and, in any event, not more than 180 days after such interlocutory or final judgment, decree, or order of the district court was issued. 10704. Limitation on scope of review and relief (a) Administrative findings and conclusions In any judicial review of any Federal action under this subtitle, any administrative findings and conclusions relating to the challenged Federal action shall be presumed to be correct unless shown otherwise by clear and convincing evidence contained in the administrative record. (b) Limitation on prospective relief In any judicial review of any action, or failure to act, under this subtitle, the Court shall not grant or approve any prospective relief unless the Court finds that such relief is narrowly drawn, extends no further than necessary to correct the violation of a Federal law requirement, and is the least intrusive means necessary to correct the violation concerned. 10705. Legal fees Any person filing a petition seeking judicial review of any action, or failure to act, under this subtitle who is not a prevailing party shall pay to the prevailing parties (including intervening parties), other than the United States, fees and other expenses incurred by that party in connection with the judicial review, unless the Court finds that the position of the person was substantially justified or that special circumstances make an award unjust. 10706. Exclusion This subtitle shall not apply with respect to disputes between the parties to a lease issued pursuant to an authorizing leasing statute regarding the obligations of such lease or the alleged breach thereof. 10707. Definitions In this subtitle, the following definitions apply: (1) Covered energy decision The term covered energy decision means any action or decision by a Federal official regarding the issuance of a covered energy lease. (2) Covered energy lease The term covered energy lease means any lease under this title or under an oil and gas leasing program under this title. II Onshore Federal Lands and Energy Security A Federal Lands Jobs and Energy Security 21001. Short title This subtitle may be cited as the Federal Lands Jobs and Energy Security Act . 21002. Policies regarding buying, building, and working for America (a) Congressional intent It is the intent of the Congress that— (1) this subtitle will support a healthy and growing United States domestic energy sector that, in turn, helps to reinvigorate American manufacturing, transportation, and service sectors by employing the vast talents of United States workers to assist in the development of energy from domestic sources; (2) to ensure a robust onshore energy production industry and ensure that the benefits of development support local communities, under this subtitle, the Secretary shall make every effort to promote the development of onshore American energy, and shall take into consideration the socioeconomic impacts, infrastructure requirements, and fiscal stability for local communities located within areas containing onshore energy resources; and (3) the Congress will monitor the deployment of personnel and material onshore to encourage the development of American manufacturing to enable United States workers to benefit from this subtitle through good jobs and careers, as well as the establishment of important industrial facilities to support expanded access to American resources. (b) Requirement The Secretary of the Interior shall when possible, and practicable, encourage the use of United States workers and equipment manufactured in the United States in all construction related to mineral resource development under this subtitle. 1 Onshore oil and gas permit streamlining 21101. Short title This chapter may be cited as the Streamlining Permitting of American Energy Act of 2014 . A Application for Permits to Drill Process Reform 21111. Permit to drill application timeline Section 17(p)(2) of the Mineral Leasing Act ( 30 U.S.C. 226(p)(2) ) is amended to read as follows: (2) Applications for permits to drill reform and process (A) Timeline The Secretary shall decide whether to issue a permit to drill within 30 days after receiving an application for the permit. The Secretary may extend such period for up to 2 periods of 15 days each, if the Secretary has given written notice of the delay to the applicant. The notice shall be in the form of a letter from the Secretary or a designee of the Secretary, and shall include the names and titles of the persons processing the application, the specific reasons for the delay, and a specific date a final decision on the application is expected. (B) Notice of reasons for denial If the application is denied, the Secretary shall provide the applicant— (i) in writing, clear and comprehensive reasons why the application was not accepted and detailed information concerning any deficiencies; and (ii) an opportunity to remedy any deficiencies. (C) Application deemed approved If the Secretary has not made a decision on the application by the end of the 60-day period beginning on the date the application is received by the Secretary, the application is deemed approved, except in cases in which existing reviews under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) or Endangered Species Act of 1973 ( 16 U.S.C. 1531 et seq. ) are incomplete. (D) Denial of permit If the Secretary decides not to issue a permit to drill in accordance with subparagraph (A), the Secretary shall— (i) provide to the applicant a description of the reasons for the denial of the permit; (ii) allow the applicant to resubmit an application for a permit to drill during the 10-day period beginning on the date the applicant receives the description of the denial from the Secretary; and (iii) issue or deny any resubmitted application not later than 10 days after the date the application is submitted to the Secretary. (E) Fee (i) In general Notwithstanding any other law, the Secretary shall collect a single $6,500 permit processing fee per application from each applicant at the time the final decision is made whether to issue a permit under subparagraph (A). This fee shall not apply to any resubmitted application. (ii) Treatment of permit processing fee Of all fees collected under this paragraph, 50 percent shall be transferred to the field office where they are collected and used to process protests, leases, and permits under this Act subject to appropriation. . B Administrative Protest Documentation Reform 21121. Administrative protest documentation reform Section 17(p) of the Mineral Leasing Act ( 30 U.S.C. 226(p) ) is further amended by adding at the end the following: (4) Protest fee (A) In general The Secretary shall collect a $5,000 documentation fee to accompany each protest for a lease, right of way, or application for permit to drill. (B) Treatment of fees Of all fees collected under this paragraph, 50 percent shall remain in the field office where they are collected and used to process protests subject to appropriation. . C Permit Streamlining 21131. Making pilot offices permanent to improve energy permitting on Federal lands (a) Establishment The Secretary of the Interior (referred to in this section as the Secretary ) shall establish a Federal Permit Streamlining Project (referred to in this section as the Project ) in every Bureau of Land Management field office with responsibility for permitting energy projects on Federal land. (b) Memorandum of understanding (1) In general Not later than 90 days after the date of enactment of this Act, the Secretary shall enter into a memorandum of understanding for purposes of this section with— (A) the Secretary of Agriculture; (B) the Administrator of the Environmental Protection Agency; and (C) the Chief of the Army Corps of Engineers. (2) State participation The Secretary may request that the Governor of any State with energy projects on Federal lands to be a signatory to the memorandum of understanding. (c) Designation of qualified staff (1) In general Not later than 30 days after the date of the signing of the memorandum of understanding under subsection (b), all Federal signatory parties shall, if appropriate, assign to each of the Bureau of Land Management field offices an employee who has expertise in the regulatory issues relating to the office in which the employee is employed, including, as applicable, particular expertise in— (A) the consultations and the preparation of biological opinions under section 7 of the Endangered Species Act of 1973 ( 16 U.S.C. 1536 ); (B) permits under section 404 of Federal Water Pollution Control Act ( 33 U.S.C. 1344 ); (C) regulatory matters under the Clean Air Act ( 42 U.S.C. 7401 et seq. ); (D) planning under the National Forest Management Act of 1976 ( 16 U.S.C. 472a et seq. ); and (E) the preparation of analyses under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ). (2) Duties Each employee assigned under paragraph (1) shall— (A) not later than 90 days after the date of assignment, report to the Bureau of Land Management Field Managers in the office to which the employee is assigned; (B) be responsible for all issues relating to the energy projects that arise under the authorities of the employee’s home agency; and (C) participate as part of the team of personnel working on proposed energy projects, planning, and environmental analyses on Federal lands. (d) Additional personnel The Secretary shall assign to each Bureau of Land Management field office identified in subsection (a) any additional personnel that are necessary to ensure the effective approval and implementation of energy projects administered by the Bureau of Land Management field offices, including inspection and enforcement relating to energy development on Federal land, in accordance with the multiple use mandate of the Federal Land Policy and Management Act of 1976 ( 43 U.S.C. 1701 et seq. ). (e) Funding Funding for the additional personnel shall come from the Department of the Interior reforms identified in sections 21111 and 21121. (f) Savings provision Nothing in this section affects— (1) the operation of any Federal or State law; or (2) any delegation of authority made by the head of a Federal agency whose employees are participating in the Project. (g) Definition For purposes of this section the term energy projects includes oil, natural gas, and other energy projects as defined by the Secretary. 21132. Administration of current law Notwithstanding any other law, the Secretary of the Interior shall not require a finding of extraordinary circumstances in administering section 390 of the Energy Policy Act of 2005 ( 42 U.S.C. 15942 ). D Judicial Review 21141. Definitions In this subchapter— (1) the term covered civil action means a civil action containing a claim under section 702 of title 5, United States Code, regarding agency action (as defined for the purposes of that section) affecting a covered energy project on Federal lands of the United States; and (2) the term covered energy project means the leasing of Federal lands of the United States for the exploration, development, production, processing, or transmission of oil, natural gas, or any other source of energy, and any action under such a lease, except that the term does not include any disputes between the parties to a lease regarding the obligations under such lease, including regarding any alleged breach of the lease. 21142. Exclusive venue for certain civil actions relating to covered energy projects Venue for any covered civil action shall lie in the district court where the project or leases exist or are proposed. 21143. Timely filing To ensure timely redress by the courts, a covered civil action must be filed no later than the end of the 90-day period beginning on the date of the final Federal agency action to which it relates. 21144. Expedition in hearing and determining the action The court shall endeavor to hear and determine any covered civil action as expeditiously as possible. 21145. Standard of review In any judicial review of a covered civil action, administrative findings and conclusions relating to the challenged Federal action or decision shall be presumed to be correct, and the presumption may be rebutted only by the preponderance of the evidence contained in the administrative record. 21146. Limitation on injunction and prospective relief In a covered civil action, the court shall not grant or approve any prospective relief unless the court finds that such relief is narrowly drawn, extends no further than necessary to correct the violation of a legal requirement, and is the least intrusive means necessary to correct that violation. In addition, courts shall limit the duration of preliminary injunctions to halt covered energy projects to no more than 60 days, unless the court finds clear reasons to extend the injunction. In such cases of extensions, such extensions shall only be in 30-day increments and shall require action by the court to renew the injunction. 21147. Limitation on attorneys’ fees Sections 504 of title 5, United States Code, and 2412 of title 28, United States Code, (together commonly called the Equal Access to Justice Act) do not apply to a covered civil action, nor shall any party in such a covered civil action receive payment from the Federal Government for their attorneys’ fees, expenses, and other court costs. 21148. Legal standing Challengers filing appeals with the Department of the Interior Board of Land Appeals shall meet the same standing requirements as challengers before a United States district court. E Knowing America’s Oil and Gas Resources 21151. Funding oil and gas resource assessments (a) In general The Secretary of the Interior shall provide matching funding for joint projects with States to conduct oil and gas resource assessments on Federal lands with significant oil and gas potential. (b) Cost sharing The Federal share of the cost of activities under this section shall not exceed 50 percent. (c) Resource assessment Any resource assessment under this section shall be conducted by a State, in consultation with the United States Geological Survey. (d) Authorization of appropriations There is authorized to be appropriated to the Secretary to carry out this section a total of $50,000,000 for fiscal years 2015 through 2018. 2 Oil and gas leasing certainty 21201. Short title This chapter may be cited as the Providing Leasing Certainty for American Energy Act of 2014 . 21202. Minimum acreage requirement for onshore lease sales In conducting lease sales as required by section 17(a) of the Mineral Leasing Act ( 30 U.S.C. 226(a) ), each year the Secretary of the Interior shall perform the following: (1) The Secretary shall offer for sale no less than 25 percent of the annual nominated acreage not previously made available for lease. Acreage offered for lease pursuant to this paragraph shall not be subject to protest and shall be eligible for categorical exclusions under section 390 of the Energy Policy Act of 2005 ( 42 U.S.C. 15942 ), except that it shall not be subject to the test of extraordinary circumstances. (2) In administering this section, the Secretary shall only consider leasing of Federal lands that are available for leasing at the time the lease sale occurs. 21203. Leasing certainty Section 17(a) of the Mineral Leasing Act ( 30 U.S.C. 226(a) ) is amended by inserting (1) before All lands , and by adding at the end the following: (2) (A) The Secretary shall not withdraw any covered energy project issued under this Act without finding a violation of the terms of the lease by the lessee. (B) The Secretary shall not infringe upon lease rights under leases issued under this Act by indefinitely delaying issuance of project approvals, drilling and seismic permits, and rights of way for activities under such a lease. (C) No later than 18 months after an area is designated as open under the current land use plan the Secretary shall make available nominated areas for lease under the criteria in section 2. (D) Notwithstanding any other law, the Secretary shall issue all leases sold no later than 60 days after the last payment is made. (E) The Secretary shall not cancel or withdraw any lease parcel after a competitive lease sale has occurred and a winning bidder has submitted the last payment for the parcel. (F) After the conclusion of the public comment period for a planned competitive lease sale, the Secretary shall not cancel, defer, or withdraw any lease parcel announced to be auctioned in the lease sale. (G) Not later than 60 days after a lease sale held under this Act, the Secretary shall adjudicate any lease protests filed following a lease sale. If after 60 days any protest is left unsettled, said protest is automatically denied and appeal rights of the protestor begin. (H) No additional lease stipulations may be added after the parcel is sold without consultation and agreement of the lessee, unless the Secretary deems such stipulations as emergency actions to conserve the resources of the United States. . 21204. Leasing consistency Federal land managers must follow existing resource management plans and continue to actively lease in areas designated as open when resource management plans are being amended or revised, until such time as a new record of decision is signed. 21205. Reduce redundant policies Bureau of Land Management Instruction Memorandum 2010–117 shall have no force or effect. 21206. Streamlined congressional notification Section 31(e) of the Mineral Leasing Act ( 30 U.S.C. 188(e) ) is amended in the matter following paragraph (4) by striking at least thirty days in advance of the reinstatement and inserting in an annual report . 3 Oil shale 21301. Short title This chapter may be cited as the Protecting Investment in Oil Shale the Next Generation of Environmental, Energy, and Resource Security Act or the PIONEERS Act . 21302. Effectiveness of oil shale regulations, amendments to resource management plans, and record of decision (a) Regulations Notwithstanding any other law or regulation to the contrary, the final regulations regarding oil shale management published by the Bureau of Land Management on November 18, 2008 (73 Fed. Reg. 69,414) are deemed to satisfy all legal and procedural requirements under any law, including the Federal Land Policy and Management Act of 1976 ( 43 U.S.C. 1701 et seq. ), the Endangered Species Act of 1973 ( 16 U.S.C. 1531 et seq. ), and the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ), and the Secretary of the Interior shall implement those regulations, including the oil shale leasing program authorized by the regulations, without any other administrative action necessary. (b) Amendments to resource management plans and record of decision Notwithstanding any other law or regulation to the contrary, the November 17, 2008 U.S. Bureau of Land Management Approved Resource Management Plan Amendments/Record of Decision for Oil Shale and Tar Sands Resources to Address Land Use Allocations in Colorado, Utah, and Wyoming and Final Programmatic Environmental Impact Statement are deemed to satisfy all legal and procedural requirements under any law, including the Federal Land Policy and Management Act of 1976 ( 43 U.S.C. 1701 et seq. ), the Endangered Species Act of 1973 ( 16 U.S.C. 1531 et seq. ), and the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ), and the Secretary of the Interior shall implement the oil shale leasing program authorized by the regulations referred to in subsection (a) in those areas covered by the resource management plans amended by such amendments, and covered by such record of decision, without any other administrative action necessary. 21303. Oil shale leasing (a) Additional research and development lease sales The Secretary of the Interior shall hold a lease sale within 180 days after the date of enactment of this Act offering an additional 10 parcels for lease for research, development, and demonstration of oil shale resources, under the terms offered in the solicitation of bids for such leases published on January 15, 2009 (74 Fed. Reg. 10). (b) Commercial lease sales No later than January 1, 2016, the Secretary of the Interior shall hold no less than 5 separate commercial lease sales in areas considered to have the most potential for oil shale development, as determined by the Secretary, in areas nominated through public comment. Each lease sale shall be for an area of not less than 25,000 acres, and in multiple lease blocs. 4 Miscellaneous provisions 21401. Rule of construction Nothing in this subtitle shall be construed to authorize the issuance of a lease under the Mineral Leasing Act ( 30 U.S.C. 181 et seq. ) to any person designated for the imposition of sanctions pursuant to— (1) the Iran Sanctions Act of 1996 ( 50 U.S.C. 1701 note), the Comprehensive Iran Sanctions, Accountability and Divestiture Act of 2010 ( 22 U.S.C. 8501 et seq. ), the Iran Threat Reduction and Syria Human Rights Act of 2012 ( 22 U.S.C. 8701 et seq. ), section 1245 of the National Defense Authorization Act for Fiscal Year 2012 ( 22 U.S.C. 8513a ), or the Iran Freedom and Counter-Proliferation Act of 2012 ( 22 U.S.C. 8801 et seq. ); (2) Executive Order No. 13622 (July 30, 2012), Executive Order No. 13628 (October 9, 2012), or Executive Order No. 13645 (June 3, 2013); (3) Executive Order No. 13224 (September 23, 2001) or Executive Order No. 13338 (May 11, 2004); or (4) the Syria Accountability and Lebanese Sovereignty Restoration Act of 2003 ( 22 U.S.C. 2151 note). B Planning for American Energy 22001. Short title This subtitle may be cited as the Planning for American Energy Act of 2014 . 22002. Onshore domestic energy production strategic plan (a) In general The Mineral Leasing Act ( 30 U.S.C. 181 et seq. ) is amended by redesignating section 44 as section 45, and by inserting after section 43 the following: 44. Quadrennial Strategic Federal Onshore Energy Production Strategy (a) In general (1) The Secretary of the Interior (hereafter in this section referred to as Secretary ), in consultation with the Secretary of Agriculture with regard to lands administered by the Forest Service, shall develop and publish every 4 years a Quadrennial Federal Onshore Energy Production Strategy. This Strategy shall direct Federal land energy development and department resource allocation in order to promote the energy and national security of the United States in accordance with Bureau of Land Management’s mission of promoting the multiple use of Federal lands as set forth in the Federal Land Policy and Management Act of 1976 ( 43 U.S.C. 1701 et seq. ). (2) In developing this Strategy, the Secretary shall consult with the Administrator of the Energy Information Administration on the projected energy demands of the United States for the next 30-year period, and how energy derived from Federal onshore lands can put the United States on a trajectory to meet that demand during the next 4-year period. The Secretary shall consider how Federal lands will contribute to ensuring national energy security, with a goal for increasing energy independence and production, during the next 4-year period. (3) The Secretary shall determine a domestic strategic production objective for the development of energy resources from Federal onshore lands. Such objective shall be— (A) the best estimate, based upon commercial and scientific data, of the expected increase in domestic production of oil and natural gas from the Federal onshore mineral estate, with a focus on lands held by the Bureau of Land Management and the Forest Service; (B) the best estimate, based upon commercial and scientific data, of the expected increase in domestic coal production from Federal lands; (C) the best estimate, based upon commercial and scientific data, of the expected increase in domestic production of strategic and critical energy minerals from the Federal onshore mineral estate; (D) the best estimate, based upon commercial and scientific data, of the expected increase in megawatts for electricity production from each of the following sources: wind, solar, biomass, hydropower, and geothermal energy produced on Federal lands administered by the Bureau of Land Management and the Forest Service; (E) the best estimate, based upon commercial and scientific data, of the expected increase in unconventional energy production, such as oil shale; (F) the best estimate, based upon commercial and scientific data, of the expected increase in domestic production of oil, natural gas, coal, and other renewable sources from tribal lands for any federally recognized Indian tribe that elects to participate in facilitating energy production on its lands; (G) the best estimate, based upon commercial and scientific data, of the expected increase in production of helium on Federal lands administered by the Bureau of Land Management and the Forest Service; and (H) the best estimate, based upon commercial and scientific data, of the expected increase in domestic production of geothermal, solar, wind, or other renewable energy sources from available lands (as such term is defined in section 203 of the Hawaiian Homes Commission Act, 1920 (42 Stat. 108 et seq.), and including any other lands deemed by the Territory or State of Hawaii, as the case may be, to be included within that definition) that the agency or department of the government of the State of Hawaii that is responsible for the administration of such lands selects to be used for such energy production. (4) The Secretary shall consult with the Administrator of the Energy Information Administration regarding the methodology used to arrive at its estimates for purposes of this section. (5) The Secretary has the authority to expand the energy development plan to include other energy production technology sources or advancements in energy on Federal lands. (6) The Secretary shall include in the Strategy a plan for addressing new demands for transmission lines and pipelines for distribution of oil and gas across Federal lands to ensure that energy produced can be distributed to areas of need. (b) Tribal objectives It is the sense of Congress that federally recognized Indian tribes may elect to set their own production objectives as part of the Strategy under this section. The Secretary shall work in cooperation with any federally recognized Indian tribe that elects to participate in achieving its own strategic energy objectives designated under this subsection. (c) Execution of the Strategy The relevant Secretary shall have all necessary authority to make determinations regarding which additional lands will be made available in order to meet the production objectives established by strategies under this section. The Secretary shall also take all necessary actions to achieve these production objectives unless the President determines that it is not in the national security and economic interests of the United States to increase Federal domestic energy production and to further decrease dependence upon foreign sources of energy. In administering this section, the relevant Secretary shall only consider leasing Federal lands available for leasing at the time the lease sale occurs. (d) State, federally recognized Indian tribes, local government, and public input In developing each strategy, the Secretary shall solicit the input of affected States, federally recognized Indian tribes, local governments, and the public. (e) Reporting The Secretary shall report annually to the Committee on Natural Resources of the House of Representatives and the Committee on Energy and Natural Resources of the Senate on the progress of meeting the production goals set forth in the strategy. The Secretary shall identify in the report projections for production and capacity installations and any problems with leasing, permitting, siting, or production that will prevent meeting the goal. In addition, the Secretary shall make suggestions to help meet any shortfalls in meeting the production goals. (f) Programmatic environmental impact statement Not later than 12 months after the date of enactment of this section, in accordance with section 102(2)(C) of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4332(2)(C) ), the Secretary shall complete a programmatic environmental impact statement. This programmatic environmental impact statement will be deemed sufficient to comply with all requirements under that Act for all necessary resource management and land use plans associated with the implementation of the strategy. (g) Congressional review At least 60 days prior to publishing a proposed strategy under this section, the Secretary shall submit it to the President and the Congress, together with any comments received from States, federally recognized Indian tribes, and local governments. Such submission shall indicate why any specific recommendation of a State, federally recognized Indian tribe, or local government was not accepted. (h) Strategic and critical energy minerals defined For purposes of this section, the term strategic and critical energy minerals means those that are necessary for the Nation’s energy infrastructure including pipelines, refining capacity, electrical power generation and transmission, and renewable energy production and those that are necessary to support domestic manufacturing, including but not limited to, materials used in energy generation, production, and transportation. . (b) First Quadrennial Strategy Not later than 18 months after the date of enactment of this Act, the Secretary of the Interior shall submit to Congress the first Quadrennial Federal Onshore Energy Production Strategy under the amendment made by subsection (a). C National Petroleum Reserve in Alaska access 23001. Short title This subtitle may be cited as the National Petroleum Reserve Alaska Access Act . 23002. Sense of Congress and reaffirming national policy for the National Petroleum Reserve in Alaska It is the sense of Congress that— (1) the National Petroleum Reserve in Alaska remains explicitly designated, both in name and legal status, for purposes of providing oil and natural gas resources to the United States; and (2) accordingly, the national policy is to actively advance oil and gas development within the Reserve by facilitating the expeditious exploration, production, and transportation of oil and natural gas from and through the Reserve. 23003. National Petroleum Reserve in Alaska: lease sales Section 107(a) of the Naval Petroleum Reserves Production Act of 1976 ( 42 U.S.C. 6506a(a) ) is amended to read as follows: (a) In General The Secretary shall conduct an expeditious program of competitive leasing of oil and gas in the reserve in accordance with this Act. Such program shall include at least one lease sale annually in those areas of the reserve most likely to produce commercial quantities of oil and natural gas each year in the period 2014 through 2024. . 23004. National Petroleum Reserve in Alaska: planning and permitting pipeline and road construction (a) In general Notwithstanding any other provision of law, the Secretary of the Interior, in consultation with other appropriate Federal agencies, shall facilitate and ensure permits, in a timely and environmentally responsible manner, for all surface development activities, including for the construction of pipelines and roads, necessary to— (1) develop and bring into production any areas within the National Petroleum Reserve in Alaska that are subject to oil and gas leases; and (2) transport oil and gas from and through the National Petroleum Reserve in Alaska in the most direct manner possible to existing transportation or processing infrastructure on the North Slope of Alaska. (b) Timeline The Secretary shall ensure that any Federal permitting agency shall issue permits in accordance with the following timeline: (1) Permits for such construction for transportation of oil and natural gas produced under existing Federal oil and gas leases with respect to which the Secretary has issued a permit to drill shall be approved within 60 days after the date of enactment of this Act. (2) Permits for such construction for transportation of oil and natural gas produced under Federal oil and gas leases shall be approved within 6 months after the submission to the Secretary of a request for a permit to drill. (c) Plan To ensure timely future development of the Reserve, within 270 days after the date of the enactment of this Act, the Secretary of the Interior shall submit to Congress a plan for approved rights-of-way for a plan for pipeline, road, and any other surface infrastructure that may be necessary infrastructure that will ensure that all leasable tracts in the Reserve are within 25 miles of an approved road and pipeline right-of-way that can serve future development of the Reserve. 23005. Issuance of a new integrated activity plan and environmental impact statement (a) Issuance of new integrated activity plan The Secretary of the Interior shall, within 180 days after the date of enactment of this Act, issue— (1) a new proposed integrated activity plan from among the non-adopted alternatives in the National Petroleum Reserve Alaska Integrated Activity Plan Record of Decision issued by the Secretary of the Interior and dated February 21, 2013; and (2) an environmental impact statement under section 102(2)(C) of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4332(2)(C) ) for issuance of oil and gas leases in the National Petroleum Reserve-Alaska to promote efficient and maximum development of oil and natural gas resources of such reserve. (b) Nullification of existing record of decision, IAP, and EIS Except as provided in subsection (a), the National Petroleum Reserve-Alaska Integrated Activity Plan Record of Decision issued by the Secretary of the Interior and dated February 21, 2013, including the integrated activity plan and environmental impact statement referred to in that record of decision, shall have no force or effect. 23006. Departmental accountability for development The Secretary of the Interior shall issue regulations not later than 180 days after the date of enactment of this Act that establish clear requirements to ensure that the Department of the Interior is supporting development of oil and gas leases in the National Petroleum Reserve-Alaska. 23007. Deadlines under new proposed integrated activity plan At a minimum, the new proposed integrated activity plan issued under section 23005(a)(1) shall— (1) require the Department of the Interior to respond within 5 business days to a person who submits an application for a permit for development of oil and natural gas leases in the National Petroleum Reserve-Alaska acknowledging receipt of such application; and (2) establish a timeline for the processing of each such application, that— (A) specifies deadlines for decisions and actions on permit applications; and (B) provide that the period for issuing each permit after submission of such an application shall not exceed 60 days without the concurrence of the applicant. 23008. Updated resource assessment (a) In general The Secretary of the Interior shall complete a comprehensive assessment of all technically recoverable fossil fuel resources within the National Petroleum Reserve in Alaska, including all conventional and unconventional oil and natural gas. (b) Cooperation and consultation The resource assessment required by subsection (a) shall be carried out by the United States Geological Survey in cooperation and consultation with the State of Alaska and the American Association of Petroleum Geologists. (c) Timing The resource assessment required by subsection (a) shall be completed within 24 months of the date of the enactment of this Act. (d) Funding The United States Geological Survey may, in carrying out the duties under this section, cooperatively use resources and funds provided by the State of Alaska. D BLM Live Internet Auctions 24001. Short title This subtitle may be cited as the BLM Live Internet Auctions Act . 24002. Internet-based onshore oil and gas lease sales (a) Authorization Section 17(b)(1) of the Mineral Leasing Act ( 30 U.S.C. 226(b)(1) ) is amended— (1) in subparagraph (A), in the third sentence, by inserting , except as provided in subparagraph (C) after by oral bidding ; and (2) by adding at the end the following: (C) In order to diversify and expand the Nation’s onshore leasing program to ensure the best return to the Federal taxpayer, reduce fraud, and secure the leasing process, the Secretary may conduct onshore lease sales through Internet-based bidding methods. Each individual Internet-based lease sale shall conclude within 7 days. . (b) Report Not later than 90 days after the tenth Internet-based lease sale conducted under the amendment made by subsection (a), the Secretary of the Interior shall analyze the first 10 such lease sales and report to Congress the findings of the analysis. The report shall include— (1) estimates on increases or decreases in such lease sales, compared to sales conducted by oral bidding, in— (A) the number of bidders; (B) the average amount of bid; (C) the highest amount bid; and (D) the lowest bid; (2) an estimate on the total cost or savings to the Department of the Interior as a result of such sales, compared to sales conducted by oral bidding; and (3) an evaluation of the demonstrated or expected effectiveness of different structures for lease sales which may provide an opportunity to better maximize bidder participation, ensure the highest return to the Federal taxpayers, minimize opportunities for fraud or collusion, and ensure the security and integrity of the leasing process. E Native American Energy 25001. Short title This subtitle may be cited as the Native American Energy Act . 25002. Appraisals (a) Amendment Title XXVI of the Energy Policy Act of 1992 ( 25 U.S.C. 3501 et seq. ) is amended by adding at the end the following: 2607. Appraisal reforms (a) Options to Indian Tribes With respect to a transaction involving Indian land or the trust assets of an Indian tribe that requires the approval of the Secretary, any appraisal relating to fair market value required to be conducted under applicable law, regulation, or policy may be completed by— (1) the Secretary; (2) the affected Indian tribe; or (3) a certified, third-party appraiser pursuant to a contract with the Indian tribe. (b) Time Limit on Secretarial Review and Action Not later than 30 days after the date on which the Secretary receives an appraisal conducted by or for an Indian tribe pursuant to paragraphs (2) or (3) of subsection (a), the Secretary shall— (1) review the appraisal; and (2) provide to the Indian tribe a written notice of approval or disapproval of the appraisal. (c) Failure of Secretary To Approve or Disapprove If, after 60 days, the Secretary has failed to approve or disapprove any appraisal received, the appraisal shall be deemed approved. (d) Option to Indian Tribes To Waive Appraisal (1) An Indian tribe wishing to waive the requirements of subsection (a), may do so after it has satisfied the requirements of subsections (2) and (3) below. (2) An Indian tribe wishing to forego the necessity of a waiver pursuant to this section must provide to the Secretary a written resolution, statement, or other unambiguous indication of tribal intent, duly approved by the governing body of the Indian tribe. (3) The unambiguous indication of intent provided by the Indian tribe to the Secretary under paragraph (2) must include an express waiver by the Indian tribe of any claims for damages it might have against the United States as a result of the lack of an appraisal undertaken. (e) Definition For purposes of this subsection, the term appraisal includes appraisals and other estimates of value. (f) Regulations The Secretary shall develop regulations for implementing this section, including standards the Secretary shall use for approving or disapproving an appraisal. . (b) Conforming amendment The table of contents of the Energy Policy Act of 1992 ( 42 U.S.C. 13201 note) is amended by adding at the end of the items relating to title XXVI the following: Sec. 2607. Appraisal reforms. . 25003. Standardization As soon as practicable after the date of the enactment of this Act, the Secretary of the Interior shall implement procedures to ensure that each agency within the Department of the Interior that is involved in the review, approval, and oversight of oil and gas activities on Indian lands shall use a uniform system of reference numbers and tracking systems for oil and gas wells. 25004. Environmental reviews of major Federal actions on Indian lands Section 102 of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4332 ) is amended by inserting (a) In general.— before the first sentence, and by adding at the end the following: (b) Review of major Federal actions on Indian lands (1) In general For any major Federal action on Indian lands of an Indian tribe requiring the preparation of a statement under subsection (a)(2)(C), the statement shall only be available for review and comment by the members of the Indian tribe and by any other individual residing within the affected area. (2) Regulations The Chairman of the Council on Environmental Quality shall develop regulations to implement this section, including descriptions of affected areas for specific major Federal actions, in consultation with Indian tribes. (3) Definitions In this subsection, each of the terms Indian land and Indian tribe has the meaning given that term in section 2601 of the Energy Policy Act of 1992 ( 25 U.S.C. 3501 ). (4) Clarification of authority Nothing in the Native American Energy Act, except section 25006 of that Act, shall give the Secretary any additional authority over energy projects on Alaska Native Claims Settlement Act lands. . 25005. Judicial review (a) Time for filing complaint Any energy related action must be filed not later than the end of the 60-day period beginning on the date of the final agency action. Any energy related action not filed within this time period shall be barred. (b) District court venue and deadline All energy related actions— (1) shall be brought in the United States District Court for the District of Columbia; and (2) shall be resolved as expeditiously as possible, and in any event not more than 180 days after such cause of action is filed. (c) Appellate review An interlocutory order or final judgment, decree or order of the district court in an energy related action may be reviewed by the U.S. Court of Appeals for the District of Columbia Circuit. The D.C. Circuit Court of Appeals shall resolve such appeal as expeditiously as possible, and in any event not more than 180 days after such interlocutory order or final judgment, decree or order of the district court was issued. (d) Limitation on certain payments Notwithstanding section 1304 of title 31, United States Code, no award may be made under section 504 of title 5, United States Code, or under section 2412 of title 28, United States Code, and no amounts may be obligated or expended from the Claims and Judgment Fund of the United States Treasury to pay any fees or other expenses under such sections, to any person or party in an energy related action. (e) Legal fees In any energy related action in which the plaintiff does not ultimately prevail, the court shall award to the defendant (including any intervenor-defendants), other than the United States, fees and other expenses incurred by that party in connection with the energy related action, unless the court finds that the position of the plaintiff was substantially justified or that special circumstances make an award unjust. Whether or not the position of the plaintiff was substantially justified shall be determined on the basis of the administrative record, as a whole, which is made in the energy related action for which fees and other expenses are sought. (f) Definitions For the purposes of this section, the following definitions apply: (1) Agency action The term agency action has the same meaning given such term in section 551 of title 5, United States Code. (2) Indian land The term Indian Land has the same meaning given such term in section 203(c)(3) of the Energy Policy Act of 2005 ( Public Law 109–58 ; 25 U.S.C. 3501 ), including lands owned by Native Corporations under the Alaska Native Claims Settlement Act ( Public Law 92–203 ; 43 U.S.C. 1601 ). (3) Energy related action The term energy related action means a cause of action that— (A) is filed on or after the effective date of this Act; and (B) seeks judicial review of a final agency action to issue a permit, license, or other form of agency permission allowing: (i) any person or entity to conduct activities on Indian Land, which activities involve the exploration, development, production or transportation of oil, gas, coal, shale gas, oil shale, geothermal resources, wind or solar resources, underground coal gasification, biomass, or the generation of electricity; or (ii) any Indian Tribe, or any organization of two or more entities, at least one of which is an Indian tribe, to conduct activities involving the exploration, development, production or transportation of oil, gas, coal, shale gas, oil shale, geothermal resources, wind or solar resources, underground coal gasification, biomass, or the generation of electricity, regardless of where such activities are undertaken. (4) Ultimately prevail The phrase ultimately prevail means, in a final enforceable judgment, the court rules in the party’s favor on at least one cause of action which is an underlying rationale for the preliminary injunction, administrative stay, or other relief requested by the party, and does not include circumstances where the final agency action is modified or amended by the issuing agency unless such modification or amendment is required pursuant to a final enforceable judgment of the court or a court-ordered consent decree. 25006. Tribal biomass demonstration project The Tribal Forest Protection Act of 2004 is amended by inserting after section 2 ( 25 U.S.C. 3115a ) the following: 3. Tribal biomass demonstration project (a) In general For each of fiscal years 2014 through 2018, the Secretary shall enter into stewardship contracts or other agreements, other than agreements that are exclusively direct service contracts, with Indian tribes to carry out demonstration projects to promote biomass energy production (including biofuel, heat, and electricity generation) on Indian forest land and in nearby communities by providing reliable supplies of woody biomass from Federal land. (b) Definitions The definitions in section 2 shall apply to this section. (c) Demonstration projects In each fiscal year for which projects are authorized, the Secretary shall enter into contracts or other agreements described in subsection (a) to carry out at least 4 new demonstration projects that meet the eligibility criteria described in subsection (d). (d) Eligibility criteria To be eligible to enter into a contract or other agreement under this subsection, an Indian tribe shall submit to the Secretary an application— (1) containing such information as the Secretary may require; and (2) that includes a description of— (A) the Indian forest land or rangeland under the jurisdiction of the Indian tribe; and (B) the demonstration project proposed to be carried out by the Indian tribe. (e) Selection In evaluating the applications submitted under subsection (c), the Secretary— (1) shall take into consideration the factors set forth in paragraphs (1) and (2) of section 2(e) of Public Law 108–278 ; and whether a proposed demonstration project would— (A) increase the availability or reliability of local or regional energy; (B) enhance the economic development of the Indian tribe; (C) improve the connection of electric power transmission facilities serving the Indian tribe with other electric transmission facilities; (D) improve the forest health or watersheds of Federal land or Indian forest land or rangeland; or (E) otherwise promote the use of woody biomass; and (2) shall exclude from consideration any merchantable logs that have been identified by the Secretary for commercial sale. (f) Implementation The Secretary shall— (1) ensure that the criteria described in subsection (c) are publicly available by not later than 120 days after the date of enactment of this section; and (2) to the maximum extent practicable, consult with Indian tribes and appropriate intertribal organizations likely to be affected in developing the application and otherwise carrying out this section. (g) Report Not later than September 20, 2015, the Secretary shall submit to Congress a report that describes, with respect to the reporting period— (1) each individual tribal application received under this section; and (2) each contract and agreement entered into pursuant to this section. (h) Incorporation of management plans In carrying out a contract or agreement under this section, on receipt of a request from an Indian tribe, the Secretary shall incorporate into the contract or agreement, to the extent practicable, management plans (including forest management and integrated resource management plans) in effect on the Indian forest land or rangeland of the respective Indian tribe. (i) Term A stewardship contract or other agreement entered into under this section— (1) shall be for a term of not more than 20 years; and (2) may be renewed in accordance with this section for not more than an additional 10 years. . 25007. Tribal resource management plans Unless otherwise explicitly exempted by Federal law enacted after the date of the enactment of this Act, any activity conducted or resources harvested or produced pursuant to a tribal resource management plan or an integrated resource management plan approved by the Secretary of the Interior under the National Indian Forest Resources Management Act ( 25 U.S.C. 3101 et seq. ) or the American Indian Agricultural Resource Management Act ( 25 U.S.C. 3701 et seq. ), shall be considered a sustainable management practice for purposes of any Federal standard, benefit, or requirement that requires a demonstration of such sustainability. 25008. Leases of restricted lands for the Navajo Nation Subsection (e)(1) of the first section of the Act of August 9, 1955 ( 25 U.S.C. 415(e)(1) ; commonly referred to as the Long-Term Leasing Act ), is amended— (1) by striking , except a lease for and inserting , including leases for ; (2) in subparagraph (A), by striking 25 the first place it appears and all that follows and inserting 99 years; ; (3) in subparagraph (B), by striking the period and inserting ; and ; and (4) by adding at the end the following: (C) in the case of a lease for the exploration, development, or extraction of mineral resources, including geothermal resources, 25 years, except that any such lease may include an option to renew for one additional term not to exceed 25 years. . 25009. Nonapplicability of certain rules No rule promulgated by the Department of the Interior regarding hydraulic fracturing used in the development or production of oil or gas resources shall have any effect on any land held in trust or restricted status for the benefit of Indians except with the express consent of the beneficiary on whose behalf such land is held in trust or restricted status. III Miscellaneous provisions 30101. Establishment of Office of Energy Employment and Training (a) Establishment The Secretary of the Interior shall establish an Office of Energy Employment and Training, which shall oversee the hiring and training efforts of the Department of the Interior’s energy planning, permitting, and regulatory agencies. (b) Director (1) In general The Office shall be under the direction of a Deputy Assistant Secretary for Energy Employment and Training, who shall report directly to the Assistant Secretary for Energy, Lands and Minerals Management, and shall be fully employed to carry out the functions of the Office. (2) Duties The Deputy Assistant Secretary for Energy Employment and Training shall perform the following functions: (A) Develop and implement systems to track the Department’s hiring of trained skilled workers in the energy permitting and inspection agencies. (B) Design and recommend to the Secretary programs and policies aimed at expanding the Department’s hiring of women, minorities, and veterans into the Department’s workforce dealing with energy permitting and inspection programs. Such programs and policies shall include— (i) recruiting at historically black colleges and universities, Hispanic-serving institutions, women’s colleges, and colleges that typically serve majority minority populations; (ii) sponsoring and recruiting at job fairs in urban communities; (iii) placing employment advertisements in newspapers and magazines oriented toward minorities, veterans, and women; (iv) partnering with organizations that are focused on developing opportunities for minorities, veterans, and women to be placed in Departmental internships, summer employment, and full-time positions relating to energy; (v) where feasible, partnering with inner-city high schools, girls’ high schools, and high schools with majority minority populations to demonstrate career opportunities and the path to those opportunities available at the Department; (vi) coordinating with the Department of Veterans Affairs and the Department of Defense in the hiring of veterans; and (vii) any other mass media communications that the Deputy Assistant Secretary determines necessary to advertise, promote, or educate about opportunities at the Department. (C) Develop standards for— (i) equal employment opportunity and the racial, ethnic, and gender diversity of the workforce and senior management of the Department; and (ii) increased participation of minority-owned, veteran-owned, and women-owned businesses in the programs and contracts with the Department. (D) Review and propose for adoption the best practices of entities regulated by the Department with regards to hiring and diversity policies, and publish those best practices for public review. (c) Reports The Secretary shall submit to Congress an annual report regarding the actions taken by the Department of the Interior agency and the Office pursuant to this section, which shall include— (1) a statement of the total amounts paid by the Department to minority contractors; (2) the successes achieved and challenges faced by the Department in operating minority, veteran or service-disabled veteran, and women outreach programs; (3) the challenges the Department may face in hiring minority, veteran, and women employees and contracting with veteran or service-disabled veteran, minority-owned, and women-owned businesses; and (4) any other information, findings, conclusions, and recommendations for legislative or Department action, as the Director determines appropriate. (d) Definitions For purposes of this section, the following definitions shall apply: (1) Minority The term minority means United States citizens who are Asian Indian American, Asian Pacific American, Black American, Hispanic American, or Native American. (2) Minority-owned business The term minority-owned business means a for-profit enterprise, regardless of size, physically located in the United States or its trust territories, that is owned, operated, and controlled by minority group members. Minority group members are United States citizens who are Asian Indian American, Asian Pacific American, Black American, Hispanic American, or Native American (terminology in NMSDC categories). Ownership by minority individuals means the business is at least 51 percent owned by such individuals or, in the case of a publicly owned business, at least 51 percent of the stock is owned by one or more such individuals. Further, the management and daily operations are controlled by those minority group members. For purposes of NMSDC’s program, a minority group member is an individual who is a United States citizen with at least 1/4 or 25 percent minimum (documentation to support claim of 25 percent required from applicant) of one or more of the following: (A) Asian Indian American, which is a United States citizen whose origins are from India, Pakistan, or Bangladesh. (B) Asian Pacific American, which is a United States citizen whose origins are from Japan, China, Indonesia, Malaysia, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Thailand, Samoa, Guam, the United States Trust Territories of the Pacific, or the Northern Marianas. (C) Black American, which is a United States citizen having origins in any of the Black racial groups of Africa. (D) Hispanic American, which is a United States citizen of true-born Hispanic heritage, from any of the Spanish-speaking areas of the following regions: Mexico, Central America, South America, and the Caribbean Basin only. (E) Native American, which means a United States citizen enrolled to a federally recognized tribe, or a Native as defined under the Alaska Native Claims Settlement Act. (3) NMSDC The term NMSDC means the National Minority Supplier Development Council. (4) Women-owned business The term women-owned business means a business that can verify through evidence documentation that 51 percent or more is women-owned, managed, and controlled. The business must be open for at least 6 months. The business owner must be a United States citizen or legal resident alien. Evidence must indicate that— (A) the contribution of capital or expertise by the woman business owner is real and substantial and in proportion to the interest owned; (B) the woman business owner directs or causes the direction of management, policy, fiscal, and operational matters; and (C) the woman business owner has the ability to perform in the area of specialty or expertise without reliance on either the finances or resources of a firm that is not owned by a woman. (5) Service disabled veteran The term Service Disabled Veteran must have a service-connected disability that has been determined by the Department of Veterans Affairs or Department of Defense. The SDVOSBC must be small under the North American Industry Classification System (NAICS) code assigned to the procurement; the SDV must unconditionally own 51 percent of the SDVOSBC; the SDVO must control the management and daily operations of the SDVOSBC; and the SDV must hold the highest officer position in the SDVOSBC. (6) Veteran-owned business The term veteran-owned business means a business that can verify through evidence documentation that 51 percent or more is veteran-owned, managed, and controlled. The business must be open for at least 6 months. The business owner must be a United States citizen or legal resident alien and honorably or service-connected disability discharged from service. B Bureau of Reclamation Conduit Hydropower Development Equity and Jobs Act 1. Short title This subdivision may be cited as the Bureau of Reclamation Conduit Hydropower Development Equity and Jobs Act . 2. Amendment Section 9 of the Act entitled An Act authorizing construction of water conservation and utilization projects in the Great Plains and arid semiarid areas of the United States , approved August 11, 1939 ( 16 U.S.C. 590z–7 ; commonly known as the Water Conservation and Utilization Act ), is amended— (1) by striking In connection with and inserting (a) In connection with ; and (2) by adding at the end the following: (b) Notwithstanding subsection (a), the Secretary is authorized to enter into leases of power privileges for electric power generation in connection with any project constructed under this Act, and shall have authority in addition to and alternative to any authority in existing laws relating to particular projects, including small conduit hydropower development. (c) When entering into leases of power privileges under subsection (b), the Secretary shall use the processes applicable to such leases under section 9(c) of the Reclamation Project Act of 1939 ( 43 U.S.C. 485h(c) ). (d) Lease of power privilege contracts shall be at such rates as, in the Secretary’s judgment, will produce revenues at least sufficient to cover the appropriate share of the annual operation and maintenance cost of the project and such fixed charges, including interest, as the Secretary deems proper. Lease of power privilege contracts shall be for periods not to exceed 40 years. (e) No findings under section 3 shall be required for a lease under subsection (b). (f) All right, title, and interest to installed power facilities constructed by non-Federal entities pursuant to a lease of power privilege, and direct revenues derived therefrom, shall remain with the lessee unless otherwise required under subsection (g). (g) Notwithstanding section 8, lease revenues and fixed charges, if any, shall be covered into the Reclamation Fund to be credited to the project from which those revenues or charges were derived. (h) When carrying out this section, the Secretary shall first offer the lease of power privilege to an irrigation district or water users association operating the applicable transferred conduit, or to the irrigation district or water users association receiving water from the applicable reserved conduit. The Secretary shall determine a reasonable timeframe for the irrigation district or water users association to accept or reject a lease of power privilege offer. If the irrigation district or water users association elects not to accept a lease of power privilege offer under subsection (b), the Secretary shall offer the lease of power privilege to other parties using the processes applicable to such leases under section 9(c) of the Reclamation Project Act of 1939 ( 43 U.S.C. 485h(c) ). (i) The Bureau of Reclamation shall apply its categorical exclusion process under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) to small conduit hydropower development under this section, excluding siting of associated transmission facilities on Federal lands. (j) Nothing in this section shall obligate the Western Area Power Administration or the Bonneville Power Administration to purchase or market any of the power produced by the facilities covered under this section and none of the costs associated with production or delivery of such power shall be assigned to project purposes for inclusion in project rates. (k) Nothing in this section shall alter or impede the delivery and management of water by Bureau of Reclamation facilities, as water used for conduit hydropower generation shall be deemed incidental to use of water for the original project purposes. Lease of power privilege shall be made only when, in the judgment of the Secretary, the exercise of the lease will not be incompatible with the purposes of the project or division involved and shall not create any unmitigated financial or physical impacts to the project or division involved. The Secretary shall notify and consult with the irrigation district or legally organized water users association operating the transferred conduit in advance of offering the lease of power privilege and shall prescribe such terms and conditions necessary to adequately protect the planning, design, construction, operation, maintenance, and other interests of the United States and the project or division involved. (l) Nothing in this section shall alter or affect any agreements in effect on the date of the enactment of the Bureau of Reclamation Conduit Hydropower Development Equity and Jobs Act for the development of conduit hydropower projects or disposition of revenues. (m) In this section: (1) The term conduit means any Bureau of Reclamation tunnel, canal, pipeline, aqueduct, flume, ditch, or similar manmade water conveyance that is operated for the distribution of water for agricultural, municipal, or industrial consumption and not primarily for the generation of electricity. (2) The term irrigation district means any irrigation, water conservation or conservancy, multi-county water conservation or conservancy district, or any separate public entity composed of two or more such districts and jointly exercising powers of its member districts. (3) The term reserved conduit means any conduit that is included in project works the care, operation, and maintenance of which has been reserved by the Secretary, through the Commissioner of the Bureau of Reclamation. (4) The term transferred conduit means any conduit that is included in project works the care, operation, and maintenance of which has been transferred to a legally organized water users association or irrigation district. (5) The term small conduit hydropower means a facility capable of producing 5 megawatts or less of electric capacity. . C Central Oregon Jobs and Water Security Act 1. Short title This subdivision may be cited as the Central Oregon Jobs and Water Security Act . 2. Wild and Scenic River; Crooked, Oregon Section 3(a)(72) of the Wild and Scenic Rivers Act ( 16 U.S.C. 1274(a)(72) ) is amended as follows: (1) By striking 15-mile and inserting 14.75-mile . (2) In subparagraph (B)— (A) by striking 8-mile and all that follows through Bowman Dam and inserting 7.75-mile segment from a point one-quarter mile downstream from the toe of Bowman Dam ; and (B) by adding at the end the following: The developer for any hydropower development, including turbines and appurtenant facilities, at Bowman Dam, in consultation with the Bureau of Land Management, shall analyze any impacts to the Outstandingly Remarkable Values of the Wild and Scenic River that may be caused by such development, including the future need to undertake routine and emergency repairs, and shall propose mitigation for any impacts as part of any license application submitted to the Federal Energy Regulatory Commission. . 3. City of Prineville Water Supply Section 4 of the Act of August 6, 1956 (70 Stat. 1058), (as amended by the Acts of September 14, 1959 (73 Stat. 554), and September 18, 1964 (78 Stat. 954)) is further amended as follows: (1) By striking ten cubic feet the first place it appears and inserting 17 cubic feet . (2) By striking during those months when there is no other discharge therefrom, but this release may be reduced for brief temporary periods by the Secretary whenever he may find that release of the full ten cubic feet per second is harmful to the primary purpose of the project . (3) By adding at the end the following: Without further action by the Secretary, and as determined necessary for any given year by the City of Prineville, up to seven of the 17 cubic feet per second minimum release shall also serve as mitigation for City of Prineville groundwater pumping, pursuant to and in a manner consistent with Oregon State law, including any shaping of the release of the up to seven cubic feet per second to coincide with City of Prineville groundwater pumping as may be required by the State of Oregon. As such, the Secretary is authorized to make applications to the State of Oregon in conjunction with the City to protect these supplies instream. The City shall make payment to the Secretary for that portion of the minimum release that actually serves as mitigation pursuant to Oregon State law for the City in any given year, with the payment for any given year equal to the amount of mitigation in acre feet required to offset actual City groundwater pumping for that year in accordance with Reclamation Water and Related Contract and Repayment Principles and Requirements , Reclamation Manual Directives and Standards PEC 05–01, dated 09/12/2006, and guided by Economic and Environmental Principles and Guidelines for Water and Related Land Resources Implementation Studies , dated March 10, 1983. The Secretary is authorized to contract exclusively with the City for additional amounts in the future at the request of the City. . 4. First fill protection The Act of August 6, 1956 (70 Stat. 1058), as amended by the Acts of September 14, 1959 (73 Stat. 554), and September 18, 1964 (78 Stat. 954), is further amended by adding at the end the following: 6. Other than the 17 cubic feet per second release provided for in section 4, and subject to compliance with the Army Corps of Engineers’ flood curve requirements, the Secretary shall, on a first fill priority basis, store in and release from Prineville Reservoir, whether from carryover, infill, or a combination thereof, the following: (1) 68,273 acre feet of water annually to fulfill all 16 Bureau of Reclamation contracts existing as of January 1, 2011, and up to 2,740 acre feet of water annually to supply the McKay Creek lands as provided for in section 5 of this Act. (2) Not more than 10,000 acre feet of water annually, to be made available to the North Unit Irrigation District pursuant to a Temporary Water Service Contract, upon the request of the North Unit Irrigation District, consistent with the same terms and conditions as prior such contracts between the District and the Bureau of Reclamation. 7. Except as otherwise provided in this Act, nothing in this Act— (1) modifies contractual rights that may exist between contractors and the United States under Reclamation contracts; (2) amends or reopens contracts referred to in paragraph (1); or (3) modifies any rights, obligations, or requirements that may be provided or governed by Oregon State law. . 5. Ochoco Irrigation District (a) Early repayment Notwithstanding section 213 of the Reclamation Reform Act of 1982 ( 43 U.S.C. 390mm ), any landowner within Ochoco Irrigation District in Oregon, may repay, at any time, the construction costs of the project facilities allocated to that landowner’s lands within the district. Upon discharge, in full, of the obligation for repayment of the construction costs allocated to all lands the landowner owns in the district, those lands shall not be subject to the ownership and full-cost pricing limitations of the Act of June 17, 1902 ( 43 U.S.C. 371 et seq. ), and Acts supplemental to and amendatory of that Act, including the Reclamation Reform Act of 1982 ( 43 U.S.C. 390aa et seq. ). (b) Certification Upon the request of a landowner who has repaid, in full, the construction costs of the project facilities allocated to that landowner’s lands owned within the district, the Secretary of the Interior shall provide the certification provided for in subsection (b)(1) of section 213 of the Reclamation Reform Act of 1982 ( 43 U.S.C. 390mm(b)(1) ). (c) Contract amendment On approval of the district directors and notwithstanding project authorizing legislation to the contrary, the district’s reclamation contracts are modified, without further action by the Secretary of the Interior, to— (1) authorize the use of water for instream purposes, including fish or wildlife purposes, in order for the district to engage in, or take advantage of, conserved water projects and temporary instream leasing as authorized by Oregon State law; (2) include within the district boundary approximately 2,742 acres in the vicinity of McKay Creek, resulting in a total of approximately 44,937 acres within the district boundary; (3) classify as irrigable approximately 685 acres within the approximately 2,742 acres of included lands in the vicinity of McKay Creek, where the approximately 685 acres are authorized to receive irrigation water pursuant to water rights issued by the State of Oregon and have in the past received water pursuant to such State water rights; and (4) provide the district with stored water from Prineville Reservoir for purposes of supplying up to the approximately 685 acres of lands added within the district boundary and classified as irrigable under paragraphs (2) and (3), with such stored water to be supplied on an acre-per-acre basis contingent on the transfer of existing appurtenant McKay Creek water rights to instream use and the State’s issuance of water rights for the use of stored water. (d) Limitation Except as otherwise provided in subsections (a) and (c), nothing in this section shall be construed to— (1) modify contractual rights that may exist between the district and the United States under the district’s Reclamation contracts; (2) amend or reopen the contracts referred to in paragraph (1); or (3) modify any rights, obligations or relationships that may exist between the district and its landowners as may be provided or governed by Oregon State law. D State Authority For Hydraulic Fracturing Regulation; EPA Hydraulic Fracturing Research I State Authority For Hydraulic Fracturing Regulation 101. Short title This title may be cited as the Protecting States’ Rights to Promote American Energy Security Act . 102. State authority for hydraulic fracturing regulation The Mineral Leasing Act ( 30 U.S.C. 181 et seq. ) is amended by redesignating section 44 as section 45, and by inserting after section 43 the following: 44. State authority for hydraulic fracturing regulation (a) In general The Department of the Interior shall not enforce any Federal regulation, guidance, or permit requirement regarding hydraulic fracturing, or any component of that process, relating to oil, gas, or geothermal production activities on or under any land in any State that has regulations, guidance, or permit requirements for that activity. (b) State authority The Department of the Interior shall recognize and defer to State regulations, permitting, and guidance, for all activities related to hydraulic fracturing, or any component of that process, relating to oil, gas, or geothermal production activities on Federal land. (c) Transparency of State regulations (1) In general Each State shall submit to the Bureau of Land Management a copy of its regulations that apply to hydraulic fracturing operations on Federal land. (2) Availability The Secretary of the Interior shall make available to the public State regulations submitted under this subsection. (d) Transparency of State disclosure requirements (1) In general Each State shall submit to the Bureau of Land Management a copy of any regulations of the State that require disclosure of chemicals used in hydraulic fracturing operations on Federal land. (2) Availability The Secretary of the Interior shall make available to the public State regulations submitted under this subsection. (e) Hydraulic fracturing defined In this section the term hydraulic fracturing means the process by which fracturing fluids (or a fracturing fluid system) are pumped into an underground geologic formation at a calculated, predetermined rate and pressure to generate fractures or cracks in the target formation and thereby increase the permeability of the rock near the wellbore and improve production of natural gas or oil. . 103. Government Accountability Office study (a) Study The Comptroller General of the United States shall conduct a study examining the economic benefits of domestic shale oil and gas production resulting from the process of hydraulic fracturing. This study will include identification of— (1) State and Federal revenue generated as a result of shale gas production; (2) jobs created both directly and indirectly as a result of shale oil and gas production; and (3) an estimate of potential energy prices without domestic shale oil and gas production. (b) Report The Comptroller General shall submit a report on the findings of such study to the Committee on Natural Resources of the House of Representatives within 30 days after completion of the study. 104. Tribal authority on trust land The Department of the Interior shall not enforce any Federal regulation, guidance, or permit requirement regarding the process of hydraulic fracturing (as that term is defined in section 44 of the Mineral Leasing Act, as amended by section 102 of this Act), or any component of that process, relating to oil, gas, or geothermal production activities on any land held in trust or restricted status for the benefit of Indians except with the express consent of the beneficiary on whose behalf such land is held in trust or restricted status. II EPA HYDRAULIC FRACTURING RESEARCH 201. Short title This title may be cited as the EPA Hydraulic Fracturing Study Improvement Act . 202. Epa hydraulic fracturing research In conducting its study of the potential impacts of hydraulic fracturing on drinking water resources, with respect to which a request for information was issued under Federal Register Vol. 77, No. 218, the Administrator of the Environmental Protection Agency shall adhere to the following requirements: (1) Peer review and information quality Prior to issuance and dissemination of any final report or any interim report summarizing the Environmental Protection Agency’s research on the relationship between hydraulic fracturing and drinking water, the Administrator shall— (A) consider such reports to be Highly Influential Scientific Assessments and require peer review of such reports in accordance with guidelines governing such assessments, as described in— (i) the Environmental Protection Agency’s Peer Review Handbook 3rd Edition; (ii) the Environmental Protection Agency’s Scientific Integrity Policy, as in effect on the date of enactment of this Act; and (iii) the Office of Management and Budget’s Peer Review Bulletin, as in effect on the date of enactment of this Act; and (B) require such reports to meet the standards and procedures for the dissemination of influential scientific, financial, or statistical information set forth in the Environmental Protection Agency’s Guidelines for Ensuring and Maximizing the Quality, Objectivity, Utility, and Integrity of Information Disseminated by the Environmental Protection Agency, developed in response to guidelines issued by the Office of Management and Budget under section 515(a) of the Treasury and General Government Appropriations Act for Fiscal Year 2001 ( Public Law 106–554 ). (2) Probability, uncertainty, and consequence In order to maximize the quality and utility of information developed through the study, the Administrator shall ensure that identification of the possible impacts of hydraulic fracturing on drinking water resources included in such reports be accompanied by objective estimates of the probability, uncertainty, and consequence of each identified impact, taking into account the risk management practices of States and industry. Estimates or descriptions of probability, uncertainty, and consequence shall be as quantitative as possible given the validity, accuracy, precision, and other quality attributes of the underlying data and analyses, but no more quantitative than the data and analyses can support. (3) Release of final report The final report shall be publicly released by September 30, 2016. III Miscellaneous provisions 301. Review of State activities The Secretary of the Interior shall annually review and report to Congress on all State activities relating to hydraulic fracturing. E Preventing Government Waste and Protecting Coal Mining Jobs in America 1. Short title This subdivision may be cited as the Preventing Government Waste and Protecting Coal Mining Jobs in America . 2. Incorporation of surface mining stream buffer zone rule into State programs (a) In general Section 503 of the Surface Mining Control and Reclamation Act of 1977 ( 30 U.S.C. 1253 ) is amended by adding at the end the following: (e) Stream buffer zone management (1) In general In addition to the requirements under subsection (a), each State program shall incorporate the necessary rule regarding excess spoil, coal mine waste, and buffers for perennial and intermittent streams published by the Office of Surface Mining Reclamation and Enforcement on December 12, 2008 (73 Fed. Reg. 75813 et seq.) which complies with the Endangered Species Act of 1973 ( 16 U.S.C. 1531 et seq. ) in view of the 2006 discussions between the Director of the Office of Surface Mining and the Director of the United States Fish and Wildlife Service, and the Office of Surface Mining Reclamation and Enforcement’s consideration and review of comments submitted by the United States Fish and Wildlife Service during the rulemaking process in 2007. (2) Study of implementation The Secretary shall— (A) at such time as the Secretary determines all States referred to in subsection (a) have fully incorporated the necessary rule referred to in paragraph (1) of this subsection into their State programs, publish notice of such determination; (B) during the 5-year period beginning on the date of such publication, assess the effectiveness of implementation of such rule by such States; (C) carry out all required consultation on the benefits and other impacts of the implementation of the rule to any threatened species or endangered species, with the participation of the United States Fish and Wildlife Service and the United States Geological Survey; and (D) upon the conclusion of such period, submit a comprehensive report on the impacts of such rule to the Committee on Natural Resources of the House of Representatives and the Committee on Energy and Natural Resources of the Senate, including— (i) an evaluation of the effectiveness of such rule; (ii) an evaluation of any ways in which the existing rule inhibits energy production; and (iii) a description in detail of any proposed changes that should be made to the rule, the justification for such changes, all comments on such changes received by the Secretary from such States, and the projected costs and benefits of such changes. (3) Limitation on new regulations The Secretary may not issue any regulations under this Act relating to stream buffer zones or stream protection before the date of the publication of the report under paragraph (2), other than a rule necessary to implement paragraph (1). . (b) Deadline for State implementation Not later than 2 years after the date of the enactment of this Act, a State with a State program approved under section 503 of the Surface Mining Control and Reclamation Act of 1977 ( 30 U.S.C. 1253 ) shall submit to the Secretary of the Interior amendments to such program pursuant to part 732 of title 30, Code of Federal Regulations, incorporating the necessary rule referred to in subsection (e)(1) of such section, as amended by this section. C Judiciary 1. Short title This division may be cited as the Responsibly And Professionally Invigorating Development Act of 2014 or as the RAPID Act . 2. Coordination of agency administrative operations for efficient decisionmaking (a) In general Chapter 5 of part 1 of title 5, United States Code, is amended by inserting after subchapter II the following: IIA Interagency Coordination Regarding Permitting 560. Coordination of agency administrative operations for efficient decisionmaking (a) Congressional declaration of purpose The purpose of this subchapter is to establish a framework and procedures to streamline, increase the efficiency of, and enhance coordination of agency administration of the regulatory review, environmental decisionmaking, and permitting process for projects undertaken, reviewed, or funded by Federal agencies. This subchapter will ensure that agencies administer the regulatory process in a manner that is efficient so that citizens are not burdened with regulatory excuses and time delays. (b) Definitions For purposes of this subchapter, the term— (1) agency means any agency, department, or other unit of Federal, State, local, or Indian tribal government; (2) category of projects means 2 or more projects related by project type, potential environmental impacts, geographic location, or another similar project feature or characteristic; (3) environmental assessment means a concise public document for which a Federal agency is responsible that serves to— (A) briefly provide sufficient evidence and analysis for determining whether to prepare an environmental impact statement or a finding of no significant impact; (B) aid an agency’s compliance with NEPA when no environmental impact statement is necessary; and (C) facilitate preparation of an environmental impact statement when one is necessary; (4) environmental impact statement means the detailed statement of significant environmental impacts required to be prepared under NEPA; (5) environmental review means the Federal agency procedures for preparing an environmental impact statement, environmental assessment, categorical exclusion, or other document under NEPA; (6) environmental decisionmaking process means the Federal agency procedures for undertaking and completion of any environmental permit, decision, approval, review, or study under any Federal law other than NEPA for a project subject to an environmental review; (7) environmental document means an environmental assessment or environmental impact statement, and includes any supplemental document or document prepared pursuant to a court order; (8) finding of no significant impact means a document by a Federal agency briefly presenting the reasons why a project, not otherwise subject to a categorical exclusion, will not have a significant effect on the human environment and for which an environmental impact statement therefore will not be prepared; (9) lead agency means the Federal agency preparing or responsible for preparing the environmental document; (10) NEPA means the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ); (11) project means major Federal actions that are construction activities undertaken with Federal funds or that are construction activities that require approval by a permit or regulatory decision issued by a Federal agency; (12) project sponsor means the agency or other entity, including any private or public-private entity, that seeks approval for a project or is otherwise responsible for undertaking a project; and (13) record of decision means a document prepared by a lead agency under NEPA following an environmental impact statement that states the lead agency’s decision, identifies the alternatives considered by the agency in reaching its decision and states whether all practicable means to avoid or minimize environmental harm from the alternative selected have been adopted, and if not, why they were not adopted. (c) Preparation of environmental documents Upon the request of the lead agency, the project sponsor shall be authorized to prepare any document for purposes of an environmental review required in support of any project or approval by the lead agency if the lead agency furnishes oversight in such preparation and independently evaluates such document and the document is approved and adopted by the lead agency prior to taking any action or making any approval based on such document. (d) Adoption and use of documents (1) Documents prepared under nepa (A) Not more than 1 environmental impact statement and 1 environmental assessment shall be prepared under NEPA for a project (except for supplemental environmental documents prepared under NEPA or environmental documents prepared pursuant to a court order), and, except as otherwise provided by law, the lead agency shall prepare the environmental impact statement or environmental assessment. After the lead agency issues a record of decision, no Federal agency responsible for making any approval for that project may rely on a document other than the environmental document prepared by the lead agency. (B) Upon the request of a project sponsor, a lead agency may adopt, use, or rely upon secondary and cumulative impact analyses included in any environmental document prepared under NEPA for projects in the same geographic area where the secondary and cumulative impact analyses provide information and data that pertains to the NEPA decision for the project under review. (2) State environmental documents; supplemental documents (A) Upon the request of a project sponsor, a lead agency may adopt a document that has been prepared for a project under State laws and procedures as the environmental impact statement or environmental assessment for the project, provided that the State laws and procedures under which the document was prepared provide environmental protection and opportunities for public involvement that are substantially equivalent to NEPA. (B) An environmental document adopted under subparagraph (A) is deemed to satisfy the lead agency’s obligation under NEPA to prepare an environmental impact statement or environmental assessment. (C) In the case of a document described in subparagraph (A), during the period after preparation of the document but before its adoption by the lead agency, the lead agency shall prepare and publish a supplement to that document if the lead agency determines that— (i) a significant change has been made to the project that is relevant for purposes of environmental review of the project; or (ii) there have been significant changes in circumstances or availability of information relevant to the environmental review for the project. (D) If the agency prepares and publishes a supplemental document under subparagraph (C), the lead agency may solicit comments from agencies and the public on the supplemental document for a period of not more than 45 days beginning on the date of the publication of the supplement. (E) A lead agency shall issue its record of decision or finding of no significant impact, as appropriate, based upon the document adopted under subparagraph (A), and any supplements thereto. (3) Contemporaneous projects If the lead agency determines that there is a reasonable likelihood that the project will have similar environmental impacts as a similar project in geographical proximity to the project, and that similar project was subject to environmental review or similar State procedures within the 5-year period immediately preceding the date that the lead agency makes that determination, the lead agency may adopt the environmental document that resulted from that environmental review or similar State procedure. The lead agency may adopt such an environmental document, if it is prepared under State laws and procedures only upon making a favorable determination on such environmental document pursuant to paragraph (2)(A). (e) Participating agencies (1) In general The lead agency shall be responsible for inviting and designating participating agencies in accordance with this subsection. The lead agency shall provide the invitation or notice of the designation in writing. (2) Federal participating agencies Any Federal agency that is required to adopt the environmental document of the lead agency for a project shall be designated as a participating agency and shall collaborate on the preparation of the environmental document, unless the Federal agency informs the lead agency, in writing, by a time specified by the lead agency in the designation of the Federal agency that the Federal agency— (A) has no jurisdiction or authority with respect to the project; (B) has no expertise or information relevant to the project; and (C) does not intend to submit comments on the project. (3) Invitation The lead agency shall identify, as early as practicable in the environmental review for a project, any agencies other than an agency described in paragraph (2) that may have an interest in the project, including, where appropriate, Governors of affected States, and heads of appropriate tribal and local (including county) governments, and shall invite such identified agencies and officials to become participating agencies in the environmental review for the project. The invitation shall set a deadline of 30 days for responses to be submitted, which may only be extended by the lead agency for good cause shown. Any agency that fails to respond prior to the deadline shall be deemed to have declined the invitation. (4) Effect of declining participating agency invitation Any agency that declines a designation or invitation by the lead agency to be a participating agency shall be precluded from submitting comments on any document prepared under NEPA for that project or taking any measures to oppose, based on the environmental review, any permit, license, or approval related to that project. (5) Effect of designation Designation as a participating agency under this subsection does not imply that the participating agency— (A) supports a proposed project; or (B) has any jurisdiction over, or special expertise with respect to evaluation of, the project. (6) Cooperating agency A participating agency may also be designated by a lead agency as a cooperating agency under the regulations contained in part 1500 of title 40, Code of Federal Regulations, as in effect on January 1, 2011. Designation as a cooperating agency shall have no effect on designation as participating agency. No agency that is not a participating agency may be designated as a cooperating agency. (7) Concurrent reviews Each Federal agency shall— (A) carry out obligations of the Federal agency under other applicable law concurrently and in conjunction with the review required under NEPA; and (B) in accordance with the rules made by the Council on Environmental Quality pursuant to subsection (n)(1), make and carry out such rules, policies, and procedures as may be reasonably necessary to enable the agency to ensure completion of the environmental review and environmental decisionmaking process in a timely, coordinated, and environmentally responsible manner. (8) Comments Each participating agency shall limit its comments on a project to areas that are within the authority and expertise of such participating agency. Each participating agency shall identify in such comments the statutory authority of the participating agency pertaining to the subject matter of its comments. The lead agency shall not act upon, respond to or include in any document prepared under NEPA, any comment submitted by a participating agency that concerns matters that are outside of the authority and expertise of the commenting participating agency. (f) Project initiation request (1) Notice A project sponsor shall provide the Federal agency responsible for undertaking a project with notice of the initiation of the project by providing a description of the proposed project, the general location of the proposed project, and a statement of any Federal approvals anticipated to be necessary for the proposed project, for the purpose of informing the Federal agency that the environmental review should be initiated. (2) Lead agency initiation The agency receiving a project initiation notice under paragraph (1) shall promptly identify the lead agency for the project, and the lead agency shall initiate the environmental review within a period of 45 days after receiving the notice required by paragraph (1) by inviting or designating agencies to become participating agencies, or, where the lead agency determines that no participating agencies are required for the project, by taking such other actions that are reasonable and necessary to initiate the environmental review. (g) Alternatives analysis (1) Participation As early as practicable during the environmental review, but no later than during scoping for a project requiring the preparation of an environmental impact statement, the lead agency shall provide an opportunity for involvement by cooperating agencies in determining the range of alternatives to be considered for a project. (2) Range of alternatives Following participation under paragraph (1), the lead agency shall determine the range of alternatives for consideration in any document which the lead agency is responsible for preparing for the project, subject to the following limitations: (A) No evaluation of certain alternatives No Federal agency shall evaluate any alternative that was identified but not carried forward for detailed evaluation in an environmental document or evaluated and not selected in any environmental document prepared under NEPA for the same project. (B) Only feasible alternatives evaluated Where a project is being constructed, managed, funded, or undertaken by a project sponsor that is not a Federal agency, Federal agencies shall only be required to evaluate alternatives that the project sponsor could feasibly undertake, consistent with the purpose of and the need for the project, including alternatives that can be undertaken by the project sponsor and that are technically and economically feasible. (3) Methodologies (A) In general The lead agency shall determine, in collaboration with cooperating agencies at appropriate times during the environmental review, the methodologies to be used and the level of detail required in the analysis of each alternative for a project. The lead agency shall include in the environmental document a description of the methodologies used and how the methodologies were selected. (B) No evaluation of inappropriate alternatives When a lead agency determines that an alternative does not meet the purpose and need for a project, that alternative is not required to be evaluated in detail in an environmental document. (4) Preferred alternative At the discretion of the lead agency, the preferred alternative for a project, after being identified, may be developed to a higher level of detail than other alternatives in order to facilitate the development of mitigation measures or concurrent compliance with other applicable laws if the lead agency determines that the development of such higher level of detail will not prevent the lead agency from making an impartial decision as to whether to accept another alternative which is being considered in the environmental review. (5) Employment analysis The evaluation of each alternative in an environmental impact statement or an environmental assessment shall identify the potential effects of the alternative on employment, including potential short-term and long-term employment increases and reductions and shifts in employment. (h) Coordination and scheduling (1) Coordination plan (A) In general The lead agency shall establish and implement a plan for coordinating public and agency participation in and comment on the environmental review for a project or category of projects to facilitate the expeditious resolution of the environmental review. (B) Schedule (i) In general The lead agency shall establish as part of the coordination plan for a project, after consultation with each participating agency and, where applicable, the project sponsor, a schedule for completion of the environmental review. The schedule shall include deadlines, consistent with subsection (i), for decisions under any other Federal laws (including the issuance or denial of a permit or license) relating to the project that is covered by the schedule. (ii) Factors for consideration In establishing the schedule, the lead agency shall consider factors such as— (I) the responsibilities of participating agencies under applicable laws; (II) resources available to the participating agencies; (III) overall size and complexity of the project; (IV) overall schedule for and cost of the project; (V) the sensitivity of the natural and historic resources that could be affected by the project; and (VI) the extent to which similar projects in geographic proximity were recently subject to environmental review or similar State procedures. (iii) Compliance with the schedule (I) All participating agencies shall comply with the time periods established in the schedule or with any modified time periods, where the lead agency modifies the schedule pursuant to subparagraph (D). (II) The lead agency shall disregard and shall not respond to or include in any document prepared under NEPA, any comment or information submitted or any finding made by a participating agency that is outside of the time period established in the schedule or modification pursuant to subparagraph (D) for that agency’s comment, submission or finding. (III) If a participating agency fails to object in writing to a lead agency decision, finding or request for concurrence within the time period established under law or by the lead agency, the agency shall be deemed to have concurred in the decision, finding or request. (C) Consistency with other time periods A schedule under subparagraph (B) shall be consistent with any other relevant time periods established under Federal law. (D) Modification The lead agency may— (i) lengthen a schedule established under subparagraph (B) for good cause; and (ii) shorten a schedule only with the concurrence of the cooperating agencies. (E) Dissemination A copy of a schedule under subparagraph (B), and of any modifications to the schedule, shall be— (i) provided within 15 days of completion or modification of such schedule to all participating agencies and to the project sponsor; and (ii) made available to the public. (F) Roles and responsibility of lead agency With respect to the environmental review for any project, the lead agency shall have authority and responsibility to take such actions as are necessary and proper, within the authority of the lead agency, to facilitate the expeditious resolution of the environmental review for the project. (i) Deadlines The following deadlines shall apply to any project subject to review under NEPA and any decision under any Federal law relating to such project (including the issuance or denial of a permit or license or any required finding): (1) Environmental review deadlines The lead agency shall complete the environmental review within the following deadlines: (A) Environmental impact statement projects For projects requiring preparation of an environmental impact statement— (i) the lead agency shall issue an environmental impact statement within 2 years after the earlier of the date the lead agency receives the project initiation request or a Notice of Intent to Prepare an Environmental Impact Statement is published in the Federal Register; and (ii) in circumstances where the lead agency has prepared an environmental assessment and determined that an environmental impact statement will be required, the lead agency shall issue the environmental impact statement within 2 years after the date of publication of the Notice of Intent to Prepare an Environmental Impact Statement in the Federal Register. (B) Environmental assessment projects For projects requiring preparation of an environmental assessment, the lead agency shall issue a finding of no significant impact or publish a Notice of Intent to Prepare an Environmental Impact Statement in the Federal Register within 1 year after the earlier of the date the lead agency receives the project initiation request, makes a decision to prepare an environmental assessment, or sends out participating agency invitations. (2) Extensions (A) Requirements The environmental review deadlines may be extended only if— (i) a different deadline is established by agreement of the lead agency, the project sponsor, and all participating agencies; or (ii) the deadline is extended by the lead agency for good cause. (B) Limitation The environmental review shall not be extended by more than 1 year for a project requiring preparation of an environmental impact statement or by more than 180 days for a project requiring preparation of an environmental assessment. (3) Environmental review comments (A) Comments on draft environmental impact statement For comments by agencies and the public on a draft environmental impact statement, the lead agency shall establish a comment period of not more than 60 days after publication in the Federal Register of notice of the date of public availability of such document, unless— (i) a different deadline is established by agreement of the lead agency, the project sponsor, and all participating agencies; or (ii) the deadline is extended by the lead agency for good cause. (B) Other comments For all other comment periods for agency or public comments in the environmental review process, the lead agency shall establish a comment period of no more than 30 days from availability of the materials on which comment is requested, unless— (i) a different deadline is established by agreement of the lead agency, the project sponsor, and all participating agencies; or (ii) the deadline is extended by the lead agency for good cause. (4) Deadlines for decisions under other laws Notwithstanding any other provision of law, in any case in which a decision under any other Federal law relating to the undertaking of a project being reviewed under NEPA (including the issuance or denial of a permit or license) is required to be made, the following deadlines shall apply: (A) Decisions prior to record of decision or finding of no significant impact If a Federal agency is required to approve, or otherwise to act upon, a permit, license, or other similar application for approval related to a project prior to the record of decision or finding of no significant impact, such Federal agency shall approve or otherwise act not later than the end of a 90-day period beginning— (i) after all other relevant agency review related to the project is complete; and (ii) after the lead agency publishes a notice of the availability of the final environmental impact statement or issuance of other final environmental documents, or no later than such other date that is otherwise required by law, whichever event occurs first. (B) Other decisions With regard to any approval or other action related to a project by a Federal agency that is not subject to subparagraph (A), each Federal agency shall approve or otherwise act not later than the end of a period of 180 days beginning— (i) after all other relevant agency review related to the project is complete; and (ii) after the lead agency issues the record of decision or finding of no significant impact, unless a different deadline is established by agreement of the Federal agency, lead agency, and the project sponsor, where applicable, or the deadline is extended by the Federal agency for good cause, provided that such extension shall not extend beyond a period that is 1 year after the lead agency issues the record of decision or finding of no significant impact. (C) Failure to act In the event that any Federal agency fails to approve, or otherwise to act upon, a permit, license, or other similar application for approval related to a project within the applicable deadline described in subparagraph (A) or (B), the permit, license, or other similar application shall be deemed approved by such agency and the agency shall take action in accordance with such approval within 30 days of the applicable deadline described in subparagraph (A) or (B). (D) Final agency action Any approval under subparagraph (C) is deemed to be final agency action, and may not be reversed by any agency. In any action under chapter 7 seeking review of such a final agency action, the court may not set aside such agency action by reason of that agency action having occurred under this paragraph. (j) Issue identification and resolution (1) Cooperation The lead agency and the participating agencies shall work cooperatively in accordance with this section to identify and resolve issues that could delay completion of the environmental review or could result in denial of any approvals required for the project under applicable laws. (2) Lead agency responsibilities The lead agency shall make information available to the participating agencies as early as practicable in the environmental review regarding the environmental, historic, and socioeconomic resources located within the project area and the general locations of the alternatives under consideration. Such information may be based on existing data sources, including geographic information systems mapping. (3) Participating agency responsibilities Based on information received from the lead agency, participating agencies shall identify, as early as practicable, any issues of concern regarding the project’s potential environmental, historic, or socioeconomic impacts. In this paragraph, issues of concern include any issues that could substantially delay or prevent an agency from granting a permit or other approval that is needed for the project. (4) Issue resolution (A) Meeting of participating agencies At any time upon request of a project sponsor, the lead agency shall promptly convene a meeting with the relevant participating agencies and the project sponsor, to resolve issues that could delay completion of the environmental review or could result in denial of any approvals required for the project under applicable laws. (B) Notice that resolution cannot be achieved If a resolution cannot be achieved within 30 days following such a meeting and a determination by the lead agency that all information necessary to resolve the issue has been obtained, the lead agency shall notify the heads of all participating agencies, the project sponsor, and the Council on Environmental Quality for further proceedings in accordance with section 204 of NEPA, and shall publish such notification in the Federal Register. (k) Limitation on use of social cost of carbon (1) In general In the case of any environmental review or environmental decisionmaking process, a lead agency may not use the social cost of carbon. (2) Definition In this subsection, the term social cost of carbon means the social cost of carbon as described in the technical support document entitled Technical Support Document: Technical Update of the Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order No. 12866 , published by the Interagency Working Group on Social Cost of Carbon, United States Government, in May 2013, revised in November 2013, or any successor thereto or substantially related document, or any other estimate of the monetized damages associated with an incremental increase in carbon dioxide emissions in a given year. (l) Report to congress The head of each Federal agency shall report annually to Congress— (1) the projects for which the agency initiated preparation of an environmental impact statement or environmental assessment; (2) the projects for which the agency issued a record of decision or finding of no significant impact and the length of time it took the agency to complete the environmental review for each such project; (3) the filing of any lawsuits against the agency seeking judicial review of a permit, license, or approval issued by the agency for an action subject to NEPA, including the date the complaint was filed, the court in which the complaint was filed, and a summary of the claims for which judicial review was sought; and (4) the resolution of any lawsuits against the agency that sought judicial review of a permit, license, or approval issued by the agency for an action subject to NEPA. (m) Limitations on claims (1) In general Notwithstanding any other provision of law, a claim arising under Federal law seeking judicial review of a permit, license, or approval issued by a Federal agency for an action subject to NEPA shall be barred unless— (A) in the case of a claim pertaining to a project for which an environmental review was conducted and an opportunity for comment was provided, the claim is filed by a party that submitted a comment during the environmental review on the issue on which the party seeks judicial review, and such comment was sufficiently detailed to put the lead agency on notice of the issue upon which the party seeks judicial review; and (B) filed within 180 days after publication of a notice in the Federal Register announcing that the permit, license, or approval is final pursuant to the law under which the agency action is taken, unless a shorter time is specified in the Federal law pursuant to which judicial review is allowed. (2) New information The preparation of a supplemental environmental impact statement, when required, is deemed a separate final agency action and the deadline for filing a claim for judicial review of such action shall be 180 days after the date of publication of a notice in the Federal Register announcing the record of decision for such action. Any claim challenging agency action on the basis of information in a supplemental environmental impact statement shall be limited to challenges on the basis of that information. (3) Rule of construction Nothing in this subsection shall be construed to create a right to judicial review or place any limit on filing a claim that a person has violated the terms of a permit, license, or approval. (n) Categories of projects The authorities granted under this subchapter may be exercised for an individual project or a category of projects. (o) Effective date The requirements of this subchapter shall apply only to environmental reviews and environmental decisionmaking processes initiated after the date of enactment of this subchapter. In the case of a project for which an environmental review or environmental decisionmaking process was initiated prior to the date of enactment of this subchapter, the provisions of subsection (i) shall apply, except that, notwithstanding any other provision of this section, in determining a deadline under such subsection, any applicable period of time shall be calculated as beginning from the date of enactment of this subchapter. (p) Applicability Except as provided in subsection (p), this subchapter applies, according to the provisions thereof, to all projects for which a Federal agency is required to undertake an environmental review or make a decision under an environmental law for a project for which a Federal agency is undertaking an environmental review. (q) Savings clause Nothing in this section shall be construed to supersede, amend, or modify sections 134, 135, 139, 325, 326, and 327 of title 23, sections 5303 and 5304 of title 49, or subtitle C of title I of division A of the Moving Ahead for Progress in the 21st Century Act and the amendments made by such subtitle ( Public Law 112–141 ). . (b) Technical amendment The table of sections for chapter 5 of title 5, United States Code, is amended by inserting after the items relating to subchapter II the following: Subchapter IIA—Interagency Coordination Regarding Permitting 560. Coordination of agency administrative operations for efficient decisionmaking. . (c) Regulations (1) Council on environmental quality Not later than 180 days after the date of enactment of this division, the Council on Environmental Quality shall amend the regulations contained in part 1500 of title 40, Code of Federal Regulations, to implement the provisions of this division and the amendments made by this division, and shall by rule designate States with laws and procedures that satisfy the criteria under section 560(d)(2)(A) of title 5, United States Code. (2) Federal agencies Not later than 120 days after the date that the Council on Environmental Quality amends the regulations contained in part 1500 of title 40, Code of Federal Regulations, to implement the provisions of this division and the amendments made by this division, each Federal agency with regulations implementing the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) shall amend such regulations to implement the provisions of this division. Passed the House of Representatives September 18, 2014. Karen L. Haas, Clerk.

https://www.govinfo.gov/content/pkg/BILLS-113hr2eh/xml/BILLS-113hr2eh.xml

113-hr-3

I 113th CONGRESS 1st Session H. R. 3 IN THE HOUSE OF REPRESENTATIVES March 15, 2013 Mr. Terry (for himself, Mr. Matheson , Mr. Upton , Mr. Barrow of Georgia , Mr. Whitfield , Mr. Bachus , Mr. Barton , Mr. Bilirakis , Mr. Bishop of Utah , Mrs. Blackburn , Mr. Bonner , Mr. Boustany , Mr. Bridenstine , Mr. Broun of Georgia , Mr. Bucshon , Mr. Brooks of Alabama , Mr. Burgess , Mrs. Capito , Mr. Carter , Mr. Cassidy , Mr. Chabot , Mr. Coble , Mr. Conaway , Mr. Cramer , Mr. Crawford , Mr. Culberson , Mr. Daines , Mr. Rodney Davis of Illinois , Mr. Duncan of South Carolina , Mrs. Ellmers , Mr. Fincher , Mr. Flores , Mr. Franks of Arizona , Mr. Gohmert , Mr. Gardner , Mr. Gingrey of Georgia , Ms. Granger , Mr. Graves of Missouri , Mr. Griffin of Arkansas , Mr. Griffith of Virginia , Mr. Guthrie , Mr. Harper , Mr. Harris , Mr. Huelskamp , Mr. Huizenga of Michigan , Mr. Hunter , Mr. Johnson of Ohio , Mr. Kinzinger of Illinois , Mr. Lance , Mr. Latta , Mr. Long , Mr. Luetkemeyer , Mrs. Lummis , Mr. Marchant , Mr. McCaul , Mr. McHenry , Mr. McKinley , Mr. Meehan , Mr. Murphy of Pennsylvania , Mr. Mullin , Mr. Mulvaney , Mrs. Noem , Mr. Nunes , Mr. Olson , Mr. Pearce , Mr. Pitts , Mr. Poe of Texas , Mr. Ribble , Mrs. McMorris Rodgers , Mr. Rogers of Michigan , Mr. Scalise , Mr. Shimkus , Mr. Shuster , Mr. Stivers , Mr. Thompson of Pennsylvania , Mr. Walden , Mrs. Walorski , Mr. Weber of Texas , Mr. Westmoreland , Mr. Womack , Mr. Young of Florida , Mr. Coffman , Mr. Bentivolio , and Ms. Foxx ) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure , and in addition to the Committees on Energy and Commerce and Natural Resources , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To approve the construction, operation, and maintenance of the Keystone XL pipeline, and for other purposes. 1. Short title This Act may be cited as the Northern Route Approval Act . 2. Findings The Congress finds the following: (1) To maintain our Nation’s competitive edge and ensure an economy built to last, the United States must have fast, reliable, resilient, and environmentally sound means of moving energy. In a global economy, we will compete for the world’s investments based in significant part on the quality of our infrastructure. Investing in the Nation’s infrastructure provides immediate and long-term economic benefits for local communities and the Nation as a whole. (2) The delivery of oil from Canada, a close ally not only in proximity but in shared values and ideals, to domestic markets is in the national interest because of the need to lessen dependence upon insecure foreign sources. (3) The Keystone XL pipeline would provide both short-term and long-term employment opportunities and related labor income benefits, such as government revenues associated with taxes. (4) The State of Nebraska has thoroughly reviewed and approved the proposed Keystone XL pipeline reroute, concluding that the concerns of Nebraskans have had a major influence on the pipeline reroute and that the reroute will have minimal environmental impacts. (5) The Department of State and other Federal agencies have over a long period of time conducted extensive studies and analysis of the technical aspects and of the environmental, social, and economic impacts of the proposed Keystone XL pipeline. (6) The transportation of oil via pipeline is the safest and most economically and environmentally effective means of doing so. (7) The Keystone XL is in much the same position today as the Alaska Pipeline in 1973 prior to congressional action. Once again, the Federal regulatory process remains an insurmountable obstacle to a project that is likely to reduce oil imports from insecure foreign sources. 3. Keystone XL permit approval Notwithstanding Executive Order No. 13337 (3 U.S.C. 301 note), Executive Order No. 11423 ( 3 U.S.C. 301 note), section 301 of title 3, United States Code, and any other Executive order or provision of law, no Presidential permit shall be required for the pipeline described in the application filed on May 4, 2012, by TransCanada Keystone Pipeline, L.P. to the Department of State for the Keystone XL pipeline, as supplemented to include the Nebraska reroute evaluated in the Final Evaluation Report issued by the Nebraska Department of Environmental Quality in January 2013 and approved by the Nebraska governor. The final environmental impact statement issued by the Secretary of State on August 26, 2011, coupled with the Final Evaluation Report described in the previous sentence, shall be considered to satisfy all requirements of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and of the National Historic Preservation Act ( 16 U.S.C. 470 et seq. ). 4. Judicial review (a) Exclusive jurisdiction Except for review by the Supreme Court on writ of certiorari, the United States Court of Appeals for the District of Columbia Circuit shall have original and exclusive jurisdiction to determine— (1) the validity of any final order or action (including a failure to act) of any Federal agency or officer with respect to issuance of a permit relating to the construction or maintenance of the Keystone XL pipeline, including any final order or action deemed to be taken, made, granted, or issued; (2) the constitutionality of any provision of this Act, or any decision or action taken, made, granted, or issued, or deemed to be taken, made, granted, or issued under this Act; or (3) the adequacy of any environmental impact statement prepared under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), or of any analysis under any other Act, with respect to any action taken, made, granted, or issued, or deemed to be taken, made, granted, or issued under this Act. (b) Deadline for filing claim A claim arising under this Act may be brought not later than 60 days after the date of the decision or action giving rise to the claim. (c) Expedited consideration The United States Court of Appeals for the District of Columbia Circuit shall set any action brought under subsection (a) for expedited consideration, taking into account the national interest of enhancing national energy security by providing access to the significant oil reserves in Canada that are needed to meet the demand for oil. 5. American burying beetle (a) Findings The Congress finds that— (1) environmental reviews performed for the Keystone XL pipeline project satisfy the requirements of section 7 of the Endangered Species Act of 1973 ( 16 U.S.C. 1536(a)(2) ) in its entirety; and (2) for purposes of that Act, the Keystone XL pipeline project will not jeopardize the continued existence of the American burying beetle or destroy or adversely modify American burying beetle critical habitat. (b) Biological opinion The Secretary of the Interior is deemed to have issued a written statement setting forth the Secretary’s opinion containing such findings under section 7(b)(1)(A) of the Endangered Species Act of 1973 ( 16 U.S.C. 1536(b)(1)(A) ) and any taking of the American burying beetle that is incidental to the construction or operation and maintenance of the Keystone XL pipeline as it may be ultimately defined in its entirety, shall not be considered a prohibited taking of such species under such Act. 6. Right-of-way and temporary use permit The Secretary of the Interior is deemed to have granted or issued a grant of right-of-way and temporary use permit under section 28 of the Mineral Leasing Act ( 30 U.S.C. 185 ) and the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.), as set forth in the application tendered to the Bureau of Land Management for the Keystone XL pipeline. 7. Permits for activities in navigable waters (a) Issuance of permits The Secretary of the Army, not later than 90 days after receipt of an application therefor, shall issue all permits under section 404 of the Federal Water Pollution Control Act ( 33 U.S.C. 1344 ) and section 10 of the Act of March 3, 1899 ( 33 U.S.C. 403 ; commonly known as the Rivers and Harbors Appropriations Act of 1899), necessary for the construction, operation, and maintenance of the pipeline described in the May 4, 2012, application referred to in section 3, as supplemented by the Nebraska reroute. The application shall be based on the administrative record for the pipeline as of the date of enactment of this Act, which shall be considered complete. (b) Waiver of procedural requirements The Secretary may waive any procedural requirement of law or regulation that the Secretary considers desirable to waive in order to accomplish the purposes of this section. (c) Issuance in absence of action by the Secretary If the Secretary has not issued a permit described in subsection (a) on or before the last day of the 90-day period referred to in subsection (a), the permit shall be deemed issued under section 404 of the Federal Water Pollution Control Act ( 33 U.S.C. 1344 ) or section 10 of the Act of March 3, 1899 ( 33 U.S.C. 403 ), as appropriate, on the day following such last day. (d) Limitation The Administrator of the Environmental Protection Agency may not prohibit or restrict an activity or use of an area that is authorized under this section. 8. Migratory Bird Treaty Act permit The Secretary of the Interior is deemed to have issued a special purpose permit under the Migratory Bird Treaty Act ( 16 U.S.C. 703 et seq. ), as described in the application filed with the United States Fish and Wildlife Service for the Keystone XL pipeline on January 11, 2013.

https://www.govinfo.gov/content/pkg/BILLS-113hr3ih/xml/BILLS-113hr3ih.xml

113-hr-4

I 113th CONGRESS 2d Session H. R. 4 IN THE HOUSE OF REPRESENTATIVES AN ACT To make revisions to Federal law to improve the conditions necessary for economic growth and job creation, and for other purposes. 1. Short title This Act may be cited as the Jobs for America Act . 2. Table of contents The table of contents for this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. Sec. 3. PAYGO scorecard. Division I—Ways and Means Title I—Save American Workers Sec. 101. Short title. Sec. 102. Repeal of 30-hour threshold for classification as full-time employee for purposes of the employer mandate in the Patient Protection and Affordable Care Act and replacement with 40 hours. Title II—Hire More Heroes Sec. 201. Short title. Sec. 202. Employees with health coverage under TRICARE or the Veterans Administration may be exempted from employer mandate under Patient Protection and Affordable Care Act. Title III—American Research and Competitiveness Sec. 301. Short title. Sec. 302. Research credit simplified and made permanent. Sec. 303. PAYGO Scorecard. Title IV—America’s Small Business Tax Relief Sec. 401. Short title. Sec. 402. Expensing certain depreciable business assets for small business. Sec. 403. Budgetary effects. Title V—S Corporation Permanent Tax Relief Sec. 501. Short title. Sec. 502. Reduced recognition period for built-in gains of S corporations made permanent. Sec. 503. Permanent rule regarding basis adjustment to stock of S corporations making charitable contributions of property. Sec. 504. Budgetary effects. Title VI—Bonus depreciation modified and made permanent Sec. 601. Bonus depreciation modified and made permanent. Sec. 602. Budgetary effects. Title VII—Repeal of medical device excise tax Sec. 701. Repeal of medical device excise tax. Sec. 702. Budgetary effects. Division II—Financial Services Title I—Small Business Capital Access and Job Preservation Sec. 101. Short title. Sec. 102. Registration and reporting exemptions relating to private equity funds advisors. Title II—Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Sec. 201. Short title. Sec. 202. Registration exemption for merger and acquisition brokers. Sec. 203. Effective date. Division III—Oversight Subdivision A—Unfunded Mandates Information and Transparency Sec. 101. Short title. Sec. 102. Purpose. Sec. 103. Providing for Congressional Budget Office studies on policies involving changes in conditions of grant aid. Sec. 104. Clarifying the definition of direct costs to reflect Congressional Budget Office practice. Sec. 105. Expanding the scope of reporting requirements to include regulations imposed by independent regulatory agencies. Sec. 106. Amendments to replace Office of Management and Budget with Office of Information and Regulatory Affairs. Sec. 107. Applying substantive point of order to private sector mandates. Sec. 108. Regulatory process and principles. Sec. 109. Expanding the scope of statements to accompany significant regulatory actions. Sec. 110. Enhanced stakeholder consultation. Sec. 111. New authorities and responsibilities for Office of Information and Regulatory Affairs. Sec. 112. Retrospective analysis of existing Federal regulations. Sec. 113. Expansion of judicial review. Subdivision B—Achieving Less Excess in Regulation and Requiring Transparency Sec. 100. Short title; table of contents. Title I—All Economic Regulations are Transparent Act Sec. 101. Short title. Sec. 102. Office of Information and Regulatory Affairs publication of information relating to rules. Title II—Regulatory Accountability Act Sec. 201. Short title. Sec. 202. Definitions. Sec. 203. Rule making. Sec. 204. Agency guidance; procedures to issue major guidance; presidential authority to issue guidelines for issuance of guidance. Sec. 205. Hearings; presiding employees; powers and duties; burden of proof; evidence; record as basis of decision. Sec. 206. Actions reviewable. Sec. 207. Scope of review. Sec. 208. Added definition. Sec. 209. Effective date. Title III—Regulatory Flexibility Improvements Act Sec. 301. Short title. Sec. 302. Clarification and expansion of rules covered by the Regulatory Flexibility Act. Sec. 303. Expansion of report of regulatory agenda. Sec. 304. Requirements providing for more detailed analyses. Sec. 305. Repeal of waiver and delay authority; additional powers of the Chief Counsel for Advocacy. Sec. 306. Procedures for gathering comments. Sec. 307. Periodic review of rules. Sec. 308. Judicial review of compliance with the requirements of the Regulatory Flexibility Act available after publication of the final rule. Sec. 309. Jurisdiction of court of appeals over rules implementing the Regulatory Flexibility Act. Sec. 310. Establishment and approval of small business concern size standards by Chief Counsel for Advocacy. Sec. 311. Clerical amendments. Sec. 312. Agency preparation of guides. Sec. 313. Comptroller General report. Title IV—Sunshine for Regulatory Decrees and Settlements Act Sec. 401. Short title. Sec. 402. Definitions. Sec. 403. Consent decree and settlement reform. Sec. 404. Motions to modify consent decrees. Sec. 405. Effective date. Division IV—Judiciary Title I—Regulations From the Executive in Need of Scrutiny Sec. 101. Short title. Sec. 102. Purpose. Sec. 103. Congressional review of agency rulemaking. Sec. 104. Budgetary effects of rules subject to section 802 of title 5, United States Code. Sec. 105. Government Accountability Office study of rules. Title II—Permanent Internet Tax Freedom Sec. 201. Short title. Sec. 202. Permanent moratorium on Internet access taxes and multiple and discriminatory taxes on electronic commerce. Division V—Natural Resources Subdivision A—Restoring Healthy Forests for Healthy Communities Sec. 100. Short title. Title I—Restoring the Commitment to Rural Counties and Schools Sec. 101. Purposes. Sec. 102. Definitions. Sec. 103. Establishment of Forest Reserve Revenue Areas and annual volume requirements. Sec. 104. Management of Forest Reserve Revenue Areas. Sec. 105. Distribution of forest reserve revenues. Sec. 106. Annual report. Title II—Healthy Forest Management and Catastrophic Wildfire Prevention Sec. 201. Purposes. Sec. 202. Definitions. Sec. 203. Hazardous fuel reduction projects and forest health projects in at-risk forests. Sec. 204. Environmental analysis. Sec. 205. State designation of high-risk areas of National Forest System and public lands. Sec. 206. Use of hazardous fuels reduction or forest health projects for high-risk areas. Sec. 207. Moratorium on use of prescribed fire in Mark Twain National Forest, Missouri, pending report. Title III—Oregon and California Railroad Grant Lands Trust, Conservation, and Jobs Sec. 301. Short title. Sec. 302. Definitions. Subtitle A—Trust, Conservation, and Jobs Chapter 1—Creation and Terms of O&C Trust Sec. 311. Creation of O&C Trust and designation of O&C Trust lands. Sec. 312. Legal effect of O&C Trust and judicial review. Sec. 313. Board of Trustees. Sec. 314. Management of O&C Trust lands. Sec. 315. Distribution of revenues from O&C Trust lands. Sec. 316. Land exchange authority. Sec. 317. Payments to the United States Treasury. Chapter 2—Transfer of Certain Lands to Forest Service Sec. 321. Transfer of certain Oregon and California Railroad Grant lands to Forest Service. Sec. 322. Management of transferred lands by Forest Service. Sec. 323. Management efficiencies and expedited land exchanges. Sec. 324. Review panel and old growth protection. Sec. 325. Uniqueness of old growth protection on Oregon and California Railroad Grant lands. Chapter 3—Transition Sec. 331. Transition period and operations. Sec. 332. O&C Trust management capitalization. Sec. 333. Existing Bureau of Land Management and Forest Service contracts. Sec. 334. Protection of valid existing rights and access to non-Federal land. Sec. 335. Repeal of superseded law relating to Oregon and California Railroad Grant lands. Subtitle B—Coos Bay Wagon Roads Sec. 341. Transfer of management authority over certain Coos Bay Wagon Road Grant lands to Coos County, Oregon. Sec. 342. Transfer of certain Coos Bay Wagon Road Grant lands to Forest Service. Sec. 343. Land exchange authority. Subtitle C—Oregon Treasures Chapter 1—Wilderness Areas Sec. 351. Designation of Devil's Staircase Wilderness. Sec. 352. Expansion of Wild Rogue Wilderness Area. Chapter 2—Wild and Scenic River Designated and Related Protections Sec. 361. Wild and scenic river designations, Molalla River. Sec. 362. Wild and Scenic Rivers Act technical corrections related to Chetco River. Sec. 363. Wild and scenic river designations, Wasson Creek and Franklin Creek. Sec. 364. Wild and scenic river designations, Rogue River area. Sec. 365. Additional protections for Rogue River tributaries. Chapter 3—Additional Protections Sec. 371. Limitations on land acquisition. Sec. 372. Overflights. Sec. 373. Buffer zones. Sec. 374. Prevention of wildfires. Sec. 375. Limitation on designation of certain lands in Oregon. Chapter 4—Effective Date Sec. 381. Effective date. Subtitle D—Tribal Trust Lands Part 1—Council Creek Land Conveyance Sec. 391. Definitions. Sec. 392. Conveyance. Sec. 393. Map and legal description. Sec. 394. Administration. Part 2—Oregon Coastal Land Conveyance Sec. 395. Definitions. Sec. 396. Conveyance. Sec. 397. Map and legal description. Sec. 398. Administration. Title IV—Community Forest Management Demonstration Sec. 401. Purpose and definitions. Sec. 402. Establishment of community forest demonstration areas. Sec. 403. Advisory committee. Sec. 404. Management of community forest demonstration areas. Sec. 405. Distribution of funds from community forest demonstration area. Sec. 406. Initial funding authority. Sec. 407. Payments to United States Treasury. Sec. 408. Termination of community forest demonstration area. Title V—Reauthorization and Amendment of Existing Authorities and Other Matters Sec. 501. Extension of Secure Rural Schools and Community Self-Determination Act of 2000 pending full operation of Forest Reserve Revenue Areas. Sec. 502. Restoring original calculation method for 25-percent payments. Sec. 503. Forest Service and Bureau of Land Management good-neighbor cooperation with States to reduce wildfire risks. Sec. 504. Treatment as supplemental funding. Sec. 505. Definition of fire suppression to include certain related activities. Sec. 506. Prohibition on certain actions regarding Forest Service roads and trails. Subdivision B—National Strategic and Critical Minerals Production Sec. 100. Short title. Sec. 100A. Findings. Sec. 100B. Definitions. Title I—Development of Domestic Sources of Strategic and Critical Minerals Sec. 101. Improving development of strategic and critical minerals. Sec. 102. Responsibilities of the lead agency. Sec. 103. Conservation of the resource. Sec. 104. Federal register process for mineral exploration and mining projects. Title II—Judicial review of agency actions relating to Exploration and Mine Permits Sec. 201. Definitions for title. Sec. 202. Timely filings. Sec. 203. Right to intervene. Sec. 204. Expedition in hearing and determining the action. Sec. 205. Limitation on prospective relief. Sec. 206. Limitation on attorneys’ fees. Title III—Miscellaneous Provisions Sec. 301. Secretarial order not affected. 3. PAYGO scorecard The budgetary effects of this Act shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010. I Ways and Means I Save American Workers 101. Short title This title may be cited as the Save American Workers Act of 2014 . 102. Repeal of 30-hour threshold for classification as full-time employee for purposes of the employer mandate in the Patient Protection and Affordable Care Act and replacement with 40 hours (a) Full-Time equivalents Paragraph (2) of section 4980H(c) of the Internal Revenue Code of 1986 is amended— (1) by repealing subparagraph (E), and (2) by inserting after subparagraph (D) the following new subparagraph: (E) Full-time equivalents treated as full-time employees Solely for purposes of determining whether an employer is an applicable large employer under this paragraph, an employer shall, in addition to the number of full-time employees for any month otherwise determined, include for such month a number of full-time employees determined by dividing the aggregate number of hours of service of employees who are not full-time employees for the month by 174. . (b) Full-Time employees Paragraph (4) of section 4980H(c) of the Internal Revenue Code of 1986 is amended— (1) by repealing subparagraph (A), and (2) by inserting before subparagraph (B) the following new subparagraph: (A) In general The term full-time employee means, with respect to any month, an employee who is employed on average at least 40 hours of service per week. . (c) Effective date The amendments made by this section shall apply to months beginning after December 31, 2013. II Hire More Heroes 201. Short title This title may be cited as the Hire More Heroes Act of 2014 . 202. Employees with health coverage under TRICARE or the Veterans Administration may be exempted from employer mandate under Patient Protection and Affordable Care Act (a) In general Section 4980H(c)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following: (F) Exemption for health coverage under TRICARE or the Veterans Administration Solely for purposes of determining whether an employer is an applicable large employer under this paragraph for any month, an employer may elect not to take into account for a month as an employee any individual who, for such month, has medical coverage under— (i) chapter 55 of title 10, United States Code, including coverage under the TRICARE program, or (ii) under a health care program under chapter 17 or 18 of title 38, United States Code, as determined by the Secretary of Veterans Affairs, in coordination with the Secretary of Health and Human Services and the Secretary. . (b) Effective date The amendment made by subsection (a) shall apply to months beginning after December 31, 2013. III American Research and Competitiveness 301. Short title This title may be cited as the American Research and Competitiveness Act of 2014 . 302. Research credit simplified and made permanent (a) In general Subsection (a) of section 41 of the Internal Revenue Code of 1986 is amended to read as follows: (a) In general For purposes of section 38, the research credit determined under this section for the taxable year shall be an amount equal to the sum of— (1) 20 percent of so much of the qualified research expenses for the taxable year as exceeds 50 percent of the average qualified research expenses for the 3 taxable years preceding the taxable year for which the credit is being determined, (2) 20 percent of so much of the basic research payments for the taxable year as exceeds 50 percent of the average basic research payments for the 3 taxable years preceding the taxable year for which the credit is being determined, plus (3) 20 percent of the amounts paid or incurred by the taxpayer in carrying on any trade or business of the taxpayer during the taxable year (including as contributions) to an energy research consortium for energy research. . (b) Repeal of termination Section 41 of such Code is amended by striking subsection (h). (c) Conforming amendments (1) Subsection (c) of section 41 of such Code is amended to read as follows: (c) Determination of average research expenses for prior years (1) Special rule in case of no qualified research expenditures in any of 3 preceding taxable years In any case in which the taxpayer has no qualified research expenses in any one of the 3 taxable years preceding the taxable year for which the credit is being determined, the amount determined under subsection (a)(1) for such taxable year shall be equal to 10 percent of the qualified research expenses for the taxable year. (2) Consistent treatment of expenses (A) In general Notwithstanding whether the period for filing a claim for credit or refund has expired for any taxable year taken into account in determining the average qualified research expenses, or average basic research payments, taken into account under subsection (a), the qualified research expenses and basic research payments taken into account in determining such averages shall be determined on a basis consistent with the determination of qualified research expenses and basic research payments, respectively, for the credit year. (B) Prevention of distortions The Secretary may prescribe regulations to prevent distortions in calculating a taxpayer’s qualified research expenses or basic research payments caused by a change in accounting methods used by such taxpayer between the current year and a year taken into account in determining the average qualified research expenses or average basic research payments taken into account under subsection (a). . (2) Section 41(e) of such Code is amended— (A) by striking all that precedes paragraph (6) and inserting the following: (e) Basic research payments For purposes of this section— (1) In general The term basic research payment means, with respect to any taxable year, any amount paid in cash during such taxable year by a corporation to any qualified organization for basic research but only if— (A) such payment is pursuant to a written agreement between such corporation and such qualified organization, and (B) such basic research is to be performed by such qualified organization. (2) Exception to requirement that research be performed by the organization In the case of a qualified organization described in subparagraph (C) or (D) of paragraph (3), subparagraph (B) of paragraph (1) shall not apply. , (B) by redesignating paragraphs (6) and (7) as paragraphs (3) and (4), respectively, and (C) in paragraph (4) as so redesignated, by striking subparagraphs (B) and (C) and by redesignating subparagraphs (D) and (E) as subparagraphs (B) and (C), respectively. (3) Section 41(f)(3) of such Code is amended— (A) (i) by striking , and the gross receipts in subparagraph (A)(i) and all that follows through determined under clause (iii) , (ii) by striking clause (iii) of subparagraph (A) and redesignating clauses (iv), (v), and (vi), thereof, as clauses (iii), (iv), and (v), respectively, (iii) by striking and (iv) each place it appears in subparagraph (A)(iv) (as so redesignated) and inserting and (iii) , (iv) by striking subclause (IV) of subparagraph (A)(iv) (as so redesignated), by striking , and at the end of subparagraph (A)(iv)(III) (as so redesignated) and inserting a period, and by adding and at the end of subparagraph (A)(iv)(II) (as so redesignated), (v) by striking (A)(vi) in subparagraph (B) and inserting (A)(v) , and (vi) by striking (A)(iv)(II) in subparagraph (B)(i)(II) and inserting (A)(iii)(II) , (B) by striking , and the gross receipts of the predecessor, in subparagraph (A)(iv)(II) (as so redesignated), (C) by striking , and the gross receipts of, in subparagraph (B), (D) by striking , or gross receipts of, in subparagraph (B)(i)(I), and (E) by striking subparagraph (C). (4) Section 45C(b)(1) of such Code is amended by striking subparagraph (D). (d) Effective date (1) In general Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2013. (2) Subsection (b) The amendment made by subsection (b) shall apply to amounts paid or incurred after December 31, 2013. 303. PAYGO Scorecard (a) Paygo Scorecard The budgetary effects of this title shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010. (b) Senate Paygo Scorecard The budgetary effects of this title shall not be entered on any PAYGO scorecard maintained for purposes of section 201 of S. Con. Res. 21 (110th Congress). IV America’s Small Business Tax Relief 401. Short title This title may be cited as the America’s Small Business Tax Relief Act of 2014 . 402. Expensing certain depreciable business assets for small business (a) In general (1) Dollar limitation Paragraph (1) of section 179(b) of the Internal Revenue Code of 1986 is amended by striking shall not exceed— and all that follows and inserting shall not exceed $500,000. . (2) Reduction in limitation Paragraph (2) of section 179(b) of such Code is amended by striking exceeds— and all that follows and inserting exceeds $2,000,000. . (b) Computer software Clause (ii) of section 179(d)(1)(A) of such Code is amended by striking , to which section 167 applies, and which is placed in service in a taxable year beginning after 2002 and before 2014 and inserting and to which section 167 applies . (c) Election Paragraph (2) of section 179(c) of such Code is amended— (1) by striking may not be revoked and all that follows through and before 2014 , and (2) by striking irrevocable in the heading thereof. (d) Air conditioning and heating units Paragraph (1) of section 179(d) of such Code is amended by striking and shall not include air conditioning or heating units . (e) Qualified real property Subsection (f) of section 179 of such Code is amended— (1) by striking beginning in 2010, 2011, 2012, or 2013 in paragraph (1), and (2) by striking paragraphs (3) and (4). (f) Inflation adjustment Subsection (b) of section 179 of such Code is amended by adding at the end the following new paragraph: (6) Inflation adjustment (A) In general In the case of any taxable year beginning after 2014, the dollar amounts in paragraphs (1) and (2) shall each be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which such taxable year begins, determined by substituting calendar year 2013 for calendar year 1992 in subparagraph (B) thereof. (B) Rounding The amount of any increase under subparagraph (A) shall be rounded to the nearest multiple of $10,000. . (g) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2013. 403. Budgetary effects (a) Statutory Pay-As-You-Go Scorecards The budgetary effects of this title shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010. (b) Senate PAYGO Scorecards The budgetary effects of this title shall not be entered on any PAYGO scorecard maintained for purposes of section 201 of S. Con. Res. 21 (110th Congress). V S Corporation Permanent Tax Relief 501. Short title This title may be cited as the S Corporation Permanent Tax Relief Act of 2014 . 502. Reduced recognition period for built-in gains of S corporations made permanent (a) In general Paragraph (7) of section 1374(d) of the Internal Revenue Code of 1986 is amended to read as follows: (7) Recognition period (A) In general The term recognition period means the 5-year period beginning with the 1st day of the 1st taxable year for which the corporation was an S corporation. For purposes of applying this section to any amount includible in income by reason of distributions to shareholders pursuant to section 593(e), the preceding sentence shall be applied without regard to the phrase 5-year . (B) Installment sales If an S corporation sells an asset and reports the income from the sale using the installment method under section 453, the treatment of all payments received shall be governed by the provisions of this paragraph applicable to the taxable year in which such sale was made. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2013. 503. Permanent rule regarding basis adjustment to stock of S corporations making charitable contributions of property (a) In general Section 1367(a)(2) of the Internal Revenue Code of 1986 is amended by striking the last sentence. (b) Effective date The amendment made by this section shall apply to contributions made in taxable years beginning after December 31, 2013. 504. Budgetary effects (a) Statutory Pay-As-You-Go Scorecards The budgetary effects of this title shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010. (b) Senate PAYGO Scorecards The budgetary effects of this title shall not be entered on any PAYGO scorecard maintained for purposes of section 201 of S. Con. Res. 21 (110th Congress). VI Bonus depreciation modified and made permanent 601. Bonus depreciation modified and made permanent (a) Made permanent; inclusion of qualified retail improvement property Section 168(k)(2) of the Internal Revenue Code of 1986 is amended to read as follows: (2) Qualified property For purposes of this subsection— (A) In general The term qualified property means property— (i) (I) to which this section applies which has a recovery period of 20 years or less, (II) which is computer software (as defined in section 167(f)(1)(B)) for which a deduction is allowable under section 167(a) without regard to this subsection, (III) which is water utility property, (IV) which is qualified leasehold improvement property, or (V) which is qualified retail improvement property, and (ii) the original use of which commences with the taxpayer. (B) Exception for alternative depreciation property The term qualified property shall not include any property to which the alternative depreciation system under subsection (g) applies, determined— (i) without regard to paragraph (7) of subsection (g) (relating to election to have system apply), and (ii) after application of section 280F(b) (relating to listed property with limited business use). (C) Special rules (i) Sale-leasebacks For purposes of clause (ii) and subparagraph (A)(ii), if property is— (I) originally placed in service by a person, and (II) sold and leased back by such person within 3 months after the date such property was originally placed in service, such property shall be treated as originally placed in service not earlier than the date on which such property is used under the leaseback referred to in subclause (II). (ii) Syndication For purposes of subparagraph (A)(ii), if— (I) property is originally placed in service by the lessor of such property, (II) such property is sold by such lessor or any subsequent purchaser within 3 months after the date such property was originally placed in service (or, in the case of multiple units of property subject to the same lease, within 3 months after the date the final unit is placed in service, so long as the period between the time the first unit is placed in service and the time the last unit is placed in service does not exceed 12 months), and (III) the user of such property after the last sale during such 3-month period remains the same as when such property was originally placed in service, such property shall be treated as originally placed in service not earlier than the date of such last sale. (D) Coordination with section 280F For purposes of section 280F— (i) Automobiles In the case of a passenger automobile (as defined in section 280F(d)(5)) which is qualified property, the Secretary shall increase the limitation under section 280F(a)(1)(A)(i) by $8,000. (ii) Listed property The deduction allowable under paragraph (1) shall be taken into account in computing any recapture amount under section 280F(b)(2). (iii) Inflation adjustment In the case of any taxable year beginning in a calendar year after 2014, the $8,000 amount in clause (i) shall be increased by an amount equal to— (I) such dollar amount, multiplied by (II) the automobile price inflation adjustment determined under section 280F(d)(7)(B)(i) for the calendar year in which such taxable year begins by substituting 2013 for 1987 in subclause (II) thereof. If any increase under the preceding sentence is not a multiple of $100, such increase shall be rounded to the nearest multiple of $100. (E) Deduction allowed in computing minimum tax For purposes of determining alternative minimum taxable income under section 55, the deduction under section 167 for qualified property shall be determined without regard to any adjustment under section 56. . (b) Expansion of election to accelerate amt credits in lieu of bonus depreciation Section 168(k)(4) of such Code is amended to read as follows: (4) Election to accelerate amt credits in lieu of bonus depreciation (A) In general If a corporation elects to have this paragraph apply for any taxable year— (i) paragraphs (1)(A), (2)(D)(i), and (5)(A)(i) shall not apply for such taxable year, (ii) the applicable depreciation method used under this section with respect to any qualified property shall be the straight line method, and (iii) the limitation imposed by section 53(c) for such taxable year shall be increased by the bonus depreciation amount which is determined for such taxable year under subparagraph (B). (B) Bonus depreciation amount For purposes of this paragraph— (i) In general The bonus depreciation amount for any taxable year is an amount equal to 20 percent of the excess (if any) of— (I) the aggregate amount of depreciation which would be allowed under this section for qualified property placed in service by the taxpayer during such taxable year if paragraph (1) applied to all such property, over (II) the aggregate amount of depreciation which would be allowed under this section for qualified property placed in service by the taxpayer during such taxable year if paragraph (1) did not apply to any such property. The aggregate amounts determined under subclauses (I) and (II) shall be determined without regard to any election made under subsection (b)(2)(D), (b)(3)(D), or (g)(7) and without regard to subparagraph (A)(ii). (ii) Limitation The bonus depreciation amount for any taxable year shall not exceed the lesser of— (I) 50 percent of the minimum tax credit under section 53(b) for the first taxable year ending after December 31, 2013, or (II) the minimum tax credit under section 53(b) for such taxable year determined by taking into account only the adjusted net minimum tax for taxable years ending before January 1, 2014 (determined by treating credits as allowed on a first-in, first-out basis). (iii) Aggregation rule All corporations which are treated as a single employer under section 52(a) shall be treated— (I) as 1 taxpayer for purposes of this paragraph, and (II) as having elected the application of this paragraph if any such corporation so elects. (C) Credit refundable For purposes of section 6401(b), the aggregate increase in the credits allowable under part IV of subchapter A for any taxable year resulting from the application of this paragraph shall be treated as allowed under subpart C of such part (and not any other subpart). (D) Other rules (i) Election Any election under this paragraph may be revoked only with the consent of the Secretary. (ii) Partnerships with electing partners In the case of a corporation which is a partner in a partnership and which makes an election under subparagraph (A) for the taxable year, for purposes of determining such corporation’s distributive share of partnership items under section 702 for such taxable year— (I) paragraphs (1)(A), (2)(D)(i), and (5)(A)(i) shall not apply, and (II) the applicable depreciation method used under this section with respect to any qualified property shall be the straight line method. (iii) Certain partnerships In the case of a partnership in which more than 50 percent of the capital and profits interests are owned (directly or indirectly) at all times during the taxable year by 1 corporation (or by corporations treated as 1 taxpayer under subparagraph (B)(iii)), each partner shall compute its bonus depreciation amount under clause (i) of subparagraph (B) by taking into account its distributive share of the amounts determined by the partnership under subclauses (I) and (II) of such clause for the taxable year of the partnership ending with or within the taxable year of the partner. . (c) Special rules for trees and vines bearing fruits and nuts Section 168(k) of such Code is amended— (1) by striking paragraph (5), and (2) by inserting after paragraph (4) the following new paragraph: (5) Special rules for trees and vines bearing fruits and nuts (A) In general In the case of any tree or vine bearing fruits or nuts which is planted, or is grafted to a plant that has already been planted, by the taxpayer in the ordinary course of the taxpayer’s farming business (as defined in section 263A(e)(4))— (i) a depreciation deduction equal to 50 percent of the adjusted basis of such tree or vine shall be allowed under section 167(a) for the taxable year in which such tree or vine is so planted or grafted, and (ii) the adjusted basis of such tree or vine shall be reduced by the amount of such deduction. (B) Election out If a taxpayer makes an election under this subparagraph for any taxable year, this paragraph shall not apply to any tree or vine planted or grafted during such taxable year. An election under this subparagraph may be revoked only with the consent of the Secretary. (C) Additional depreciation may be claimed only once If this paragraph applies to any tree or vine, such tree or vine shall not be treated as qualified property in the taxable year in which placed in service. (D) Coordination with election to accelerate AMT credits If a corporation makes an election under paragraph (4) for any taxable year, the amount under paragraph (4)(B)(i)(I) for such taxable year shall be increased by the amount determined under subparagraph (A)(i) for such taxable year. (E) Deduction allowed in computing minimum tax Rules similar to the rules of paragraph (2)(E) shall apply for purposes of this paragraph. . (d) Conforming amendments (1) Section 168(e)(8) of such Code is amended by striking subparagraph (D). (2) Section 168(k) of such Code is amended by adding at the end the following new paragraph: (6) Election out If a taxpayer makes an election under this paragraph with respect to any class of property for any taxable year, this subsection shall not apply to all property in such class placed in service (or, in the case of paragraph (5), planted or grafted) during such taxable year. An election under this paragraph may be revoked only with the consent of the Secretary. . (3) Section 168(l)(5) of such Code is amended by striking section 168(k)(2)(G) and inserting section 168(k)(2)(E) . (4) Section 263A(c) of such Code is amended by adding at the end the following new paragraph: (7) Coordination with section 168(k)(5) This section shall not apply to any amount allowable as a deduction by reason of section 168(k)(5) (relating to special rules for trees and vines bearing fruits and nuts). . (5) Section 460(c)(6)(B) of such Code is amended by striking which— and all that follows and inserting which has a recovery period of 7 years or less. . (6) Section 168(k) of such Code is amended by striking acquired after December 31, 2007, and before January 1, 2014 in the heading thereof. (e) Effective dates (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall apply to property placed in service after December 31, 2013. (2) Expansion of election to accelerate amt credits in lieu of bonus depreciation (A) In general The amendment made by subsection (b) (other than so much of such amendment as relates to section 168(k)(4)(D)(iii) of such Code, as added by such amendment) shall apply to taxable years ending after December 31, 2013. (B) Transitional rule In the case of a taxable year beginning before January 1, 2014, and ending after December 31, 2013, the bonus depreciation amount determined under section 168(k)(4) of such Code for such year shall be the sum of— (i) such amount determined without regard to the amendments made by this section and— (I) by taking into account only property placed in service before January 1, 2014, and (II) by multiplying the limitation under section 168(k)(4)(C)(ii) of such Code (determined without regard to the amendments made by this section) by a fraction the numerator of which is the number of days in the taxable year before January 1, 2014, and the denominator of which is the number of days in the taxable year, and (ii) such amount determined after taking into account the amendments made by this section and— (I) by taking into account only property placed in service after December 31, 2013, and (II) by multiplying the limitation under section 168(k)(4)(B)(ii) of such Code (as amended by this section) by a fraction the numerator of which is the number of days in the taxable year after December 31, 2013, and the denominator of which is the number of days in the taxable year. (3) Special rules for certain trees and vines The amendment made by subsection (c)(2) shall apply to trees and vines planted or grafted after December 31, 2013. 602. Budgetary effects (a) Statutory Pay-As-You-Go Scorecards The budgetary effects of this title shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010. (b) Senate PAYGO Scorecards The budgetary effects of this title shall not be entered on any PAYGO scorecard maintained for purposes of section 201 of S. Con. Res. 21 (110th Congress). VII Repeal of medical device excise tax 701. Repeal of medical device excise tax (a) In general Chapter 32 of the Internal Revenue Code of 1986 is amended by striking subchapter E. (b) Conforming amendments (1) Subsection (a) of section 4221 of such Code is amended by striking the last sentence. (2) Paragraph (2) of section 6416(b) of such Code is amended by striking the last sentence. (3) The table of subchapters for chapter 32 of such Code is amended by striking the item relating to subchapter E. (c) Effective date The amendments made by this section shall apply to sales after December 31, 2012. 702. Budgetary effects (a) Statutory Pay-As-You-Go Scorecards The budgetary effects of this title shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010. (b) Senate PAYGO Scorecards The budgetary effects of this title shall not be entered on any PAYGO scorecard maintained for purposes of section 201 of S. Con. Res. 21 (110th Congress). II Financial Services I Small Business Capital Access and Job Preservation 101. Short title This title may be cited as the Small Business Capital Access and Job Preservation Act . 102. Registration and reporting exemptions relating to private equity funds advisors Section 203 of the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–3 ) is amended by adding at the end the following: (o) Exemption of and reporting requirements by private equity funds advisors (1) In general Except as provided in this subsection, no investment adviser shall be subject to the registration or reporting requirements of this title with respect to the provision of investment advice relating to a private equity fund or funds, provided that each such fund has not borrowed and does not have outstanding a principal amount in excess of twice its invested capital commitments. (2) Maintenance of records and access by Commission Not later than 6 months after the date of enactment of this subsection, the Commission shall issue final rules— (A) to require investment advisers described in paragraph (1) to maintain such records and provide to the Commission such annual or other reports as the Commission may require taking into account fund size, governance, investment strategy, risk, and other factors, as the Commission determines necessary and appropriate in the public interest and for the protection of investors; and (B) to define the term private equity fund for purposes of this subsection. . II Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification 201. Short title This title may be cited as the Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act of 2014 . 202. Registration exemption for merger and acquisition brokers Section 15(b) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78o(b) ) is amended by adding at the end the following: (13) Registration exemption for merger and acquisition brokers (A) In general Except as provided in subparagraph (B), an M&A broker shall be exempt from registration under this section. (B) Excluded activities An M&A broker is not exempt from registration under this paragraph if such broker does any of the following: (i) Directly or indirectly, in connection with the transfer of ownership of an eligible privately held company, receives, holds, transmits, or has custody of the funds or securities to be exchanged by the parties to the transaction. (ii) Engages on behalf of an issuer in a public offering of any class of securities that is registered, or is required to be registered, with the Commission under section 12 or with respect to which the issuer files, or is required to file, periodic information, documents, and reports under subsection (d). (C) Rule of construction Nothing in this paragraph shall be construed to limit any other authority of the Commission to exempt any person, or any class of persons, from any provision of this title, or from any provision of any rule or regulation thereunder. (D) Definitions In this paragraph: (i) Control The term control means the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract, or otherwise. There is a presumption of control for any person who— (I) is a director, general partner, member or manager of a limited liability company, or officer exercising executive responsibility (or has similar status or functions); (II) has the right to vote 20 percent or more of a class of voting securities or the power to sell or direct the sale of 20 percent or more of a class of voting securities; or (III) in the case of a partnership or limited liability company, has the right to receive upon dissolution, or has contributed, 20 percent or more of the capital. (ii) Eligible privately held company The term eligible privately held company means a company that meets both of the following conditions: (I) The company does not have any class of securities registered, or required to be registered, with the Commission under section 12 or with respect to which the company files, or is required to file, periodic information, documents, and reports under subsection (d). (II) In the fiscal year ending immediately before the fiscal year in which the services of the M&A broker are initially engaged with respect to the securities transaction, the company meets either or both of the following conditions (determined in accordance with the historical financial accounting records of the company): (aa) The earnings of the company before interest, taxes, depreciation, and amortization are less than $25,000,000. (bb) The gross revenues of the company are less than $250,000,000. (iii) M&A broker The term M&A broker means a broker, and any person associated with a broker, engaged in the business of effecting securities transactions solely in connection with the transfer of ownership of an eligible privately held company, regardless of whether the broker acts on behalf of a seller or buyer, through the purchase, sale, exchange, issuance, repurchase, or redemption of, or a business combination involving, securities or assets of the eligible privately held company, if the broker reasonably believes that— (I) upon consummation of the transaction, any person acquiring securities or assets of the eligible privately held company, acting alone or in concert, will control and, directly or indirectly, will be active in the management of the eligible privately held company or the business conducted with the assets of the eligible privately held company; and (II) if any person is offered securities in exchange for securities or assets of the eligible privately held company, such person will, prior to becoming legally bound to consummate the transaction, receive or have reasonable access to the most recent year-end balance sheet, income statement, statement of changes in financial position, and statement of owner’s equity of the issuer of the securities offered in exchange, and, if the financial statements of the issuer are audited, the related report of the independent auditor, a balance sheet dated not more than 120 days before the date of the offer, and information pertaining to the management, business, results of operations for the period covered by the foregoing financial statements, and material loss contingencies of the issuer. (E) Inflation adjustment (i) In general On the date that is 5 years after the date of the enactment of the Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act of 2014 , and every 5 years thereafter, each dollar amount in subparagraph (D)(ii)(II) shall be adjusted by— (I) dividing the annual value of the Employment Cost Index For Wages and Salaries, Private Industry Workers (or any successor index), as published by the Bureau of Labor Statistics, for the calendar year preceding the calendar year in which the adjustment is being made by the annual value of such index (or successor) for the calendar year ending December 31, 2012; and (II) multiplying such dollar amount by the quotient obtained under subclause (I). (ii) Rounding Each dollar amount determined under clause (i) shall be rounded to the nearest multiple of $100,000. . 203. Effective date This title and any amendment made by this title shall take effect on the date that is 90 days after the date of the enactment of this Act. III Oversight A Unfunded Mandates Information and Transparency 101. Short title This subdivision may be cited as the Unfunded Mandates Information and Transparency Act of 2014 . 102. Purpose The purpose of this title is— (1) to improve the quality of the deliberations of Congress with respect to proposed Federal mandates by— (A) providing Congress and the public with more complete information about the effects of such mandates; and (B) ensuring that Congress acts on such mandates only after focused deliberation on their effects; and (2) to enhance the ability of Congress and the public to identify Federal mandates that may impose undue harm on consumers, workers, employers, small businesses, and State, local, and tribal governments. 103. Providing for Congressional Budget Office studies on policies involving changes in conditions of grant aid Section 202(g) of the Congressional Budget Act of 1974 ( 2 U.S.C. 602(g) ) is amended by adding at the end the following new paragraph: (3) Additional studies At the request of any Chairman or ranking member of the minority of a Committee of the Senate or the House of Representatives, the Director shall conduct an assessment comparing the authorized level of funding in a bill or resolution to the prospective costs of carrying out any changes to a condition of Federal assistance being imposed on State, local, or tribal governments participating in the Federal assistance program concerned or, in the case of a bill or joint resolution that authorizes such sums as are necessary, an assessment of an estimated level of funding compared to such costs. . 104. Clarifying the definition of direct costs to reflect Congressional Budget Office practice Section 421(3) of the Congressional Budget Act of 1974 ( 2 U.S.C. 658(3)(A)(i) ) is amended— (1) in subparagraph (A)(i), by inserting incur or before be required ; and (2) in subparagraph (B), by inserting after to spend the following: or could forgo in profits, including costs passed on to consumers or other entities taking into account, to the extent practicable, behavioral changes, . 105. Expanding the scope of reporting requirements to include regulations imposed by independent regulatory agencies Paragraph (1) of section 421 of the Congressional Budget Act of 1974 ( 2 U.S.C. 658 ) is amended by striking , but does not include independent regulatory agencies and inserting , except it does not include the Board of Governors of the Federal Reserve System or the Federal Open Market Committee . 106. Amendments to replace Office of Management and Budget with Office of Information and Regulatory Affairs The Unfunded Mandates Reform Act of 1995 ( Public Law 104–4 ; 2 U.S.C. 1511 et seq. ) is amended— (1) in section 103(c) ( 2 U.S.C. 1511(c) )— (A) in the subsection heading, by striking Office of Management and Budget and inserting Office of Information and Regulatory Affairs ; and (B) by striking Director of the Office of Management and Budget and inserting Administrator of the Office of Information and Regulatory Affairs ; (2) in section 205(c) ( 2 U.S.C. 1535(c) )— (A) in the subsection heading, by striking OMB ; and (B) by striking Director of the Office of Management and Budget and inserting Administrator of the Office of Information and Regulatory Affairs ; and (3) in section 206 ( 2 U.S.C. 1536 ), by striking Director of the Office of Management and Budget and inserting Administrator of the Office of Information and Regulatory Affairs . 107. Applying substantive point of order to private sector mandates Section 425(a)(2) of the Congressional Budget Act of 1974 ( 2 U.S.C. 658d(a)(2) ) is amended— (1) by striking Federal intergovernmental mandates and inserting Federal mandates ; and (2) by inserting or 424(b)(1) after section 424(a)(1) . 108. Regulatory process and principles Section 201 of the Unfunded Mandates Reform Act of 1995 ( 2 U.S.C. 1531 ) is amended to read as follows: 201. Regulatory process and principles (a) In general Each agency shall, unless otherwise expressly prohibited by law, assess the effects of Federal regulatory actions on State, local, and tribal governments and the private sector (other than to the extent that such regulatory actions incorporate requirements specifically set forth in law) in accordance with the following principles: (1) Each agency shall identify the problem that it intends to address (including, if applicable, the failures of private markets or public institutions that warrant new agency action) as well as assess the significance of that problem. (2) Each agency shall examine whether existing regulations (or other law) have created, or contributed to, the problem that a new regulation is intended to correct and whether those regulations (or other law) should be modified to achieve the intended goal of regulation more effectively. (3) Each agency shall identify and assess available alternatives to direct regulation, including providing economic incentives to encourage the desired behavior, such as user fees or marketable permits, or providing information upon which choices can be made by the public. (4) If an agency determines that a regulation is the best available method of achieving the regulatory objective, it shall design its regulations in the most cost-effective manner to achieve the regulatory objective. In doing so, each agency shall consider incentives for innovation, consistency, predictability, the costs of enforcement and compliance (to the government, regulated entities, and the public), flexibility, distributive impacts, and equity. (5) Each agency shall assess both the costs and the benefits of the intended regulation and, recognizing that some costs and benefits are difficult to quantify, propose or adopt a regulation, unless expressly prohibited by law, only upon a reasoned determination that the benefits of the intended regulation justify its costs. (6) Each agency shall base its decisions on the best reasonably obtainable scientific, technical, economic, and other information concerning the need for, and consequences of, the intended regulation. (7) Each agency shall identify and assess alternative forms of regulation and shall, to the extent feasible, specify performance objectives, rather than specifying the behavior or manner of compliance that regulated entities must adopt. (8) Each agency shall avoid regulations that are inconsistent, incompatible, or duplicative with its other regulations or those of other Federal agencies. (9) Each agency shall tailor its regulations to minimize the costs of the cumulative impact of regulations. (10) Each agency shall draft its regulations to be simple and easy to understand, with the goal of minimizing the potential for uncertainty and litigation arising from such uncertainty. (b) Regulatory action defined In this section, the term regulatory action means any substantive action by an agency (normally published in the Federal Register) that promulgates or is expected to lead to the promulgation of a final rule or regulation, including advance notices of proposed rulemaking and notices of proposed rulemaking. . 109. Expanding the scope of statements to accompany significant regulatory actions (a) In general Subsection (a) of section 202 of the Unfunded Mandates Reform Act of 1995 ( 2 U.S.C. 1532 ) is amended to read as follows: (a) In general Unless otherwise expressly prohibited by law, before promulgating any general notice of proposed rulemaking or any final rule, or within six months after promulgating any final rule that was not preceded by a general notice of proposed rulemaking, if the proposed rulemaking or final rule includes a Federal mandate that may result in an annual effect on State, local, or tribal governments, or to the private sector, in the aggregate of $100,000,000 or more in any 1 year, the agency shall prepare a written statement containing the following: (1) The text of the draft proposed rulemaking or final rule, together with a reasonably detailed description of the need for the proposed rulemaking or final rule and an explanation of how the proposed rulemaking or final rule will meet that need. (2) An assessment of the potential costs and benefits of the proposed rulemaking or final rule, including an explanation of the manner in which the proposed rulemaking or final rule is consistent with a statutory requirement and avoids undue interference with State, local, and tribal governments in the exercise of their governmental functions. (3) A qualitative and quantitative assessment, including the underlying analysis, of benefits anticipated from the proposed rulemaking or final rule (such as the promotion of the efficient functioning of the economy and private markets, the enhancement of health and safety, the protection of the natural environment, and the elimination or reduction of discrimination or bias). (4) A qualitative and quantitative assessment, including the underlying analysis, of costs anticipated from the proposed rulemaking or final rule (such as the direct costs both to the Government in administering the final rule and to businesses and others in complying with the final rule, and any adverse effects on the efficient functioning of the economy, private markets (including productivity, employment, and international competitiveness), health, safety, and the natural environment). (5) Estimates by the agency, if and to the extent that the agency determines that accurate estimates are reasonably feasible, of— (A) the future compliance costs of the Federal mandate; and (B) any disproportionate budgetary effects of the Federal mandate upon any particular regions of the Nation or particular State, local, or tribal governments, urban or rural or other types of communities, or particular segments of the private sector. (6) (A) A detailed description of the extent of the agency’s prior consultation with the private sector and elected representatives (under section 204) of the affected State, local, and tribal governments. (B) A detailed summary of the comments and concerns that were presented by the private sector and State, local, or tribal governments either orally or in writing to the agency. (C) A detailed summary of the agency’s evaluation of those comments and concerns. (7) A detailed summary of how the agency complied with each of the regulatory principles described in section 201. . (b) Requirement for detailed summary Subsection (b) of section 202 of such Act is amended by inserting detailed before summary . 110. Enhanced stakeholder consultation Section 204 of the Unfunded Mandates Reform Act of 1995 ( 2 U.S.C. 1534 ) is amended— (1) in the section heading, by inserting and private sector before input ; (2) in subsection (a)— (A) by inserting , and impacted parties within the private sector (including small business), after on their behalf) ; (B) by striking Federal intergovernmental mandates and inserting Federal mandates ; and (3) by amending subsection (c) to read as follows: (c) Guidelines For appropriate implementation of subsections (a) and (b) consistent with applicable laws and regulations, the following guidelines shall be followed: (1) Consultations shall take place as early as possible, before issuance of a notice of proposed rulemaking, continue through the final rule stage, and be integrated explicitly into the rulemaking process. (2) Agencies shall consult with a wide variety of State, local, and tribal officials and impacted parties within the private sector (including small businesses). Geographic, political, and other factors that may differentiate varying points of view should be considered. (3) Agencies should estimate benefits and costs to assist with these consultations. The scope of the consultation should reflect the cost and significance of the Federal mandate being considered. (4) Agencies shall, to the extent practicable— (A) seek out the views of State, local, and tribal governments, and impacted parties within the private sector (including small business), on costs, benefits, and risks; and (B) solicit ideas about alternative methods of compliance and potential flexibilities, and input on whether the Federal regulation will harmonize with and not duplicate similar laws in other levels of government. (5) Consultations shall address the cumulative impact of regulations on the affected entities. (6) Agencies may accept electronic submissions of comments by relevant parties but may not use those comments as the sole method of satisfying the guidelines in this subsection. . 111. New authorities and responsibilities for Office of Information and Regulatory Affairs Section 208 of the Unfunded Mandates Reform Act of 1995 ( 2 U.S.C. 1538 ) is amended to read as follows: 208. Office of Information and Regulatory Affairs responsibilities (a) In General The Administrator of the Office of Information and Regulatory Affairs shall provide meaningful guidance and oversight so that each agency’s regulations for which a written statement is required under section 202 are consistent with the principles and requirements of this title, as well as other applicable laws, and do not conflict with the policies or actions of another agency. If the Administrator determines that an agency’s regulations for which a written statement is required under section 202 do not comply with such principles and requirements, are not consistent with other applicable laws, or conflict with the policies or actions of another agency, the Administrator shall identify areas of non-compliance, notify the agency, and request that the agency comply before the agency finalizes the regulation concerned. (b) Annual Statements to Congress on Agency Compliance The Director of the Office of Information and Regulatory Affairs annually shall submit to Congress, including the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform of the House of Representatives, a written report detailing compliance by each agency with the requirements of this title that relate to regulations for which a written statement is required by section 202, including activities undertaken at the request of the Director to improve compliance, during the preceding reporting period. The report shall also contain an appendix detailing compliance by each agency with section 204. . 112. Retrospective analysis of existing Federal regulations The Unfunded Mandates Reform Act of 1995 ( Public Law 104–4 ; 2 U.S.C. 1511 et seq. ) is amended— (1) by redesignating section 209 as section 210; and (2) by inserting after section 208 the following new section 209: 209. Retrospective analysis of existing Federal regulations (a) Requirement At the request of the chairman or ranking minority member of a standing or select committee of the House of Representatives or the Senate, an agency shall conduct a retrospective analysis of an existing Federal regulation promulgated by an agency. (b) Report Each agency conducting a retrospective analysis of existing Federal regulations pursuant to subsection (a) shall submit to the chairman of the relevant committee, Congress, and the Comptroller General a report containing, with respect to each Federal regulation covered by the analysis— (1) a copy of the Federal regulation; (2) the continued need for the Federal regulation; (3) the nature of comments or complaints received concerning the Federal regulation from the public since the Federal regulation was promulgated; (4) the extent to which the Federal regulation overlaps, duplicates, or conflicts with other Federal regulations, and, to the extent feasible, with State and local governmental rules; (5) the degree to which technology, economic conditions, or other factors have changed in the area affected by the Federal regulation; (6) a complete analysis of the retrospective direct costs and benefits of the Federal regulation that considers studies done outside the Federal Government (if any) estimating such costs or benefits; and (7) any litigation history challenging the Federal regulation. . 113. Expansion of judicial review Section 401(a) of the Unfunded Mandates Reform Act of 1995 ( 2 U.S.C. 1571(a) ) is amended— (1) in paragraphs (1) and (2)(A)— (A) by striking sections 202 and 203(a)(1) and (2) each place it appears and inserting sections 201, 202, 203(a)(1) and (2), and 205(a) and (b) ; and (B) by striking only each place it appears; (2) in paragraph (2)(B), by striking section 202 and all that follows through the period at the end and inserting the following: section 202, prepare the written plan under section 203(a)(1) and (2), or comply with section 205(a) and (b), a court may compel the agency to prepare such written statement, prepare such written plan, or comply with such section. ; and (3) in paragraph (3), by striking written statement or plan is required and all that follows through shall not and inserting the following: written statement under section 202, a written plan under section 203(a)(1) and (2), or compliance with sections 201 and 205(a) and (b) is required, the inadequacy or failure to prepare such statement (including the inadequacy or failure to prepare any estimate, analysis, statement, or description), to prepare such written plan, or to comply with such section may . B Achieving Less Excess in Regulation and Requiring Transparency 100. Short title; table of contents This subdivision may be cited as the Achieving Less Excess in Regulation and Requiring Transparency Act of 2014 or as the ALERRT Act of 2014 . I All Economic Regulations are Transparent Act 101. Short title This title may be cited as the All Economic Regulations are Transparent Act of 2014 or the ALERT Act of 2014 . 102. Office of Information and Regulatory Affairs publication of information relating to rules (a) Amendment Title 5, United States Code, is amended by inserting after chapter 6, the following new chapter: 6A Office of Information and Regulatory Affairs Publication of Information Relating to Rules Sec. 651. Agency monthly submission to Office of Information and Regulatory Affairs. 652. Office of Information and Regulatory Affairs Publications. 653. Requirement for rules to appear in agency-specific monthly publication. 654. Definitions. 651. Agency monthly submission to Office of Information and Regulatory Affairs On a monthly basis, the head of each agency shall submit to the Administrator of the Office of Information and Regulatory Affairs (referred to in this chapter as the Administrator ), in such a manner as the Administrator may reasonably require, the following information: (1) For each rule that the agency expects to propose or finalize during the following year: (A) A summary of the nature of the rule, including the regulation identifier number and the docket number for the rule. (B) The objectives of and legal basis for the issuance of the rule, including— (i) any statutory or judicial deadline; and (ii) whether the legal basis restricts or precludes the agency from conducting an analysis of the costs or benefits of the rule during the rule making, and if not, whether the agency plans to conduct an analysis of the costs or benefits of the rule during the rule making. (C) Whether the agency plans to claim an exemption from the requirements of section 553 pursuant to section 553(b)(B). (D) The stage of the rule making as of the date of submission. (E) Whether the rule is subject to review under section 610. (2) For any rule for which the agency expects to finalize during the following year and has issued a general notice of proposed rule making— (A) an approximate schedule for completing action on the rule; (B) an estimate of whether the rule will cost— (i) less than $50,000,000; (ii) $50,000,000 or more but less than $100,000,000; (iii) $100,000,000 or more but less than $500,000,000; (iv) $500,000,000 or more but less than $1,000,000,000; (v) $1,000,000,000 or more but less than $5,000,000,000; (vi) $5,000,000,000 or more but less than $10,000,000,000; or (vii) $10,000,000,000 or more; and (C) any estimate of the economic effects of the rule, including any estimate of the net effect that the rule will have on the number of jobs in the United States, that was considered in drafting the rule. If such estimate is not available, a statement affirming that no information on the economic effects, including the effect on the number of jobs, of the rule has been considered. 652. Office of Information and Regulatory Affairs Publications (a) Agency-Specific information published monthly Not later than 30 days after the submission of information pursuant to section 651, the Administrator shall make such information publicly available on the Internet. (b) Cumulative assessment of agency rule making published annually (1) Publication in the Federal Register Not later than October 1 of each year, the Administrator shall publish in the Federal Register, for the previous year the following: (A) The information that the Administrator received from the head of each agency under section 651. (B) The number of rules and a list of each such rule— (i) that was proposed by each agency, including, for each such rule, an indication of whether the issuing agency conducted an analysis of the costs or benefits of the rule; and (ii) that was finalized by each agency, including for each such rule an indication of whether— (I) the issuing agency conducted an analysis of the costs or benefits of the rule; (II) the agency claimed an exemption from the procedures under section 553 pursuant to section 553(b)(B); and (III) the rule was issued pursuant to a statutory mandate or the rule making is committed to agency discretion by law. (C) The number of agency actions and a list of each such action taken by each agency that— (i) repealed a rule; (ii) reduced the scope of a rule; (iii) reduced the cost of a rule; or (iv) accelerated the expiration date of a rule. (D) The total cost (without reducing the cost by any offsetting benefits) of all rules proposed or finalized, and the number of rules for which an estimate of the cost of the rule was not available. (2) Publication on the Internet Not later than October 1 of each year, the Administrator shall make publicly available on the Internet the following: (A) The analysis of the costs or benefits, if conducted, for each proposed rule or final rule issued by an agency for the previous year. (B) The docket number and regulation identifier number for each proposed or final rule issued by an agency for the previous year. (C) The number of rules and a list of each such rule reviewed by the Director of the Office of Management and Budget for the previous year, and the authority under which each such review was conducted. (D) The number of rules and a list of each such rule for which the head of an agency completed a review under section 610 for the previous year. (E) The number of rules and a list of each such rule submitted to the Comptroller General under section 801. (F) The number of rules and a list of each such rule for which a resolution of disapproval was introduced in either the House of Representatives or the Senate under section 802. 653. Requirement for rules to appear in agency-specific monthly publication (a) In general Subject to subsection (b), a rule may not take effect until the information required to be made publicly available on the Internet regarding such rule pursuant to section 652(a) has been so available for not less than 6 months. (b) Exceptions The requirement of subsection (a) shall not apply in the case of a rule— (1) for which the agency issuing the rule claims an exception under section 553(b)(B); or (2) which the President determines by Executive order should take effect because the rule is— (A) necessary because of an imminent threat to health or safety or other emergency; (B) necessary for the enforcement of criminal laws; (C) necessary for national security; or (D) issued pursuant to any statute implementing an international trade agreement. 654. Definitions In this chapter, the terms agency , agency action , rule , and rule making have the meanings given those terms in section 551. . (b) Technical and conforming amendment The table of chapters for part I of title 5, United States Code, is amended by inserting after the item relating to chapter 5, the following: 6. The Analysis of Regulatory Functions 601 6A. Office of Information and Regulatory Affairs Publication of Information Relating to Rules 651 . (c) Effective dates (1) Agency monthly submission to the Office of Information and Regulatory Affairs The first submission required pursuant to section 651 of title 5, United States Code, as added by subsection (a), shall be submitted not later than 30 days after the date of the enactment of this title, and monthly thereafter. (2) Cumulative assessment of agency rule making (A) In general Subsection (b) of section 652 of title 5, United States Code, as added by subsection (a), shall take effect on the date that is 60 days after the date of the enactment of this title. (B) Deadline The first requirement to publish or make available, as the case may be, under subsection (b) of section 652 of title 5, United States Code, as added by subsection (a), shall be the first October 1 after the effective date of such subsection. (C) First publication The requirement under section 652(b)(2)(A) of title 5, United States Code, as added by subsection (a), shall include for the first publication, any analysis of the costs or benefits conducted for a proposed or final rule, for the 10 years before the date of the enactment of this title. (3) Requirement for rules to appear in agency-specific monthly publication Section 653 of title 5, United States Code, as added by subsection (a), shall take effect on the date that is 8 months after the date of the enactment of this title. II Regulatory Accountability Act 201. Short title This title may be cited as the Regulatory Accountability Act of 2014 . 202. Definitions Section 551 of title 5, United States Code, is amended— (1) in paragraph (13), by striking and at the end; (2) in paragraph (14), by striking the period at the end and inserting a semicolon; and (3) by adding at the end the following: (15) major rule means any rule that the Administrator of the Office of Information and Regulatory Affairs determines is likely to impose— (A) an annual cost on the economy of $100,000,000 or more, adjusted annually for inflation; (B) a major increase in costs or prices for consumers, individual industries, Federal, State, local, or tribal government agencies, or geographic regions; (C) significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets; or (D) significant impacts on multiple sectors of the economy; (16) high-impact rule means any rule that the Administrator of the Office of Information and Regulatory Affairs determines is likely to impose an annual cost on the economy of $1,000,000,000 or more, adjusted annually for inflation; (17) negative-impact on jobs and wages rule means any rule that the agency that made the rule or the Administrator of the Office of Information and Regulatory Affairs determines is likely to— (A) in one or more sectors of the economy that has a 6-digit code under the North American Industry Classification System, reduce employment not related to new regulatory compliance by 1 percent or more annually during the 1-year, 5-year, or 10-year period after implementation; (B) in one or more sectors of the economy that has a 6-digit code under the North American Industry Classification System, reduce average weekly wages for employment not related to new regulatory compliance by 1 percent or more annually during the 1-year, 5-year, or 10-year period after implementation; (C) in any industry area (as such term is defined in the Current Population Survey conducted by the Bureau of Labor Statistics) in which the most recent annual unemployment rate for the industry area is greater than 5 percent, as determined by the Bureau of Labor Statistics in the Current Population Survey, reduce employment not related to new regulatory compliance during the first year after implementation; or (D) in any industry area in which the Bureau of Labor Statistics projects in the Occupational Employment Statistics program that the employment level will decrease by 1 percent or more, further reduce employment not related to new regulatory compliance during the first year after implementation; (18) guidance means an agency statement of general applicability and future effect, other than a regulatory action, that sets forth a policy on a statutory, regulatory or technical issue or an interpretation of a statutory or regulatory issue; (19) major guidance means guidance that the Administrator of the Office of Information and Regulatory Affairs finds is likely to lead to— (A) an annual cost on the economy of $100,000,000 or more, adjusted annually for inflation; (B) a major increase in costs or prices for consumers, individual industries, Federal, State, local or tribal government agencies, or geographic regions; (C) significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets; or (D) significant impacts on multiple sectors of the economy; (20) the Information Quality Act means section 515 of Public Law 106–554 , the Treasury and General Government Appropriations Act for Fiscal Year 2001, and guidelines issued by the Administrator of the Office of Information and Regulatory Affairs or other agencies pursuant to the Act; and (21) the Office of Information and Regulatory Affairs means the office established under section 3503 of chapter 35 of title 44 and any successor to that office. . 203. Rule making (a) Section 553(a) of title 5, United States Code, is amended by striking (a) This section applies and inserting (a) Applicability .—This section applies . (b) Section 553 of title 5, United States Code, is amended by striking subsections (b) through (e) and inserting the following: (b) Rule making considerations In a rule making, an agency shall make all preliminary and final factual determinations based on evidence and consider, in addition to other applicable considerations, the following: (1) The legal authority under which a rule may be proposed, including whether a rule making is required by statute, and if so, whether by a specific date, or whether the agency has discretion to commence a rule making. (2) Other statutory considerations applicable to whether the agency can or should propose a rule or undertake other agency action. (3) The specific nature and significance of the problem the agency may address with a rule (including the degree and nature of risks the problem poses and the priority of addressing those risks compared to other matters or activities within the agency’s jurisdiction), whether the problem warrants new agency action, and the countervailing risks that may be posed by alternatives for new agency action. (4) Whether existing rules have created or contributed to the problem the agency may address with a rule and whether those rules could be amended or rescinded to address the problem in whole or part. (5) Any reasonable alternatives for a new rule or other response identified by the agency or interested persons, including not only responses that mandate particular conduct or manners of compliance, but also— (A) the alternative of no Federal response; (B) amending or rescinding existing rules; (C) potential regional, State, local, or tribal regulatory action or other responses that could be taken in lieu of agency action; and (D) potential responses that— (i) specify performance objectives rather than conduct or manners of compliance; (ii) establish economic incentives to encourage desired behavior; (iii) provide information upon which choices can be made by the public; or (iv) incorporate other innovative alternatives rather than agency actions that specify conduct or manners of compliance. (6) Notwithstanding any other provision of law— (A) the potential costs and benefits associated with potential alternative rules and other responses considered under section 553(b)(5), including direct, indirect, and cumulative costs and benefits and estimated impacts on jobs (including an estimate of the net gain or loss in domestic jobs), wages, economic growth, innovation, and economic competitiveness; (B) means to increase the cost-effectiveness of any Federal response; and (C) incentives for innovation, consistency, predictability, lower costs of enforcement and compliance (to government entities, regulated entities, and the public), and flexibility. (c) Advance notice of proposed rule making for major rules, high-Impact rules, negative-Impact on jobs and wages rules, and rules involving novel legal or policy issues In the case of a rule making for a major rule, a high-impact rule, a negative-impact on jobs and wages rule, or a rule that involves a novel legal or policy issue arising out of statutory mandates, not later than 90 days before a notice of proposed rule making is published in the Federal Register, an agency shall publish advance notice of proposed rule making in the Federal Register. In publishing such advance notice, the agency shall— (1) include a written statement identifying, at a minimum— (A) the nature and significance of the problem the agency may address with a rule, including data and other evidence and information on which the agency expects to rely for the proposed rule; (B) the legal authority under which a rule may be proposed, including whether a rule making is required by statute, and if so, whether by a specific date, or whether the agency has discretion to commence a rule making; (C) preliminary information available to the agency concerning the other considerations specified in subsection (b); (D) in the case of a rule that involves a novel legal or policy issue arising out of statutory mandates, the nature of and potential reasons to adopt the novel legal or policy position upon which the agency may base a proposed rule; and (E) an achievable objective for the rule and metrics by which the agency will measure progress toward that objective; (2) solicit written data, views or argument from interested persons concerning the information and issues addressed in the advance notice; and (3) provide for a period of not fewer than 60 days for interested persons to submit such written data, views, or argument to the agency. (d) Notices of proposed rule making; determinations of other agency course (1) Before it determines to propose a rule, and following completion of procedures under subsection (c), if applicable, the agency shall consult with the Administrator of the Office of Information and Regulatory Affairs. If the agency thereafter determines to propose a rule, the agency shall publish a notice of proposed rule making, which shall include— (A) a statement of the time, place, and nature of public rule making proceedings; (B) reference to the legal authority under which the rule is proposed; (C) the terms of the proposed rule; (D) a description of information known to the agency on the subject and issues of the proposed rule, including but not limited to— (i) a summary of information known to the agency concerning the considerations specified in subsection (b); (ii) a summary of additional information the agency provided to and obtained from interested persons under subsection (c); (iii) a summary of any preliminary risk assessment or regulatory impact analysis performed by the agency; and (iv) information specifically identifying all data, studies, models, and other evidence or information considered or used by the agency in connection with its determination to propose the rule; (E) (i) a reasoned preliminary determination of need for the rule based on the information described under subparagraph (D); (ii) an additional statement of whether a rule is required by statute; and (iii) an achievable objective for the rule and metrics by which the agency will measure progress toward that objective; (F) a reasoned preliminary determination that the benefits of the proposed rule meet the relevant statutory objectives and justify the costs of the proposed rule (including all costs to be considered under subsection (b)(6)), based on the information described under subparagraph (D); (G) a discussion of— (i) the alternatives to the proposed rule, and other alternative responses, considered by the agency under subsection (b); (ii) the costs and benefits of those alternatives (including all costs to be considered under subsection (b)(6)); (iii) whether those alternatives meet relevant statutory objectives; and (iv) why the agency did not propose any of those alternatives; and (H) (i) a statement of whether existing rules have created or contributed to the problem the agency seeks to address with the proposed rule; and (ii) if so, whether or not the agency proposes to amend or rescind any such rules, and why. All information provided to or considered by the agency, and steps to obtain information by the agency, in connection with its determination to propose the rule, including any preliminary risk assessment or regulatory impact analysis prepared by the agency and all other information prepared or described by the agency under subparagraph (D) and, at the discretion of the President or the Administrator of the Office of Information and Regulatory Affairs, information provided by that Office in consultations with the agency, shall be placed in the docket for the proposed rule and made accessible to the public by electronic means and otherwise for the public’s use when the notice of proposed rule making is published. (2) (A) If the agency undertakes procedures under subsection (c) and determines thereafter not to propose a rule, the agency shall, following consultation with the Office of Information and Regulatory Affairs, publish a notice of determination of other agency course. A notice of determination of other agency course shall include information required by paragraph (1)(D) to be included in a notice of proposed rule making and a description of the alternative response the agency determined to adopt. (B) If in its determination of other agency course the agency makes a determination to amend or rescind an existing rule, the agency need not undertake additional proceedings under subsection (c) before it publishes a notice of proposed rule making to amend or rescind the existing rule. All information provided to or considered by the agency, and steps to obtain information by the agency, in connection with its determination of other agency course, including but not limited to any preliminary risk assessment or regulatory impact analysis prepared by the agency and all other information that would be required to be prepared or described by the agency under paragraph (1)(D) if the agency had determined to publish a notice of proposed rule making and, at the discretion of the President or the Administrator of the Office of Information and Regulatory Affairs, information provided by that Office in consultations with the agency, shall be placed in the docket for the determination and made accessible to the public by electronic means and otherwise for the public’s use when the notice of determination is published. (3) After notice of proposed rule making required by this section, the agency shall provide interested persons an opportunity to participate in the rule making through submission of written data, views, or arguments with or without opportunity for oral presentation, except that— (A) if a hearing is required under paragraph (4)(B) or subsection (e), opportunity for oral presentation shall be provided pursuant to that requirement; or (B) when other than under subsection (e) of this section rules are required by statute or at the discretion of the agency to be made on the record after opportunity for an agency hearing, sections 556 and 557 shall apply, and paragraph (4), the requirements of subsection (e) to receive comment outside of the procedures of sections 556 and 557, and the petition procedures of subsection (e)(6) shall not apply. The agency shall provide not fewer than 60 days for interested persons to submit written data, views, or argument (or 120 days in the case of a proposed major or high-impact rule). (4) (A) Within 30 days of publication of notice of proposed rule making, a member of the public may petition for a hearing in accordance with section 556 to determine whether any evidence or other information upon which the agency bases the proposed rule fails to comply with the Information Quality Act. (B) (i) The agency may, upon review of the petition, determine without further process to exclude from the rule making the evidence or other information that is the subject of the petition and, if appropriate, withdraw the proposed rule. The agency shall promptly publish any such determination. (ii) If the agency does not resolve the petition under the procedures of clause (i), it shall grant any such petition that presents a prima facie case that evidence or other information upon which the agency bases the proposed rule fails to comply with the Information Quality Act, hold the requested hearing not later than 30 days after receipt of the petition, provide a reasonable opportunity for cross-examination at the hearing, and decide the issues presented by the petition not later than 60 days after receipt of the petition. The agency may deny any petition that it determines does not present such a prima facie case. (C) There shall be no judicial review of the agency’s disposition of issues considered and decided or determined under subparagraph (B)(ii) until judicial review of the agency’s final action. There shall be no judicial review of an agency’s determination to withdraw a proposed rule under subparagraph (B)(i) on the basis of the petition. (D) Failure to petition for a hearing under this paragraph shall not preclude judicial review of any claim based on the Information Quality Act under chapter 7 of this title. (e) Hearings for high-Impact rules Following notice of a proposed rule making, receipt of comments on the proposed rule, and any hearing held under subsection (d)(4), and before adoption of any high-impact rule, the agency shall hold a hearing in accordance with sections 556 and 557, unless such hearing is waived by all participants in the rule making other than the agency. The agency shall provide a reasonable opportunity for cross-examination at such hearing. The hearing shall be limited to the following issues of fact, except that participants at the hearing other than the agency may waive determination of any such issue: (1) Whether the agency’s asserted factual predicate for the rule is supported by the evidence. (2) Whether there is an alternative to the proposed rule that would achieve the relevant statutory objectives at a lower cost (including all costs to be considered under subsection (b)(6)) than the proposed rule. (3) If there is more than one alternative to the proposed rule that would achieve the relevant statutory objectives at a lower cost than the proposed rule, which alternative would achieve the relevant statutory objectives at the lowest cost. (4) Whether, if the agency proposes to adopt a rule that is more costly than the least costly alternative that would achieve the relevant statutory objectives (including all costs to be considered under subsection (b)(6)), the additional benefits of the more costly rule exceed the additional costs of the more costly rule. (5) Whether the evidence and other information upon which the agency bases the proposed rule meets the requirements of the Information Quality Act. (6) Upon petition by an interested person who has participated in the rule making, other issues relevant to the rule making, unless the agency determines that consideration of the issues at the hearing would not advance consideration of the rule or would, in light of the nature of the need for agency action, unreasonably delay completion of the rule making. An agency shall grant or deny a petition under this paragraph within 30 days of its receipt of the petition. No later than 45 days before any hearing held under this subsection or sections 556 and 557, the agency shall publish in the Federal Register a notice specifying the proposed rule to be considered at such hearing, the issues to be considered at the hearing, and the time and place for such hearing, except that such notice may be issued not later than 15 days before a hearing held under subsection (d)(4)(B). (f) Final rules (1) The agency shall adopt a rule only following consultation with the Administrator of the Office of Information and Regulatory Affairs to facilitate compliance with applicable rule making requirements. (2) The agency shall adopt a rule only on the basis of the best reasonably obtainable scientific, technical, economic, and other evidence and information concerning the need for, consequences of, and alternatives to the rule. (3) (A) Except as provided in subparagraph (B), the agency shall adopt the least costly rule considered during the rule making (including all costs to be considered under subsection (b)(6)) that meets relevant statutory objectives. (B) The agency may adopt a rule that is more costly than the least costly alternative that would achieve the relevant statutory objectives only if the additional benefits of the more costly rule justify its additional costs and only if the agency explains its reason for doing so based on interests of public health, safety or welfare that are clearly within the scope of the statutory provision authorizing the rule. (4) When it adopts a final rule, the agency shall publish a notice of final rule making. The notice shall include— (A) a concise, general statement of the rule’s basis and purpose; (B) the agency’s reasoned final determination of need for a rule to address the problem the agency seeks to address with the rule, including a statement of whether a rule is required by statute and a summary of any final risk assessment or regulatory impact analysis prepared by the agency; (C) the agency’s reasoned final determination that the benefits of the rule meet the relevant statutory objectives and justify the rule’s costs (including all costs to be considered under subsection (b)(6)); (D) the agency’s reasoned final determination not to adopt any of the alternatives to the proposed rule considered by the agency during the rule making, including— (i) the agency’s reasoned final determination that no alternative considered achieved the relevant statutory objectives with lower costs (including all costs to be considered under subsection (b)(6)) than the rule; or (ii) the agency’s reasoned determination that its adoption of a more costly rule complies with subsection (f)(3)(B); (E) the agency’s reasoned final determination— (i) that existing rules have not created or contributed to the problem the agency seeks to address with the rule; or (ii) that existing rules have created or contributed to the problem the agency seeks to address with the rule, and, if so— (I) why amendment or rescission of such existing rules is not alone sufficient to respond to the problem; and (II) whether and how the agency intends to amend or rescind the existing rule separate from adoption of the rule; (F) the agency’s reasoned final determination that the evidence and other information upon which the agency bases the rule complies with the Information Quality Act; (G) the agency’s reasoned final determination that the rule meets the objectives that the agency identified in subsection (d)(1)(E)(iii) or that other objectives are more appropriate in light of the full administrative record and the rule meets those objectives; (H) the agency’s reasoned final determination that it did not deviate from the metrics the agency included in subsection (d)(1)(E)(iii) or that other metrics are more appropriate in light of the full administrative record and the agency did not deviate from those metrics; (I) (i) for any major rule, high-impact rule, or negative-impact on jobs and wages rule, the agency’s plan for review of the rule no less than every ten years to determine whether, based upon evidence, there remains a need for the rule, whether the rule is in fact achieving statutory objectives, whether the rule’s benefits continue to justify its costs, and whether the rule can be modified or rescinded to reduce costs while continuing to achieve statutory objectives; and (ii) review of a rule under a plan required by clause (i) of this subparagraph shall take into account the factors and criteria set forth in subsections (b) through (f) of section 553 of this title; and (J) for any negative-impact on jobs and wages rule, a statement that the head of the agency that made the rule approved the rule knowing about the findings and determination of the agency or the Administrator of the Office of Information and Regulatory Affairs that qualified the rule as a negative impact on jobs and wages rule. All information considered by the agency in connection with its adoption of the rule, and, at the discretion of the President or the Administrator of the Office of Information and Regulatory Affairs, information provided by that Office in consultations with the agency, shall be placed in the docket for the rule and made accessible to the public for the public’s use no later than when the rule is adopted. (g) Exceptions from notice and hearing requirements (1) Except when notice or hearing is required by statute, the following do not apply to interpretive rules, general statements of policy, or rules of agency organization, procedure, or practice: (A) Subsections (c) through (e). (B) Paragraphs (1) through (3) of subsection (f). (C) Subparagraphs (B) through (H) of subsection (f)(4). (2) (A) When the agency for good cause, based upon evidence, finds (and incorporates the finding and a brief statement of reasons therefor in the rules issued) that compliance with subsection (c), (d), or (e) or requirements to render final determinations under subsection (f) of this section before the issuance of an interim rule is impracticable or contrary to the public interest, including interests of national security, such subsections or requirements to render final determinations shall not apply to the agency’s adoption of an interim rule. (B) If, following compliance with subparagraph (A) of this paragraph, the agency adopts an interim rule, it shall commence proceedings that comply fully with subsections (d) through (f) of this section immediately upon publication of the interim rule, shall treat the publication of the interim rule as publication of a notice of proposed rule making and shall not be required to issue supplemental notice other than to complete full compliance with subsection (d). No less than 270 days from publication of the interim rule (or 18 months in the case of a major rule or high-impact rule), the agency shall complete rule making under subsections (d) through (f) of this subsection and take final action to adopt a final rule or rescind the interim rule. If the agency fails to take timely final action, the interim rule will cease to have the effect of law. (C) Other than in cases involving interests of national security, upon the agency’s publication of an interim rule without compliance with subsection (c), (d), or (e) or requirements to render final determinations under subsection (f) of this section, an interested party may seek immediate judicial review under chapter 7 of this title of the agency’s determination to adopt such interim rule. The record on such review shall include all documents and information considered by the agency and any additional information presented by a party that the court determines necessary to consider to assure justice. (3) When the agency for good cause finds (and incorporates the finding and a brief statement of reasons therefor in the rules issued) that notice and public procedure thereon are unnecessary, including because agency rule making is undertaken only to correct a de minimis technical or clerical error in a previously issued rule or for other noncontroversial purposes, the agency may publish a rule without compliance with subsection (c), (d), (e), or (f)(1)–(3) and (f)(4)(B)–(F). If the agency receives significant adverse comment within 60 days after publication of the rule, it shall treat the notice of the rule as a notice of proposed rule making and complete rule making in compliance with subsections (d) and (f). (h) Additional requirements for hearings When a hearing is required under subsection (e) or is otherwise required by statute or at the agency’s discretion before adoption of a rule, the agency shall comply with the requirements of sections 556 and 557 in addition to the requirements of subsection (f) in adopting the rule and in providing notice of the rule’s adoption. (i) Date of publication of rule The required publication or service of a substantive final or interim rule shall be made not less than 30 days before the effective date of the rule, except— (1) a substantive rule which grants or recognizes an exemption or relieves a restriction; (2) interpretive rules and statements of policy; or (3) as otherwise provided by the agency for good cause found and published with the rule. (j) Right To petition Each agency shall give an interested person the right to petition for the issuance, amendment, or repeal of a rule. (k) Rule making guidelines (1) (A) The Administrator of the Office of Information and Regulatory Affairs shall establish guidelines for the assessment, including quantitative and qualitative assessment, of the costs and benefits of proposed and final rules and other economic issues or issues related to risk that are relevant to rule making under this title. The rigor of cost-benefit analysis required by such guidelines shall be commensurate, in the Administrator’s determination, with the economic impact of the rule. (B) To ensure that agencies use the best available techniques to quantify and evaluate anticipated present and future benefits, costs, other economic issues, and risks as accurately as possible, the Administrator of the Office of Information and Regulatory Affairs shall regularly update guidelines established under paragraph (1)(A) of this subsection. (2) The Administrator of the Office of Information and Regulatory Affairs shall also issue guidelines to promote coordination, simplification and harmonization of agency rules during the rule making process and otherwise. Such guidelines shall assure that each agency avoids regulations that are inconsistent or incompatible with, or duplicative of, its other regulations and those of other Federal agencies and drafts its regulations to be simple and easy to understand, with the goal of minimizing the potential for uncertainty and litigation arising from such uncertainty. (3) To ensure consistency in Federal rule making, the Administrator of the Office of Information and Regulatory Affairs shall— (A) issue guidelines and otherwise take action to ensure that rule makings conducted in whole or in part under procedures specified in provisions of law other than those of subchapter II of this title conform to the fullest extent allowed by law with the procedures set forth in section 553 of this title; and (B) issue guidelines for the conduct of hearings under subsections 553(d)(4) and 553(e) of this section, including to assure a reasonable opportunity for cross-examination. Each agency shall adopt regulations for the conduct of hearings consistent with the guidelines issued under this subparagraph. (4) The Administrator of the Office of Information and Regulatory Affairs shall issue guidelines pursuant to the Information Quality Act to apply in rule making proceedings under sections 553, 556, and 557 of this title. In all cases, such guidelines, and the Administrator’s specific determinations regarding agency compliance with such guidelines, shall be entitled to judicial deference. (l) Inclusion in the record of certain documents and information The agency shall include in the record for a rule making, and shall make available by electronic means and otherwise, all documents and information prepared or considered by the agency during the proceeding, including, at the discretion of the President or the Administrator of the Office of Information and Regulatory Affairs, documents and information communicated by that Office during consultation with the Agency. (m) Monetary policy exemption Nothing in subsection (b)(6), subparagraphs (F) and (G) of subsection (d)(1), subsection (e), subsection (f)(3), and subparagraphs (C) and (D) of subsection (f)(5) shall apply to rule makings that concern monetary policy proposed or implemented by the Board of Governors of the Federal Reserve System or the Federal Open Market Committee. . 204. Agency guidance; procedures to issue major guidance; presidential authority to issue guidelines for issuance of guidance (a) In general Chapter 5 of title 5, United States Code, is amended by inserting after section 553 the following new section: 553a. Agency guidance; procedures to issue major guidance; authority to issue guidelines for issuance of guidance (a) Before issuing any major guidance, or guidance that involves a novel legal or policy issue arising out of statutory mandates, an agency shall— (1) make and document a reasoned determination that— (A) assures that such guidance is understandable and complies with relevant statutory objectives and regulatory provisions (including any statutory deadlines for agency action); (B) summarizes the evidence and data on which the agency will base the guidance; (C) identifies the costs and benefits (including all costs to be considered during a rule making under section 553(b) of this title) of conduct conforming to such guidance and assures that such benefits justify such costs; and (D) describes alternatives to such guidance and their costs and benefits (including all costs to be considered during a rule making under section 553(b) of this title) and explains why the agency rejected those alternatives; and (2) confer with the Administrator of the Office of Information and Regulatory Affairs on the issuance of such guidance to assure that the guidance is reasonable, understandable, consistent with relevant statutory and regulatory provisions and requirements or practices of other agencies, does not produce costs that are unjustified by the guidance’s benefits, and is otherwise appropriate. Upon issuing major guidance, or guidance that involves a novel legal or policy issue arising out of statutory mandates, the agency shall publish the documentation required by subparagraph (1) by electronic means and otherwise. (b) Agency guidance— (1) is not legally binding and may not be relied upon by an agency as legal grounds for agency action; (2) shall state in a plain, prominent and permanent manner that it is not legally binding; and (3) shall, at the time it is issued or upon request, be made available by the issuing agency to interested persons and the public by electronic means and otherwise. Agencies shall avoid the issuance of guidance that is inconsistent or incompatible with, or duplicative of, the agency’s governing statutes or regulations, with the goal of minimizing the potential for uncertainty and litigation arising from such uncertainty. (c) The Administrator of the Office of Information and Regulatory Affairs shall have authority to issue guidelines for use by the agencies in the issuance of major guidance and other guidance. Such guidelines shall assure that each agency avoids issuing guidance documents that are inconsistent or incompatible with, or duplicative of, the law, its other regulations, or the regulations of other Federal agencies and drafts its guidance documents to be simple and easy to understand, with the goal of minimizing the potential for uncertainty and litigation arising from such uncertainty. . (b) Clerical amendment The table of sections for chapter 5 of title 5, United States Code, is amended by inserting after the item relating to section 553 the following new item: 553a. Agency guidance; procedures to issue major guidance; authority to issue guidelines for issuance of guidance. . 205. Hearings; presiding employees; powers and duties; burden of proof; evidence; record as basis of decision Section 556 of title 5, United States Code, is amended by striking subsection (e) and inserting the following: (e) (1) The transcript of testimony and exhibits, together with all papers and requests filed in the proceeding, constitutes the exclusive record for decision in accordance with section 557 and shall be made available to the parties and the public by electronic means and, upon payment of lawfully prescribed costs, otherwise. When an agency decision rests on official notice of a material fact not appearing in the evidence in the record, a party is entitled, on timely request, to an opportunity to show the contrary. (2) Notwithstanding paragraph (1) of this subsection, in a proceeding held under this section pursuant to section 553(d)(4) or 553(e), the record for decision shall also include any information that is part of the record of proceedings under section 553. (f) When an agency conducts rule making under this section and section 557 directly after concluding proceedings upon an advance notice of proposed rule making under section 553(c), the matters to be considered and determinations to be made shall include, among other relevant matters and determinations, the matters and determinations described in subsections (b) and (f) of section 553. (g) Upon receipt of a petition for a hearing under this section, the agency shall grant the petition in the case of any major rule, unless the agency reasonably determines that a hearing would not advance consideration of the rule or would, in light of the need for agency action, unreasonably delay completion of the rule making. The agency shall publish its decision to grant or deny the petition when it renders the decision, including an explanation of the grounds for decision. The information contained in the petition shall in all cases be included in the administrative record. This subsection shall not apply to rule makings that concern monetary policy proposed or implemented by the Board of Governors of the Federal Reserve System or the Federal Open Market Committee. . 206. Actions reviewable Section 704 of title 5, United States Code, is amended— (1) by striking Agency action made and inserting (a) Agency action made ; and (2) by adding at the end the following: “Denial by an agency of a correction request or, where administrative appeal is provided for, denial of an appeal, under an administrative mechanism described in subsection (b)(2)(B) of the Information Quality Act, or the failure of an agency within 90 days to grant or deny such request or appeal, shall be final action for purposes of this section. (b) Other than in cases involving interests of national security, notwithstanding subsection (a) of this section, upon the agency’s publication of an interim rule without compliance with section 553(c), (d), or (e) or requirements to render final determinations under subsection (f) of section 553, an interested party may seek immediate judicial review under this chapter of the agency’s determination to adopt such rule on an interim basis. Review shall be limited to whether the agency abused its discretion to adopt the interim rule without compliance with section 553(c), (d), or (e) or without rendering final determinations under subsection (f) of section 553. . 207. Scope of review Section 706 of title 5, United States Code is amended— (1) by striking To the extent necessary and inserting (a) To the extent necessary ; (2) in paragraph (2)(A) of subsection (a) (as designated by paragraph (1) of this section), by inserting after in accordance with law the following: (including the Information Quality Act) ; and (3) by adding at the end the following: (b) The court shall not defer to the agency’s— (1) interpretation of an agency rule if the agency did not comply with the procedures of section 553 or sections 556–557 of chapter 5 of this title to issue the interpretation; (2) determination of the costs and benefits or other economic or risk assessment of the action, if the agency failed to conform to guidelines on such determinations and assessments established by the Administrator of the Office of Information and Regulatory Affairs under section 553(k); (3) determinations made in the adoption of an interim rule; or (4) guidance. (c) The court shall review agency denials of petitions under section 553(e)(6) or any other petition for a hearing under sections 556 and 557 for abuse of agency discretion. . 208. Added definition Section 701(b) of title 5, United States Code, is amended— (1) in paragraph (1), by striking and at the end; (2) in paragraph (2), by striking the period at the end, and inserting ; and ; and (3) by adding at the end the following: (3) substantial evidence means such relevant evidence as a reasonable mind might accept as adequate to support a conclusion in light of the record considered as a whole, taking into account whatever in the record fairly detracts from the weight of the evidence relied upon by the agency to support its decision. . 209. Effective date The amendments made by this title to— (1) sections 553, 556, and 704 of title 5, United States Code; (2) subsection (b) of section 701 of such title; (3) paragraphs (2) and (3) of section 706(b) of such title; and (4) subsection (c) of section 706 of such title, shall not apply to any rule makings pending or completed on the date of enactment of this title. III Regulatory Flexibility Improvements Act 301. Short title This title may be cited as the Regulatory Flexibility Improvements Act of 2014 . 302. Clarification and expansion of rules covered by the Regulatory Flexibility Act (a) In general Paragraph (2) of section 601 of title 5, United States Code, is amended to read as follows: (2) Rule The term rule has the meaning given such term in section 551(4) of this title, except that such term does not include a rule pertaining to the protection of the rights of and benefits for veterans or a rule of particular (and not general) applicability relating to rates, wages, corporate or financial structures or reorganizations thereof, prices, facilities, appliances, services, or allowances therefor or to valuations, costs or accounting, or practices relating to such rates, wages, structures, prices, appliances, services, or allowances. . (b) Inclusion of rules with indirect effects Section 601 of title 5, United States Code, is amended by adding at the end the following new paragraph: (9) Economic impact The term economic impact means, with respect to a proposed or final rule— (A) any direct economic effect on small entities of such rule; and (B) any indirect economic effect (including compliance costs and effects on revenue) on small entities which is reasonably foreseeable and results from such rule (without regard to whether small entities will be directly regulated by the rule). . (c) Inclusion of rules with beneficial effects (1) Initial regulatory flexibility analysis Subsection (c) of section 603 of title 5, United States Code, is amended by striking the first sentence and inserting Each initial regulatory flexibility analysis shall also contain a detailed description of alternatives to the proposed rule which minimize any adverse significant economic impact or maximize any beneficial significant economic impact on small entities. . (2) Final regulatory flexibility analysis The first paragraph (6) of section 604(a) of title 5, United States Code, is amended by striking minimize the significant economic impact and inserting minimize the adverse significant economic impact or maximize the beneficial significant economic impact . (d) Inclusion of rules affecting tribal organizations Paragraph (5) of section 601 of title 5, United States Code, is amended by inserting and tribal organizations (as defined in section 4(l) of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 450b(l) )), after special districts, . (e) Inclusion of land management plans and formal rulemaking (1) Initial regulatory flexibility analysis Subsection (a) of section 603 of title 5, United States Code, is amended in the first sentence— (A) by striking or after proposed rule, ; and (B) by inserting or publishes a revision or amendment to a land management plan, after United States, . (2) Final regulatory flexibility analysis Subsection (a) of section 604 of title 5, United States Code, is amended in the first sentence— (A) by striking or after proposed rulemaking, ; and (B) by inserting or adopts a revision or amendment to a land management plan, after section 603(a), . (3) Land management plan defined Section 601 of title 5, United States Code, is amended by adding at the end the following new paragraph: (10) Land management plan (A) In general The term land management plan means— (i) any plan developed by the Secretary of Agriculture under section 6 of the Forest and Rangeland Renewable Resources Planning Act of 1974 ( 16 U.S.C. 1604 ); and (ii) any plan developed by the Secretary of the Interior under section 202 of the Federal Land Policy and Management Act of 1976 ( 43 U.S.C. 1712 ). (B) Revision The term revision means any change to a land management plan which— (i) in the case of a plan described in subparagraph (A)(i), is made under section 6(f)(5) of the Forest and Rangeland Renewable Resources Planning Act of 1974 ( 16 U.S.C. 1604(f)(5) ); or (ii) in the case of a plan described in subparagraph (A)(ii), is made under section 1610.5–6 of title 43, Code of Federal Regulations (or any successor regulation). (C) Amendment The term amendment means any change to a land management plan which— (i) in the case of a plan described in subparagraph (A)(i), is made under section 6(f)(4) of the Forest and Rangeland Renewable Resources Planning Act of 1974 ( 16 U.S.C. 1604(f)(4) ) and with respect to which the Secretary of Agriculture prepares a statement described in section 102(2)(C) of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4332(2)(C) ); or (ii) in the case of a plan described in subparagraph (A)(ii), is made under section 1610.5–5 of title 43, Code of Federal Regulations (or any successor regulation) and with respect to which the Secretary of the Interior prepares a statement described in section 102(2)(C) of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4332(2)(C) ). . (f) Inclusion of certain interpretive rules involving the internal revenue laws (1) In general Subsection (a) of section 603 of title 5, United States Code, is amended by striking the period at the end and inserting or a recordkeeping requirement, and without regard to whether such requirement is imposed by statute or regulation. . (2) Collection of information Paragraph (7) of section 601 of title 5, United States Code, is amended to read as follows: (7) Collection of information The term collection of information has the meaning given such term in section 3502(3) of title 44. . (3) Recordkeeping requirement Paragraph (8) of section 601 of title 5, United States Code, is amended to read as follows: (8) Recordkeeping requirement The term recordkeeping requirement has the meaning given such term in section 3502(13) of title 44. . (g) Definition of small organization Paragraph (4) of section 601 of title 5, United States Code, is amended to read as follows: (4) Small organization (A) In general The term small organization means any not-for-profit enterprise which, as of the issuance of the notice of proposed rulemaking— (i) in the case of an enterprise which is described by a classification code of the North American Industrial Classification System, does not exceed the size standard established by the Administrator of the Small Business Administration pursuant to section 3 of the Small Business Act ( 15 U.S.C. 632 ) for small business concerns described by such classification code; and (ii) in the case of any other enterprise, has a net worth that does not exceed $7,000,000 and has not more than 500 employees. (B) Local labor organizations In the case of any local labor organization, subparagraph (A) shall be applied without regard to any national or international organization of which such local labor organization is a part. (C) Agency definitions Subparagraphs (A) and (B) shall not apply to the extent that an agency, after consultation with the Office of Advocacy of the Small Business Administration and after opportunity for public comment, establishes one or more definitions for such term which are appropriate to the activities of the agency and publishes such definitions in the Federal Register. . 303. Expansion of report of regulatory agenda Section 602 of title 5, United States Code, is amended— (1) in subsection (a)— (A) in paragraph (2), by striking , and at the end and inserting ; ; (B) by redesignating paragraph (3) as paragraph (4); and (C) by inserting after paragraph (2) the following: (3) a brief description of the sector of the North American Industrial Classification System that is primarily affected by any rule which the agency expects to propose or promulgate which is likely to have a significant economic impact on a substantial number of small entities; and ; and (2) in subsection (c), to read as follows: (c) Each agency shall prominently display a plain language summary of the information contained in the regulatory flexibility agenda published under subsection (a) on its website within 3 days of its publication in the Federal Register. The Office of Advocacy of the Small Business Administration shall compile and prominently display a plain language summary of the regulatory agendas referenced in subsection (a) for each agency on its website within 3 days of their publication in the Federal Register. . 304. Requirements providing for more detailed analyses (a) Initial regulatory flexibility analysis Subsection (b) of section 603 of title 5, United States Code, is amended to read as follows: (b) Each initial regulatory flexibility analysis required under this section shall contain a detailed statement— (1) describing the reasons why action by the agency is being considered; (2) describing the objectives of, and legal basis for, the proposed rule; (3) estimating the number and type of small entities to which the proposed rule will apply; (4) describing the projected reporting, recordkeeping, and other compliance requirements of the proposed rule, including an estimate of the classes of small entities which will be subject to the requirement and the type of professional skills necessary for preparation of the report and record; (5) describing all relevant Federal rules which may duplicate, overlap, or conflict with the proposed rule, or the reasons why such a description could not be provided; (6) estimating the additional cumulative economic impact of the proposed rule on small entities beyond that already imposed on the class of small entities by the agency or why such an estimate is not available; (7) describing any disproportionate economic impact on small entities or a specific class of small entities; and (8) describing any impairment of the ability of small entities to have access to credit. . (b) Final regulatory flexibility analysis (1) In general Section 604(a) of title 5, United States Code, is amended— (A) in paragraph (4), by striking an explanation and inserting a detailed explanation ; (B) in each of paragraphs (4), (5), and the first paragraph (6), by inserting detailed before description ; (C) in the second paragraph (6), by striking the period and inserting ; and ; (D) by redesignating the second paragraph (6) as paragraph (7); and (E) by adding at the end the following: (8) a detailed description of any disproportionate economic impact on small entities or a specific class of small entities. . (2) Inclusion of response to comments on certification of proposed rule Paragraph (2) of section 604(a) of title 5, United States Code, is amended by inserting (or certification of the proposed rule under section 605(b)) after initial regulatory flexibility analysis . (3) Publication of analysis on website Subsection (b) of section 604 of title 5, United States Code, is amended to read as follows: (b) The agency shall make copies of the final regulatory flexibility analysis available to the public, including placement of the entire analysis on the agency’s website, and shall publish in the Federal Register the final regulatory flexibility analysis, or a summary thereof which includes the telephone number, mailing address, and link to the website where the complete analysis may be obtained. . (c) Cross-References to other analyses Subsection (a) of section 605 of title 5, United States Code, is amended to read as follows: (a) A Federal agency shall be treated as satisfying any requirement regarding the content of an agenda or regulatory flexibility analysis under section 602, 603, or 604, if such agency provides in such agenda or analysis a cross-reference to the specific portion of another agenda or analysis which is required by any other law and which satisfies such requirement. . (d) Certifications Subsection (b) of section 605 of title 5, United States Code, is amended— (1) by inserting detailed before statement the first place it appears; and (2) by inserting and legal after factual . (e) Quantification requirements Section 607 of title 5, United States Code, is amended to read as follows: 607. Quantification requirements In complying with sections 603 and 604, an agency shall provide— (1) a quantifiable or numerical description of the effects of the proposed or final rule and alternatives to the proposed or final rule; or (2) a more general descriptive statement and a detailed statement explaining why quantification is not practicable or reliable. . 305. Repeal of waiver and delay authority; additional powers of the Chief Counsel for Advocacy (a) In general Section 608 is amended to read as follows: 608. Additional powers of Chief Counsel for Advocacy (a) (1) Not later than 270 days after the date of the enactment of this section, the Chief Counsel for Advocacy of the Small Business Administration shall, after opportunity for notice and comment under section 553, issue rules governing agency compliance with this chapter. The Chief Counsel may modify or amend such rules after notice and comment under section 553. This chapter (other than this subsection) shall not apply with respect to the issuance, modification, and amendment of rules under this paragraph. (2) An agency shall not issue rules which supplement the rules issued under subsection (a) unless such agency has first consulted with the Chief Counsel for Advocacy to ensure that such supplemental rules comply with this chapter and the rules issued under paragraph (1). (b) Notwithstanding any other law, the Chief Counsel for Advocacy of the Small Business Administration may intervene in any agency adjudication (unless such agency is authorized to impose a fine or penalty under such adjudication), and may inform the agency of the impact that any decision on the record may have on small entities. The Chief Counsel shall not initiate an appeal with respect to any adjudication in which the Chief Counsel intervenes under this subsection. (c) The Chief Counsel for Advocacy may file comments in response to any agency notice requesting comment, regardless of whether the agency is required to file a general notice of proposed rulemaking under section 553. . (b) Conforming amendments (1) Section 611(a)(1) of such title is amended by striking 608(b), . (2) Section 611(a)(2) of such title is amended by striking 608(b), . (3) Section 611(a)(3) of such title is amended— (A) by striking subparagraph (B); and (B) by striking (3)(A) A small entity and inserting the following: (3) A small entity . 306. Procedures for gathering comments Section 609 of title 5, United States Code, is amended by striking subsection (b) and all that follows through the end of the section and inserting the following: (b) (1) Prior to publication of any proposed rule described in subsection (e), an agency making such rule shall notify the Chief Counsel for Advocacy of the Small Business Administration and provide the Chief Counsel with— (A) all materials prepared or utilized by the agency in making the proposed rule, including the draft of the proposed rule; and (B) information on the potential adverse and beneficial economic impacts of the proposed rule on small entities and the type of small entities that might be affected. (2) An agency shall not be required under paragraph (1) to provide the exact language of any draft if the rule— (A) relates to the internal revenue laws of the United States; or (B) is proposed by an independent regulatory agency (as defined in section 3502(5) of title 44). (c) Not later than 15 days after the receipt of such materials and information under subsection (b), the Chief Counsel for Advocacy of the Small Business Administration shall— (1) identify small entities or representatives of small entities or a combination of both for the purpose of obtaining advice, input, and recommendations from those persons about the potential economic impacts of the proposed rule and the compliance of the agency with section 603; and (2) convene a review panel consisting of an employee from the Office of Advocacy of the Small Business Administration, an employee from the agency making the rule, and in the case of an agency other than an independent regulatory agency (as defined in section 3502(5) of title 44), an employee from the Office of Information and Regulatory Affairs of the Office of Management and Budget to review the materials and information provided to the Chief Counsel under subsection (b). (d) (1) Not later than 60 days after the review panel described in subsection (c)(2) is convened, the Chief Counsel for Advocacy of the Small Business Administration shall, after consultation with the members of such panel, submit a report to the agency and, in the case of an agency other than an independent regulatory agency (as defined in section 3502(5) of title 44), the Office of Information and Regulatory Affairs of the Office of Management and Budget. (2) Such report shall include an assessment of the economic impact of the proposed rule on small entities, including an assessment of the proposed rule’s impact on the cost that small entities pay for energy, an assessment of the proposed rule’s impact on start-up costs for small entities, and a discussion of any alternatives that will minimize adverse significant economic impacts or maximize beneficial significant economic impacts on small entities. (3) Such report shall become part of the rulemaking record. In the publication of the proposed rule, the agency shall explain what actions, if any, the agency took in response to such report. (e) A proposed rule is described by this subsection if the Administrator of the Office of Information and Regulatory Affairs of the Office of Management and Budget, the head of the agency (or the delegatee of the head of the agency), or an independent regulatory agency determines that the proposed rule is likely to result in— (1) an annual effect on the economy of $100,000,000 or more; (2) a major increase in costs or prices for consumers, individual industries, Federal, State, or local governments, tribal organizations, or geographic regions; (3) significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets; or (4) a significant economic impact on a substantial number of small entities. (f) Upon application by the agency, the Chief Counsel for Advocacy of the Small Business Administration may waive the requirements of subsections (b) through (e) if the Chief Counsel determines that compliance with the requirements of such subsections are impracticable, unnecessary, or contrary to the public interest. (g) A small entity or a representative of a small entity may submit a request that the agency provide a copy of the report prepared under subsection (d) and all materials and information provided to the Chief Counsel for Advocacy of the Small Business Administration under subsection (b). The agency receiving such request shall provide the report, materials and information to the requesting small entity or representative of a small entity not later than 10 business days after receiving such request, except that the agency shall not disclose any information that is prohibited from disclosure to the public pursuant to section 552(b) of this title. . 307. Periodic review of rules Section 610 of title 5, United States Code, is amended to read as follows: 610. Periodic review of rules (a) Not later than 180 days after the enactment of this section, each agency shall publish in the Federal Register and place on its website a plan for the periodic review of rules issued by the agency which the head of the agency determines have a significant economic impact on a substantial number of small entities. Such determination shall be made without regard to whether the agency performed an analysis under section 604. The purpose of the review shall be to determine whether such rules should be continued without change, or should be amended or rescinded, consistent with the stated objectives of applicable statutes, to minimize any adverse significant economic impacts or maximize any beneficial significant economic impacts on a substantial number of small entities. Such plan may be amended by the agency at any time by publishing the revision in the Federal Register and subsequently placing the amended plan on the agency’s website. (b) The plan shall provide for the review of all such agency rules existing on the date of the enactment of this section within 10 years of the date of publication of the plan in the Federal Register and for review of rules adopted after the date of enactment of this section within 10 years after the publication of the final rule in the Federal Register. If the head of the agency determines that completion of the review of existing rules is not feasible by the established date, the head of the agency shall so certify in a statement published in the Federal Register and may extend the review for not longer than 2 years after publication of notice of extension in the Federal Register. Such certification and notice shall be sent to the Chief Counsel for Advocacy of the Small Business Administration and the Congress. (c) The plan shall include a section that details how an agency will conduct outreach to and meaningfully include small businesses (including small business concerns owned and controlled by women, small business concerns owned and controlled by veterans, and small business concerns owned and controlled by socially and economically disadvantaged individuals (as such terms are defined in the Small Business Act)) for the purposes of carrying out this section. The agency shall include in this section a plan for how the agency will contact small businesses and gather their input on existing agency rules. (d) Each agency shall annually submit a report regarding the results of its review pursuant to such plan to the Congress, the Chief Counsel for Advocacy of the Small Business Administration, and, in the case of agencies other than independent regulatory agencies (as defined in section 3502(5) of title 44) to the Administrator of the Office of Information and Regulatory Affairs of the Office of Management and Budget. Such report shall include the identification of any rule with respect to which the head of the agency made a determination described in paragraph (5) or (6) of subsection (e) and a detailed explanation of the reasons for such determination. (e) In reviewing a rule pursuant to subsections (a) through (d), the agency shall amend or rescind the rule to minimize any adverse significant economic impact on a substantial number of small entities or disproportionate economic impact on a specific class of small entities, or maximize any beneficial significant economic impact of the rule on a substantial number of small entities to the greatest extent possible, consistent with the stated objectives of applicable statutes. In amending or rescinding the rule, the agency shall consider the following factors: (1) The continued need for the rule. (2) The nature of complaints received by the agency from small entities concerning the rule. (3) Comments by the Regulatory Enforcement Ombudsman and the Chief Counsel for Advocacy of the Small Business Administration. (4) The complexity of the rule. (5) The extent to which the rule overlaps, duplicates, or conflicts with other Federal rules and, unless the head of the agency determines it to be infeasible, State, territorial, and local rules. (6) The contribution of the rule to the cumulative economic impact of all Federal rules on the class of small entities affected by the rule, unless the head of the agency determines that such calculations cannot be made and reports that determination in the annual report required under subsection (d). (7) The length of time since the rule has been evaluated or the degree to which technology, economic conditions, or other factors have changed in the area affected by the rule. (f) Each year, each agency shall publish in the Federal Register and on its website a list of rules to be reviewed pursuant to such plan. The agency shall include in the publication a solicitation of public comments on any further inclusions or exclusions of rules from the list, and shall respond to such comments. Such publication shall include a brief description of the rule, the reason why the agency determined that it has a significant economic impact on a substantial number of small entities (without regard to whether it had prepared a final regulatory flexibility analysis for the rule), and request comments from the public, the Chief Counsel for Advocacy of the Small Business Administration, and the Regulatory Enforcement Ombudsman concerning the enforcement of the rule. . 308. Judicial review of compliance with the requirements of the Regulatory Flexibility Act available after publication of the final rule (a) In general Paragraph (1) of section 611(a) of title 5, United States Code, is amended by striking final agency action and inserting such rule . (b) Jurisdiction Paragraph (2) of such section is amended by inserting (or which would have such jurisdiction if publication of the final rule constituted final agency action) after provision of law, . (c) Time for bringing action Paragraph (3) of such section is amended— (1) by striking final agency action and inserting publication of the final rule ; and (2) by inserting , in the case of a rule for which the date of final agency action is the same date as the publication of the final rule, after except that . (d) Intervention by Chief Counsel for Advocacy Subsection (b) of section 612 of title 5, United States Code, is amended by inserting before the first period or agency compliance with section 601, 603, 604, 605(b), 609, or 610 . 309. Jurisdiction of court of appeals over rules implementing the Regulatory Flexibility Act (a) In general Section 2342 of title 28, United States Code, is amended— (1) in paragraph (6), by striking and at the end; (2) in paragraph (7), by striking the period at the end and inserting ; and ; and (3) by inserting after paragraph (7) the following new paragraph: (8) all final rules under section 608(a) of title 5. . (b) Conforming amendments Paragraph (3) of section 2341 of title 28, United States Code, is amended— (1) in subparagraph (D), by striking and at the end; (2) in subparagraph (E), by striking the period at the end and inserting ; and ; and (3) by adding at the end the following new subparagraph: (F) the Office of Advocacy of the Small Business Administration, when the final rule is under section 608(a) of title 5. . (c) Authorization To intervene and comment on agency compliance with administrative procedure Subsection (b) of section 612 of title 5, United States Code, is amended by inserting chapter 5, and chapter 7, after this chapter, . 310. Establishment and approval of small business concern size standards by Chief Counsel for Advocacy (a) In general Subparagraph (A) of section 3(a)(2) of the Small Business Act ( 15 U.S.C. 632(a)(2)(A) ) is amended to read as follows: (A) In general In addition to the criteria specified in paragraph (1)— (i) the Administrator may specify detailed definitions or standards by which a business concern may be determined to be a small business concern for purposes of this Act or the Small Business Investment Act of 1958; and (ii) the Chief Counsel for Advocacy may specify such definitions or standards for purposes of any other Act. . (b) Approval by chief counsel Clause (iii) of section 3(a)(2)(C) of the Small Business Act ( 15 U.S.C. 632(a)(2)(C)(iii) ) is amended to read as follows: (iii) except in the case of a size standard prescribed by the Administrator, is approved by the Chief Counsel for Advocacy. . (c) Industry variation Paragraph (3) of section 3(a) of the Small Business Act ( 15 U.S.C. 632(a)(3) ) is amended— (1) by inserting or Chief Counsel for Advocacy, as appropriate before shall ensure ; and (2) by inserting or Chief Counsel for Advocacy before the period at the end. (d) Judicial review of size standards approved by chief counsel Section 3(a) of the Small Business Act ( 15 U.S.C. 632(a) ) is amended by adding at the end the following new paragraph: (9) Judicial review of standards approved by chief counsel In the case of an action for judicial review of a rule which includes a definition or standard approved by the Chief Counsel for Advocacy under this subsection, the party seeking such review shall be entitled to join the Chief Counsel as a party in such action. . 311. Clerical amendments (a) Definitions Section 601 of title 5, United States Code, is amended— (1) in paragraph (1)— (A) by striking the semicolon at the end and inserting a period; and (B) by striking (1) the term and inserting the following: (1) Agency The term ; (2) in paragraph (3)— (A) by striking the semicolon at the end and inserting a period; and (B) by striking (3) the term and inserting the following: (3) Small business The term ; (3) in paragraph (5)— (A) by striking the semicolon at the end and inserting a period; and (B) by striking (5) the term and inserting the following: (5) Small governmental jurisdiction The term ; and (4) in paragraph (6)— (A) by striking ; and and inserting a period; and (B) by striking (6) the term and inserting the following: (6) Small entity The term . (b) Incorporations by reference and certifications The heading of section 605 of title 5, United States Code, is amended to read as follows: 605. Incorporations by reference and certifications . (c) Table of sections The table of sections for chapter 6 of title 5, United States Code, is amended— (1) by striking the item relating to section 605 and inserting the following new item: 605. Incorporations by reference and certifications. ; (2) by striking the item relating to section 607 and inserting the following new item: 607. Quantification requirements. ; and (3) by striking the item relating to section 608 and inserting the following: 608. Additional powers of Chief Counsel for Advocacy. . (d) Other clerical amendments to chapter 6 Chapter 6 of title 5, United States Code, is amended in section 603(d)— (1) by striking paragraph (2); (2) by striking (1) For a covered agency, and inserting For a covered agency, ; (3) by striking (A) any and inserting (1) any ; (4) by striking (B) any and inserting (2) any ; and (5) by striking (C) advice and inserting (3) advice . 312. Agency preparation of guides Section 212(a)(5) the Small Business Regulatory Enforcement Fairness Act of 1996 ( 5 U.S.C. 601 note) is amended to read as follows: (5) Agency preparation of guides The agency shall, in its sole discretion, taking into account the subject matter of the rule and the language of relevant statutes, ensure that the guide is written using sufficiently plain language likely to be understood by affected small entities. Agencies may prepare separate guides covering groups or classes of similarly affected small entities and may cooperate with associations of small entities to distribute such guides. In developing guides, agencies shall solicit input from affected small entities or associations of affected small entities. An agency may prepare guides and apply this section with respect to a rule or a group of related rules. . 313. Comptroller General report Not later than 90 days after the date of enactment of this title, the Comptroller General of the United States shall complete and publish a study that examines whether the Chief Counsel for Advocacy of the Small Business Administration has the capacity and resources to carry out the duties of the Chief Counsel under this title and the amendments made by this title. IV Sunshine for Regulatory Decrees and Settlements Act 401. Short title This title may be cited as the Sunshine for Regulatory Decrees and Settlements Act of 2014 . 402. Definitions In this title— (1) the terms agency and agency action have the meanings given those terms under section 551 of title 5, United States Code; (2) the term covered civil action means a civil action— (A) seeking to compel agency action; (B) alleging that the agency is unlawfully withholding or unreasonably delaying an agency action relating to a regulatory action that would affect the rights of— (i) private persons other than the person bringing the action; or (ii) a State, local, or tribal government; and (C) brought under— (i) chapter 7 of title 5, United States Code; or (ii) any other statute authorizing such an action; (3) the term covered consent decree means— (A) a consent decree entered into in a covered civil action; and (B) any other consent decree that requires agency action relating to a regulatory action that affects the rights of— (i) private persons other than the person bringing the action; or (ii) a State, local, or tribal government; (4) the term covered consent decree or settlement agreement means a covered consent decree and a covered settlement agreement; and (5) the term covered settlement agreement means— (A) a settlement agreement entered into in a covered civil action; and (B) any other settlement agreement that requires agency action relating to a regulatory action that affects the rights of— (i) private persons other than the person bringing the action; or (ii) a State, local, or tribal government. 403. Consent decree and settlement reform (a) Pleadings and preliminary matters (1) In general In any covered civil action, the agency against which the covered civil action is brought shall publish the notice of intent to sue and the complaint in a readily accessible manner, including by making the notice of intent to sue and the complaint available online not later than 15 days after receiving service of the notice of intent to sue or complaint, respectively. (2) Entry of a covered consent decree or settlement agreement A party may not make a motion for entry of a covered consent decree or to dismiss a civil action pursuant to a covered settlement agreement until after the end of proceedings in accordance with paragraph (1) and subparagraphs (A) and (B) of paragraph (2) of subsection (d) or subsection (d)(3)(A), whichever is later. (b) Intervention (1) Rebuttable presumption In considering a motion to intervene in a covered civil action or a civil action in which a covered consent decree or settlement agreement has been proposed that is filed by a person who alleges that the agency action in dispute would affect the person, the court shall presume, subject to rebuttal, that the interests of the person would not be represented adequately by the existing parties to the action. (2) State, local, and tribal governments In considering a motion to intervene in a covered civil action or a civil action in which a covered consent decree or settlement agreement has been proposed that is filed by a State, local, or tribal government, the court shall take due account of whether the movant— (A) administers jointly with an agency that is a defendant in the action the statutory provisions that give rise to the regulatory action to which the action relates; or (B) administers an authority under State, local, or tribal law that would be preempted by the regulatory action to which the action relates. (c) Settlement negotiations Efforts to settle a covered civil action or otherwise reach an agreement on a covered consent decree or settlement agreement shall— (1) be conducted pursuant to the mediation or alternative dispute resolution program of the court or by a district judge other than the presiding judge, magistrate judge, or special master, as determined appropriate by the presiding judge; and (2) include any party that intervenes in the action. (d) Publication of and comment on covered consent decrees or settlement agreements (1) In general Not later than 60 days before the date on which a covered consent decree or settlement agreement is filed with a court, the agency seeking to enter the covered consent decree or settlement agreement shall publish in the Federal Register and online— (A) the proposed covered consent decree or settlement agreement; and (B) a statement providing— (i) the statutory basis for the covered consent decree or settlement agreement; and (ii) a description of the terms of the covered consent decree or settlement agreement, including whether it provides for the award of attorneys’ fees or costs and, if so, the basis for including the award. (2) Public comment (A) In general An agency seeking to enter a covered consent decree or settlement agreement shall accept public comment during the period described in paragraph (1) on any issue relating to the matters alleged in the complaint in the applicable civil action or addressed or affected by the proposed covered consent decree or settlement agreement. (B) Response to comments An agency shall respond to any comment received under subparagraph (A). (C) Submissions to court When moving that the court enter a proposed covered consent decree or settlement agreement or for dismissal pursuant to a proposed covered consent decree or settlement agreement, an agency shall— (i) inform the court of the statutory basis for the proposed covered consent decree or settlement agreement and its terms; (ii) submit to the court a summary of the comments received under subparagraph (A) and the response of the agency to the comments; (iii) submit to the court a certified index of the administrative record of the notice and comment proceeding; and (iv) make the administrative record described in clause (iii) fully accessible to the court. (D) Inclusion in record The court shall include in the court record for a civil action the certified index of the administrative record submitted by an agency under subparagraph (C)(iii) and any documents listed in the index which any party or amicus curiae appearing before the court in the action submits to the court. (3) Public hearings permitted (A) In general After providing notice in the Federal Register and online, an agency may hold a public hearing regarding whether to enter into a proposed covered consent decree or settlement agreement. (B) Record If an agency holds a public hearing under subparagraph (A)— (i) the agency shall— (I) submit to the court a summary of the proceedings; (II) submit to the court a certified index of the hearing record; and (III) provide access to the hearing record to the court; and (ii) the full hearing record shall be included in the court record. (4) Mandatory deadlines If a proposed covered consent decree or settlement agreement requires an agency action by a date certain, the agency shall, when moving for entry of the covered consent decree or settlement agreement or dismissal based on the covered consent decree or settlement agreement, inform the court of— (A) any required regulatory action the agency has not taken that the covered consent decree or settlement agreement does not address; (B) how the covered consent decree or settlement agreement, if approved, would affect the discharge of the duties described in subparagraph (A); and (C) why the effects of the covered consent decree or settlement agreement on the manner in which the agency discharges its duties is in the public interest. (e) Submission by the Government (1) In general For any proposed covered consent decree or settlement agreement that contains a term described in paragraph (2), the Attorney General or, if the matter is being litigated independently by an agency, the head of the agency shall submit to the court a certification that the Attorney General or head of the agency approves the proposed covered consent decree or settlement agreement. The Attorney General or head of the agency shall personally sign any certification submitted under this paragraph. (2) Terms A term described in this paragraph is— (A) in the case of a covered consent decree, a term that— (i) converts into a nondiscretionary duty a discretionary authority of an agency to propose, promulgate, revise, or amend regulations; (ii) commits an agency to expend funds that have not been appropriated and that have not been budgeted for the regulatory action in question; (iii) commits an agency to seek a particular appropriation or budget authorization; (iv) divests an agency of discretion committed to the agency by statute or the Constitution of the United States, without regard to whether the discretion was granted to respond to changing circumstances, to make policy or managerial choices, or to protect the rights of third parties; or (v) otherwise affords relief that the court could not enter under its own authority upon a final judgment in the civil action; or (B) in the case of a covered settlement agreement, a term— (i) that provides a remedy for a failure by the agency to comply with the terms of the covered settlement agreement other than the revival of the civil action resolved by the covered settlement agreement; and (ii) that— (I) interferes with the authority of an agency to revise, amend, or issue rules under the procedures set forth in chapter 5 of title 5, United States Code, or any other statute or Executive order prescribing rulemaking procedures for a rulemaking that is the subject of the covered settlement agreement; (II) commits the agency to expend funds that have not been appropriated and that have not been budgeted for the regulatory action in question; or (III) for such a covered settlement agreement that commits the agency to exercise in a particular way discretion which was committed to the agency by statute or the Constitution of the United States to respond to changing circumstances, to make policy or managerial choices, or to protect the rights of third parties. (f) Review by court (1) Amicus A court considering a proposed covered consent decree or settlement agreement shall presume, subject to rebuttal, that it is proper to allow amicus participation relating to the covered consent decree or settlement agreement by any person who filed public comments or participated in a public hearing on the covered consent decree or settlement agreement under paragraph (2) or (3) of subsection (d). (2) Review of deadlines (A) Proposed covered consent decrees For a proposed covered consent decree, a court shall not approve the covered consent decree unless the proposed covered consent decree allows sufficient time and incorporates adequate procedures for the agency to comply with chapter 5 of title 5, United States Code, and other applicable statutes that govern rulemaking and, unless contrary to the public interest, the provisions of any Executive order that governs rulemaking. (B) Proposed covered settlement agreements For a proposed covered settlement agreement, a court shall ensure that the covered settlement agreement allows sufficient time and incorporates adequate procedures for the agency to comply with chapter 5 of title 5, United States Code, and other applicable statutes that govern rulemaking and, unless contrary to the public interest, the provisions of any Executive order that governs rulemaking. (g) Annual reports Each agency shall submit to Congress an annual report that, for the year covered by the report, includes— (1) the number, identity, and content of covered civil actions brought against and covered consent decrees or settlement agreements entered against or into by the agency; and (2) a description of the statutory basis for— (A) each covered consent decree or settlement agreement entered against or into by the agency; and (B) any award of attorneys fees or costs in a civil action resolved by a covered consent decree or settlement agreement entered against or into by the agency. 404. Motions to modify consent decrees If an agency moves a court to modify a covered consent decree or settlement agreement and the basis of the motion is that the terms of the covered consent decree or settlement agreement are no longer fully in the public interest due to the obligations of the agency to fulfill other duties or due to changed facts and circumstances, the court shall review the motion and the covered consent decree or settlement agreement de novo. 405. Effective date This title shall apply to— (1) any covered civil action filed on or after the date of enactment of this title; and (2) any covered consent decree or settlement agreement proposed to a court on or after the date of enactment of this title. IV Judiciary I Regulations From the Executive in Need of Scrutiny 101. Short title This title may be cited as the Regulations From the Executive in Need of Scrutiny Act of 2014 . 102. Purpose The purpose of this title is to increase accountability for and transparency in the Federal regulatory process. Section 1 of article I of the United States Constitution grants all legislative powers to Congress. Over time, Congress has excessively delegated its constitutional charge while failing to conduct appropriate oversight and retain accountability for the content of the laws it passes. By requiring a vote in Congress, the REINS Act will result in more carefully drafted and detailed legislation, an improved regulatory process, and a legislative branch that is truly accountable to the American people for the laws imposed upon them. Moreover, as a tax on carbon emissions increases energy costs on consumers, reduces economic growth and is therefore detrimental to individuals, families and businesses, the REINS Act includes in the definition of a major rule, any rule that implements or provides for the imposition or collection of a tax on carbon emissions. 103. Congressional review of agency rulemaking Chapter 8 of title 5, United States Code, is amended to read as follows: 8 Congressional Review of Agency Rulemaking Sec. 801. Congressional review. 802. Congressional approval procedure for major rules. 803. Congressional disapproval procedure for nonmajor rules. 804. Definitions. 805. Judicial review. 806. Exemption for monetary policy. 807. Effective date of certain rules. 801. Congressional review (a) (1) (A) Before a rule may take effect, the Federal agency promulgating such rule shall submit to each House of the Congress and to the Comptroller General a report containing— (i) a copy of the rule; (ii) a concise general statement relating to the rule; (iii) a classification of the rule as a major or nonmajor rule, including an explanation of the classification specifically addressing each criteria for a major rule contained within clauses (i) through (iii) of section 804(2)(A) or within section 804(2)(B); (iv) a list of any other related regulatory actions taken by or that will be taken by the Federal agency promulgating the rule that are intended to implement the same statutory provision or regulatory objective as well as the individual and aggregate economic effects of those actions; (v) a list of any other related regulatory actions taken by or that will be taken by any other Federal agency with authority to implement the same statutory provision or regulatory objective that are intended to implement such provision or objective, of which the Federal agency promulgating the rule is aware, as well as the individual and aggregate economic effects of those actions; and (vi) the proposed effective date of the rule. (B) On the date of the submission of the report under subparagraph (A), the Federal agency promulgating the rule shall submit to the Comptroller General and make available to each House of Congress— (i) a complete copy of the cost-benefit analysis of the rule, if any, including an analysis of any jobs added or lost, differentiating between public and private sector jobs; (ii) the agency’s actions pursuant to sections 603, 604, 605, 607, and 609 of this title; (iii) the agency’s actions pursuant to sections 202, 203, 204, and 205 of the Unfunded Mandates Reform Act of 1995; and (iv) any other relevant information or requirements under any other Act and any relevant Executive orders. (C) Upon receipt of a report submitted under subparagraph (A), each House shall provide copies of the report to the chairman and ranking member of each standing committee with jurisdiction under the rules of the House of Representatives or the Senate to report a bill to amend the provision of law under which the rule is issued. (2) (A) The Comptroller General shall provide a report on each major rule to the committees of jurisdiction by the end of 15 calendar days after the submission or publication date. The report of the Comptroller General shall include an assessment of the agency’s compliance with procedural steps required by paragraph (1)(B) and an assessment of whether the major rule imposes any new limits or mandates on private-sector activity. (B) Federal agencies shall cooperate with the Comptroller General by providing information relevant to the Comptroller General’s report under subparagraph (A). (3) A major rule relating to a report submitted under paragraph (1) shall take effect upon enactment of a joint resolution of approval described in section 802 or as provided for in the rule following enactment of a joint resolution of approval described in section 802, whichever is later. (4) A nonmajor rule shall take effect as provided by section 803 after submission to Congress under paragraph (1). (5) If a joint resolution of approval relating to a major rule is not enacted within the period provided in subsection (b)(2), then a joint resolution of approval relating to the same rule may not be considered under this chapter in the same Congress by either the House of Representatives or the Senate. (b) (1) A major rule shall not take effect unless the Congress enacts a joint resolution of approval described under section 802. (2) If a joint resolution described in subsection (a) is not enacted into law by the end of 70 session days or legislative days, as applicable, beginning on the date on which the report referred to in section 801(a)(1)(A) is received by Congress (excluding days either House of Congress is adjourned for more than 3 days during a session of Congress), then the rule described in that resolution shall be deemed not to be approved and such rule shall not take effect. (c) (1) Notwithstanding any other provision of this section (except subject to paragraph (3)), a major rule may take effect for one 90-calendar-day period if the President makes a determination under paragraph (2) and submits written notice of such determination to the Congress. (2) Paragraph (1) applies to a determination made by the President by Executive order that the major rule should take effect because such rule is— (A) necessary because of an imminent threat to health or safety or other emergency; (B) necessary for the enforcement of criminal laws; (C) necessary for national security; or (D) issued pursuant to any statute implementing an international trade agreement. (3) An exercise by the President of the authority under this subsection shall have no effect on the procedures under section 802. (d) (1) In addition to the opportunity for review otherwise provided under this chapter, in the case of any rule for which a report was submitted in accordance with subsection (a)(1)(A) during the period beginning on the date occurring— (A) in the case of the Senate, 60 session days, or (B) in the case of the House of Representatives, 60 legislative days, before the date the Congress is scheduled to adjourn a session of Congress through the date on which the same or succeeding Congress first convenes its next session, sections 802 and 803 shall apply to such rule in the succeeding session of Congress. (2) (A) In applying sections 802 and 803 for purposes of such additional review, a rule described under paragraph (1) shall be treated as though— (i) such rule were published in the Federal Register on— (I) in the case of the Senate, the 15th session day, or (II) in the case of the House of Representatives, the 15th legislative day, after the succeeding session of Congress first convenes; and (ii) a report on such rule were submitted to Congress under subsection (a)(1) on such date. (B) Nothing in this paragraph shall be construed to affect the requirement under subsection (a)(1) that a report shall be submitted to Congress before a rule can take effect. (3) A rule described under paragraph (1) shall take effect as otherwise provided by law (including other subsections of this section). 802. Congressional approval procedure for major rules (a) (1) For purposes of this section, the term joint resolution means only a joint resolution addressing a report classifying a rule as major pursuant to section 801(a)(1)(A)(iii) that— (A) bears no preamble; (B) bears the following title (with blanks filled as appropriate): Approving the rule submitted by ___ relating to ___. ; (C) includes after its resolving clause only the following (with blanks filled as appropriate): That Congress approves the rule submitted by ___ relating to ___. ; and (D) is introduced pursuant to paragraph (2). (2) After a House of Congress receives a report classifying a rule as major pursuant to section 801(a)(1)(A)(iii), the majority leader of that House (or his or her respective designee) shall introduce (by request, if appropriate) a joint resolution described in paragraph (1)— (A) in the case of the House of Representatives, within three legislative days; and (B) in the case of the Senate, within three session days. (3) A joint resolution described in paragraph (1) shall not be subject to amendment at any stage of proceeding. (b) A joint resolution described in subsection (a) shall be referred in each House of Congress to the committees having jurisdiction over the provision of law under which the rule is issued. (c) In the Senate, if the committee or committees to which a joint resolution described in subsection (a) has been referred have not reported it at the end of 15 session days after its introduction, such committee or committees shall be automatically discharged from further consideration of the resolution and it shall be placed on the calendar. A vote on final passage of the resolution shall be taken on or before the close of the 15th session day after the resolution is reported by the committee or committees to which it was referred, or after such committee or committees have been discharged from further consideration of the resolution. (d) (1) In the Senate, when the committee or committees to which a joint resolution is referred have reported, or when a committee or committees are discharged (under subsection (c)) from further consideration of a joint resolution described in subsection (a), it is at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) for a motion to proceed to the consideration of the joint resolution, and all points of order against the joint resolution (and against consideration of the joint resolution) are waived. The motion is not subject to amendment, or to a motion to postpone, or to a motion to proceed to the consideration of other business. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the joint resolution is agreed to, the joint resolution shall remain the unfinished business of the Senate until disposed of. (2) In the Senate, debate on the joint resolution, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 2 hours, which shall be divided equally between those favoring and those opposing the joint resolution. A motion to further limit debate is in order and not debatable. An amendment to, or a motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the joint resolution is not in order. (3) In the Senate, immediately following the conclusion of the debate on a joint resolution described in subsection (a), and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the Senate, the vote on final passage of the joint resolution shall occur. (4) Appeals from the decisions of the Chair relating to the application of the rules of the Senate to the procedure relating to a joint resolution described in subsection (a) shall be decided without debate. (e) In the House of Representatives, if any committee to which a joint resolution described in subsection (a) has been referred has not reported it to the House at the end of 15 legislative days after its introduction, such committee shall be discharged from further consideration of the joint resolution, and it shall be placed on the appropriate calendar. On the second and fourth Thursdays of each month it shall be in order at any time for the Speaker to recognize a Member who favors passage of a joint resolution that has appeared on the calendar for at least 5 legislative days to call up that joint resolution for immediate consideration in the House without intervention of any point of order. When so called up a joint resolution shall be considered as read and shall be debatable for 1 hour equally divided and controlled by the proponent and an opponent, and the previous question shall be considered as ordered to its passage without intervening motion. It shall not be in order to reconsider the vote on passage. If a vote on final passage of the joint resolution has not been taken by the third Thursday on which the Speaker may recognize a Member under this subsection, such vote shall be taken on that day. (f) (1) If, before passing a joint resolution described in subsection (a), one House receives from the other a joint resolution having the same text, then— (A) the joint resolution of the other House shall not be referred to a committee; and (B) the procedure in the receiving House shall be the same as if no joint resolution had been received from the other House until the vote on passage, when the joint resolution received from the other House shall supplant the joint resolution of the receiving House. (2) This subsection shall not apply to the House of Representatives if the joint resolution received from the Senate is a revenue measure. (g) If either House has not taken a vote on final passage of the joint resolution by the last day of the period described in section 801(b)(2), then such vote shall be taken on that day. (h) This section and section 803 are enacted by Congress— (1) as an exercise of the rulemaking power of the Senate and House of Representatives, respectively, and as such is deemed to be part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of a joint resolution described in subsection (a) and superseding other rules only where explicitly so; and (2) with full recognition of the Constitutional right of either House to change the rules (so far as they relate to the procedure of that House) at any time, in the same manner and to the same extent as in the case of any other rule of that House. 803. Congressional disapproval procedure for nonmajor rules (a) For purposes of this section, the term joint resolution means only a joint resolution introduced in the period beginning on the date on which the report referred to in section 801(a)(1)(A) is received by Congress and ending 60 days thereafter (excluding days either House of Congress is adjourned for more than 3 days during a session of Congress), the matter after the resolving clause of which is as follows: That Congress disapproves the nonmajor rule submitted by the ___ relating to ___ , and such rule shall have no force or effect. (The blank spaces being appropriately filled in). (b) A joint resolution described in subsection (a) shall be referred to the committees in each House of Congress with jurisdiction. (c) In the Senate, if the committee to which is referred a joint resolution described in subsection (a) has not reported such joint resolution (or an identical joint resolution) at the end of 15 session days after the date of introduction of the joint resolution, such committee may be discharged from further consideration of such joint resolution upon a petition supported in writing by 30 Members of the Senate, and such joint resolution shall be placed on the calendar. (d) (1) In the Senate, when the committee to which a joint resolution is referred has reported, or when a committee is discharged (under subsection (c)) from further consideration of a joint resolution described in subsection (a), it is at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) for a motion to proceed to the consideration of the joint resolution, and all points of order against the joint resolution (and against consideration of the joint resolution) are waived. The motion is not subject to amendment, or to a motion to postpone, or to a motion to proceed to the consideration of other business. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the joint resolution is agreed to, the joint resolution shall remain the unfinished business of the Senate until disposed of. (2) In the Senate, debate on the joint resolution, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 10 hours, which shall be divided equally between those favoring and those opposing the joint resolution. A motion to further limit debate is in order and not debatable. An amendment to, or a motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the joint resolution is not in order. (3) In the Senate, immediately following the conclusion of the debate on a joint resolution described in subsection (a), and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the Senate, the vote on final passage of the joint resolution shall occur. (4) Appeals from the decisions of the Chair relating to the application of the rules of the Senate to the procedure relating to a joint resolution described in subsection (a) shall be decided without debate. (e) In the Senate the procedure specified in subsection (c) or (d) shall not apply to the consideration of a joint resolution respecting a nonmajor rule— (1) after the expiration of the 60 session days beginning with the applicable submission or publication date, or (2) if the report under section 801(a)(1)(A) was submitted during the period referred to in section 801(d)(1), after the expiration of the 60 session days beginning on the 15th session day after the succeeding session of Congress first convenes. (f) If, before the passage by one House of a joint resolution of that House described in subsection (a), that House receives from the other House a joint resolution described in subsection (a), then the following procedures shall apply: (1) The joint resolution of the other House shall not be referred to a committee. (2) With respect to a joint resolution described in subsection (a) of the House receiving the joint resolution— (A) the procedure in that House shall be the same as if no joint resolution had been received from the other House; but (B) the vote on final passage shall be on the joint resolution of the other House. 804. Definitions For purposes of this chapter— (1) The term Federal agency means any agency as that term is defined in section 551(1). (2) The term major rule means any rule, including an interim final rule, that the Administrator of the Office of Information and Regulatory Affairs of the Office of Management and Budget finds— (A) has resulted in or is likely to result in— (i) an annual effect on the economy of $50,000,000 or more; (ii) a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; or (iii) significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets; or (B) is made by the Administrator of the Environmental Protection Agency and that would have a significant impact on a substantial number of agricultural entities, as determined by the Secretary of Agriculture (who shall publish such determination in the Federal Register); (C) is a rule that implements or provides for the imposition or collection of a carbon tax; or (D) is made under the Patient Protection and Affordable Care Act ( Public Law 111–148 ). (3) The term nonmajor rule means any rule that is not a major rule. (4) The term rule has the meaning given such term in section 551, except that such term does not include any rule of particular applicability, including a rule that approves or prescribes for the future rates, wages, prices, services, or allowances therefore, corporate or financial structures, reorganizations, mergers, or acquisitions thereof, or accounting practices or disclosures bearing on any of the foregoing. (5) The term submission date or publication date , except as otherwise provided in this chapter, means— (A) in the case of a major rule, the date on which the Congress receives the report submitted under section 801(a)(1); and (B) in the case of a nonmajor rule, the later of— (i) the date on which the Congress receives the report submitted under section 801(a)(1); and (ii) the date on which the nonmajor rule is published in the Federal Register, if so published. (6) The term agricultural entity means any entity involved in or related to agricultural enterprise, including enterprises that are engaged in the business of production of food and fiber, ranching and raising of livestock, aquaculture, and all other farming and agricultural related industries. (7) The term carbon tax means a fee, levy, or price on— (A) emissions, including carbon dioxide emissions generated by the burning of coal, natural gas, or oil; or (B) coal, natural gas, or oil based on emissions, including carbon dioxide emissions that would be generated through the fuel's combustion. 805. Judicial review (a) No determination, finding, action, or omission under this chapter shall be subject to judicial review. (b) Notwithstanding subsection (a), a court may determine whether a Federal agency has completed the necessary requirements under this chapter for a rule to take effect. (c) The enactment of a joint resolution of approval under section 802 shall not be interpreted to serve as a grant or modification of statutory authority by Congress for the promulgation of a rule, shall not extinguish or affect any claim, whether substantive or procedural, against any alleged defect in a rule, and shall not form part of the record before the court in any judicial proceeding concerning a rule except for purposes of determining whether or not the rule is in effect. 806. Exemption for monetary policy Nothing in this chapter shall apply to rules that concern monetary policy proposed or implemented by the Board of Governors of the Federal Reserve System or the Federal Open Market Committee. 807. Effective date of certain rules Notwithstanding section 801— (1) any rule that establishes, modifies, opens, closes, or conducts a regulatory program for a commercial, recreational, or subsistence activity related to hunting, fishing, or camping; or (2) any rule other than a major rule which an agency for good cause finds (and incorporates the finding and a brief statement of reasons therefore in the rule issued) that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest, shall take effect at such time as the Federal agency promulgating the rule determines. . 104. Budgetary effects of rules subject to section 802 of title 5, United States Code Section 257(b)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by adding at the end the following new subparagraph: (E) Budgetary effects of rules subject to section 802 of title 5, United States Code Any rules subject to the congressional approval procedure set forth in section 802 of chapter 8 of title 5, United States Code, affecting budget authority, outlays, or receipts shall be assumed to be effective unless it is not approved in accordance with such section. . 105. Government Accountability Office study of rules (a) In general The Comptroller General of the United States shall conduct a study to determine, as of the date of the enactment of this Act— (1) how many rules (as such term is defined in section 804 of title 5, United States Code) were in effect; (2) how many major rules (as such term is defined in section 804 of title 5, United States Code) were in effect; and (3) the total estimated economic cost imposed by all such rules. (b) Report Not later than one year after the date of the enactment of this Act, the Comptroller General of the United States shall submit a report to Congress that contains the findings of the study conducted under subsection (a). II Permanent Internet Tax Freedom 201. Short title This title may be cited as the Permanent Internet Tax Freedom Act . 202. Permanent moratorium on Internet access taxes and multiple and discriminatory taxes on electronic commerce (a) In general Section 1101(a) of the Internet Tax Freedom Act ( 47 U.S.C. 151 note) is amended by striking during the period beginning November 1, 2003, and ending November 1, 2014 . (b) Effective date The amendment made by this section shall apply to taxes imposed after the date of the enactment of this Act. V Natural Resources A Restoring Healthy Forests for Healthy Communities 100. Short title This subdivision may be cited as the Restoring Healthy Forests for Healthy Communities Act . I Restoring the Commitment to Rural Counties and Schools 101. Purposes The purposes of this title are as follows: (1) To restore employment and educational opportunities in, and improve the economic stability of, counties containing National Forest System land. (2) To ensure that such counties have a dependable source of revenue from National Forest System land. (3) To reduce Forest Service management costs while also ensuring the protection of United States forests resources. 102. Definitions In this title: (1) Annual volume requirement (A) In general The term annual volume requirement , with respect to a Forest Reserve Revenue Area, means a volume of national forest materials no less than 50 percent of the sustained yield of the Forest Reserve Revenue Area. (B) Exclusions In determining the volume of national forest materials or the sustained yield of a Forest Reserve Revenue Area, the Secretary may not include non-commercial post and pole sales and personal use firewood. (2) Beneficiary county The term beneficiary county means a political subdivision of a State that, on account of containing National Forest System land, was eligible to receive payments through the State under title I of the Secure Rural Schools and Community Self-Determination Act of 2000 ( 16 U.S.C. 7111 et seq. ). (3) Catastrophic event The term catastrophic event means an event (including severe fire, insect or disease infestations, windthrow, or other extreme weather or natural disaster) that the Secretary determines will cause or has caused substantial damage to National Forest System land or natural resources on National Forest System land. (4) Covered forest reserve project The terms covered forest reserve project and covered project mean a project involving the management or sale of national forest materials within a Forest Reserve Revenue Area to generate forest reserve revenues and achieve the annual volume requirement for the Forest Reserve Revenue Area. (5) Forest reserve revenue area (A) In general The term Forest Reserve Revenue Area means National Forest System land in a unit of the National Forest System designated for sustainable forest management for the production of national forest materials and forest reserve revenues. (B) Inclusions Subject to subparagraph (C), but otherwise notwithstanding any other provision of law, including executive orders and regulations, the Secretary shall include in Forest Reserve Revenue Areas not less than 50 percent of the National Forest System lands identified as commercial forest land capable of producing twenty cubic feet of timber per acre. (C) Exclusions A Forest Reserve Revenue Area may not include National Forest System land— (i) that is a component of the National Wilderness Preservation System; (ii) on which the removal of vegetation is specifically prohibited by Federal statute; or (iii) that is within a National Monument as of the date of the enactment of this Act. (6) Forest reserve revenues The term forest reserve revenues means revenues derived from the sale of national forest materials in a Forest Reserve Revenue Area. (7) National forest materials The term national forest materials has the meaning given that term in section 14(e)(1) of the National Forest Management Act of 1976 ( 16 U.S.C. 472a(e)(1) ). (8) National forest system The term National Forest System has the meaning given that term in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 ( 16 U.S.C. 1609(a) ), except that the term does not include the National Grasslands and land utilization projects designated as National Grasslands administered pursuant to the Act of July 22, 1937 ( 7 U.S.C. 1010–1012 ). (9) Secretary The term Secretary means the Secretary of Agriculture. (10) Sustained yield The term sustained yield means the maximum annual growth potential of the forest calculated on the basis of the culmination of mean annual increment using cubic measurement. (11) State The term State includes the Commonwealth of Puerto Rico. (12) 25-percent payment The term 25-percent payment means the payment to States required by the sixth paragraph under the heading of FOREST SERVICE in the Act of May 23, 1908 (35 Stat. 260; 16 U.S.C. 500 ), and section 13 of the Act of March 1, 1911 (36 Stat. 963; 16 U.S.C. 500 ). 103. Establishment of Forest Reserve Revenue Areas and annual volume requirements (a) Establishment of Forest Reserve Revenue Areas Notwithstanding any other provision of law, the Secretary shall establish one or more Forest Reserve Revenue Areas within each unit of the National Forest System. (b) Deadline for establishment The Secretary shall complete establishment of the Forest Reserve Revenue Areas not later than 60 days after the date of enactment of this Act, (c) Purpose The purpose of a Forest Reserve Revenue Area is to provide a dependable source of 25-percent payments and economic activity through sustainable forest management for each beneficiary county containing National Forest System land. (d) Fiduciary responsibility The Secretary shall have a fiduciary responsibility to beneficiary counties to manage Forest Reserve Revenue Areas to satisfy the annual volume requirement. (e) Determination of annual volume requirement Not later than 30 days after the date of the establishment of a Forest Reserve Revenue Area, the Secretary shall determine the annual volume requirement for that Forest Reserve Revenue Area. (f) Limitation on reduction of forest reserve revenue areas Once a Forest Reserve Revenue Area is established under subsection (a), the Secretary may not reduce the number of acres of National Forest System land included in that Forest Reserve Revenue Area. (g) Map The Secretary shall provide a map of all Forest Reserve Revenue Areas established under subsection (a) for each unit of the National Forest System— (1) to the Committee on Agriculture and the Committee on Natural Resources of the House of Representatives; and (2) to the Committee on Agriculture, Nutrition, and Forestry and the Committee on Energy and Natural Resources of the Senate. (h) Recognition of Valid and Existing Rights Neither the establishment of Forest Reserve Revenue Areas under subsection (a) nor any other provision of this title shall be construed to limit or restrict— (1) access to National Forest System land for hunting, fishing, recreation, and other related purposes; or (2) valid and existing rights regarding National Forest System land, including rights of any federally recognized Indian tribe. 104. Management of Forest Reserve Revenue Areas (a) Requirement To achieve annual volume requirement Immediately upon the establishment of a Forest Reserve Revenue Area, the Secretary shall manage the Forest Reserve Revenue Area in the manner necessary to achieve the annual volume requirement for the Forest Reserve Revenue Area. The Secretary is authorized and encouraged to commence covered forest reserve projects as soon as practicable after the date of the enactment of this Act to begin generating forest reserve revenues. (b) Standards for projects within forest reserve revenue areas The Secretary shall conduct covered forest reserve projects within Forest Reserve Revenue Areas in accordance with this section, which shall serve as the sole means by which the Secretary will comply with the National Environmental Policy Act of 1969 ( 42 U.S.C. 4331 et seq. ) and other laws applicable to the covered projects. (c) Environmental analysis process for projects in forest reserve revenue areas (1) Environmental Assessment The Secretary shall give published notice and complete an environmental assessment pursuant to section 102(2) of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4332(2) ) for a covered forest reserve project proposed to be conducted within a Forest Reserve Revenue Area, except that the Secretary is not required to study, develop, or describe any alternative to the proposed agency action. (2) Cumulative effects The Secretary shall consider cumulative effects solely by evaluating the impacts of a proposed covered forest reserve project combined with the impacts of any other projects that were approved with a Decision Notice or Record of Decision before the date on which the Secretary published notice of the proposed covered project. The cumulative effects of past projects may be considered in the environmental assessment by using a description of the current environmental conditions. (3) Length The environmental assessment prepared for a proposed covered forest reserve project shall not exceed 100 pages in length. The Secretary may incorporate in the environmental assessment, by reference, any documents that the Secretary determines, in the sole discretion of the Secretary, are relevant to the assessment of the environmental effects of the covered project. (4) Deadline for completion The Secretary shall complete the environmental assessment for a covered forest reserve project within 180 days after the date on which the Secretary published notice of the proposed covered project. (5) Treatment of decision notice The decision notice for a covered forest reserve project shall be considered a final agency action and no additional analysis under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4331 et seq. ) shall be required to implement any portion of the covered project. (6) Categorical exclusion A covered forest reserve project that is proposed in response to a catastrophic event, that covers an area of 10,000 acres or less, or an eligible hazardous fuel reduction or forest health project proposed under title II that involves the removal of insect-infected trees, dead or dying trees, trees presenting a threat to public safety, or other hazardous fuels within 500 feet of utility or telephone infrastructure, campgrounds, roadsides, heritage sites, recreation sites, schools, or other infrastructure, shall be categorically excluded from the requirements of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4331 et seq. ). (d) Application of land and resource management plan The Secretary may modify the standards and guidelines contained in the land and resource management plan for the unit of the National Forest System in which the covered forest reserve project will be carried out as necessary to achieve the requirements of this subdivision. Section 6(g)(3)(E)(iv) of the Forest and Rangeland Renewable Resources Planning Act of 1974 ( 16 U.S.C. 1604(g)(3)(E)(iv) ) shall not apply to a covered forest reserve project. (e) Compliance with endangered species act (1) Non-jeopardy assessment If the Secretary determines that a proposed covered forest reserve project may affect the continued existence of any species listed as endangered or threatened under section 4 of the Endangered Species Act of 1973 ( 16 U.S.C. 1533 ), the Secretary shall issue a determination explaining the view of the Secretary that the proposed covered project is not likely to jeopardize the continued existence of the species. (2) Submission, review, and response (A) Submission The Secretary shall submit a determination issued by the Secretary under paragraph (1) to the Secretary of the Interior or the Secretary of Commerce, as appropriate. (B) Review and response Within 30 days after receiving a determination under subparagraph (A), the Secretary of the Interior or the Secretary of Commerce, as appropriate, shall provide a written response to the Secretary concurring in or rejecting the Secretary’s determination. If the Secretary of the Interior or the Secretary of Commerce rejects the determination, the written response shall include recommendations for measures that— (i) will avoid the likelihood of jeopardy to an endangered or threatened species; (ii) can be implemented in a manner consistent with the intended purpose of the covered forest reserve project; (iii) can be implemented consistent with the scope of the Secretary’s legal authority and jurisdiction; and (iv) are economically and technologically feasible. (3) Formal consultation If the Secretary of the Interior or the Secretary of Commerce rejects a determination issued by the Secretary under paragraph (1), the Secretary of the Interior or the Secretary of Commerce also is required to engage in formal consultation with the Secretary. The Secretaries shall complete such consultation pursuant to section 7 of the Endangered Species Act of 1973 ( 16 U.S.C. 1536 ) within 90 days after the submission of the written response under paragraph (2). (f) Administrative and judicial review (1) Administrative review Administrative review of a covered forest reserve project shall occur only in accordance with the special administrative review process established under section 105 of the Healthy Forests Restoration Act of 2003 ( 16 U.S.C. 6515 ). (2) Judicial review (A) In general Judicial review of a covered forest reserve project shall occur in accordance with section 106 of the Healthy Forests Restoration Act of 2003 ( 16 U.S.C. 6516 ), except that a court of the United States may not issue a restraining order, preliminary injunction, or injunction pending appeal covering a covered forest reserve project in response to an allegation that the Secretary violated any procedural requirement applicable to how the project was selected, planned, or analyzed. (B) Bond required A plaintiff challenging a covered forest reserve project shall be required to post a bond or other security acceptable to the court for the reasonably estimated costs, expenses, and attorneys fees of the Secretary as defendant. All proceedings in the action shall be stayed until the security is given. If the plaintiff has not complied with the order to post such bond or other security within 90 days after the date of service of the order, then the action shall be dismissed with prejudice. (C) Recovery If the Secretary prevails in the case, the Secretary shall submit to the court a motion for payment of all litigation expenses. (g) Use of all-Terrain vehicles for management activities The Secretary may allow the use of all-terrain vehicles within the Forest Reserve Revenue Areas for the purpose of activities associated with the sale of national forest materials in a Forest Reserve Revenue Area. 105. Distribution of forest reserve revenues (a) 25-Percent Payments The Secretary shall use forest reserve revenues generated by a covered forest reserve project to make 25-percent payments to States for the benefit of beneficiary counties. (b) Deposit in knutson-Vandenberg and salvage sale funds After compliance with subsection (a), the Secretary shall use forest reserve revenues to make deposits into the fund established under section 3 of the Act of June 9, 1930 ( 16 U.S.C. 576b ; commonly known as the Knutson-Vandenberg Fund) and the fund established under section 14(h) of the National Forest Management Act of 1976 ( 16 U.S.C. 472a(h) ; commonly known as the salvage sale fund) in contributions equal to the monies otherwise collected under those Acts for projects conducted on National Forest System land. (c) Deposit in general fund of the Treasury After compliance with subsections (a) and (b), the Secretary shall deposit remaining forest reserve revenues into the general fund of the Treasury. 106. Annual report (a) Report required Not later than 60 days after the end of each fiscal year, the Secretary shall submit to Congress an annual report specifying the annual volume requirement in effect for that fiscal year for each Forest Reserve Revenue Area, the volume of board feet actually harvested for each Forest Reserve Revenue Area, the average cost of preparation for timber sales, the forest reserve revenues generated from such sales, and the amount of receipts distributed to each beneficiary county. (b) Form of report The information required by subsection (a) to be provided with respect to a Forest Reserve Revenue Area shall be presented on a single page. In addition to submitting each report to Congress, the Secretary shall also make the report available on the website of the Forest Service. II Healthy Forest Management and Catastrophic Wildfire Prevention 201. Purposes The purposes of this title are as follows: (1) To provide the Secretary of Agriculture and the Secretary of the Interior with the tools necessary to reduce the potential for wildfires. (2) To expedite wildfire prevention projects to reduce the chances of wildfire on certain high-risk Federal lands. (3) To protect communities and forest habitat from uncharacteristic wildfires. (4) To enhance aquatic conditions and terrestrial wildlife habitat. (5) To restore diverse and resilient landscapes through improved forest conditions. 202. Definitions In this title: (1) At-risk community The term at-risk community has the meaning given that term in section 101 of the Healthy Forests Restoration Act of 2003 ( 16 U.S.C. 6511 ). (2) At-risk forest The term at-risk forest means— (A) Federal land in condition class II or III, as those classes were developed by the Forest Service Rocky Mountain Research Station in the general technical report titled Development of Coarse-Scale Spatial Data for Wildland Fire and Fuel Management (RMRS–87) and dated April 2000 or any subsequent revision of the report; or (B) Federal land where there exists a high risk of losing an at-risk community, key ecosystem, water supply, wildlife, or wildlife habitat to wildfire, including catastrophic wildfire and post-fire disturbances, as designated by the Secretary concerned. (3) Federal land (A) Covered land The term Federal land means— (i) land of the National Forest System (as defined in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 ( 16 U.S.C. 1609(a) )); or (ii) public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 ( 43 U.S.C. 1702 )). (B) Excluded land The term does not include land— (i) that is a component of the National Wilderness Preservation System; (ii) on which the removal of vegetation is specifically prohibited by Federal statute; or (iii) that is within a National Monument as of the date of the enactment of this Act. (4) High-risk area The term high-risk area means an area of Federal land identified under section 205 as an area suffering from the bark beetle epidemic, drought, or deteriorating forest health conditions, with the resulting imminent risk of devastating wildfires, or otherwise at high risk for bark beetle infestation, drought, or wildfire. (5) Secretary concerned The term Secretary concerned means— (A) the Secretary of Agriculture, in the case of National Forest System land; and (B) the Secretary of the Interior, in the case of public lands. (6) Eligible hazardous fuel reduction and forest health projects The terms hazardous fuel reduction project or forest health project mean the measures and methods developed for a project to be carried out on Federal land— (A) in an at-risk forest under section 203 for hazardous fuels reduction, forest health, forest restoration, or watershed restoration, using ecological restoration principles consistent with the forest type where such project will occur; or (B) in a high-risk area under section 206. 203. Hazardous fuel reduction projects and forest health projects in at-risk forests (a) Implementation As soon as practicable after the date of the enactment of this Act, the Secretary concerned is authorized to implement a hazardous fuel reduction project or a forest health project in at-risk forests in a manner that focuses on surface, ladder, and canopy fuels reduction activities using ecological restoration principles consistent with the forest type in the location where such project will occur. (b) Authorized practices (1) Inclusion of livestock grazing and timber harvesting A hazardous fuel reduction project or a forest health project may include livestock grazing and timber harvest projects carried out for the purposes of hazardous fuels reduction, forest health, forest restoration, watershed restoration, or threatened and endangered species habitat protection or improvement, if the management action is consistent with achieving long-term ecological restoration of the forest type in the location where such project will occur. (2) Grazing Domestic livestock grazing may be used in a hazardous fuel reduction project or a forest health project to reduce surface fuel loads and to recover burned areas. Utilization standards shall not apply when domestic livestock grazing is used in such a project. (3) Timber harvesting and thinning Timber harvesting and thinning, where the ecological restoration principles are consistent with the forest type in the location where such project will occur, may be used in a hazardous fuel reduction project or a forest health project to reduce ladder and canopy fuel loads to prevent unnatural fire. (c) Priority The Secretary concerned shall give priority to hazardous fuel reduction projects and forest health projects submitted by the Governor of a State as provided in section 206(c) and to projects submitted under the Tribal Forest Protection Act of 2004 ( 25 U.S.C. 3115a ). 204. Environmental analysis Subsections (b) through (f) of section 104 shall apply to the implementation of a hazardous fuel reduction project or a forest health project under this title. In addition, if the primary purpose of a hazardous fuel reduction project or a forest health project under this title is the salvage of dead, damaged, or down timber resulting from wildfire occurring in 2013 or 2014, the hazardous fuel reduction project or forest health project, and any decision of the Secretary concerned in connection with the project, shall not be subject to judicial review or to any restraining order or injunction issued by a United States court. 205. State designation of high-risk areas of National Forest System and public lands (a) Designation authority The Governor of a State may designate high-risk areas of Federal land in the State for the purposes of addressing— (1) deteriorating forest health conditions in existence as of the date of the enactment of this Act due to the bark beetle epidemic or drought, with the resulting imminent risk of devastating wildfires; and (2) the future risk of insect infestations or disease outbreaks through preventative treatments to improve forest health conditions. (b) Consultation In designating high-risk areas, the Governor of a State shall consult with county government from affected counties and with affected Indian tribes. (c) Exclusion of certain areas The following Federal land may not be designated as a high-risk area: (1) A component of the National Wilderness Preservation System. (2) Federal land on which the removal of vegetation is specifically prohibited by Federal statute. (3) Federal land within a National Monument as of the date of the enactment of this Act. (d) Standards for designation Designation of high-risk areas shall be consistent with standards and guidelines contained in the land and resource management plan or land use plan for the unit of Federal land for which the designation is being made, except that the Secretary concerned may modify such standards and guidelines to correspond with a specific high-risk area designation. (e) Time for initial designations The first high-risk areas should be designated not later than 60 days after the date of the enactment of this Act, but high-risk areas may be designated at any time consistent with subsection (a). (f) Duration of designation The designation of a high-risk area in a State shall expire 20 years after the date of the designation, unless earlier terminated by the Governor of the State. (g) Redesignation The expiration of the 20-year period specified in subsection (f) does not prohibit the Governor from redesignating an area of Federal land as a high-risk area under this section if the Governor determines that the Federal land continues to be subject to the terms of this section. (h) Recognition of valid and existing rights The designation of a high-risk area shall not be construed to limit or restrict— (1) access to Federal land included in the area for hunting, fishing, and other related purposes; or (2) valid and existing rights regarding the Federal land. 206. Use of hazardous fuels reduction or forest health projects for high-risk areas (a) Project proposals (1) Proposals authorized Upon designation of a high-risk area in a State, the Governor of the State may provide for the development of proposed hazardous fuel reduction projects or forest health projects for the high-risk area. (2) Project criteria In preparing a proposed hazardous fuel reduction project or a forest health project, the Governor of a State and the Secretary concerned shall— (A) take into account managing for rights of way, protection of watersheds, protection of wildlife and endangered species habitat, safe-guarding water resources, and protecting at-risk communities from wildfires; and (B) emphasize activities that thin the forest to provide the greatest health and longevity of the forest. (b) Consultation In preparing a proposed hazardous fuel reduction project or a forest health project, the Governor of a State shall consult with county government from affected counties, and with affected Indian tribes. (c) Submission and implementation The Governor of a State shall submit proposed emergency hazardous fuel reduction projects and forest health projects to the Secretary concerned for implementation as provided in section 203. 207. Moratorium on use of prescribed fire in Mark Twain National Forest, Missouri, pending report (a) Moratorium Except as provided in subsection (b), the Secretary of Agriculture may not conduct any prescribed fire in Mark Twain National Forest, Missouri, under the Collaborative Forest Landscape Restoration Project until the report required by subsection (c) is submitted to Congress. (b) Exception for wildfire suppression Subsection (a) does not prohibit the use of prescribed fire as part of wildfire suppression activities. (c) Report required Not later than one year after the date of the enactment of this Act, the Secretary of Agriculture shall submit to Congress a report containing an evaluation of recent and current Forest Service management practices for Mark Twain National Forest, including lands in the National Forest enrolled, or under consideration for enrollment, in the Collaborative Forest Landscape Restoration Project to convert certain lands into shortleaf pine-oak woodlands, to determine the impact of such management practices on forest health and tree mortality. The report shall specifically address— (1) the economic costs associated with the failure to utilize hardwoods cut as part of the Collaborative Forest Landscape Restoration Project and the subsequent loss of hardwood production from the treated lands in the long term; (2) the extent of increased tree mortality due to excessive heat generated by prescribed fires; (3) the impacts to water quality and rate of water run off due to erosion of the scorched earth left in the aftermath of the prescribed fires; and (4) a long-term plan for evaluation of the impacts of prescribed fires on lands previously burned within the Eleven Point Ranger District. III Oregon and California Railroad Grant Lands Trust, Conservation, and Jobs 301. Short title This title may be cited as the O&C Trust, Conservation, and Jobs Act . 302. Definitions In this title: (1) Affiliates The term “Affiliates” has the meaning given such term in part 121 of title 13, Code of Federal Regulations. (2) Board of trustees The term Board of Trustees means the Board of Trustees for the Oregon and California Railroad Grant Lands Trust appointed under section 313. (3) Coos Bay Wagon Road Grant lands The term Coos Bay Wagon Road Grant lands means the lands reconveyed to the United States pursuant to the first section of the Act of February 26, 1919 (40 Stat. 1179). (4) Fiscal year The term fiscal year means the Federal fiscal year, October 1 through the next September 30. (5) Governor The term Governor means the Governor of the State of Oregon. (6) O&C Region Public Domain lands The term O&C Region Public Domain lands means all the land managed by the Bureau of Land Management in the Salem District, Eugene District, Roseburg District, Coos Bay District, and Medford District in the State of Oregon, excluding the Oregon and California Railroad Grant lands and the Coos Bay Wagon Road Grant lands. (7) O&C Trust The terms Oregon and California Railroad Grant Lands Trust and O&C Trust mean the trust created by section 311, which has fiduciary responsibilities to act for the benefit of the O&C Trust counties in the management of O&C Trust lands. (8) O&C trust county The term O&C Trust county means each of the 18 counties in the State of Oregon that contained a portion of the Oregon and California Railroad Grant lands as of January 1, 2013, each of which are beneficiaries of the O&C Trust. (9) O&C trust lands The term O&C Trust lands means the surface estate of the lands over which management authority is transferred to the O&C Trust pursuant to section 311(c)(1). The term does not include any of the lands excluded from the O&C Trust pursuant to section 311(c)(2), transferred to the Forest Service under section 321, or Tribal lands transferred under subtitle D. (10) Oregon and California Railroad Grant lands The term Oregon and California Railroad Grant lands means the following lands: (A) All lands in the State of Oregon revested in the United States under the Act of June 9, 1916 (39 Stat. 218), regardless of whether the lands are— (i) administered by the Secretary of the Interior, acting through the Bureau of Land Management, pursuant to the first section of the Act of August 28, 1937 ( 43 U.S.C. 1181a ); or (ii) administered by the Secretary of Agriculture as part of the National Forest System pursuant to the first section of the Act of June 24, 1954 ( 43 U.S.C. 1181g ). (B) All lands in the State obtained by the Secretary of the Interior pursuant to the land exchanges authorized and directed by section 2 of the Act of June 24, 1954 ( 43 U.S.C. 1181h ). (C) All lands in the State acquired by the United States at any time and made subject to the provisions of title II of the Act of August 28, 1937 ( 43 U.S.C. 1181f ). (11) Reserve Fund The term Reserve Fund means the reserve fund created by the Board of Trustees under section 315(b). (12) Secretary concerned The term Secretary concerned means— (A) the Secretary of the Interior, with respect to Oregon and California Railroad Grant lands that are transferred to the management authority of the O&C Trust and, immediately before such transfer, were managed by the Bureau of Land Management; and (B) the Secretary of Agriculture, with respect to Oregon and California Railroad Grant lands that— (i) are transferred to the management authority of the O&C Trust and, immediately before such transfer, were part of the National Forest System; or (ii) are transferred to the Forest Service under section 321. (13) State The term State means the State of Oregon. (14) Transition period The term transition period means the three fiscal-year period specified in section 331 following the appointment of the Board of Trustees during which— (A) the O&C Trust is created; and (B) interim funding of the O&C Trust is secured. (15) Tribal lands The term Tribal lands means any of the lands transferred to the Cow Creek Band of the Umpqua Tribe of Indians or the Confederated Tribes of Coos, Lower Umpqua, and Siuslaw Indians under subtitle D. A Trust, Conservation, and Jobs 1 Creation and Terms of O&C Trust 311. Creation of O&C Trust and designation of O&C Trust lands (a) Creation The Oregon and California Railroad Grant Lands Trust is established effective on October 1 of the first fiscal year beginning after the appointment of the Board of Trustees. As management authority over the surface of estate of the O&C Trust lands is transferred to the O&C Trust during the transition period pursuant to section 331, the transferred lands shall be held in trust for the benefit of the O&C Trust counties. (b) Trust purpose The purpose of the O&C Trust is to produce annual maximum sustained revenues in perpetuity for O&C Trust counties by managing the timber resources on O&C Trust lands on a sustained-yield basis subject to the management requirements of section 314. (c) Designation of O&C trust lands (1) Lands included Except as provided in paragraph (2), the O&C Trust lands shall include all of the lands containing the stands of timber described in subsection (d) that are located, as of January 1, 2013, on Oregon and California Railroad Grant lands and O&C Region Public Domain lands. (2) Lands excluded O&C Trust lands shall not include any of the following Oregon and California Railroad Grant lands and O&C Region Public Domain lands (even if the lands are otherwise described in subsection (d)): (A) Federal lands within the National Landscape Conservation System as of January 1, 2013. (B) Federal lands designated as Areas of Critical Environmental Concern as of January 1, 2013. (C) Federal lands that were in the National Wilderness Preservation System as of January 1, 2013. (D) Federal lands included in the National Wild and Scenic Rivers System of January 1, 2013. (E) Federal lands within the boundaries of a national monument, park, or other developed recreation area as of January 1, 2013. (F) Oregon treasures addressed in subtitle C, any portion of which, as of January 1, 2013, consists of Oregon and California Railroad Grant lands or O&C Region Public Domain lands. (G) Tribal lands addressed in subtitle D. (d) Covered stands of timber (1) Description The O&C Trust lands consist of stands of timber that have previously been managed for timber production or that have been materially altered by natural disturbances since 1886. Most of these stands of timber are 80 years old or less, and all of such stands can be classified as having a predominant stand age of 125 years or less. (2) Delineation of boundaries by bureau of land management The Oregon and California Railroad Grant lands and O&C Region Public Domain lands that, immediately before transfer to the O&C Trust, were managed by the Bureau of Land Management are timber stands that have predominant birth date attributes of 1886 or later, with boundaries that are defined by polygon spatial data layer in and electronic data compilation filed by the Bureau of Land Management pursuant to paragraph (4). Except as provided in paragraph (5), the boundaries of all timber stands constituting the O&C Trust lands are finally and conclusively determined for all purposes by coordinates in or derived by reference to the polygon spatial data layer prepared by the Bureau of Land Management and filed pursuant to paragraph (4), notwithstanding anomalies that might later be discovered on the ground. The boundary coordinates are locatable on the ground by use of global positioning system signals. In cases where the location of the stand boundary is disputed or is inconsistent with paragraph (1), the location of boundary coordinates on the ground shall be, except as otherwise provided in paragraph (5), finally and conclusively determined for all purposes by the direct or indirect use of global positioning system equipment with accuracy specification of one meter or less. (3) Delineation of boundaries by forest service The O&C Trust lands that, immediately before transfer to the O&C Trust, were managed by the Forest Service are timber stands that can be classified as having predominant stand ages of 125 years old or less. Within 30 days after the date of the enactment of this Act, the Secretary of Agriculture shall commence identification of the boundaries of such stands, and the boundaries of all such stands shall be identified and made available to the Board of Trustees not later than 180 days following the creation of the O&C Trust pursuant to subsection (a). In identifying the stand boundaries, the Secretary may use geographic information system data, satellite imagery, cadastral survey coordinates, or any other means available within the time allowed. The boundaries shall be provided to the Board of Trustees within the time allowed in the form of a spatial data layer from which coordinates can be derived that are locatable on the ground by use of global positioning system signals. Except as provided in paragraph (5), the boundaries of all timber stands constituting the O&C Trust lands are finally and conclusively determined for all purposes by coordinates in or derived by reference to the data provided by the Secretary within the time provided by this paragraph, notwithstanding anomalies that might later be discovered on the ground. In cases where the location of the stand boundary is disputed or inconsistent with paragraph (1), the location of boundary coordinates on the ground shall be, except as otherwise provided in paragraph (5), finally and conclusively determined for all purposes by the boundary coordinates provided by the Secretary as they are located on the ground by the direct or indirect use of global positioning system equipment with accuracy specifications of one meter or less. All actions taken by the Secretary under this paragraph shall be deemed to not involve Federal agency action or Federal discretionary involvement or control. (4) Data and maps Copies of the data containing boundary coordinates for the stands included in the O&C Trust lands, or from which such coordinates are derived, and maps generally depicting the stand locations shall be filed with the Committee on Energy and Natural Resources of the Senate, the Committee on Natural Resources of the House of Representatives, and the office of the Secretary concerned. The maps and data shall be filed— (A) not later than 90 days after the date of the enactment of this Act, in the case of the lands identified pursuant to paragraph (2); and (B) not later than 180 days following the creation of the O&C Trust pursuant to subsection (a), in the case of lands identified pursuant to paragraph (3). (5) Adjustment authority and limitations (A) No impact on determining title or property ownership boundaries Stand boundaries identified under paragraph (2) or (3) shall not be relied upon for purposes of determining title or property ownership boundaries. If the boundary of a stand identified under paragraph (2) or (3) extends beyond the property ownership boundaries of Oregon and California Railroad Grant lands or O&C Region Public Domain lands, as such property boundaries exist on the date of enactment of this Act, then that stand boundary is deemed adjusted by this subparagraph to coincide with the property ownership boundary. (B) Effect of data errors or inconsistencies Data errors or inconsistencies may result in parcels of land along property ownership boundaries that are unintentionally omitted from the O&C Trust lands that are identified under paragraph (2) or (3). In order to correct such errors, any parcel of land that satisfies all of the following criteria is hereby deemed to be O&C Trust land: (i) The parcel is within the ownership boundaries of Oregon and California Railroad Grant lands or O&C Region Public Domain lands on the date of the enactment of this Act. (ii) The parcel satisfies the description in paragraph (1) on the date of enactment of this Act. (iii) The parcel is not excluded from the O&C Trust lands pursuant to subsection (c)(2). (C) No impact on land exchange authority Nothing in this subsection is intended to limit the authority of the Trust and the Forest Service to engage in land exchanges between themselves or with owners of non-Federal land as provided elsewhere in this title. 312. Legal effect of O&C Trust and judicial review (a) Legal status of trust lands Subject to the other provisions of this section, all right, title, and interest in and to the O&C Trust lands remain in the United States, except that— (1) the Board of Trustees shall have all authority to manage the surface estate of the O&C Trust lands and the resources found thereon; (2) actions on the O&C Trust lands shall be deemed to involve no Federal agency action or Federal discretionary involvement or control and the laws of the State shall apply to the surface estate of the O&C Trust lands in the manner applicable to privately owned timberlands in the State; and (3) the O&C Trust shall be treated as the beneficial owner of the surface estate of the O&C Trust lands for purposes of all legal proceedings involving the O&C Trust lands. (b) Minerals (1) In general Mineral and other subsurface rights in the O&C Trust lands are retained by the United States or other owner of such rights as of the date on which management authority over the surface estate of the lands are transferred to the O&C Trust. (2) Rock and gravel (A) Use authorized; purpose For maintenance or construction on the road system under the control of the O&C Trust or for non-Federal lands intermingled with O&C Trust lands, the Board of Trustees may— (i) utilize rock or gravel found within quarries in existence immediately before the date of the enactment of this Act on any Oregon and California Railroad Grant lands and O&C Region Public Domain lands, excluding those lands designated under subtitle C or transferred under subtitle D; and (ii) construct new quarries on O&C Trust lands, except that any quarry so constructed may not exceed 5 acres. (B) Exception The Board of Trustees shall not construct new quarries on any of the lands transferred to the Forest Service under section 321 or lands designated under subtitle D. (c) Roads (1) In general Except as provided in subsection (b), the Board of Trustees shall assume authority and responsibility over, and have authority to use, all roads and the road system specified in the following subparagraphs: (A) All roads and road systems on the Oregon and California Railroad and Grant lands and O&C Region Public Domain lands owned or administered by the Bureau of Land Management immediately before the date of the enactment of this Act, except that the Secretary of Agriculture shall assume the Secretary of Interior’s obligations for pro-rata maintenance expense and road use fees under reciprocal right-of-way agreements for those lands transferred to the Forest Service under section 321. All of the lands transferred to the Forest Service under section 321 shall be considered as part of the tributary area used to calculate pro-rata maintenance expense and road use fees. (B) All roads and road systems owned or administered by the Forest Service immediately before the date of the enactment of this Act and subsequently included within the boundaries of the O&C Trust lands. (C) All roads later added to the road system for management of the O&C Trust lands. (2) Lands transferred to forest service The Secretary of Agriculture shall assume the obligations of the Secretary of Interior for pro-rata maintenance expense and road use fees under reciprocal rights-of-way agreements for those Oregon and California Railroad Grant lands or O&C Region Public Domain lands transferred to the Forest Service under section 321. (3) Compliance with Clean Water Act All roads used, constructed, or reconstructed under the jurisdiction of the O&C Trust must comply with requirements of the Federal Water Pollution Control Act ( 33 U.S.C. 1251 et seq. ) applicable to private lands through the use of Best Management Practices under the Oregon Forest Practices Act. (d) Public access (1) In general Subject to paragraph (2), public access to O&C Trust lands shall be preserved consistent with the policies of the Secretary concerned applicable to the O&C Trust lands as of the date on which management authority over the surface estate of the lands is transferred to the O&C Trust. (2) Restrictions The Board of Trustees may limit or control public access for reasons of public safety or to protect the resources on the O&C Trust lands. (e) Limitations The assets of the O&C Trust shall not be subject to the creditors of an O&C Trust county, or otherwise be distributed in an unprotected manner or be subject to anticipation, encumbrance, or expenditure other than for a purpose for which the O&C Trust was created. (f) Remedy An O&C Trust county shall have all of the rights and remedies that would normally accrue to a beneficiary of a trust. An O&C Trust county shall provide the Board of Trustees, the Secretary concerned, and the Attorney General with not less than 60 days notice of an intent to sue to enforce the O&C Trust county’s rights under the O&C Trust. (g) Judicial review (1) In general Except as provided in paragraph (2), judicial review of any provision of this title shall be sought in the United States Court of Appeals for the District of Columbia Circuit. Parties seeking judicial review of the validity of any provision of this title must file suit within 90 days after the date of the enactment of this Act and no preliminary injunctive relief or stays pending appeal will be permitted. If multiple cases are filed under this paragraph, the Court shall consolidate the cases. The Court must rule on any action brought under this paragraph within 180 days. (2) Decisions of Board of Trustees Decisions made by the Board of Trustees shall be subject to judicial review only in an action brought by an O&C County, except that nothing in this title precludes bringing a legal claim against the Board of Trustees that could be brought against a private landowner for the same action. 313. Board of Trustees (a) Appointment authorization Subject to the conditions on appointment imposed by this section, the Governor is authorized to appoint the Board of Trustees to administer the O&C Trust and O&C Trust lands. Appointments by the Governor shall be made within 60 days after the date of the enactment of this Act. (b) Members and eligibility (1) Number Subject to subsection (c), the Board of Trustees shall consist of seven members. (2) Residency requirement Members of the Board of Trustees must reside within an O&C Trust county. (3) Geographical representation To the extent practicable, the Governor shall ensure broad geographic representation among the O&C Trust counties in appointing members to the Board of Trustees. (c) Composition The Board of Trustees shall include the following members: (1) (A) Two forestry and wood products representatives, consisting of— (i) one member who represents the commercial timber, wood products, or milling industries and who represents an Oregon-based company with more than 500 employees, taking into account its affiliates, that has submitted a bid for a timber sale on the Oregon and California Railroad Grant lands, O&C Region Public Domain lands, Coos Bay Wagon Road Grant lands, or O&C Trust lands in the preceding five years; and (ii) one member who represents the commercial wood products or milling industries and who represents an Oregon-based company with 500 or fewer employees, taking into account its affiliates, that has submitted a bid for a timber sale on the Oregon and California Railroad Grant lands, O&C Region Public Domain lands, Coos Bay Wagon Road Grant lands, or O&C Trust lands in the preceding five years. (B) At least one of the two representatives selected in this paragraph must own commercial forest land that is adjacent to the O&C Trust lands and from which the representative has not exported unprocessed timber in the preceding five years. (2) One representative of the general public who has professional experience in one or more of the following fields: (A) Business management. (B) Law. (C) Accounting. (D) Banking. (E) Labor management. (F) Transportation. (G) Engineering. (H) Public policy. (3) One representative of the science community who, at a minimum, holds a Doctor of Philosophy degree in wildlife biology, forestry, ecology, or related field and has published peer-reviewed academic articles in the representative’s field of expertise. (4) Three governmental representatives, consisting of— (A) two members who are serving county commissioners of an O&C Trust county and who are nominated by the governing bodies of a majority of the O&C Trust counties and approved by the Governor, except that the two representatives may not be from the same county; and (B) one member who holds State-wide elected office (or is a designee of such a person) or who represents a federally recognized Indian tribe or tribes within one or more O&C Trust counties. (d) Term, initial appointment, vacancies (1) Term Except in the case of initial appointments, members of the Board of Trustees shall serve for five-year terms and may be reappointed for one consecutive term. (2) Initial appointments In making the first appointments to the Board of Trustees, the Governor shall stagger initial appointment lengths so that two members have three-year terms, two members have four-year terms, and three members have a full five-year term. (3) Vacancies Any vacancy on the Board of Trustees shall be filled within 45 days by the Governor for the unexpired term of the departing member. (4) Board of Trustees Management Costs Members of the Board of Trustees may receive annual compensation from the O&C Trust at a rate not to exceed 50 percent of the average annual salary for commissioners of the O&C Trust counties for that year. (e) Chairperson and operations (1) Chairperson A majority of the Board of Trustees shall select the chairperson for the Board of Trustees each year. (2) Meetings The Board of Trustees shall establish proceedings to carry out its duties. The Board shall meet at least quarterly. Except for meetings substantially involving personnel and contractual decisions, all meetings of the Board shall comply with the public meetings law of the State. (f) Quorum and decision-Making (1) Quorum A quorum shall consist of five members of the Board of Trustees. The presence of a quorum is required to constitute an official meeting of the board of trustees to satisfy the meeting requirement under subsection (e)(2). (2) Decisions All actions and decisions by the Board of Trustees shall require approval by a majority of members. (g) Annual audit Financial statements regarding operation of the O&C Trust shall be independently prepared and audited annually for review by the O&C Trust counties, Congress, and the State. 314. Management of O&C Trust lands (a) In general Except as otherwise provided in this title, the O&C Trust lands will be managed by the Board of Trustees in compliance with all Federal and State laws in the same manner as such laws apply to private forest lands. (b) Timber sale plans The Board of Trustees shall approve and periodically update management and sale plans for the O&C Trust lands consistent with the purpose specified in section 311(b). The Board of Trustees may defer sale plans during periods of depressed timber markets if the Board of Trustees, in its discretion, determines that such delay until markets improve is financially prudent and in keeping with its fiduciary obligation to the O&C Trust counties. (c) Stand rotation (1) 100–120 year rotation The Board of Trustees shall manage not less than 50 percent of the harvestable acres of the O&C Trust lands on a 100–120 year rotation. The acreage subject to 100–120 year management shall be geographically dispersed across the O&C Trust lands in a manner that the Board of Trustees, in its discretion, determines will contribute to aquatic and terrestrial ecosystem values. (2) Balance The balance of the harvestable acreage of the O&C Trust lands shall be managed on any rotation age the Board of Trustees, in its discretion and in compliance with applicable State law, determines will best satisfy its fiduciary obligation to provide revenue to the O&C Trust counties. (3) Thinning Nothing in this subsection is intended to limit the ability of the Board of Trustees to decide, in its discretion, to thin stands of timber on O&C Trust lands. (d) Sale terms (1) In general Subject to paragraphs (2) and (3), the Board of Trustees is authorized to establish the terms for sale contracts of timber or other forest products from O&C Trust lands. (2) Set aside The Board of Trustees shall establish a program consistent with the program of the Bureau of Land Management under a March 10, 1959 Memorandum of Understanding, as amended, regarding calculation of shares and sale of timber set aside for purchase by business entities with 500 or fewer employees and consistent with the regulations in part 121 of title 13, Code of Federal Regulations applicable to timber sale set asides, except that existing shares in effect on the date of enactment of this Act shall apply until the next scheduled recomputation of shares. In implementing its program that is consistent with such Memorandum of Understanding, the Board of Trustees shall utilize the Timber Sale Procedure Handbook and other applicable procedures of the Bureau of Land Management, including the Operating Procedures for Conducting the Five-Year Recomputation of Small Business Share Percentages in effect on January 1, 2013. (3) Competitive bidding The Board of Trustees must sell timber on a competitive bid basis. No less than 50 percent of the total volume of timber sold by the Board of Trustees each year shall be sold by oral bidding consistent with practices of the Bureau of Land Management as of January 1, 2013. (e) Prohibition on export (1) In general As a condition on the sale of timber or other forest products from O&C Trust lands, unprocessed timber harvested from O&C Trust lands may not be exported. (2) Violations Any person who knowingly exports unprocessed timber harvested from O&C Trust lands, who knowingly provides such unprocessed timber for export by another person, or knowingly sells timber harvested from O&C Trust lands to a person who is disqualified from purchasing timber from such lands pursuant to this section shall be disqualified from purchasing timber or other forest products from O&C Trust lands or from Federal lands administered under this subtitle. Any person who uses unprocessed timber harvested from O&C Trust lands in substitution for exported unprocessed timber originating from private lands shall be disqualified from purchasing timber or other forest products from O&C Trust lands or from Federal lands administered under this subtitle. (3) Unprocessed timber defined In this subsection, the term unprocessed timber has the meaning given such term in section 493(9) of the Forest Resources Conservation and Shortage Relief Act of 1990 ( 16 U.S.C. 620e(9) ). (f) Integrated Pest, Disease, and Weed Management Plan The Board of Trustees shall develop an integrated pest and vegetation management plan to assist forest managers in prioritizing and minimizing the use of pesticides and herbicides approved by the Environmental Protection Agency and used in compliance with the Oregon Forest Practices Act. The plan shall optimize the ability of the O&C Trust to re-establish forest stands after harvest in compliance with the Oregon Forest Practices Act and to create diverse early seral stage forests. The plan shall allow for the eradication, containment and suppression of disease, pests, weeds and noxious plants, and invasive species as found on the State Noxious Weed List and prioritize ground application of herbicides and pesticides to the greatest extent practicable. The plan shall be completed before the start of the second year of the transition period. The planning process shall be open to the public and the Board of Trustees shall hold not less than two public hearings on the proposed plan before final adoption. (g) Access to lands transferred to Forest Service Persons acting on behalf of the O&C Trust shall have a right of timely access over lands transferred to the Forest Service under section 321 and Tribal lands transferred under subtitle D as is reasonably necessary for the Board of Trustees to carry out its management activities with regard to the O&C Trust lands and the O&C Trust to satisfy its fiduciary duties to O&C counties. (h) Harvest area tree and retention requirements (1) In general The O&C Trust lands shall include harvest area tree and retention requirements consistent with State law. (2) Use of old growth definition To the greatest extent practicable, and at the discretion of the Board of Trustees, old growth, as defined by the Old Growth Review Panel created by section 324, shall be used to meet the retention requirements applicable under paragraph (1). (i) Riparian area management (1) In general The O&C Trust lands shall be managed with timber harvesting limited in riparian areas as follows: (A) Streams For all fish bearing streams and all perennial non-fish-bearing streams, there shall be no removal of timber within a distance equal to the height of one site potential tree on both sides of the stream channel. For intermittent, non-fish-bearing streams, there shall be no removal of timber within a distance equal to one-half the height of a site potential tree on both sides of the stream channel. For purposes of this subparagraph, the stream channel boundaries are the lines of ordinary high water. (B) Larger lakes, ponds and reservoirs For all lakes, ponds, and reservoirs with surface area larger than one quarter of one acre, there shall be no removal of timber within a distance equal to the height of one site potential tree from the line of ordinary high water of the water body. (C) Small ponds and natural wetlands, springs and seeps For all ponds with surface area one quarter acre or less, and for all natural wetlands, springs and seeps, there shall be no removal of timber within the area dominated by riparian vegetation. (2) Measurements For purposes of paragraph (1), all distances shall be measured along slopes, and all site potential tree heights shall be average height at maturity of the dominant species of conifer determined at a scale no finer than the applicable fifth field watershed. (3) Rules of construction Nothing in paragraph (1) shall be construed— (A) to prohibit the falling or placement of timber into streams to create large woody debris for the benefit of aquatic ecosystems; or (B) to prohibit the falling of trees within riparian areas as may be reasonably necessary for safety or operational reasons in areas adjacent to the riparian areas, or for road construction or maintenance pursuant to section 312(c)(3). (j) Fire protection and emergency response (1) Reciprocal fire protection agreements (A) Continuation of agreements Subject to subparagraphs (B), (C), and (D), any reciprocal fire protection agreement between the State or any other entity and the Secretary concerned with regard to Oregon and California Railroad Grant lands and O&C Region Public Domain lands in effect on the date of the enactment of this Act shall remain in place for a period of ten years after such date unless earlier terminated by the State or other entity. (B) Assumption of BLM rights and duties The Board of Trustees shall exercise the rights and duties of the Bureau of Land Management under the agreements described in subparagraph (A), except as such rights and duties might apply to Tribal lands under subtitle D. (C) Effect of expiration of period Following the expiration of the ten-year period under subparagraph (A), the Board of Trustees shall continue to provide for fire protection of the Oregon and California Railroad Grant lands and O&C Region Public Domain lands, including those transferred to the Forest Service under section 331, through continuation of the reciprocal fire protection agreements, new cooperative agreements, or by any means otherwise permitted by law. The means selected shall be based on the review by the Board of Trustees of whether the reciprocal fire protection agreements were effective in protecting the lands from fire. (D) Emergency response Nothing in this paragraph shall prevent the Secretary of Agriculture from an emergency response to a fire on the O&C Trust lands or lands transferred to the Forest Service under section 321. (2) Emergency response to fire Subject to paragraph (1), if the Secretary of Agriculture determines that fire on any of the lands transferred under section 321 is burning uncontrolled or the Secretary, the Board of Trustees, or contracted party does not have readily and immediately available personnel and equipment to control or extinguish the fire, the Secretary, or any forest protective association or agency under contract or agreement with the Secretary or the Board of Trustees for the protection of forestland against fire, shall summarily and aggressively abate the nuisance thus controlling and extinguishing the fire. (k) Northern spotted owl So long as the O&C Trust maintains the 100–120 year rotation on 50 percent of the harvestable acres required in subsection (c), the section 321 lands representing the best quality habitat for the owl are transferred to the Forest Service, and the O&C Trust protects currently occupied northern spotted owl nest sites consistent with the forest practices in the Oregon Forest Practices Act, management of the O&C Trust land by the Board of Trustees shall be considered to comply with section 9 of Public Law 93–205 ( 16 U.S.C. 1538 ) for the northern spotted owl. A currently occupied northern spotted owl nest site shall be considered abandoned if there are no northern spotted owl responses following three consecutive years of surveys using the Protocol for Surveying Management Activities that May Impact Northern Spotted Owls dated February 2, 2013. 315. Distribution of revenues from O&C Trust lands (a) Annual distribution of revenues (1) Time for distribution; use Payments to each O&C Trust county shall be made available to the general fund of the O&C Trust county as soon as practicable following the end of each fiscal year, to be used as are other unrestricted county funds. (2) Amount The amount paid to an O&C Trust county in relation to the total distributed to all O&C Trust counties for a fiscal year shall be based on the proportion that the total assessed value of the Oregon and California Railroad Grant lands in each of the O&C Trust counties for fiscal year 1915 bears to the total assessed value of all of the Oregon and California Railroad Grant lands in the State for that same fiscal year. However, for the purposes of this subsection the portion of the revested Oregon and California Railroad Grant lands in each of the O&C Trust counties that was not assessed for fiscal year 1915 shall be deemed to have been assessed at the average assessed value of the Oregon and California Railroad Grant lands in the county. (3) Limitation After the fifth payment made under this subsection, the payment to an O&C Trust county for a fiscal year shall not exceed 110 percent of the previous year’s payment to the O&C Trust county, adjusted for inflation based on the consumer price index applicable to the geographic area in which the O&C Trust counties are located. (b) Reserve fund (1) Establishment of reserve fund The Board of Trustees shall generate and maintain a reserve fund. (2) Deposits to reserve fund Within 10 years after creation of the O&C Trust or as soon thereafter as is practicable, the Board of Trustees shall establish and seek to maintain an annual balance of $125,000,000 in the Reserve Fund, to be derived from revenues generated from management activities involving O&C Trust lands. All annual revenues generated in excess of operating costs and payments to O&C Trust counties required by subsection (a) and payments into the Conservation Fund as provided in subsection (c) shall be deposited in the Reserve Fund. (3) Expenditures from reserve fund The Board of Trustees shall use amounts in the Reserve Fund only— (A) to pay management and administrative expenses or capital improvement costs on O&C Trust lands; and (B) to make payments to O&C Trust counties when payments to the counties under subsection (a) are projected to be 90 percent or less of the previous year’s payments. (c) O&C trust conservation fund (1) Establishment of conservation fund The Board of Trustees shall use a portion of revenues generated from activity on the O&C Trust lands, consistent with paragraph (2), to establish and maintain a O&C Trust Conservation Fund. The O&C Trust Conservation Fund shall include no Federal appropriations. (2) Revenues Following the transition period, five percent of the O&C Trust’s annual net operating revenue, after deduction of all management costs and expenses, including the payment required under section 317, shall be deposited to the O&C Trust Conservation Fund. (3) Expenditures from conservation fund The Board of Trustees shall use amounts from the O&C Trust Conservation Fund only— (A) to fund the voluntary acquisition of conservation easements from willing private landowners in the State; (B) to fund watershed restoration, remediation and enhancement projects within the State; or (C) to contribute to balancing values in a land exchange with willing private landowners proposed under section 323(b), if the land exchange will result in a net increase in ecosystem benefits for fish, wildlife, or rare native plants. 316. Land exchange authority (a) Authority Subject to approval by the Secretary concerned, the Board of Trustees may negotiate proposals for land exchanges with owners of lands adjacent to O&C Trust lands in order to create larger contiguous blocks of land under management by the O&C Trust to facilitate resource management, to improve conservation value of such lands, or to improve the efficiency of management of such lands. (b) Approval required; criteria The Secretary concerned may approve a land exchange proposed by the Board of Trustees administratively if the exchange meets the following criteria: (1) The non-Federal lands are completely within the State. (2) The non-Federal lands have high timber production value, or are necessary for more efficient or effective management of adjacent or nearby O&C Trust lands. (3) The non-Federal lands have equal or greater value to the O&C Trust lands proposed for exchange. (4) The proposed exchange is reasonably likely to increase the net income to the O&C Trust counties over the next 20 years and not decrease the net income to the O&C Trust counties over the next 10 years. (c) Acreage limitation The Secretary concerned shall not approve land exchanges under this section that, taken together with all previous exchanges involving the O&C Trust lands, have the effect of reducing the total acreage of the O&C Trust lands by more than five percent from the total acreage to be designated as O&C Trust land under section 311(c)(1). (d) Inapplicability of certain laws Section 3 of the Oregon Public Lands Transfer and Protection Act of 1998 ( Public Law 105–321 ; 112 Stat. 3022), the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et. seq.), including the amendments made by the Federal Land Exchange Facilitation Act of 1988 ( Public Law 100–409 ; 102 Stat. 1086), the Act of March 20, 1922 ( 16 U.S.C. 485 , 486), and the Act of March 1, 1911 (commonly known as the Weeks Act; 16 U.S.C. 480 et seq. ) shall not apply to the land exchange authority provided by this section. (e) Exchanges with forest service (1) Exchanges authorized The Board of Trustees is authorized to engage in land exchanges with the Forest Service if approved by the Secretary pursuant to section 323(c). (2) Management of exchanged lands Following completion of a land exchange under paragraph (1), the management requirements applicable to the newly acquired lands by the O&C Trust or the Forest Service shall be the same requirements under this subtitle applicable to the other lands that are managed by the O&C Board or the Forest Service. 317. Payments to the United States Treasury As soon as practicable after the end of the third fiscal year of the transition period and in each of the subsequent seven fiscal years, the O&C Trust shall submit a payment of $10,000,000 to the United States Treasury. 2 Transfer of Certain Lands to Forest Service 321. Transfer of certain Oregon and California Railroad Grant lands to Forest Service (a) Transfer required The Secretary of the Interior shall transfer administrative jurisdiction over all Oregon and California Railroad Grant lands and O&C Region Public Domain lands not designated as O&C Trust lands by subparagraphs (A) through (F) of section 311(c)(1), including those lands excluded by section 311(c)(2), to the Secretary of Agriculture for inclusion in the National Forest System and administration by the Forest Service as provided in section 322. (b) Exception This section does not apply to Tribal lands transferred under subtitle D. 322. Management of transferred lands by Forest Service (a) Assignment to existing national forests To the greatest extent practicable, management responsibilities for the lands transferred under section 321 shall be assigned to the unit of the National Forest System geographically closest to the transferred lands. The Secretary of Agriculture shall have ultimate decision-making authority, but shall assign the transferred lands to a unit not later than the applicable transfer date provided in the transition period. (b) Application of Northwest Forest Plan (1) In general Except as provided in paragraph (2), the lands transferred under section 321 shall be managed under the Northwest Forest Plan and shall retain Northwest Forest Plan land use designations until or unless changed in the manner provided by Federal laws applicable to the administration and management of the National Forest System. (2) Exception for certain designated lands The lands excluded from the O&C Trust by subparagraphs (A) through (F) of section 311(c)(2) and transferred to the Forest Service under section 321 shall be managed as provided by Federal laws applicable to the lands. (c) Protection of old growth Old growth, as defined by the Old Growth Review Panel pursuant to rulemaking conducted in accordance with section 553 of title 5, United States Code, shall not be harvested by the Forest Service on lands transferred under section 321. (d) Emergency response to fire Subject to section 314(i), if the Secretary of Agriculture determines that fire on any of the lands transferred under section 321 is burning uncontrolled or the Secretary or contracted party does not have readily and immediately available personnel and equipment to control or extinguish the fire, the Secretary, or any forest protective association or agency under contract or agreement with the Secretary for the protection of forestland against fire, and within whose protection area the fire exists, shall summarily and aggressively abate the nuisance thus controlling and extinguishing the fire. 323. Management efficiencies and expedited land exchanges (a) Land exchange authority The Secretary of Agriculture may conduct land exchanges involving lands transferred under section 321, other than the lands excluded from the O&C Trust by subparagraphs (A) through (F) of section 311(c)(2), in order create larger contiguous blocks of land under management of the Secretary to facilitate resource management, to improve conservation value of such lands, or to improve the efficiency of management of such lands. (b) Criteria for exchanges with non-Federal owners The Secretary of Agriculture may conduct a land exchange administratively under this section with a non-Federal owner (other than the O&C Trust) if the land exchange meets the following criteria: (1) The non-Federal lands are completely within the State. (2) The non-Federal lands have high wildlife conservation or recreation value or the exchange is necessary to increase management efficiencies of lands administered by the Forest Service for the purposes of the National Forest System. (3) The non-Federal lands have equal or greater value to the Federal lands purposed for exchange or a balance of values can be achieved— (A) with a grant of funds provided by the O&C Trust pursuant to section 315(c); or (B) from other sources. (c) Criteria for exchanges with O&C trust The Secretary of Agriculture may conduct land exchanges with the Board of Trustees administratively under this subsection, and such an exchange shall be deemed to not involve any Federal action or Federal discretionary involvement or control if the land exchange with the O&C Trust meets the following criteria: (1) The O&C Trust lands to be exchanged have high wildlife value or ecological value or the exchange would facilitate resource management or otherwise contribute to the management efficiency of the lands administered by the Forest Service. (2) The exchange is requested or approved by the Board of Trustees for the O&C Trust and will not impair the ability of the Board of Trustees to meet its fiduciary responsibilities. (3) The lands to be exchanged by the Forest Service do not contain stands of timber meeting the definition of old growth established by the Old Growth Review Panel pursuant to section 324. (4) The lands to be exchanged are equal in acreage. (d) Acreage limitation The Secretary of Agriculture shall not approve land exchanges under this section that, taken together with all previous exchanges involving the lands described in subsection (a), have the effect of reducing the total acreage of such lands by more than five percent from the total acreage originally transferred to the Secretary. (e) Inapplicability of certain laws Section 3 of the Oregon Public Lands Transfer and Protection Act of 1998 ( Public Law 105–321 ; 112 Stat. 3022), the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et. seq.), including the amendments made by the Federal Land Exchange Facilitation Act of 1988 ( Public Law 100–409 ; 102 Stat. 1086), the Act of March 20, 1922 ( 16 U.S.C. 485 , 486), and the Act of March 1, 1911 (commonly known as the Weeks Act; 16 U.S.C. 480 et seq. ) shall not apply to the land exchange authority provided by this section. 324. Review panel and old growth protection (a) Appointment; members Within 60 days after the date of the enactment of this Act the Secretary of Agriculture shall appoint an Old Growth Review Panel consisting of five members. At a minimum, the members must hold a Doctor of Philosophy degree in wildlife biology, forestry, ecology, or related field and published peer-reviewed academic articles in their field of expertise. (b) Purpose of review Members of the Old Growth Review Panel shall review existing, published, peer-reviewed articles in relevant academic journals and establish a definition or definitions of old growth as it applies to the ecologically, geographically and climatologically unique Oregon and California Railroad Grant lands and O&C Region Public Domain lands managed by the O&C Trust or the Forest Service only. The definition or definitions shall bear no legal force, shall not be used as a precedent for, and shall not apply to any lands other than the Oregon and California Railroad Grant lands and O&C Region Public Domain lands managed by the O&C Trust or the Forest Service in western Oregon. The definition or definitions shall not apply to Tribal lands. (c) Submission of results The definition or definitions for old growth in western Oregon established under subsection (b), if approved by at least four members of the Old Growth Review Panel, shall be submitted to the Secretary of Agriculture within six months after the date of the enactment of this Act. 325. Uniqueness of old growth protection on Oregon and California Railroad Grant lands All sections of this subtitle referring to the term old growth are uniquely suited to resolve management issues for the lands covered by this subtitle only, and shall not be construed as precedent for any other situation involving management of other Federal, State, Tribal, or private lands. 3 Transition 331. Transition period and operations (a) Transition period (1) Commencement; duration Effective on October 1 of the first fiscal year beginning after the appointment of the Board of Trustees under section 313, a transition period of three fiscal years shall commence. (2) Exceptions Unless specifically stated in the following subsections, any action under this section shall be deemed not to involve Federal agency action or Federal discretionary involvement or control. (b) Year one (1) Applicability During the first fiscal year of the transition period, the activities described in this subsection shall occur. (2) Board of Trustees activities The Board of Trustees shall employ sufficient staff or contractors to prepare for beginning management of O&C Trust lands and O&C Region Public Domain lands in the second fiscal year of the transition period, including preparation of management plans and a harvest schedule for the lands over which management authority is transferred to the O&C Trust in the second fiscal year. (3) Forest service activities The Forest Service shall begin preparing to assume management authority of all Oregon and California Railroad Grant lands and O&C Region Public Domain lands transferred under section 321 in the second fiscal year. (4) Secretary concerned activities The Secretary concerned shall continue to exercise management authority over all Oregon and California Railroad Grant lands and O&C Region Public Domain lands under all existing Federal laws. (5) Information sharing Upon written request from the Board of Trustees, the Secretary of the Interior shall provide copies of any documents or data, however stored or maintained, that includes the requested information concerning O&C Trust lands. The copies shall be provided as soon as practicable and to the greatest extent possible, but in no event later than 30 days following the date of the request. (6) Exception This subsection does not apply to Tribal lands transferred under subtitle D. (c) Year two (1) Applicability During the second fiscal year of the transition period, the activities described in this subsection shall occur. (2) Transfer of O&C Trust lands Effective on October 1 of the second fiscal year of the transition period, management authority over the O&C Trust lands shall be transferred to the O&C Trust. (3) Transfer of lands to forest service The transfers required by section 321 shall occur. (4) Information sharing The Secretary of Agriculture shall obtain and manage, as soon as practicable, all documents and data relating to the Oregon and California Railroad Grant lands, O&C Region Public Domain lands, and Coos Bay Wagon Road lands previously managed by the Bureau of Land Management. Upon written request from the Board of Trustees, the Secretary of Agriculture shall provide copies of any documents or data, however stored or maintained, that includes the requested information concerning O&C Trust lands. The copies shall be provided as soon as practicable and to the greatest extent possible, but in no event later than 30 days following the date of the request. (5) Implementation of management plan The Board of Trustees shall begin implementing its management plan for the O&C Trust lands and revise the plan as necessary. Distribution of revenues generated from all activities on the O&C Trust lands shall be subject to section 315. (d) Year three and subsequent years (1) Applicability During the third fiscal year of the transition period and all subsequent fiscal years, the activities described in this subsection shall occur. (2) Board of trustees management The Board of Trustees shall manage the O&C Trust lands pursuant to subtitle A. 332. O&C Trust management capitalization (a) Borrowing authority The Board of Trustees is authorized to borrow from any available private sources and non-Federal, public sources in order to provide for the costs of organization, administration, and management of the O&C Trust during the three-year transition period provided in section 331. (b) Support Notwithstanding any other provision of law, O&C Trust counties are authorized to loan to the O&C Trust, and the Board of Trustees is authorized to borrow from willing O&C Trust counties, amounts held on account by such counties that are required to be expended in accordance with the Act of May 23,1908 (35 Stat. 260; 16 U.S.C. 500 ) and section 13 of the Act of March 1, 1911 (36 Stat. 963; 16 U.S.C. 500 ), except that, upon repayment by the O&C Trust, the obligation of such counties to expend the funds in accordance with such Acts shall continue to apply. 333. Existing Bureau of Land Management and Forest Service contracts (a) Treatment of existing contracts Any work or timber contracts sold or awarded by the Bureau of Land Management or Forest Service on or with respect to Oregon and California Railroad Grant lands or O&C Region Public Domain lands before the transfer of the lands to the O&C Trust or the Forest Service, or Tribal lands transferred under subtitle D, shall remain binding and effective according to the terms of the contracts after the transfer of the lands. The Board of Trustees and Secretary concerned shall make such accommodations as are necessary to avoid interfering in any way with the performance of the contracts. (b) Treatment of Payments under contracts Payments made pursuant to the contracts described in subsection (a), if any, shall be made as provided in those contracts and not made to the O&C Trust. 334. Protection of valid existing rights and access to non-Federal land (a) Valid rights Nothing in this title, or any amendment made by this title, shall be construed as terminating any valid lease, permit, patent, right-of-way, agreement, or other right of authorization existing on the date of the enactment of this Act with regard to Oregon and California Railroad Grant lands or O&C Region Public Domain lands, including O&C Trust lands over which management authority is transferred to the O&C Trust pursuant to section 311(c)(1), lands transferred to the Forest Service under section 321, and Tribal lands transferred under subtitle D. (b) Access to lands (1) Existing access rights The Secretary concerned shall preserve all rights of access and use, including (but not limited to) reciprocal right-of-way agreements, tail hold agreements, or other right-of-way or easement obligations existing on the date of the enactment of this Act, and such rights shall remain applicable to lands covered by this subtitle in the same manner and to the same extent as such rights applied before the date of the enactment of this Act. (2) New access rights If a current or future landowner of land intermingled with Oregon and California Railroad Grant lands or O&C Region Public Domain lands does not have an existing access agreement related to the lands covered by this subtitle, the Secretary concerned shall enter into an access agreement, including appurtenant lands, to secure the landowner the reasonable use and enjoyment of the landowner’s land, including the harvest and hauling of timber. (c) Management cooperation The Board of Trustees and the Secretary concerned shall provide current and future landowners of land intermingled with Oregon and California Railroad Grant lands or O&C Region Public Domain lands the permission needed to manage their lands, including to locate tail holds, tramways, and logging wedges, to purchase guylines, and to cost-share property lines surveys to the lands covered by this subtitle, within 30 days after receiving notification of the landowner’s plan of operation. (d) Judicial review Notwithstanding section 312(g)(2), a private landowner may obtain judicial review of a decision of the Board of Trustees to deny— (1) the landowner the rights provided by subsection (b) regarding access to the landowner’s land; or (2) the landowner the reasonable use and enjoyment of the landowner’s land. 335. Repeal of superseded law relating to Oregon and California Railroad Grant lands (a) Repeal Except as provided in subsection (b), the Act of August 28, 1937 ( 43 U.S.C. 1181a et seq. ) is repealed effective on October 1 of the first fiscal year beginning after the appointment of the Board of Trustees. (b) Effect of certain court rulings If, as a result of judicial review authorized by section 312, any provision of this subtitle is held to be invalid and implementation of the provision or any activity conducted under the provision is then enjoined, the Act of August 28, 1937 ( 43 U.S.C. 1181a et seq. ), as in effect immediately before its repeal by subsection (a), shall be restored to full legal force and effect as if the repeal had not taken effect. B Coos Bay Wagon Roads 341. Transfer of management authority over certain Coos Bay Wagon Road Grant lands to Coos County, Oregon (a) Transfer required Except in the case of the lands described in subsection (b), the Secretary of the Interior shall transfer management authority over the Coos Bay Wagon Road Grant lands reconveyed to the United States pursuant to the first section of the Act of February 26, 1919 (40 Stat. 1179), and the surface resources thereon, to the Coos County government. The transfer shall be completed not later than one year after the date of the enactment of this Act. (b) Lands excluded The transfer under subsection (a) shall not include any of the following Coos Bay Wagon Road Grant lands: (1) Federal lands within the National Landscape Conservation System as of January 1, 2013. (2) Federal lands designated as Areas of Critical Environmental Concern as of January 1, 2013. (3) Federal lands that were in the National Wilderness Preservation System as of January 1, 2013. (4) Federal lands included in the National Wild and Scenic Rivers System of January 1, 2013. (5) Federal lands within the boundaries of a national monument, park, or other developed recreation area as of January 1, 2013. (6) All stands of timber generally older than 125 years old, as of January 1, 2011, which shall be conclusively determined by reference to the polygon spatial data layer in the electronic data compilation filed by the Bureau of Land Management based on the predominant birth-date attribute, and the boundaries of such stands shall be conclusively determined for all purposes by the global positioning system coordinates for such stands. (7) Tribal lands addressed in subtitle D. (c) Management (1) In general Coos County shall manage the Coos Bay Wagon Road Grant lands over which management authority is transferred under subsection (a) consistent with section 314, and for purposes of applying such section, Board of Trustees shall be deemed to mean Coos County and O&C Trust lands shall be deemed to mean the transferred lands. (2) Responsibility for management costs Coos County shall be responsible for all management and administrative costs of the Coos Bay Wagon Road Grant lands over which management authority is transferred under subsection (a). (3) Management contracts Coos County may contract, if competitively bid, with one or more public, private, or tribal entities, including (but not limited to) the Coquille Indian Tribe, if such entities are substantially based in Coos or Douglas Counties, Oregon, to manage and administer the lands. (d) Treatment of revenues (1) In general All revenues generated from the Coos Bay Wagon Road Grant lands over which management authority is transferred under subsection (a) shall be deposited in the general fund of the Coos County treasury to be used as are other unrestricted county funds. (2) Treasury As soon as practicable after the end of the third fiscal year of the transition period and in each of the subsequent seven fiscal years, Coos County shall submit a payment of $400,000 to the United States Treasury. (3) Douglas county Beginning with the first fiscal year for which management of the Coos Bay Wagon Road Grant lands over which management authority is transferred under subsection (a) generates net positive revenues, and for all subsequent fiscal years, Coos County shall transmit a payment to the general fund of the Douglas County treasury from the net revenues generated from the lands. The payment shall be made as soon as practicable following the end of each fiscal year and the amount of the payment shall bear the same proportion to total net revenues for the fiscal year as the proportion of the Coos Bay Wagon Road Grant lands in Douglas County in relation to all Coos Bay Wagon Road Grant lands in Coos and Douglas Counties as of January 1, 2013. 342. Transfer of certain Coos Bay Wagon Road Grant lands to Forest Service The Secretary of the Interior shall transfer administrative jurisdiction over the Coos Bay Wagon Road Grant lands excluded by paragraphs (1) through (6) of section 341(b) to the Secretary of Agriculture for inclusion in the National Forest System and administration by the Forest Service as provided in section 322. 343. Land exchange authority Coos County may recommend land exchanges to the Secretary of Agriculture and carry out such land exchanges in the manner provided in section 316. C Oregon Treasures 1 Wilderness Areas 351. Designation of Devil's Staircase Wilderness (a) Designation In furtherance of the purposes of the Wilderness Act ( 16 U.S.C. 1131 et seq. ), the Federal land in the State of Oregon administered by the Forest Service and the Bureau of Land Management, comprising approximately 30,520 acres, as generally depicted on the map titled Devil's Staircase Wilderness Proposal , dated October 26, 2009, are designated as a wilderness area for inclusion in the National Wilderness Preservation System and to be known as the Devil's Staircase Wilderness . (b) Map and Legal Description As soon as practicable after the date of the enactment of this Act, the Secretary shall file with the Committee on Natural Resources of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a map and legal description of wilderness area designated by subsection (a). The map and legal description shall have the same force and effect as if included in this subdivision, except that the Secretary may correct clerical and typographical errors in the map and description. In the case of any discrepancy between the acreage specified in subsection (a) and the map, the map shall control. The map and legal description shall be on file and available for public inspection in the Office of the Chief of the Forest Service. (c) Administration (1) In general Subject to valid existing rights, the Devil's Staircase Wilderness Area shall be administered by the Secretaries of Agriculture and the Interior, in accordance with the Wilderness Act and the Oregon Wilderness Act of 1984, except that, with respect to the wilderness area, any reference in the Wilderness Act to the effective date of that Act shall be deemed to be a reference to the date of the enactment of this Act. (2) Forest service roads As provided in section 4(d)(1) of the Wilderness Act ( 16 U.S.C. 1133(d)(1) ), the Secretary of Agriculture shall— (A) decommission any National Forest System road within the wilderness boundaries; and (B) convert Forest Service Road 4100 within the wilderness boundary to a trail for primitive recreational use. (d) Incorporation of Acquired Land and Interests Any land within the boundary of the wilderness area designated by this section that is acquired by the United States shall— (1) become part of the Devil's Staircase Wilderness Area; and (2) be managed in accordance with this section and any other applicable law. (e) Fish and wildlife Nothing in this section shall be construed as affecting the jurisdiction or responsibilities of the State of Oregon with respect to wildlife and fish in the national forests. (f) Withdrawal Subject to valid rights in existence on the date of enactment of this Act, the Federal land designated as wilderness area by this section is withdrawn from all forms of— (1) entry, appropriation, or disposal under the public land laws; (2) location, entry, and patent under the mining laws; and (3) disposition under all laws pertaining to mineral and geothermal leasing or mineral materials. (g) Protection of tribal rights Nothing in this section shall be construed to diminish— (1) the existing rights of any Indian tribe; or (2) tribal rights regarding access to Federal lands for tribal activities, including spiritual, cultural, and traditional food gathering activities. 352. Expansion of Wild Rogue Wilderness Area (a) Expansion In accordance with the Wilderness Act ( 16 U.S.C. 1131 et seq. ), certain Federal land managed by the Bureau of Land Management, comprising approximately 58,100 acres, as generally depicted on the map entitled Wild Rogue , dated September 16, 2010, are hereby included in the Wild Rogue Wilderness, a component of the National Wilderness Preservation System. (b) Maps and legal descriptions (1) In general As soon as practicable after the date of enactment of this Act, the Secretary of the Interior shall file a map and a legal description of the wilderness area designated by this section, with— (A) the Committee on Energy and Natural Resources of the Senate; and (B) the Committee on Natural Resources of the House of Representatives. (2) Force of law The maps and legal descriptions filed under paragraph (1) shall have the same force and effect as if included in this subtitle, except that the Secretary may correct typographical errors in the maps and legal descriptions. (3) Public availability Each map and legal description filed under paragraph (1) shall be on file and available for public inspection in the appropriate offices of the Forest Service. (c) Administration Subject to valid existing rights, the area designated as wilderness by this section shall be administered by the Secretary of Agriculture in accordance with the Wilderness Act ( 16 U.S.C. 1131 et seq. ). (d) Withdrawal Subject to valid rights in existence on the date of enactment of this Act, the Federal land designated as wilderness by this section is withdrawn from all forms of— (1) entry, appropriation, or disposal under the public land laws; (2) location, entry, and patent under the mining laws; and (3) disposition under all laws pertaining to mineral and geothermal leasing or mineral materials. 2 Wild and Scenic River Designated and Related Protections 361. Wild and scenic river designations, Molalla River (a) Designations Section 3(a) of the Wild and Scenic Rivers Act ( 16 U.S.C. 1274(a) ) is amended by adding at the end the following: (__) Molalla river, Oregon The following segments in the State of Oregon, to be administered by the Secretary of the Interior as a recreational river: (A) The approximately 15.1-mile segment from the southern boundary line of T. 7 S., R. 4 E., sec. 19, downstream to the edge of the Bureau of Land Management boundary in T. 6 S., R. 3 E., sec. 7. (B) The approximately 6.2-mile segment from the easternmost Bureau of Land Management boundary line in the NE 1/4 sec. 4, T. 7 S., R. 4 E., downstream to the confluence with the Molalla River. . (b) Technical corrections Section 3(a)(102) of the Wild and Scenic Rivers Act ( 16 U.S.C. 1274(a)(102) ) is amended— (1) in the heading, by striking Squaw Creek and inserting Whychus Creek ; (2) in the matter preceding subparagraph (A), by striking McAllister Ditch, including the Soap Fork Squaw Creek, the North Fork, the South Fork, the East and West Forks of Park Creek, and Park Creek Fork and inserting Plainview Ditch, including the Soap Creek, the North and South Forks of Whychus Creek, the East and West Forks of Park Creek, and Park Creek ; and (3) in subparagraph (B), by striking McAllister Ditch and inserting Plainview Ditch . 362. Wild and Scenic Rivers Act technical corrections related to Chetco River Section 3(a)(69) of the Wild and Scenic Rivers Act ( 16 U.S.C. 1274(a)(69) ) is amended— (1) by inserting before the The 44.5-mile the following: (A) Designations ; (2) by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii), and (iii), respectively (and by moving the margins 2 ems to the right); (3) in clause (i), as redesignated— (A) by striking 25.5-mile and inserting 27.5-mile ; and (B) by striking Boulder Creek at the Kalmiopsis Wilderness boundary and inserting Mislatnah Creek ; (4) in clause (ii), as redesignated— (A) by striking 8 and inserting 7.5 ; (B) by striking Boulder Creek and inserting Mislatnah Creek ; and (C) by striking Steel Bridge and inserting Eagle Creek ; (5) in clause (iii), as redesignated— (A) by striking 11 and inserting 9.5 ; and (B) by striking Steel Bridge and inserting Eagle Creek ; and (6) by adding at the end the following: (B) Withdrawal Subject to valid rights, the Federal land within the boundaries of the river segments designated by subparagraph (A), is withdrawn from all forms of— (i) entry, appropriation, or disposal under the public land laws; (ii) location, entry, and patent under the mining laws; and (iii) disposition under all laws pertaining to mineral and geothermal leasing or mineral materials. . 363. Wild and scenic river designations, Wasson Creek and Franklin Creek Section 3(a) of the Wild and Scenic Rivers Act ( 16 U.S.C. 1274(a) ) is amended by adding at the end the following: (__) Franklin Creek, Oregon The 4.5-mile segment from the headwaters to the private land boundary in section 8 to be administered by the Secretary of Agriculture as a wild river. (__) Wasson Creek, Oregon (A) The 4.2-mile segment from the eastern edge of section 17 downstream to the boundary of sections 11 and 12 to be administered by the Secretary of Interior as a wild river. (B) The 5.9-mile segment downstream from the boundary of sections 11 and 12 to the private land boundary in section 22 to be administered by the Secretary of Agriculture as a wild river. . 364. Wild and scenic river designations, Rogue River area (a) Designations Section 3(a)(5) of the Wild and Scenic Rivers Act ( 16 U.S.C. 1274(a)(5) ) (relating to the Rogue River, Oregon) is amended by adding at the end the following: “In addition to the segment described in the previous sentence, the following segments in the Rogue River area are designated: (A) Kelsey creek The approximately 4.8 miles of Kelsey Creek from east section line of T32S, R9W, sec. 34, W.M. to the confluence with the Rogue River as a wild river. (B) East fork kelsey creek The approximately 4.6 miles of East Fork Kelsey Creek from the Wild Rogue Wilderness boundary in T33S, R8W, sec. 5, W.M. to the confluence with Kelsey Creek as a wild river. (C) Whisky creek (i) The approximately 0.6 miles of Whisky Creek from the confluence of the East Fork and West Fork to 0.1 miles downstream from road 33–8–23 as a recreational river. (ii) The approximately 1.9 miles of Whisky Creek from 0.1 miles downstream from road 33–8–23 to the confluence with the Rogue River as a wild river. (D) East fork whisky creek (i) The approximately 2.8 miles of East Fork Whisky Creek from the Wild Rogue Wilderness boundary in T33S, R8W, sec. 11, W.M. to 0.1 miles downstream of road 33–8–26 crossing as a wild river. (ii) The approximately .3 miles of East Fork Whisky Creek from 0.1 miles downstream of road 33–8–26 to the confluence with Whisky Creek as a recreational river. (E) West fork whisky creek The approximately 4.8 miles of West Fork Whisky Creek from its headwaters to the confluence with Whisky Creek as a wild river. (F) Big windy creek (i) The approximately 1.5 miles of Big Windy Creek from its headwaters to 0.1 miles downstream from road 34–9–17.1 as a scenic river. (ii) The approximately 5.8 miles of Big Windy Creek from 0.1 miles downstream from road 34–9–17.1 to the confluence with the Rogue River as a wild river. (G) East fork big windy creek (i) The approximately 0.2 miles of East Fork Big Windy Creek from its headwaters to 0.1 miles downstream from road 34–8–36 as a scenic river. (ii) The approximately 3.7 miles of East Fork Big Windy Creek from 0.1 miles downstream from road 34–8–36 to the confluence with Big Windy Creek as a wild river. (H) Little windy creek The approximately 1.9 miles of Little Windy Creek from 0.1 miles downstream of road 34–8–36 to the confluence with the Rogue River as a wild river. (I) Howard creek (i) The approximately 0.3 miles of Howard Creek from its headwaters to 0.1 miles downstream of road 34–9–34 as a scenic river. (ii) The approximately 6.9 miles of Howard Creek from 0.1 miles downstream of road 34–9–34 to the confluence with the Rogue River as a wild river. (J) Mule creek The approximately 6.3 miles of Mule Creek from east section line of T32S, R10W, sec. 25, W.M. to the confluence with the Rogue River as a wild river. (K) Anna creek The approximately 3.5-mile section of Anna Creek from its headwaters to the confluence with Howard Creek as a wild river. (L) Missouri creek The approximately 1.6 miles of Missouri Creek from the Wild Rogue Wilderness boundary in T33S, R10W, sec. 24, W.M. to the confluence with the Rogue River as a wild river. (M) Jenny creek The approximately 1.8 miles of Jenny Creek from the Wild Rogue Wilderness boundary in T33S, R9W, sec. 28, W.M. to the confluence with the Rogue River as a wild river. (N) Rum creek The approximately 2.2 miles of Rum Creek from the Wild Rogue Wilderness boundary in T34S, R8W, sec. 9, W.M. to the confluence with the Rogue River as a wild river. (O) East fork rum creek The approximately 1.5 miles of East Rum Creek from the Wild Rogue Wilderness boundary in T34S, R8W, sec. 10, W.M. to the confluence with Rum Creek as a wild river. (P) Wildcat creek The approximately 1.7-mile section of Wildcat Creek from its headwaters downstream to the confluence with the Rogue River as a wild river. (Q) Montgomery creek The approximately 1.8-mile section of Montgomery Creek from its headwaters downstream to the confluence with the Rogue River as a wild river. (R) Hewitt creek The approximately 1.2 miles of Hewitt Creek from the Wild Rogue Wilderness boundary in T33S, R9W, sec. 19, W.M. to the confluence with the Rogue River as a wild river. (S) Bunker creek The approximately 6.6 miles of Bunker Creek from its headwaters to the confluence with the Rogue River as a wild river. (T) Dulog creek (i) The approximately 0.8 miles of Dulog Creek from its headwaters to 0.1 miles downstream of road 34–8–36 as a scenic river. (ii) The approximately 1.0 miles of Dulog Creek from 0.1 miles downstream of road 34–8–36 to the confluence with the Rogue River as a wild river. (U) Quail creek The approximately 1.7 miles of Quail Creek from the Wild Rogue Wilderness boundary in T33S, R10W, sec. 1, W.M. to the confluence with the Rogue River as a wild river. (V) Meadow creek The approximately 4.1 miles of Meadow Creek from its headwaters to the confluence with the Rogue River as a wild river. (W) Russian creek The approximately 2.5 miles of Russian Creek from the Wild Rogue Wilderness boundary in T33S, R8W, sec. 20, W.M. to the confluence with the Rogue River as a wild river. (X) Alder creek The approximately 1.2 miles of Alder Creek from its headwaters to the confluence with the Rogue River as a wild river. (Y) Booze creek The approximately 1.5 miles of Booze Creek from its headwaters to the confluence with the Rogue River as a wild river. (Z) Bronco creek The approximately 1.8 miles of Bronco Creek from its headwaters to the confluence with the Rogue River as a wild river. (AA) Copsey creek The approximately 1.5 miles of Copsey Creek from its headwaters to the confluence with the Rogue River as a wild river. (BB) Corral creek The approximately 0.5 miles of Corral Creek from its headwaters to the confluence with the Rogue River as a wild river. (CC) Cowley creek The approximately 0.9 miles of Cowley Creek from its headwaters to the confluence with the Rogue River as a wild river. (DD) Ditch creek The approximately 1.8 miles of Ditch Creek from the Wild Rogue Wilderness boundary in T33S, R9W, sec. 5, W.M. to its confluence with the Rogue River as a wild river. (EE) Francis creek The approximately 0.9 miles of Francis Creek from its headwaters to the confluence with the Rogue River as a wild river. (FF) Long gulch The approximately 1.1 miles of Long Gulch from the Wild Rogue Wilderness boundary in T33S, R10W, sec. 23, W.M. to the confluence with the Rogue River as a wild river. (GG) Bailey creek The approximately 1.7 miles of Bailey Creek from the west section line of T34S, R8W, sec. 14, W.M. to the confluence of the Rogue River as a wild river. (HH) Shady creek The approximately 0.7 miles of Shady Creek from its headwaters to the confluence with the Rogue River as a wild river. (II) Slide creek (i) The approximately 0.5-mile section of Slide Creek from its headwaters to 0.1 miles downstream from road 33–9–6 as a scenic river. (ii) The approximately 0.7-mile section of Slide Creek from 0.1 miles downstream of road 33–9–6 to the confluence with the Rogue River as a wild river. . (b) Management All wild, scenic, and recreation classified segments designated by the amendment made by subsection (a) shall be managed as part of the Rogue Wild and Scenic River. (c) Withdrawal Subject to valid rights, the Federal land within the boundaries of the river segments designated by the amendment made by subsection (a) is withdrawn from all forms of— (1) entry, appropriation, or disposal under the public land laws; (2) location, entry, and patent under the mining laws; and (3) disposition under all laws pertaining to mineral and geothermal leasing or mineral materials. 365. Additional protections for Rogue River tributaries (a) Withdrawal Subject to valid rights, the Federal land within a quarter-mile on each side of the streams listed in subsection (b) is withdrawn from all forms of— (1) entry, appropriation, or disposal under the public land laws; (2) location, entry, and patent under the mining laws; and (3) disposition under all laws pertaining to mineral and geothermal leasing or mineral materials. (b) Stream segments Subsection (a) applies the following tributaries of the Rogue River: (1) Kelsey creek The approximately 4.5 miles of Kelsey Creek from its headwaters to the east section line of 32S 9W sec. 34. (2) East fork kelsey creek The approximately .2 miles of East Fork Kelsey Creek from its headwaters to the Wild Rogue Wilderness boundary in 33S 8W sec. 5. (3) East fork whisky creek The approximately .7 miles of East Fork Whisky Creek from its headwaters to the Wild Rogue Wilderness boundary in 33S 8W section 11. (4) Little windy creek The approximately 1.2 miles of Little Windy Creek from its headwaters to west section line of 33S 9W sec. 34. (5) Mule creek The approximately 5.1 miles of Mule Creek from its headwaters to east section line of 32S 10W sec. 25. (6) Missouri creek The approximately 3.1 miles of Missouri Creek from its headwaters to the Wild Rogue Wilderness boundary in 33S 10W sec. 24. (7) Jenny creek The approximately 3.1 miles of Jenny Creek from its headwaters to the Wild Rogue Wilderness boundary in 33S 9W sec. 28. (8) Rum creek The approximately 2.2 miles of Rum Creek from its headwaters to the Wild Rogue Wilderness boundary in 34S 8W sec. 9. (9) East fork rum creek The approximately .5 miles of East Fork Rum Creek from its headwaters to the Wild Rogue Wilderness boundary in 34S 8W sec. 10. (10) Hewitt creek The approximately 1.4 miles of Hewitt Creek from its headwaters to the Wild Rogue Wilderness boundary in 33S 9W sec. 19. (11) Quail creek The approximately .8 miles of Quail Creek from its headwaters to the Wild Rogue Wilderness boundary in 33S 10W sec. 1. (12) Russian creek The approximately .1 miles of Russian Creek from its headwaters to the Wild Rogue Wilderness boundary in 33S 8W sec. 20. (13) Ditch creek The approximately .7 miles of Ditch Creek from its headwaters to the Wild Rogue Wilderness boundary in 33S 9W sec. 5. (14) Long gulch The approximately 1.4 miles of Long Gulch from its headwaters to the Wild Rogue Wilderness boundary in 33S 10W sec. 23. (15) Bailey creek The approximately 1.4 miles of Bailey Creek from its headwaters to west section line of 34S 8W sec. 14. (16) Quartz creek The approximately 3.3 miles of Quartz Creek from its headwaters to its confluence with the North Fork Galice Creek. (17) North fork galice creek The approximately 5.7 miles of the North Fork Galice Creek from its headwaters to its confluence with Galice Creek. (18) Grave creek The approximately 10.2 mile section of Grave Creek from the confluence of Wolf Creek downstream to the confluence with the Rogue River. (19) Centennial gulch The approximately 2.2 miles of Centennial Gulch from its headwaters to its confluence with the Rogue River. 3 Additional Protections 371. Limitations on land acquisition (a) Prohibition on use of condemnation The Secretary of the Interior or the Secretary of Agriculture may not acquire by condemnation any land or interest within the boundaries of the river segments or wilderness designated by this subtitle. (b) Landowner consent required Private or non-Federal public property shall not be included within the boundaries of the river segments or wilderness designated by this subtitle unless the owner of the property has consented in writing to having that property included in such boundaries. 372. Overflights (a) In general Nothing in this subtitle or the Wilderness Act shall preclude low-level overflights and operations of military aircraft, helicopters, missiles, or unmanned aerial vehicles over the wilderness designated by this subtitle, including military overflights and operations that can be seen or heard within the wilderness. (b) Special use airspace and training routes Nothing in this subtitle or the Wilderness Act shall preclude the designation of new units of special use airspace, the expansion of existing units of special use airspace, or the use or establishment of military training routes over wilderness designated by this subtitle. 373. Buffer zones Nothing in this subtitle— (1) establishes or authorizes the establishment of a protective perimeter or buffer zone around the boundaries of the river segments or wilderness designated by this subtitle; or (2) precludes, limits, or restricts an activity from being conducted outside such boundaries, including an activity that can be seen or heard from within such boundaries. 374. Prevention of wildfires The designation of a river segment or wilderness by this subtitle or the withdrawal of the Federal land under this subtitle shall not be construed to interfere with the authority of the Secretary of the Interior or the Secretary of Agriculture to authorize mechanical thinning of trees or underbrush to prevent or control the spread of wildfires, or conditions creating the risk of wildfire that threatens areas outside the boundary of the wilderness, or the use of mechanized equipment for wildfire pre-suppression and suppression. 375. Limitation on designation of certain lands in Oregon A national monument designation under the Act of June 8, 1906 (commonly known as the Antiquities Act; 16 U.S.C. 431 et seq. ) within or on any portion of the Oregon and California Railroad Grant Lands or the O&C Region Public Domain lands, regardless of whether management authority over the lands are transferred to the O&C Trust pursuant to section 311(c)(1), the lands are excluded from the O&C Trust pursuant to section 311(c)(2), or the lands are transferred to the Forest Service under section 321, shall only be made pursuant to Congressional approval in an Act of Congress. 4 Effective Date 381. Effective date (a) In general This subtitle and the amendments made by this subtitle shall take effect on October 1 of the second fiscal year of the transition period. (b) Exception If, as a result of judicial review authorized by section 312, any provision of subtitle A is held to be invalid and implementation of the provision or any activity conducted under the provision is enjoined, this subtitle and the amendments made by this subtitle shall not take effect, or if the effective date specified in subsection (a) has already occurred, this subtitle shall have no force and effect and the amendments made by this subtitle are repealed. D Tribal Trust Lands 1 Council Creek Land Conveyance 391. Definitions In this part: (1) Council creek land The term Council Creek land means the approximately 17,519 acres of land, as generally depicted on the map entitled Canyon Mountain Land Conveyance and dated June 27, 2013. (2) Tribe The term Tribe means the Cow Creek Band of Umpqua Tribe of Indians. 392. Conveyance (a) In general Subject to valid existing rights, including rights-of-way, all right, title, and interest of the United States in and to the Council Creek land, including any improvements located on the land, appurtenances to the land, and minerals on or in the land, including oil and gas, shall be— (1) held in trust by the United States for the benefit of the Tribe; and (2) part of the reservation of the Tribe. (b) Survey Not later than one year after the date of enactment of this Act, the Secretary of the Interior shall complete a survey of the boundary lines to establish the boundaries of the land taken into trust under subsection (a). 393. Map and legal description (a) In general As soon as practicable after the date of enactment of this Act, the Secretary of the Interior shall file a map and legal description of the Council Creek land with— (1) the Committee on Energy and Natural Resources of the Senate; and (2) the Committee on Natural Resources of the House of Representatives. (b) Force and effect The map and legal description filed under subsection (a) shall have the same force and effect as if included in this subdivision, except that the Secretary of the Interior may correct any clerical or typographical errors in the map or legal description. (c) Public availability The map and legal description filed under subsection (a) shall be on file and available for public inspection in the Office of the Secretary of the Interior. 394. Administration (a) In general Unless expressly provided in this part, nothing in this part affects any right or claim of the Tribe existing on the date of enactment of this Act to any land or interest in land. (b) Prohibitions (1) Exports of unprocessed logs Federal law (including regulations) relating to the export of unprocessed logs harvested from Federal land shall apply to any unprocessed logs that are harvested from the Council Creek land. (2) Non-permissible use of land Any real property taken into trust under section 392 shall not be eligible, or used, for any gaming activity carried out under Public Law 100–497 ( 25 U.S.C. 2701 et seq. ). (c) Forest management Any forest management activity that is carried out on the Council Creek land shall be managed in accordance with all applicable Federal laws. 2 Oregon Coastal Land Conveyance 395. Definitions In this part: (1) Oregon coastal land The term Oregon Coastal land means the approximately 14,804 acres of land, as generally depicted on the map entitled Oregon Coastal Land Conveyance and dated March 5, 2013. (2) Confederated tribes The term Confederated Tribes means the Confederated Tribes of Coos, Lower Umpqua, and Siuslaw Indians. 396. Conveyance (a) In general Subject to valid existing rights, including rights-of-way, all right, title, and interest of the United States in and to the Oregon Coastal land, including any improvements located on the land, appurtenances to the land, and minerals on or in the land, including oil and gas, shall be— (1) held in trust by the United States for the benefit of the Confederated Tribes; and (2) part of the reservation of the Confederated Tribes. (b) Survey Not later than one year after the date of enactment of this Act, the Secretary of the Interior shall complete a survey of the boundary lines to establish the boundaries of the land taken into trust under subsection (a). 397. Map and legal description (a) In general As soon as practicable after the date of enactment of this Act, the Secretary of the Interior shall file a map and legal description of the Oregon Coastal land with— (1) the Committee on Energy and Natural Resources of the Senate; and (2) the Committee on Natural Resources of the House of Representatives. (b) Force and effect The map and legal description filed under subsection (a) shall have the same force and effect as if included in this subdivision, except that the Secretary of the Interior may correct any clerical or typographical errors in the map or legal description. (c) Public availability The map and legal description filed under subsection (a) shall be on file and available for public inspection in the Office of the Secretary of the Interior. 398. Administration (a) In general Unless expressly provided in this part, nothing in this part affects any right or claim of the Consolidated Tribes existing on the date of enactment of this Act to any land or interest in land. (b) Prohibitions (1) Exports of unprocessed logs Federal law (including regulations) relating to the export of unprocessed logs harvested from Federal land shall apply to any unprocessed logs that are harvested from the Oregon Coastal land. (2) Non-permissible use of land Any real property taken into trust under section 396 shall not be eligible, or used, for any gaming activity carried out under Public Law 100–497 ( 25 U.S.C. 2701 et seq. ). (c) Forest management Any forest management activity that is carried out on the Oregon Coastal land shall be managed in accordance with all applicable Federal laws. IV Community Forest Management Demonstration 401. Purpose and definitions (a) Purpose The purpose of this title is to generate dependable economic activity for counties and local governments by establishing a demonstration program for local, sustainable forest management. (b) Definitions In this title: (1) Advisory committee The term Advisory Committee means the Advisory Committee appointed by the Governor of a State for the community forest demonstration area established for the State. (2) Community forest demonstration area The term community forest demonstration area means a community forest demonstration area established for a State under section 402. (3) National forest system The term National Forest System has the meaning given that term in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 ( 16 U.S.C. 1609(a) ), except that the term does not include the National Grasslands and land utilization projects designated as National Grasslands administered pursuant to the Act of July 22, 1937 ( 7 U.S.C. 1010–1012 ). (4) Secretary The term Secretary means the Secretary of Agriculture or the designee of the Secretary of Agriculture. (5) State The term State includes the Commonwealth of Puerto Rico. 402. Establishment of community forest demonstration areas (a) Establishment required; time for establishment Subject to subsection (c) and not later than one year after the date of the enactment of this Act, the Secretary of Agriculture shall establish a community forest demonstration area at the request of the Advisory Committee appointed to manage community forest demonstration area land in that State. (b) Covered land (1) Inclusion of national forest system land The community forest demonstration areas of a State shall consist of the National Forest System land in the State identified for inclusion by the Advisory Committee of that State. (2) Exclusion of certain land A community forest demonstration area shall not include National Forest System land— (A) that is a component of the National Wilderness Preservation System; (B) on which the removal of vegetation is specifically prohibited by Federal statute; (C) National Monuments; or (D) over which administration jurisdiction was first assumed by the Forest Service under title III. (c) Conditions on establishment (1) Acreage requirement A community forest demonstration area must include at least 200,000 acres of National Forest System land. If the unit of the National Forest System in which a community forest demonstration area is being established contains more than 5,000,000 acres, the community forest demonstration area may include 900,000 or more acres of National Forest System land. (2) Management law or best management practices requirement A community forest demonstration area may be established in a State only if the State— (A) has a forest practices law applicable to State or privately owned forest land in the State; or (B) has established silvicultural best management practices or other regulations for forest management practices related to clean water, soil quality, wildlife or forest health. (3) Revenue sharing requirement As a condition of the inclusion in a community forest demonstration area of National Forest System land located in a particular county in a State, the county must enter into an agreement with the Governor of the State that requires that, in utilizing revenues received by the county under section 406(b), the county shall continue to meet any obligations under applicable State law as provided under title I of the Secure Rural Schools and Community Self-Determination Act of 2000 ( 16 U.S.C. 7111 et seq. ) or as provided in the sixth paragraph under the heading FOREST SERVICE in the Act of May 23, 1908 ( 16 U.S.C. 500 ) and section 13 of the Act of March 1, 1911 ( 16 U.S.C. 500 ). (d) Treatment under certain other laws National Forest System land included in a community forest demonstration area shall not be considered Federal land for purposes of— (1) making payments to counties under the sixth paragraph under the heading FOREST SERVICE in the Act of May 23, 1908 ( 16 U.S.C. 500 ) and section 13 of the Act of March 1, 1911 ( 16 U.S.C. 500 ); or (2) title I. (e) Acreage limitation Not more than a total of 4,000,000 acres of National Forest System land may be established as community forest demonstration areas. (f) Recognition of valid and existing rights Nothing in this title shall be construed to limit or restrict— (1) access to National Forest System land included in a community forest demonstration area for hunting, fishing, and other related purposes; or (2) valid and existing rights regarding such National Forest System land, including rights of any federally recognized Indian tribe. 403. Advisory committee (a) Appointment A community forest demonstration area for a State shall be managed by an Advisory Committee appointed by the Governor of the State. (b) Composition The Advisory Committee for a community forest demonstration area in a State shall include, but is not limited to, the following members: (1) One member who holds county or local elected office, appointed from each county or local governmental unit in the State containing community forest demonstration area land. (2) One member who represents the commercial timber, wood products, or milling industry. (3) One member who represents persons holding Federal grazing or other land use permits. (4) One member who represents recreational users of National Forest System land. (c) Terms (1) In general Except in the case of certain initial appointments required by paragraph (2), members of an Advisory Committee shall serve for a term of three years. (2) Initial appointments In making initial appointments to an Advisory Committee, the Governor making the appointments shall stagger terms so that at least one-third of the members will be replaced every three years. (d) Compensation Members of a Advisory Committee shall serve without pay, but may be reimbursed from the funds made available for the management of a community forest demonstration area for the actual and necessary travel and subsistence expenses incurred by members in the performance of their duties. 404. Management of community forest demonstration areas (a) Assumption of management (1) Confirmation The Advisory Committee appointed for a community forest demonstration area shall assume all management authority with regard to the community forest demonstration area as soon as the Secretary confirms that— (A) the National Forest System land to be included in the community forest demonstration area meets the requirements of subsections (b) and (c) of section 402; (B) the Advisory Committee has been duly appointed under section 403 and is able to conduct business; and (C) provision has been made for essential management services for the community forest demonstration area. (2) Scope and time for confirmation The determination of the Secretary under paragraph (1) is limited to confirming whether the conditions specified in subparagraphs (A) and (B) of such paragraph have been satisfied. The Secretary shall make the determination not later than 60 days after the date of the appointment of the Advisory Committee. (3) Effect of failure to confirm If the Secretary determines that either or both conditions specified in subparagraphs (A) and (B) of paragraph (1) are not satisfied for confirmation of an Advisory Committee, the Secretary shall— (A) promptly notify the Governor of the affected State and the Advisory Committee of the reasons preventing confirmation; and (B) make a new determination under paragraph (2) within 60 days after receiving a new request from the Advisory Committee that addresses the reasons that previously prevented confirmation. (b) Management responsibilities Upon assumption of management of a community forest demonstration area, the Advisory Committee for the community forest demonstration area shall manage the land and resources of the community forest demonstration area and the occupancy and use thereof in conformity with this title, and to the extent not in conflict with this title, the laws and regulations applicable to management of State or privately-owned forest lands in the State in which the community forest demonstration area is located. (c) Applicability of other federal laws (1) In general The administration and management of a community forest demonstration area, including implementing actions, shall not be considered Federal action and shall be subject to the following only to the extent that such laws apply to the State or private administration and management of forest lands in the State in which the community forest demonstration area is located: (A) The Federal Water Pollution Control Act ( 33 U.S.C. 1251 note). (B) The Clean Air Act ( 42 U.S.C. 7401 et seq. ). (C) The Endangered Species Act of 1973 ( 16 U.S.C. 1531 et seq. ). (D) Federal laws and regulations governing procurement by Federal agencies. (E) Except as provided in paragraph (2), other Federal laws. (2) Applicability of Native American Graves Protection and Repatriation Act Notwithstanding the assumption by an Advisory Committee of management of a community forest demonstration area, the Native American Graves Protection and Repatriation Act ( 25 U.S.C. 3001 et seq. ) shall continue to apply to the National Forest System land included in the community forest demonstration area. (d) Consultation (1) With indian tribes The Advisory Committee for a community forest demonstration area shall cooperate and consult with Indian tribes on management policies and practices for the community forest demonstration area that may affect the Indian tribes. The Advisory Committee shall take into consideration the use of lands within the community forest demonstration area for religious and cultural uses by Native Americans. (2) With collaborative groups The Advisory Committee for a community forest demonstration area shall consult with any applicable forest collaborative group. (e) Recreation Nothing in this section shall affect public use and recreation within a community forest demonstration area. (f) Fire management The Secretary shall provide fire presuppression, suppression, and rehabilitation services on and with respect to a community forest demonstration area to the same extent generally authorized in other units of the National Forest System. (g) Prohibition on export As a condition on the sale of timber or other forest products from a community forest demonstration area, unprocessed timber harvested from a community forest demonstration area may not be exported in accordance with subpart F of part 223 of title 36, Code of Federal Regulations. 405. Distribution of funds from community forest demonstration area (a) Retention of Funds for Management The Advisory Committee appointed for a community forest demonstration area may retain such sums as the Advisory Committee considers to be necessary from amounts generated from that community forest demonstration area to fund the management, administration, restoration, operation and maintenance, improvement, repair, and related expenses incurred with respect to the community forest demonstration area. (b) Funds to Counties or Local Governmental Units Subject to subsection (a) and section 407, the Advisory Committee for a community forest demonstration area in a State shall distribute funds generated from that community forest demonstration area to each county or local governmental unit in the State in an amount proportional to the funds received by the county or local governmental unit under title I of the Secure Rural Schools and Community Self-Determination Act of 2000 ( 16 U.S.C. 7111 et seq. ). 406. Initial funding authority (a) Funding source Counties may use such sum as the counties consider to be necessary from the amounts made available to the counties under section 501 to provide initial funding for the management of community forest demonstration areas. (b) No restriction on use of non-Federal funds Nothing in this title restricts the Advisory Committee of a community forest demonstration area from seeking non-Federal loans or other non-Federal funds for management of the community forest demonstration area. 407. Payments to United States Treasury (a) Payment requirement As soon as practicable after the end of the fiscal year in which a community forest demonstration area is established and as soon as practicable after the end of each subsequent fiscal year, the Advisory Committee for a community forest demonstration area shall make a payment to the United States Treasury. (b) Payment amount The payment for a fiscal year under subsection (a) with respect to a community forest demonstration area shall be equal to 75 percent of the quotient obtained by dividing— (1) the number obtained by multiplying the number of acres of land in the community forest demonstration area by the average annual receipts generated over the preceding 10-fiscal year period from the unit or units of the National Forest System containing that community forest demonstration area; by (2) the total acres of National Forest System land in that unit or units of the National Forest System. 408. Termination of community forest demonstration area (a) Termination authority Subject to approval by the Governor of the State, the Advisory Committee for a community forest demonstration area may terminate the community forest demonstration area by a unanimous vote. (b) Effect of termination Upon termination of a community forest demonstration area, the Secretary shall immediately resume management of the National Forest System land that had been included in the community forest demonstration area, and the Advisory Committee shall be dissolved. (c) Treatment of undistributed funds Any revenues from the terminated area that remain undistributed under section 405 more than 30 days after the date of termination shall be deposited in the general fund of the Treasury for use by the Forest Service in such amounts as may be provided in advance in appropriation Acts. V Reauthorization and Amendment of Existing Authorities and Other Matters 501. Extension of Secure Rural Schools and Community Self-Determination Act of 2000 pending full operation of Forest Reserve Revenue Areas (a) Beneficiary counties During the month of February 2015, the Secretary of Agriculture shall distribute to each beneficiary county (as defined in section 102(2)) a payment equal to the amount distributed to the beneficiary county for fiscal year 2010 under section 102(c)(1) of the Secure Rural Schools and Community Self-Determination Act of 2000 ( 16 U.S.C. 7112(c)(1) ). (b) Counties that were eligible for direct county payments (1) Total amount available for payments During the month of February 2015, the Secretary of the Interior shall distribute to all counties that received a payment for fiscal year 2010 under subsection (a)(2) of section 102 of the Secure Rural Schools and Community Self-Determination Act of 2000 ( 16 U.S.C. 7112 ) payments in a total amount equal to the difference between— (A) the total amount distributed to all such counties for fiscal year 2010 under subsection (c)(1) of such section; and (B) $27,000,000. (2) County share From the total amount determined under paragraph (1), each county described in such paragraph shall receive, during the month of February 2015, an amount that bears the same proportion to the total amount made available under such paragraph as that county’s payment for fiscal year 2010 under subsection (c)(1) of section 102 of the Secure Rural Schools and Community Self-Determination Act of 2000 ( 16 U.S.C. 7112 ) bears to the total amount distributed to all such counties for fiscal year 2010 under such subsection. (c) Effect on 25-percent and 50-percent payments A county that receives a payment made under subsection (a) or (b) may not receive a 25-percent payment or 50-percent payment (as those terms are defined in section 3 of the Secure Rural Schools and Community Self-Determination Act of 2000 ( 16 U.S.C. 7102 )) for fiscal year 2015. 502. Restoring original calculation method for 25-percent payments (a) Amendment of Act of may 23, 1908 The sixth paragraph under the heading FOREST SERVICE in the Act of May 23, 1908 ( 16 U.S.C. 500 ) is amended in the first sentence— (1) by striking the annual average of 25 percent of all amounts received for the applicable fiscal year and each of the preceding 6 fiscal years and inserting 25 percent of all amounts received for the applicable fiscal year ; (2) by striking said reserve both places it appears and inserting the national forest ; and (3) by striking forest reserve both places it appears and inserting national forest . (b) Conforming amendment to weeks law Section 13 of the Act of March 1, 1911 (commonly known as the Weeks Law; 16 U.S.C. 500 ) is amended in the first sentence by striking the annual average of 25 percent of all amounts received for the applicable fiscal year and each of the preceding 6 fiscal years and inserting 25 percent of all amounts received for the applicable fiscal year . 503. Forest Service and Bureau of Land Management good-neighbor cooperation with States to reduce wildfire risks (a) Definitions In this section: (1) Eligible State The term eligible State means a State that contains National Forest System land or land under the jurisdiction of the Bureau of Land Management. (2) Secretary The term Secretary means— (A) the Secretary of Agriculture, with respect to National Forest System land; or (B) the Secretary of the Interior, with respect to land under the jurisdiction of the Bureau of Land Management. (3) State forester The term State forester means the head of a State agency with jurisdiction over State forestry programs in an eligible State. (b) Cooperative agreements and contracts authorized The Secretary may enter into a cooperative agreement or contract (including a sole source contract) with a State forester to authorize the State forester to provide the forest, rangeland, and watershed restoration, management, and protection services described in subsection (c) on National Forest System land or land under the jurisdiction of the Bureau of Land Management, as applicable, in the eligible State. (c) Authorized services The forest, rangeland, and watershed restoration, management, and protection services referred to in subsection (b) include the conduct of— (1) activities to treat insect infected forests; (2) activities to reduce hazardous fuels; (3) activities involving commercial harvesting or other mechanical vegetative treatments; or (4) any other activities to restore or improve forest, rangeland, and watershed health, including fish and wildlife habitat. (d) State as agent Except as provided in subsection (g), a cooperative agreement or contract entered into under subsection (b) may authorize the State forester to serve as the agent for the Secretary in providing the restoration, management, and protection services authorized under subsection (b). (e) Subcontracts In accordance with applicable contract procedures for the eligible State, a State forester may enter into subcontracts to provide the restoration, management, and protection services authorized under a cooperative agreement or contract entered into under subsection (b). (f) Timber sales Subsections (d) and (g) of section 14 of the National Forest Management Act of 1976 ( 16 U.S.C. 472a ) shall not apply to services performed under a cooperative agreement or contract entered into under subsection (b). (g) Retention of NEPA responsibilities Any decision required to be made under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) with respect to any restoration, management, or protection services to be provided under this section by a State forester on National Forest System land or Bureau of Land Management land, as applicable, shall not be delegated to a State forester or any other officer or employee of the eligible State. (h) Applicable law The restoration, management, and protection services to be provided under this section shall be carried out on a project-to-project basis under existing authorities of the Forest Service or Bureau of Land Management, as applicable. 504. Treatment as supplemental funding None of the funds made available to a beneficiary county (as defined in section 102(2)) or other political subdivision of a State under this subdivision shall be used in lieu of or to otherwise offset State funding sources for local schools, facilities, or educational purposes. 505. Definition of fire suppression to include certain related activities For purposes of utilizing amounts made available to the Secretary of Agriculture or the Secretary of the Interior for fire suppression activities, including funds made available from the FLAME Fund, the term fire suppression includes reforestation, site rehabilitation, salvage operations, and replanting occurring following fire damage on lands under the jurisdiction of the Secretary concerned or following fire suppression efforts on such lands by the Secretary concerned. 506. Prohibition on certain actions regarding Forest Service roads and trails The Forest Service shall not remove or otherwise eliminate or obliterate any legally created road or trail unless there has been a specific decision, which included adequate and appropriate public involvement, to decommission the specific road or trail in question. The fact that any road or trail is a not a Forest System road or trail, or does not appear on a Motor Vehicle Use Map, shall not constitute a decision. B National Strategic and Critical Minerals Production 100. Short title This subdivision may be cited as the National Strategic and Critical Minerals Production Act of 2014 . 100A. Findings Congress finds the following: (1) The industrialization of China and India has driven demand for nonfuel mineral commodities, sparking a period of resource nationalism exemplified by China’s reduction in exports of rare-earth elements necessary for telecommunications, military technologies, healthcare technologies, and conventional and renewable energy technologies. (2) The availability of minerals and mineral materials are essential for economic growth, national security, technological innovation, and the manufacturing and agricultural supply chain. (3) The exploration, production, processing, use, and recycling of minerals contribute significantly to the economic well-being, security and general welfare of the Nation. (4) The United States has vast mineral resources, but is becoming increasingly dependent upon foreign sources of these mineral materials, as demonstrated by the following: (A) Twenty-five years ago the United States was dependent on foreign sources for 30 nonfuel mineral materials, 6 of which the United States imported 100 percent of the Nation’s requirements, and for another 16 commodities the United States imported more than 60 percent of the Nation’s needs. (B) By 2011 the United States import dependence for nonfuel mineral materials had more than doubled from 30 to 67 commodities, 19 of which the United States imported 100 percent of the Nation’s requirements, and for another 24 commodities, imported more than 50 percent of the Nation’s needs. (C) The United States share of worldwide mineral exploration dollars was 8 percent in 2011, down from 19 percent in the early 1990s. (D) In the 2012 Ranking of Countries for Mining Investment, out of 25 major mining countries, the United States ranked last with Papua New Guinea in permitting delays, and towards the bottom regarding government take and social issues affecting mining. 100B. Definitions In this subdivision: (1) Strategic and critical minerals The term strategic and critical minerals means minerals that are necessary— (A) for national defense and national security requirements; (B) for the Nation’s energy infrastructure, including pipelines, refining capacity, electrical power generation and transmission, and renewable energy production; (C) to support domestic manufacturing, agriculture, housing, telecommunications, healthcare, and transportation infrastructure; or (D) for the Nation’s economic security and balance of trade. (2) Agency The term agency means any agency, department, or other unit of Federal, State, local, or tribal government, or Alaska Native Corporation. (3) mineral exploration or mine permit The term mineral exploration or mine permit includes plans of operation issued by the Bureau of Land Management and the Forest Service pursuant to 43 CFR 3809 and 36 CFR 228A or the authorities listed in 43 CFR 3503.13, respectively. I Development of Domestic Sources of Strategic and Critical Minerals 101. Improving development of strategic and critical minerals Domestic mines that will provide strategic and critical minerals shall be considered an infrastructure project as described in Presidential Order Improving Performance of Federal Permitting and Review of Infrastructure Projects dated March 22, 2012. 102. Responsibilities of the lead agency (a) In general The lead agency with responsibility for issuing a mineral exploration or mine permit shall appoint a project lead who shall coordinate and consult with cooperating agencies and any other agency involved in the permitting process, project proponents and contractors to ensure that agencies minimize delays, set and adhere to timelines and schedules for completion of the permitting process, set clear permitting goals and track progress against those goals. (b) Determination under NEPA To the extent that the National Environmental Policy Act of 1969 applies to any mineral exploration or mine permit, the lead agency with responsibility for issuing a mineral exploration or mine permit shall determine that the action to approve the exploration or mine permit does not constitute a major Federal action significantly affecting the quality of the human environment within the meaning of the National Environmental Policy Act of 1969 if the procedural and substantive safeguards of the permitting process alone, any applicable State permitting process alone, or a combination of the two processes together provide an adequate mechanism to ensure that environmental factors are taken into account. (c) coordination on permitting process The lead agency with responsibility for issuing a mineral exploration or mine permit shall enhance government coordination for the permitting process by avoiding duplicative reviews, minimizing paperwork and engaging other agencies and stakeholders early in the process. The lead agency shall consider the following best practices: (1) Deferring to and relying upon baseline data, analyses and reviews performed by State agencies with jurisdiction over the proposed project. (2) Conducting any consultations or reviews concurrently rather than sequentially to the extent practicable and when such concurrent review will expedite rather than delay a decision. (d) Schedule for permitting process At the request of a project proponent, the lead agency, cooperating agencies and any other agencies involved with the mineral exploration or mine permitting process shall enter into an agreement with the project proponent that sets time limits for each part of the permitting process including the following: (1) The decision on whether to prepare a document required under the National Environmental Policy Act of 1969. (2) A determination of the scope of any document required under the National Environmental Policy Act of 1969. (3) The scope of and schedule for the baseline studies required to prepare a document required under the National Environmental Policy Act of 1969. (4) Preparation of any draft document required under the National Environmental Policy Act of 1969. (5) Preparation of a final document required under the National Environmental Policy Act of 1969. (6) Consultations required under applicable laws. (7) Submission and review of any comments required under applicable law. (8) Publication of any public notices required under applicable law. (9) A final or any interim decisions. (e) Time limit for permitting process In no case should the total review process described in subsection (d) exceed 30 months unless agreed to by the signatories of the agreement. (f) Limitation on addressing public comments The lead agency is not required to address agency or public comments that were not submitted during any public comment periods or consultation periods provided during the permitting process or as otherwise required by law. (g) Financial assurance The lead agency will determine the amount of financial assurance for reclamation of a mineral exploration or mining site, which must cover the estimated cost if the lead agency were to contract with a third party to reclaim the operations according to the reclamation plan, including construction and maintenance costs for any treatment facilities necessary to meet Federal, State or tribal environmental standards. (h) Application to existing permit applications This section shall apply with respect to a mineral exploration or mine permit for which an application was submitted before the date of the enactment of this Act if the applicant for the permit submits a written request to the lead agency for the permit. The lead agency shall begin implementing this section with respect to such application within 30 days after receiving such written request. (i) Strategic and critical minerals within National Forests With respect to strategic and critical minerals within a federally administered unit of the National Forest System, the lead agency shall— (1) exempt all areas of identified mineral resources in Land Use Designations, other than Non-Development Land Use Designations, in existence as of the date of the enactment of this Act from the procedures detailed at and all rules promulgated under part 294 of title 36, Code for Federal Regulations; (2) apply such exemption to all additional routes and areas that the lead agency finds necessary to facilitate the construction, operation, maintenance, and restoration of the areas of identified mineral resources described in paragraph (1); and (3) continue to apply such exemptions after approval of the Minerals Plan of Operations for the unit of the National Forest System. 103. Conservation of the resource In evaluating and issuing any mineral exploration or mine permit, the priority of the lead agency shall be to maximize the development of the mineral resource, while mitigating environmental impacts, so that more of the mineral resource can be brought to the market place. 104. Federal register process for mineral exploration and mining projects (a) Preparation of Federal Notices for Mineral Exploration and Mine Development Projects The preparation of Federal Register notices required by law associated with the issuance of a mineral exploration or mine permit shall be delegated to the organization level within the agency responsible for issuing the mineral exploration or mine permit. All Federal Register notices regarding official document availability, announcements of meetings, or notices of intent to undertake an action shall be originated and transmitted to the Federal Register from the office where documents are held, meetings are held, or the activity is initiated. (b) Departmental Review of Federal Register Notices for Mineral Exploration and Mining Projects Absent any extraordinary circumstance or except as otherwise required by any Act of Congress, each Federal Register notice described in subsection (a) shall undergo any required reviews within the Department of the Interior or the Department of Agriculture and be published in its final form in the Federal Register no later than 30 days after its initial preparation. II Judicial review of agency actions relating to Exploration and Mine Permits 201. Definitions for title In this title the term covered civil action means a civil action against the Federal Government containing a claim under section 702 of title 5, United States Code, regarding agency action affecting a mineral exploration or mine permit. 202. Timely filings A covered civil action is barred unless filed no later than the end of the 60-day period beginning on the date of the final Federal agency action to which it relates. 203. Right to intervene The holder of any mineral exploration or mine permit may intervene as of right in any covered civil action by a person affecting rights or obligations of the permit holder under the permit. 204. Expedition in hearing and determining the action The court shall endeavor to hear and determine any covered civil action as expeditiously as possible. 205. Limitation on prospective relief In a covered civil action, the court shall not grant or approve any prospective relief unless the court finds that such relief is narrowly drawn, extends no further than necessary to correct the violation of a legal requirement, and is the least intrusive means necessary to correct that violation. 206. Limitation on attorneys’ fees Sections 504 of title 5, United States Code, and 2412 of title 28, United States Code (together commonly called the Equal Access to Justice Act) do not apply to a covered civil action, nor shall any party in such a covered civil action receive payment from the Federal Government for their attorneys’ fees, expenses, and other court costs. III Miscellaneous Provisions 301. Secretarial order not affected Nothing in this subdivision shall be construed as to affect any aspect of Secretarial Order 3324, issued by the Secretary of the Interior on December 3, 2012, with respect to potash and oil and gas operators. Passed the House of Representatives September 18, 2014. Karen L. Haas, Clerk.

https://www.govinfo.gov/content/pkg/BILLS-113hr4eh/xml/BILLS-113hr4eh.xml

113-hr-5

I 113th CONGRESS 1st Session H. R. 5 IN THE HOUSE OF REPRESENTATIVES June 6, 2013 Mr. Kline (for himself, Mr. Rokita , Mr. Petri , Ms. Foxx , Mr. Roe of Tennessee , Mr. Thompson of Pennsylvania , Mr. Guthrie , Mr. Bucshon , Mrs. Roby , Mr. Heck of Nevada , Mrs. Brooks of Indiana , and Mr. Messer ) introduced the following bill; which was referred to the Committee on Education and the Workforce , and in addition to the Committee on Financial Services , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To support State and local accountability for public education, protect State and local authority, inform parents of the performance of their children’s schools, and for other purposes. 1. Short title This Act may be cited as the Student Success Act . 2. Table of contents The table of contents for this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. Sec. 3. References. Sec. 4. Transition. Sec. 5. Effective dates. Sec. 6. Authorization of appropriations. Title I—Aid to local educational agencies Subtitle A—In general Sec. 101. Title heading. Sec. 102. Statement of purpose. Sec. 103. Flexibility to use Federal funds. Sec. 104. School improvement. Sec. 105. Direct student services. Sec. 106. State administration. Subtitle B—Improving the academic achievement of the disadvantaged Sec. 111. Part A headings. Sec. 112. State plans. Sec. 113. Local educational agency plans. Sec. 114. Eligible school attendance areas. Sec. 115. Schoolwide programs. Sec. 116. Targeted assistance schools. Sec. 117. Academic assessment and local educational agency and school improvement; school support and recognition. Sec. 118. Parental involvement. Sec. 119. Qualifications for teachers and paraprofessionals. Sec. 120. Participation of children enrolled in private schools. Sec. 121. Fiscal requirements. Sec. 122. Coordination requirements. Sec. 123. Grants for the outlying areas and the Secretary of the Interior. Sec. 124. Allocations to States. Sec. 125. Basic grants to local educational agencies. Sec. 126. Adequacy of funding of targeted grants to local educational agencies in fiscal years after fiscal year 2001. Sec. 127. Education finance incentive grant program. Sec. 128. Carryover and waiver. Subtitle C—Additional Aid to States and School Districts Sec. 131. Additional aid. Subtitle D—National assessment Sec. 141. National assessment of title I. Subtitle E—Title I general provisions Sec. 151. General provisions for title I. Title II—Teacher Preparation and Effectiveness Sec. 201. Teacher preparation and effectiveness. Sec. 202. Conforming repeals. Title III—Parental Engagement and Local Flexibility Sec. 301. Parental engagement and local flexibility. Title IV—Impact Aid Sec. 401. Purpose. Sec. 402. Payments relating to Federal acquisition of real property. Sec. 403. Payments for eligible federally connected children. Sec. 404. Policies and procedures relating to children residing on Indian lands. Sec. 405. Application for payments under sections 8002 and 8003. Sec. 406. Construction. Sec. 407. Facilities. Sec. 408. State consideration of payments providing State aid. Sec. 409. Federal administration. Sec. 410. Administrative hearings and judicial review. Sec. 411. Definitions. Sec. 412. Authorization of appropriations. Sec. 413. Conforming amendments. Title V—General provisions for the Act Sec. 501. General provisions for the Act. Sec. 502. Repeal. Sec. 503. Other laws. Sec. 504. Amendment to IDEA. Title VI—Repeal Sec. 601. Repeal of title VI. Title VII—Homeless Education Sec. 701. Statement of policy. Sec. 702. Grants for State and local activities for the education of homeless children and youths. Sec. 703. Local educational agency subgrants for the education of homeless children and youths. Sec. 704. Secretarial responsibilities. Sec. 705. Definitions. Sec. 706. Authorization of appropriations. 3. References Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6301 et seq. ). 4. Transition Unless otherwise provided in this Act, any person or agency that was awarded a grant under the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6301 et seq. ) prior to the date of the enactment of this Act shall continue to receive funds in accordance with the terms of such award, except that funds for such award may not continue more than one year after the date of the enactment of this Act. 5. Effective dates (a) In general Except as otherwise provided in this Act, this Act, and the amendments made by this Act, shall be effective upon the date of enactment of this Act. (b) Noncompetitive programs With respect to noncompetitive programs under which any funds are allotted by the Secretary of Education to recipients on the basis of a formula, this Act, and the amendments made by this Act, shall take effect on October 1, 2013. (c) Competitive programs With respect to programs that are conducted by the Secretary on a competitive basis, this Act, and the amendments made by this Act, shall take effect with respect to appropriations for use under those programs for fiscal year 2014. (d) Impact Aid With respect to title IV of the Act ( 20 U.S.C. 7701 et seq. ) (Impact Aid), this Act, and the amendments made by this Act, shall take effect with respect to appropriations for use under that title for fiscal year 2014. 6. Authorization of appropriations The Act (20 U.S.C. 6301 et seq.) is amended by inserting after section 2 the following: 3. Authorizations of appropriations (a) Title I (1) Part A There are authorized to be appropriated to carry out part A of title I $16,651,767,000 for each of fiscal years 2014 through 2019. (2) Part B There are authorized to be appropriated to carry out part B of title I $3,028,000 for each of fiscal years 2014 through 2019. (b) Title II There are authorized to be appropriated to carry out title II $2,441,549,000 for each of fiscal years 2014 through 2019. (c) Title III (1) Part A (A) Subpart 1 There are authorized to be appropriated to carry out subpart 1 of part A of title III $300,000,000 for each of fiscal years 2014 through 2019. (B) Subpart 2 There are authorized to be appropriated to carry out subpart 2 of part A of title III $91,647,000 for each of fiscal years 2014 through 2019. (C) Subpart 3 There are authorized to be appropriated to carry out subpart 3 of part A of title III $25,000,000 for each of fiscal years 2014 through 2019. (2) Part B There are authorized to be appropriated to carry out part B of title III $2,055,709,000 for each of fiscal years 2014 through 2019. (d) Title IV (1) Payments for Federal acquisition of real property For the purpose of making payments under section 4002, there are authorized to be appropriated $63,445,000 for each of fiscal years 2014 through 2019. (2) Basic payments; payments for heavily impacted local educational agencies For the purpose of making payments under section 4003(b), there are authorized to be appropriated $1,093,203,000 for each of fiscal years 2014 through 2019. (3) Payments for children with disabilities For the purpose of making payments under section 4003(d), there are authorized to be appropriated $45,881,000 for each of fiscal years 2014 through 2019. (4) Construction For the purpose of carrying out section 4007, there are authorized to be appropriated $16,529,000 for each of fiscal years 2014 through 2019. (5) Facilities maintenance For the purpose of carrying out section 4008, there are authorized to be appropriated $4,591,000 for each of fiscal years 2014 through 2019. . I Aid to local educational agencies A In general 101. Title heading The title heading for title I ( 20 U.S.C. 6301 et seq. ) is amended to read as follows: I Aid to local educational agencies . 102. Statement of purpose Section 1001 (20 U.S.C. 6301) is amended to read as follows: 1001. Statement of purpose The purpose of this title is to provide all children the opportunity to graduate high school prepared for postsecondary education or the workforce. This purpose can be accomplished by— (1) meeting the educational needs of low-achieving children in our Nation’s highest-poverty schools, English learners, migratory children, children with disabilities, Indian children, and neglected or delinquent children; (2) closing the achievement gap between high- and low-performing children, especially the achievement gaps between minority and nonminority students, and between disadvantaged children and their more advantaged peers; (3) affording parents substantial and meaningful opportunities to participate in the education of their children; and (4) challenging States and local educational agencies to embrace meaningful, evidence-based education reform, while encouraging state and local innovation. . 103. Flexibility to use Federal funds Section 1002 ( 20 U.S.C. 6302 ) is amended to read as follows: 1002. Flexibility to use Federal funds (a) Alternative uses of Federal funds for State educational agencies (1) In general Subject to subsections (c) and (d) and notwithstanding any other provision of law, a State educational agency may use the applicable funding that the agency receives for a fiscal year to carry out any State activity authorized or required under one or more of the following provisions: (A) Section 1003. (B) Section 1004. (C) Subpart 2 of part A of title I. (D) Subpart 3 of part A of title I. (E) Subpart 4 of part A of title I. (F) Chapter B of subpart 6 of part A of title I. (2) Notification Not later than June 1 of each year, a State educational agency shall notify the Secretary of the State educational agency’s intention to use the applicable funding for any of the alternative uses under paragraph (1). (3) Applicable funding defined (A) In general Except as provided in subparagraph (B), in this subsection, the term applicable funding means funds provided to carry out State activities under one or more of the following provisions. (i) Section 1003. (ii) Section 1004. (iii) Subpart 2 of part A of title I. (iv) Subpart 3 of part A of title I. (v) Subpart 4 of part A of title I. (B) Limitation In this subsection, the term applicable funding does not include funds provided under any of the provisions listed in subparagraph (A) that State educational agencies are required by this Act— (i) to reserve, allocate, or spend for required activities; (ii) to allocate, allot, or award to local educational agencies or other entities eligible to receive such funds; or (iii) to use for technical assistance or monitoring. (4) Disbursement The Secretary shall disburse the applicable funding to State educational agencies for alternative uses under paragraph (1) for a fiscal year at the same time as the Secretary disburses the applicable funding to State educational agencies that do not intend to use the applicable funding for such alternative uses for the fiscal year. (b) Alternative uses of Federal funds for local educational agencies (1) In general Subject to subsections (c) and (d) and notwithstanding any other provision of law, a local educational agency may use the applicable funding that the agency receives for a fiscal year to carry out any local activity authorized or required under one or more of the following provisions: (A) Section 1003. (B) Subpart 1 of part A of title I. (C) Subpart 2 of part A of title I. (D) Subpart 3 of part A of title I. (E) Subpart 4 of part A of title I. (F) Subpart 6 of part A of title I. (2) Notification A local educational agency shall notify the State educational agency of the local educational agency’s intention to use the applicable funding for any of the alternative uses under paragraph (1) by a date that is established by the State educational agency for the notification. (3) Applicable funding defined (A) In general Except as provided in subparagraph (B), in this subsection, the term applicable funding means funds provided to carry out local activities under one or more of the following provisions: (i) Subpart 2 of part A of title I. (ii) Subpart 3 of part A of title I. (iii) Subpart 4 of part A of title I. (iv) Chapter A of subpart 6 of part A of title I. (B) Limitation In this subsection, the term applicable funding does not include funds provided under any of the provisions listed in subparagraph (A) that local educational agencies are required by this Act— (i) to reserve, allocate, or spend for required activities; (ii) to allocate, allot, or award to entities eligible to receive such funds; or (iii) to use for technical assistance or monitoring. (4) Disbursement Each State educational agency that receives applicable funding for a fiscal year shall disburse the applicable funding to local educational agencies for alternative uses under paragraph (1) for the fiscal year at the same time as the State educational agency disburses the applicable funding to local educational agencies that do not intend to use the applicable funding for such alternative uses for the fiscal year. (c) Rule for administrative costs A State educational agency or a local educational agency shall only use applicable funding (as defined in subsection (a)(3) or (b)(3), respectively) for administrative costs incurred in carrying out a provision listed in subsection (a)(1) or (b)(1), respectively, to the extent that the agency, in the absence of this section, could have used funds for administrative costs with respect to a program listed in subsection (a)(3) or (b)(3), respectively. (d) Rule of construction Nothing in this section shall be construed to relieve a State educational agency or local educational agency of any requirements relating to— (1) use of Federal funds to supplement, not supplant, non-Federal funds; (2) comparability of services; (3) equitable participation of private school students and teachers; (4) applicable civil rights requirements; (5) section 1113; or (6) section 1111. . 104. School improvement Section 1003 (20 U.S.C. 6303) is amended— (1) in subsection (a)— (A) by striking 2 percent and inserting 7 percent ; and (B) by striking subpart 2 of part A and all that follows through sections 1116 and 1117, and inserting chapter B of subpart 1 of part A for each fiscal year to carry out subsection (b), ; (2) in subsection (b)(1), by striking for schools identified for school improvement, corrective action, and restructuring, for activities under section 1116(b) and inserting to carry out the State’s system of school improvement under section 1111(b)(3)(B)(iii) ; (3) in subsection (c)— (A) in paragraph (1), by inserting and at the end; (B) in paragraph (2), by striking need for such funds; and and inserting commitment to using such funds to improve such schools. ; and (C) by striking paragraph (3); (4) in subsection (d)(1), by striking subpart 2 of part A; and inserting chapter B of subpart 1 of part A; ; (5) in subsection (e)— (A) by striking in any fiscal year and inserting in fiscal year 2015 and each subsequent fiscal year ; (B) by striking subpart 2 and inserting chapter B of subpart 1 of part A ; and (C) by striking such subpart and inserting such chapter ; (6) in subsection (f), by striking and the percentage of students from each school from families with incomes below the poverty line ; and (7) by striking subsection (g). 105. Direct student services The Act (20 U.S.C. 6301 et seq.) is amended by inserting after section 1003 the following: 1003A. Direct student services (a) State reservation Each State shall reserve 3 percent of the amount the State receives under chapter B of subpart 1 of part A for each fiscal year to carry out this section. Of such reserved funds, the State educational agency may use up to 1 percent to administer direct student services. (b) Direct student services From the amount available after the application of subsection (a), each State shall award grants in accordance with this section to local educational agencies to support direct student services. (c) Awards The State educational agency shall award grants to geographically diverse local educational agencies including suburban, rural, and urban local educational agencies. If there are not enough funds to award all applicants in a sufficient size and scope to run an effective direct student services program, the State shall prioritize awards to local educational agencies with the greatest number of low-performing schools. (d) Local use of funds A local educational agency receiving an award under this section— (1) shall use up to 1 percent of each award for outreach and communication to parents about their options and to register students for direct student services; (2) may use not more than 2 percent of each award for administrative costs related to direct student services; and (3) shall use the remainder of the award to pay the transportation required to provide public school choice or the hourly rate for high-quality academic tutoring services, as determined by a provider on the State-approved list required under subsection (f)(2). (e) Application A local educational agency desiring to receive an award under subsection (b) shall submit an application describing how the local educational agency will— (1) provide adequate outreach to ensure parents can exercise a meaningful choice of direct student services for their child’s education; (2) ensure parents have adequate time and information to make a meaningful choice prior to enrolling their child in a direct student service; (3) ensure sufficient availability of seats in the public schools the local educational agency will make available for public school choice options; (4) determine the requirements or criteria for student eligibility for direct student services; (5) select a variety of providers of high-quality academic tutoring from the State-approved list required under subsection (f)(2) and ensure fair negotiations in selecting such providers of high-quality academic tutoring, including online, on campus, and other models of tutoring which provide meaningful choices to parents to find the best service for their child; and (6) develop an estimated per pupil expenditure available for eligible students to use toward high-quality academic tutoring which shall allow for an adequate level of services to increase academic achievement from a variety of high-quality academic tutoring providers. (f) Providers and schools The State— (1) shall ensure that each local educational agency receiving an award to provide public school choice can provide a sufficient number of options to provide a meaningful choice for parents; (2) shall compile a list of State-approved high-quality academic tutoring providers that includes online, on campus, and other models of tutoring; and (3) shall ensure that each local educational agency receiving an award will provide an adequate number of high-quality academic tutoring options to ensure parents have a meaningful choice of services. . 106. State administration Section 1004 ( 20 U.S.C. 6304 ) is amended to read as follows: 1004. State administration (a) In general Except as provided in subsection (b), to carry out administrative duties assigned under subparts 1, 2, and 3 of part A of this title, each State may reserve the greater of— (1) 1 percent of the amounts received under such subparts; or (2) $400,000 ($50,000 in the case of each outlying area). (b) Exception If the sum of the amounts reserved under subparts 1, 2, and 3 of part A of this title is equal to or greater than $14,000,000,000, then the reservation described in subsection (a)(1) shall not exceed 1 percent of the amount the State would receive if $14,000,000,000 were allocated among the States for subparts 1, 2, and 3 of part A of this title. . B Improving the academic achievement of the disadvantaged 111. Part A headings (a) Part heading The part heading for part A of title I ( 20 U.S.C. 6311 et seq. ) is amended to read as follows: A Improving the academic achievement of the disadvantaged . (b) Subpart 1 heading The Act is amended by striking the subpart heading for subpart 1 of part A of title I ( 20 U.S.C. 6311 et seq. ) and inserting the following: 1 Improving basic programs operated by local educational agencies A Basic program requirements . (c) Subpart 2 heading The Act is amended by striking the subpart heading for subpart 2 of part A of title I ( 20 U.S.C. 6331 et seq. ) and inserting the following: B Allocations . 112. State plans Section 1111 (20 U.S.C. 6311) is amended to read as follows: 1111. State plans (a) Plans required (1) In general For any State desiring to receive a grant under this subpart, the State educational agency shall submit to the Secretary a plan, developed by the State educational agency, in consultation with local educational agencies, teachers, school leaders, specialized instructional support personnel, other appropriate school personnel, and parents, that satisfies the requirements of this section and that is coordinated with other programs under this Act, the Individuals with Disabilities Education Act, the Carl D. Perkins Career and Technical Education Act of 2006, the Head Start Act, the Adult Education and Family Literacy Act, and the McKinney-Vento Homeless Assistance Act. (2) Consolidated plan A State plan submitted under paragraph (1) may be submitted as part of a consolidated plan under section 5302. (b) Academic standards, academic assessments, and State accountability (1) Academic standards (A) In general Each State plan shall demonstrate that the State has adopted academic content standards and academic achievement standards aligned with such content standards that comply with the requirements of this paragraph. (B) Subjects The State shall have such academic standards for mathematics, reading or language arts, and science, and may have such standards for any other subject determined by the State. (C) Requirements The standards described in subparagraph (A) shall— (i) apply to all public schools and public school students in the State; and (ii) with respect to academic achievement standards, include the same knowledge, skills, and levels of achievement expected of all public school students in the State. (D) Alternate academic achievement standards Notwithstanding any other provision of this paragraph, a State may, through a documented and validated standards-setting process, adopt alternate academic achievement standards for students with the most significant cognitive disabilities, if— (i) the determination about whether the achievement of an individual student should be measured against such standards is made separately for each student; and (ii) such standards— (I) are aligned with the State academic standards required under subparagraph (A); (II) promote access to the general curriculum; and (III) reflect professional judgment as to the highest possible standards achievable by such students. (E) English language proficiency standards Each State plan shall describe how the State educational agency will establish English language proficiency standards that are— (i) derived from the four recognized domains of speaking, listening, reading, and writing; and (ii) aligned with the State’s academic content standards in reading or language arts under subparagraph (A). (2) Academic assessments (A) In general Each State plan shall demonstrate that the State educational agency, in consultation with local educational agencies, has implemented a set of high-quality student academic assessments in mathematics, reading or language arts, and science. At the State’s discretion, the State plan may also demonstrate that the State has implemented such assessments in any other subject chosen by the State. (B) Requirements Such assessments shall— (i) in the case of mathematics and reading or language arts, be used in determining the performance of each local educational agency and public school in the State in accordance with the State’s accountability system under paragraph (3); (ii) be the same academic assessments used to measure the academic achievement of all public school students in the State; (iii) be aligned with the State’s academic standards and provide coherent and timely information about student attainment of such standards; (iv) be used for purposes for which such assessments are valid and reliable, be of adequate technical quality for each purpose required under this Act, and be consistent with relevant, nationally recognized professional and technical standards; (v) (I) in the case of mathematics and reading or language arts, be administered in each of grades 3 through 8 and at least once in grades 9 through 12; (II) in the case of science, be administered not less than one time during— (aa) grades 3 through 5; (bb) grades 6 through 9; and (cc) grades 10 through 12; and (III) in the case of any other subject chosen by the State, be administered at the discretion of the State; (vi) measure individual student academic proficiency and growth; (vii) at the State’s discretion— (I) be administered through a single annual summative assessment; or (II) be administered through multiple assessments during the course of the academic year that result in a single summative score that provides valid, reliable, and transparent information on student achievement; (viii) include measures that assess higher-order thinking skills and understanding; (ix) provide for— (I) the participation in such assessments of all students; (II) the reasonable adaptations and accommodations for students with disabilities necessary to measure the academic achievement of such students relative to the State’s academic standards; and (III) the inclusion of English learners, who shall be assessed in a valid and reliable manner and provided reasonable accommodations, including, to the extent practicable, assessments in the language and form most likely to yield accurate and reliable information on what such students know and can do in academic content areas, until such students have achieved English language proficiency, as assessed by the State under subparagraph (D); (x) notwithstanding clause (ix)(III), provide for the assessment of reading or language arts in English for English learners who have attended school in the United States (not including Puerto Rico) for 3 or more consecutive school years, except that a local educational agency may, on a case-by-case basis, provide for the assessment of reading or language arts for each such student in a language other than English for a period not to exceed 2 additional consecutive years if the assessment would be more likely to yield accurate and reliable information on what such student knows and can do, provided that such student has not yet reached a level of English language proficiency sufficient to yield valid and reliable information on what such student knows and can do on reading or language arts assessments written in English; (xi) produce individual student interpretive, descriptive, and diagnostic reports regarding achievement on such assessments that allow parents, teachers, and school leaders to understand and address the specific academic needs of students, and that are provided to parents, teachers, and school leaders, as soon as is practicable after the assessment is given, in an understandable and uniform format, and to the extent practicable, in a language that parents can understand; (xii) enable results to be disaggregated within each State, local educational agency, and school by gender, by each major racial and ethnic group, by English language proficiency status, by migrant status, by status as a student with a disability, and by economically disadvantaged status, except that, in the case of a local educational agency or a school, such disaggregation shall not be required in a case in which the number of students in a category is insufficient to yield statistically reliable information or the results would reveal personally identifiable information about an individual student; and (xiii) be administered to not less than 95 percent of all students, and not less than 95 percent of each subgroup of students described in paragraph (3)(B)(ii)(II). (C) Alternate assessments A State may provide for alternate assessments aligned with the alternate academic standards adopted in accordance with paragraph (1)(D), for students with the most significant cognitive disabilities, if the State— (i) establishes and monitors implementation of clear and appropriate guidelines for individualized education program teams (as defined in section 614(d)(1)(B) of the Individuals with Disabilities Education Act) to apply when determining when a child’s significant cognitive disability justifies assessment based on alternate achievement standards; (ii) ensures that the parents of such students are informed that— (I) their child’s academic achievement will be measured against such alternate standards; and (II) whether participation in such assessments precludes the student from completing the requirements for a regular high school diploma; (iii) demonstrates that such students are, to the extent practicable, included in the general curriculum and that such alternate assessments are aligned with such curriculum; (iv) develops, disseminates information about, and promotes the use of appropriate accommodations to increase the number of students with disabilities who are tested against academic achievement standards for the grade in which a student is enrolled; and (v) ensures that regular and special education teachers and other appropriate staff know how to administer the alternate assessments, including making appropriate use of accommodations for students with disabilities. (D) Assessments of English language proficiency (i) In general Each State plan shall demonstrate that local educational agencies in the State will provide for an annual assessment of English proficiency of all English learners in the schools served by the State educational agency. (ii) Alignment The assessments described in clause (i) shall be aligned with the State’s English language proficiency standards described in paragraph (1)(E). (E) Language assessments Each State plan shall identify the languages other than English that are present in the participating student population and indicate the languages for which yearly student academic assessments are not available and are needed. The State shall make every effort to develop such assessments and may request assistance from the Secretary if linguistically accessible academic assessment measures are needed. Upon request, the Secretary shall assist with the identification of appropriate academic assessment measures in the needed languages, but shall not mandate a specific academic assessment or mode of instruction. (F) Adaptive assessments A State may develop and administer computer adaptive assessments as the assessments required under subparagraph (A). If a State develops and administers a computer adaptive assessment for such purposes, the assessment shall meet the requirements of this paragraph, except as follows: (i) Notwithstanding subparagraph (B)(iii), the assessment— (I) shall measure, at a minimum, each student’s academic proficiency against the State’s academic standards for the student’s grade level and growth toward such standards; and (II) if the State chooses, may be used to measure the student’s level of academic proficiency and growth using assessment items above or below the student’s grade level, including for use as part of a State’s accountability system under paragraph (3). (ii) Subparagraph (B)(ii) shall not be interpreted to require that all students taking the computer adaptive assessment be administered the same assessment items. (3) State accountability systems (A) In general Each State plan shall demonstrate that the State has developed and is implementing a single, statewide accountability system to ensure that all public school students graduate from high school prepared for postsecondary education or the workforce without the need for remediation. (B) Elements Each State accountability system described in subparagraph (A) shall at a minimum— (i) annually measure the academic achievement of all public school students in the State against the State’s mathematics and reading or language arts academic standards adopted under paragraph (1), which may include measures of student growth toward such standards, using the mathematics and reading or language arts assessments described in paragraph (2)(B) and other valid and reliable academic indicators related to student achievement as identified by the State; (ii) annually evaluate and identify the academic performance of each public school in the State based on— (I) student academic achievement as measured in accordance with clause (i); and (II) the overall performance, and achievement gaps as compared to all students in the school, for economically disadvantaged students, students from major racial and ethnic groups, students with disabilities, and English learners, except that disaggregation of data under this subclause shall not be required in a case in which the number of students in a category is insufficient to yield statistically reliable information or the results would reveal personally identifiable information about an individual student; and (iii) include a system for school improvement for low-performing public schools receiving funds under this subpart that— (I) implements interventions in such schools that are designed to address such schools’ weaknesses; and (II) is implemented by local educational agencies serving such schools. (C) Prohibition Nothing in this section shall be construed to permit the Secretary to establish any criteria that specifies, defines, or prescribes any aspect of a State’s accountability system developed and implemented in accordance with this paragraph. (D) Accountability for charter schools The accountability provisions under this Act shall be overseen for charter schools in accordance with State charter school law. (4) Requirements Each State plan shall describe— (A) how the State educational agency will assist each local educational agency and each public school affected by the State plan to comply with the requirements of this subpart, including how the State educational agency will work with local educational agencies to provide technical assistance; and (B) how the State educational agency will ensure that the results of the State assessments described in paragraph (2), the other indicators selected by the State under paragraph (3)(B)(i), and the school evaluations described in paragraph (3)(B)(ii), will be promptly provided to local educational agencies, schools, teachers, and parents in a manner that is clear and easy to understand, but not later than before the beginning of the school year following the school year in which such assessments, other indicators, or evaluations are taken or completed. (5) Timeline for implementation Each State plan shall describe the process by which the State will adopt and implement the State academic standards, assessments, and accountability system required under this section within 2 years of enactment of the Student Success Act. (6) Existing standards Nothing in this subpart shall prohibit a State from revising, consistent with this section, any standard adopted under this section before or after the date of enactment of the Student Success Act. (7) Existing State law Nothing in this section shall be construed to alter any State law or regulation granting parents authority over schools that repeatedly failed to make adequate yearly progress under this section, as in effect on the day before the date of the enactment of the Student Success Act. (c) Other provisions To support teaching and learning Each State plan shall contain assurances that— (1) the State will notify local educational agencies, schools, teachers, parents, and the public of the academic standards, academic assessments, and State accountability system developed and implemented under this section; (2) the State will participate in biennial State academic assessments of 4th and 8th grade reading and mathematics under the National Assessment of Educational Progress carried out under section 303(b)(2) of the National Assessment of Educational Progress Authorization Act if the Secretary pays the costs of administering such assessments; (3) the State educational agency will notify local educational agencies and the public of the authority to operate schoolwide programs; (4) the State educational agency will provide the least restrictive and burdensome regulations for local educational agencies and individual schools participating in a program assisted under this subpart; (5) the State educational agency will encourage schools to consolidate funds from other Federal, State, and local sources for schoolwide reform in schoolwide programs under section 1114; (6) the State educational agency will modify or eliminate State fiscal and accounting barriers so that schools can easily consolidate funds from other Federal, State, and local sources for schoolwide programs under section 1114; and (7) the State educational agency will inform local educational agencies in the State of the local educational agency’s authority to transfer funds under section 1002 and to obtain waivers under section 5401. (d) Parental involvement Each State plan shall describe how the State educational agency will support the collection and dissemination to local educational agencies and schools of effective parental involvement practices. Such practices shall— (1) be based on the most current research that meets the highest professional and technical standards on effective parental involvement that fosters achievement to high standards for all children; (2) be geared toward lowering barriers to greater participation by parents in school planning, review, and improvement; and (3) be coordinated with programs funded under subpart 3 of part A of title III. (e) Peer review and secretarial approval (1) Establishment Notwithstanding section 5543, the Secretary shall— (A) establish a peer-review process to assist in the review of State plans; and (B) appoint individuals to the peer-review process who are representative of parents, teachers, State educational agencies, and local educational agencies, and who are familiar with educational standards, assessments, accountability, the needs of low-performing schools, and other educational needs of students, and ensure that 75 percent of such appointees are practitioners. (2) Approval The Secretary shall— (A) approve a State plan within 120 days of its submission; (B) disapprove of the State plan only if the Secretary demonstrates how the State plan fails to meet the requirements of this section and immediately notifies the State of such determination and the reasons for such determination; (C) not decline to approve a State's plan before— (i) offering the State an opportunity to revise its plan; (ii) providing technical assistance in order to assist the State to meet the requirements of this section; and (iii) providing a hearing; and (D) have the authority to disapprove a State plan for not meeting the requirements of this subpart, but shall not have the authority to require a State, as a condition of approval of the State plan, to include in, or delete from, such plan one or more specific elements of the State's academic standards or State accountability system, or to use specific academic assessments or other indicators. (3) State revisions A State plan shall be revised by the State educational agency if it is necessary to satisfy the requirements of this section. (4) Public review All communications, feedback, and notifications under this subsection shall be conducted in a manner that is immediately made available to the public through the website of the Department, including— (A) peer review guidance; (B) the names of the peer reviewers; (C) State plans submitted or resubmitted by a State, including the current approved plans; (D) peer review notes; (E) State plan determinations by the Secretary, including approvals or disapprovals, and any deviations from the peer reviewers’ recommendations with an explanation of the deviation; and (F) hearings. (5) Prohibition The Secretary, and the Secretary’s staff, may not attempt to participate in, or influence, the peer review process. No Federal employee may participate in, or attempt to influence the peer review process, except to respond to questions of a technical nature, which shall be publicly reported. (f) Duration of the plan (1) In general Each State plan shall— (A) remain in effect for the duration of the State’s participation under this subpart; and (B) be periodically reviewed and revised as necessary by the State educational agency to reflect changes in the State’s strategies and programs under this subpart. (2) Additional information If a State makes significant changes to its State plan, such as the adoption of new State academic standards or new academic assessments, or adopts a new State accountability system, such information shall be submitted to the Secretary under subsection (e)(2) for approval. (g) Failure To meet requirements If a State fails to meet any of the requirements of this section then the Secretary shall withhold funds for State administration under this subpart until the Secretary determines that the State has fulfilled those requirements. (h) Reports (1) Annual State report card (A) In general A State that receives assistance under this subpart shall prepare and disseminate an annual State report card. Such dissemination shall include, at a minimum, publicly posting the report card on the home page of the State educational agency’s website. (B) Implementation The State report card shall be— (i) concise; and (ii) presented in an understandable and uniform format that is developed in consultation with parents and, to the extent practicable, provided in a language that parents can understand. (C) Required information The State shall include in its annual State report card information on— (i) the performance of students, in the aggregate and disaggregated by the categories of students described in subsection (b)(2)(B)(xii) (except that such disaggregation shall not be required in a case in which the number of students in a category is insufficient to yield statistically reliable information or the results would reveal personally identifiable information about an individual student), on the State academic assessments described in subsection (b)(2); (ii) the participation rate on such assessments, in the aggregate and disaggregated in accordance with clause (i)); (iii) the performance of students, in the aggregate and disaggregated in accordance with clause (i), on other academic indicators described in subsection (b)(3)(B)(i); (iv) for each public high school in the State, in the aggregate and disaggregated in accordance with clause (i)— (I) the four-year adjusted cohort graduation rate, and (II) at the State’s discretion, the extended-year adjusted cohort graduation rate, calculated and reported separately for students graduating in 5 years or less, students graduating in 6 years or less, and students graduating in 7 or more years; (v) each public school’s evaluation results as determined in accordance with subsection (b)(3)(B)(ii); (vi) the acquisition of English proficiency by English learners; (vii) the number and percentage of teachers in each category established under clause (iii) of section 2123(1)(A), except that such information shall not reveal personally identifiable information about an individual teacher; and (viii) the results of the assessments described in subsection (c)(2). (D) Optional information The State may include in its annual State report card such other information as the State believes will best provide parents, students, and other members of the public with information regarding the progress of each of the State’s public elementary schools and public secondary schools. (2) Annual local educational agency report cards (A) In general A local educational agency that receives assistance under this subpart shall prepare and disseminate an annual local educational agency report card. (B) Minimum requirements The State educational agency shall ensure that each local educational agency collects appropriate data and includes in the local educational agency’s annual report the information described in paragraph (1)(C) as applied to the local educational agency and each school served by the local educational agency, and— (i) in the case of a local educational agency, information that shows how students served by the local educational agency achieved on the statewide academic assessment and other academic indicators adopted in accordance with subsection (b)(3)(B)(i) compared to students in the State as a whole; and (ii) in the case of a school, the school’s evaluation under subsection (b)(3)(B)(ii). (C) Other information A local educational agency may include in its annual local educational agency report card any other appropriate information, whether or not such information is included in the annual State report card. (D) Data A local educational agency or school shall only include in its annual local educational agency report card data that are sufficient to yield statistically reliable information, as determined by the State, and that do not reveal personally identifiable information about an individual student. (E) Public dissemination The local educational agency shall publicly disseminate the information described in this paragraph to all schools served by the local educational agency and to all parents of students attending those schools in an understandable and uniform format, and, to the extent practicable, in a language that parents can understand, and make the information widely available through public means, such as posting on the Internet, distribution to the media, and distribution through public agencies, except that if a local educational agency issues a report card for all students, the local educational agency may include the information under this section as part of such report. (3) Preexisting report cards A State educational agency or local educational agency may use public report cards on the performance of students, schools, local educational agencies, or the State, that were in effect prior to the enactment of the Student Success Act for the purpose of this subsection, so long as any such report card is modified, as may be needed, to contain the information required by this subsection. (4) Parents right-to-know (A) Achievement information At the beginning of each school year, a school that receives funds under this subpart shall provide to each individual parent information on the level of achievement of the parent’s child in each of the State academic assessments and other academic indicators adopted in accordance with this subpart. (B) Format The notice and information provided to parents under this paragraph shall be in an understandable and uniform format and, to the extent practicable, provided in a language that the parents can understand. (i) Privacy Information collected under this section shall be collected and disseminated in a manner that protects the privacy of individuals consistent with section 444 of the General Education Provisions Act. (j) Voluntary partnerships A State may enter into a voluntary partnership with another State to develop and implement the academic assessments and standards required under this section, except that the Secretary shall not, either directly or indirectly, attempt to influence, incentivize, or coerce State participation in any such partnerships. (k) Construction Nothing in this part shall be construed to prescribe the use of the academic assessments described in this part for student promotion or graduation purposes. (l) Special rule with respect to bureau-Funded schools In determining the assessments to be used by each school operated or funded by the Bureau of Indian Education receiving funds under this subpart, the following shall apply: (1) Each such school that is accredited by the State in which it is operating shall use the assessments and other academic indicators the State has developed and implemented to meet the requirements of this section, or such other appropriate assessment and academic indicators as approved by the Secretary of the Interior. (2) Each such school that is accredited by a regional accrediting organization shall adopt an appropriate assessment and other academic indicators, in consultation with and with the approval of, the Secretary of the Interior and consistent with assessments and academic indicators adopted by other schools in the same State or region, that meet the requirements of this section. (3) Each such school that is accredited by a tribal accrediting agency or tribal division of education shall use an assessment and other academic indicators developed by such agency or division, except that the Secretary of the Interior shall ensure that such assessment and academic indicators meet the requirements of this section. . 113. Local educational agency plans Section 1112 ( 20 U.S.C. 6312 ) is amended to read as follows: 1112. Local educational agency plans (a) Plans Required (1) Subgrants A local educational agency may receive a subgrant under this subpart for any fiscal year only if such agency has on file with the State educational agency a plan, approved by the State educational agency, that is coordinated with other programs under this Act, the Individuals with Disabilities Education Act, the Carl D. Perkins Career and Technical Education Act of 2006, the McKinney-Vento Homeless Assistance Act, and other Acts, as appropriate. (2) Consolidated application The plan may be submitted as part of a consolidated application under section 5305. (b) Plan provisions Each local educational agency plan shall describe— (1) how the local educational agency will monitor, in addition to the State assessments described in section 1111(b)(2), students’ progress in meeting the State’s academic standards; (2) how the local educational agency will identify quickly and effectively those students who may be at risk of failing to meet the State’s academic standards; (3) how the local educational agency will provide additional educational assistance to individual students in need of additional help in meeting the State’s academic standards; (4) how the local educational agency will implement the school improvement system described in section 1111(b)(3)(B)(iii) for any of the agency’s schools identified under such section; (5) how the local educational agency will coordinate programs under this subpart with other programs under this Act and other Acts, as appropriate; (6) the poverty criteria that will be used to select school attendance areas under section 1113; (7) how teachers, in consultation with parents, administrators, and specialized instructional support personnel, in targeted assistance schools under section 1115, will identify the eligible children most in need of services under this subpart; (8) in general, the nature of the programs to be conducted by the local educational agency’s schools under sections 1114 and 1115, and, where appropriate, educational services outside such schools for children living in local institutions for neglected and delinquent children, and for neglected and delinquent children in community day school programs; (9) how the local educational agency will ensure that migratory children who are eligible to receive services under this subpart are selected to receive such services on the same basis as other children who are selected to receive services under this subpart; (10) the services the local educational agency will provide homeless children, including services provided with funds reserved under section 1113(c)(3)(A); (11) the strategy the local educational agency will use to implement effective parental involvement under section 1118; (12) if appropriate, how the local educational agency will use funds under this subpart to support preschool programs for children, particularly children participating in a Head Start program, which services may be provided directly by the local educational agency or through a subcontract with the local Head Start agency designated by the Secretary of Health and Human Services under section 641 of the Head Start Act, or another comparable early childhood development program; (13) how the local educational agency, through incentives for voluntary transfers, the provision of professional development, recruitment programs, incentive pay, performance pay, or other effective strategies, will address disparities in the rates of low-income and minority students and other students being taught by ineffective teachers; and (14) if appropriate, how the local educational agency will use funds under this subpart to support programs that coordinate and integrate— (A) career and technical education aligned with State technical standards that promote skills attainment important to in-demand occupations or industries in the State and the State’s academic standards under section 1111(b)(1); and (B) work-based learning opportunities that provide students in-depth interaction with industry professionals. (c) Assurances Each local educational agency plan shall provide assurances that the local educational agency will— (1) participate, if selected, in biennial State academic assessments of 4th and 8th grade reading and mathematics under the National Assessment of Educational Progress carried out under section 303(b)(2) of the National Assessment of Educational Progress Authorization Act; (2) inform schools of schoolwide program authority and the ability to consolidate funds from Federal, State, and local sources; (3) provide technical assistance to schoolwide programs; (4) provide services to eligible children attending private elementary and secondary schools in accordance with section 1120, and timely and meaningful consultation with private school officials or representatives regarding such services; (5) in the case of a local educational agency that chooses to use funds under this subpart to provide early childhood development services to low-income children below the age of compulsory school attendance, ensure that such services comply with the performance standards established under section 641A(a) of the Head Start Act; (6) inform eligible schools of the local educational agency’s authority to request waivers on the school’s behalf under Title V; and (7) ensure that the results of the academic assessments required under section 1111(b)(2) will be provided to parents and teachers as soon as is practicably possible after the test is taken, in an understandable and uniform format and, to the extent practicable, provided in a language that the parents can understand. (d) Special rule In carrying out subsection (c)(5), the Secretary shall— (1) consult with the Secretary of Health and Human Services and shall establish procedures (taking into consideration existing State and local laws, and local teacher contracts) to assist local educational agencies to comply with such subparagraph; and (2) disseminate to local educational agencies the education performance standards in effect under section 641A(a)(1)(B) of the Head Start Act, and such agencies affected by such subsection shall plan for the implementation of such subsection (taking into consideration existing State and local laws, and local teacher contracts). (e) Plan development and duration (1) Consultation Each local educational agency plan shall be developed in consultation with teachers, school leaders, administrators, and other appropriate school personnel, and with parents of children in schools served under this subpart. (2) Duration Each such plan shall be submitted for the first year for which this part is in effect following the date of enactment of this Act and shall remain in effect for the duration of the agency’s participation under this subpart. (3) Review Each local educational agency shall periodically review and, as necessary, revise its plan. (f) State approval (1) In general Each local educational agency plan shall be filed according to a schedule established by the State educational agency. (2) Approval The State educational agency shall approve a local educational agency’s plan only if the State educational agency determines that the local educational agency’s plan— (A) enables schools served under this subpart to substantially help children served under this subpart to meet the State’s academic standards described in section 1111(b)(1); and (B) meets the requirements of this section. (3) Review The State educational agency shall review the local educational agency’s plan to determine if such agency’s activities are in accordance with section 1118. (g) Parental notification (1) In general Each local educational agency using funds under this subpart and subpart 4 to provide a language instruction educational program shall, not later than 30 days after the beginning of the school year, inform parents of an English learner identified for participation, or participating in, such a program of— (A) the reasons for the identification of their child as an English learner and in need of placement in a language instruction educational program; (B) the child’s level of English proficiency, how such level was assessed, and the status of the child’s academic achievement; (C) the methods of instruction used in the program in which their child is, or will be participating, and the methods of instruction used in other available programs, including how such programs differ in content, instructional goals, and the use of English and a native language in instruction; (D) how the program in which their child is, or will be participating, will meet the educational strengths and needs of their child; (E) how such program will specifically help their child learn English, and meet age-appropriate academic achievement standards for grade promotion and graduation; (F) the specific exit requirements for the program, including the expected rate of transition from such program into classrooms that are not tailored for English learners, and the expected rate of graduation from high school for such program if funds under this subpart are used for children in secondary schools; (G) in the case of a child with a disability, how such program meets the objectives of the individualized education program of the child; and (H) information pertaining to parental rights that includes written guidance— (i) detailing— (I) the right that parents have to have their child immediately removed from such program upon their request; and (II) the options that parents have to decline to enroll their child in such program or to choose another program or method of instruction, if available; and (ii) assisting parents in selecting among various programs and methods of instruction, if more than one program or method is offered by the eligible entity. (2) Notice The notice and information provided in paragraph (1) to parents of a child identified for participation in a language instruction educational program for English learners shall be in an understandable and uniform format and, to the extent practicable, provided in a language that the parents can understand. (3) Special rule applicable during the school year For those children who have not been identified as English learners prior to the beginning of the school year the local educational agency shall notify parents within the first 2 weeks of the child being placed in a language instruction educational program consistent with paragraphs (1) and (2). (4) Parental participation Each local educational agency receiving funds under this subpart shall implement an effective means of outreach to parents of English learners to inform the parents regarding how the parents can be involved in the education of their children, and be active participants in assisting their children to attain English proficiency, achieve at high levels in core academic subjects, and meet the State’s academic standards expected of all students, including holding, and sending notice of opportunities for, regular meetings for the purpose of formulating and responding to recommendations from parents of students assisted under this subpart. (5) Basis for admission or exclusion A student shall not be admitted to, or excluded from, any federally assisted education program on the basis of a surname or language-minority status. . 114. Eligible school attendance areas Section 1113 ( 20 U.S.C. 6313 ) is amended— (1) by striking part each place it appears and inserting subpart ; and (2) in subsection (c)(4)— (A) by striking subpart 2 and inserting chapter B ; and (B) by striking school improvement, corrective action, and restructuring under section 1116(b) and inserting school improvement under section 1111(b)(3)(B)(iii) . 115. Schoolwide programs Section 1114 (20 U.S.C. 6314) is amended— (1) in subsection (a)— (A) in paragraph (1)— (i) by striking part and inserting subpart ; and (ii) by striking in which through such families ; (B) in paragraph (2)— (i) in subparagraph (A)(i), by striking part and inserting subpart ; and (ii) in subparagraph (B)— (I) by striking children with limited English proficiency and inserting English learners ; and (II) by striking part and inserting subpart ; (C) in paragraph (3)(B), by striking maintenance of effort, after private school children, ; and (D) by striking paragraph (4); (2) in subsection (b)— (A) in paragraph (1)— (i) in subparagraph (A)— (I) by striking (including and all that follows through 1309(2)) ; and (II) by striking content standards and the State student academic achievement standards and inserting standards ; (ii) in subparagraph (B)— (I) in clause (i), by striking proficient and all that follows through section 1111(b)(1)(D) and inserting academic standards described in section 1111(b)(1) ; (II) in clause (ii), in the matter preceding subclause (I), by striking based on scientifically based research and inserting evidence-based ; (III) in clause (iii)(I)— (aa) by striking student academic achievement standards and inserting academic standards ; and (bb) by striking schoolwide program, and all that follows through technical education programs; and and inserting schoolwide programs; and ; and (IV) in clause (iv), by striking the State and local improvement plans and inserting school improvement strategies ; (iii) in subparagraph (C), by striking highly qualified and inserting effective ; (iv) in subparagraph (D)— (I) by striking In accordance with section 1119 and subsection (a)(4), high-quality and inserting High-quality ; (II) by striking pupil services and inserting specialized instructional support services ; and (III) by striking student academic achievement and inserting academic ; (v) in subparagraph (E), by striking high-quality highly qualified and inserting effective ; (vi) in subparagraph (G), by striking , such as Head Start, Even Start, Early Reading First, or a State-run preschool program, ; (vii) in subparagraph (H), by striking section 1111(b)(3) and inserting section 1111(b)(2) ; (viii) in subparagraph (I), by striking proficient or advanced levels of academic achievement standards and inserting State academic standards ; and (ix) in subparagraph (J), by striking vocational and inserting career ; and (B) in paragraph (2)— (i) in subparagraph (A)— (I) in the matter preceding clause (i)— (aa) by striking first develop and all that follows through 2001) and inserting have in place ; and (bb) by striking and its school support team or other technical assistance provider under section 1117 ; (II) in clause (ii), by striking part and inserting subpart ; and (III) in clause (iv), by striking section 1111(b)(3) and inserting section 1111(b)(2) ; and (ii) in subparagraph (B)— (I) in clause (i)— (aa) in subclause (I), by striking , after considering the recommendation of the technical assistance providers under section 1117, ; and (bb) in subclause (II), by striking the No Child Left Behind Act of 2001 and inserting Student Success Act ; (II) in clause (ii)— (aa) by striking (including administrators of programs described in other parts of this title) ; and (bb) by striking pupil services and inserting specialized instructional support services ; (III) in clause (iii), by striking part and inserting subpart ; and (IV) in clause (v), by striking Reading First, Early Reading First, Even Start, ; and (3) in subsection (c)— (A) by striking part and inserting subpart ; and (B) by striking 6, and all that follows through the period at the end and inserting 6. . 116. Targeted assistance schools Section 1115 (20 U.S.C. 6315) is amended— (1) in subsection (a)— (A) by striking are ineligible for a schoolwide program under section 1114, or that ; (B) by striking operate such and inserting operate ; and (C) by striking part and inserting subpart ; (2) in subsection (b)— (A) in paragraph (1)(B), by striking challenging student academic achievement and inserting academic ; (B) in paragraph (2)— (i) in subparagraph (A)— (I) by striking limited English proficient children and inserting English learners ; and (II) by striking part each place it appears and inserting subpart ; (ii) in subparagraph (B)— (I) in the heading, by striking , Even Start, or Early Reading First ; and (II) by striking , Even Start, or Early Reading First ; (iii) in subparagraph (C)— (I) by amending the heading to read as follows: Subpart 3 children.— ; (II) by striking part C and inserting subpart 3 ; and (III) by striking part and inserting subpart ; and (iv) in subparagraphs (D) and (E), by striking part each place it appears and inserting subpart ; and (C) in paragraph (3), by striking part and inserting subpart ; (3) in subsection (c)— (A) in paragraph (1)— (i) in the matter preceding subparagraph (A)— (I) by striking part and inserting subpart ; and (II) by striking challenging student academic achievement and inserting academic ; (ii) in subparagraph (A)— (I) by striking part and inserting subpart ; and (II) by striking challenging student academic achievement and inserting academic ; (iii) in subparagraph (B), by striking part and inserting subpart ; (iv) in subparagraph (C)— (I) in the matter preceding clause (i), by striking based on scientifically based research and inserting evidence-based ; and (II) in clause (iii), by striking part and inserting subpart ; (v) in subparagraph (D), by striking such as Head Start, Even Start, Early Reading First or State-run preschool programs ; (vi) in subparagraph (E), by striking highly qualified and inserting effective ; (vii) in subparagraph (F)— (I) by striking in accordance with subsection (e)(3) and section 1119, ; (II) by striking part and inserting subpart ; and (III) by striking pupil services personnel and inserting specialized instructional support personnel ; and (viii) in subparagraph (H), by striking vocational and inserting career ; and (B) in paragraph (2)— (i) in the matter preceding subparagraph (A), by striking proficient and advanced levels of achievement and inserting academic standards ; (ii) in subparagraph (A), by striking part and inserting subpart ; and (iii) in subparagraph (B), by striking challenging student academic achievement and inserting academic ; (4) in subsection (d), in the matter preceding paragraph (1), by striking part each place it appears and inserting subpart ; and (5) in subsection (e)— (A) in paragraph (2)(B)— (i) in the matter preceding clause (i), by striking part and inserting subpart ; and (ii) in clause (iii), by striking pupil services and inserting specialized instructional support services ; and (B) by striking paragraph (3). 117. Academic assessment and local educational agency and school improvement; school support and recognition The Act is amended by repealing sections 1116 and 1117 ( 20 U.S.C. 6316 ; 6317). 118. Parental involvement Section 1118 (20 U.S.C. 6318) is amended— (1) by striking part each place such term appears and inserting subpart ; (2) in subsection (a)— (A) in paragraph (2)— (i) in subparagraph (A), by striking , and and all that follows through 1116 ; and (ii) in subparagraph (D), by striking , such as and all that follows through preschool programs ; and (B) in paragraph (3)(A), by striking subpart 2 of this part each place it appears and inserting chapter B of this subpart ; (3) by amending subsection (c)(4)(B) to read as follows: (B) a description and explanation of the curriculum in use at the school and the forms of academic assessment used to measure student progress; and ; (4) in subsection (d)(1), by striking student academic achievement and inserting academic ; (5) in subsection (e)— (A) in paragraph (1), by striking State’s academic content standards and State student academic achievement standards and inserting State’s academic standards ; (B) in paragraph (3)— (i) by striking pupil services personnel, and inserting specialized instructional support personnel, ; and (ii) by striking principals, and inserting school leaders, ; and (C) in paragraph (4), by striking Head Start, Reading First, Early Reading First, Even Start, the Home Instruction Programs for Preschool Youngsters, the Parents as Teachers Program, and public preschool and other and inserting other Federal, State, and local ; and (6) by amending subsection (g) to read as follows: (g) Family engagement in education programs In a State operating a program under subpart 3 of part A of title III, each local educational agency or school that receives assistance under this subpart shall inform such parents and organizations of the existence of such programs. . 119. Qualifications for teachers and paraprofessionals The Act is amended by repealing section 1119 ( 20 U.S.C. 6319 ). 120. Participation of children enrolled in private schools Section 1120 ( 20 U.S.C. 6320 ) is amended to read as follows: 1120. Participation of children enrolled in private schools (a) General requirement (1) In general To the extent consistent with the number of eligible children identified under section 1115(b) in the school district served by a local educational agency who are enrolled in private elementary schools and secondary schools, a local educational agency shall— (A) after timely and meaningful consultation with appropriate private school officials or representatives, provide such service, on an equitable basis and individually or in combination, as requested by the officials or representatives to best meet the needs of such children, special educational services, instructional services, counseling, mentoring, one-on-one tutoring, or other benefits under this subpart (such as dual enrollment, educational radio and television, computer equipment and materials, other technology, and mobile educational services and equipment) that address their needs; and (B) ensure that teachers and families of the children participate, on an equitable basis, in services and activities developed pursuant to this subpart. (2) Secular, neutral, nonideological Such educational services or other benefits, including materials and equipment, shall be secular, neutral, and nonideological. (3) Equity (A) In general Educational services and other benefits for such private school children shall be equitable in comparison to services and other benefits for public school children participating under this subpart, and shall be provided in a timely manner. (B) Ombudsman To help ensure such equity for such private school children, teachers, and other educational personnel, the State educational agency involved shall designate an ombudsman to monitor and enforce the requirements of this subpart. (4) Expenditures (A) In general Expenditures for educational services and other benefits to eligible private school children shall be equal to the expenditures for participating public school children, taking into account the number, and educational needs, of the children to be served. The share of funds shall be determined based on the total allocation received by the local educational agency prior to any allowable expenditures authorized under this title. (B) Obligation of funds Funds allocated to a local educational agency for educational services and other benefits to eligible private school children shall— (i) be obligated in the fiscal year for which the funds are received by the agency; and (ii) with respect to any such funds that cannot be so obligated, be used to serve such children in the following fiscal year. (C) Notice of allocation Each State educational agency shall— (i) determine, in a timely manner, the proportion of funds to be allocated to each local educational agency in the State for educational services and other benefits under this subpart to eligible private school children; and (ii) provide notice, simultaneously, to each such local educational agency and the appropriate private school officials or their representatives in the State of such allocation of funds. (5) Provision of services The local educational agency or, in a case described in subsection (b)(6)(C) , the State educational agency involved, may provide services under this section directly or through contracts with public or private agencies, organizations, and institutions. (b) Consultation (1) In general To ensure timely and meaningful consultation, a local educational agency shall consult with appropriate private school officials or representatives during the design and development of such agency’s programs under this subpart in order to reach an agreement between the agency and the officials or representatives about equitable and effective programs for eligible private school children, the results of which shall be transmitted to the designated ombudsmen under section 1120(a)(3)(B). Such process shall include consultation on issues such as— (A) how the children’s needs will be identified; (B) what services will be offered; (C) how, where, and by whom the services will be provided; (D) how the services will be academically assessed and how the results of that assessment will be used to improve those services; (E) the size and scope of the equitable services to be provided to the eligible private school children, and the proportion of funds that is allocated under subsection (a)(4)(A) for such services, how that proportion of funds is determined under such subsection, and an itemization of the costs of the services to be provided; (F) the method or sources of data that are used under subsection (c) and section 1113(c)(1) to determine the number of children from low-income families in participating school attendance areas who attend private schools; (G) how and when the agency will make decisions about the delivery of services to such children, including a thorough consideration and analysis of the views of the private school officials or representatives on the provision of services through a contract with potential third-party providers; (H) how, if the agency disagrees with the views of the private school officials or representatives on the provision of services through a contract, the local educational agency will provide in writing to such private school officials an analysis of the reasons why the local educational agency has chosen not to use a contractor; (I) whether the agency will provide services under this section directly or through contracts with public and private agencies, organizations, and institutions; (J) whether to provide equitable services to eligible private school children— (i) by creating a pool or pools of funds with all of the funds allocated under paragraph (4) based on all the children from low-income families who attend private schools in a participating school attendance area of the agency from which the local educational agency will provide such services to all such children; or (ii) by providing such services to eligible children in each private school in the agency’s participating school attendance area with the proportion of funds allocated under paragraph (4) based on the number of children from low-income families who attend such school; and (K) whether to consolidate and use funds under this subpart to provide schoolwide programs for a private school. (2) Disagreement If a local educational agency disagrees with the views of private school officials or representatives with respect to an issue described in paragraph (1), the local educational agency shall provide in writing to such private school officials an analysis of the reasons why the local educational agency has chosen not to adopt the course of action requested by such officials. (3) Timing Such consultation shall include meetings of agency and private school officials or representatives and shall occur before the local educational agency makes any decision that affects the opportunities of eligible private school children to participate in programs under this subpart. Such meetings shall continue throughout implementation and assessment of services provided under this section. (4) Discussion Such consultation shall include a discussion of service delivery mechanisms a local educational agency can use to provide equitable services to eligible private school children. (5) Documentation Each local educational agency shall maintain in the agency’s records and provide to the State educational agency involved a written affirmation signed by officials or representatives of each participating private school that the meaningful consultation required by this section has occurred. The written affirmation shall provide the option for private school officials or representatives to indicate that timely and meaningful consultation has not occurred or that the program design is not equitable with respect to eligible private school children. If such officials or representatives do not provide such affirmation within a reasonable period of time, the local educational agency shall forward the documentation that such consultation has, or attempts at such consultation have, taken place to the State educational agency. (6) Compliance (A) In general A private school official shall have the right to file a complaint with the State educational agency that the local educational agency did not engage in consultation that was meaningful and timely, did not give due consideration to the views of the private school official, or did not treat the private school or its students equitably as required by this section. (B) Procedure If the private school official wishes to file a complaint, the official shall provide the basis of the noncompliance with this section by the local educational agency to the State educational agency, and the local educational agency shall forward the appropriate documentation to the State educational agency. (C) State educational agencies A State educational agency shall provide services under this section directly or through contracts with public or private agencies, organizations, and institutions, if— (i) the appropriate private school officials or their representatives have— (I) requested that the State educational agency provide such services directly; and (II) demonstrated that the local educational agency involved has not met the requirements of this section; or (ii) in a case in which— (I) a local educational agency has more than 10,000 children from low-income families who attend private elementary schools or secondary schools in a participating school attendance area of the agency that are not being served by the agency’s program under this section; or (II) 90 percent of the eligible private school students in a participating school attendance area of the agency are not being served by the agency’s program under this section. (c) Allocation for equitable service to private school students (1) Calculation A local educational agency shall have the final authority, consistent with this section, to calculate the number of children, ages 5 through 17, who are from low-income families and attend private schools by— (A) using the same measure of low income used to count public school children; (B) using the results of a survey that, to the extent possible, protects the identity of families of private school students, and allowing such survey results to be extrapolated if complete actual data are unavailable; (C) applying the low-income percentage of each participating public school attendance area, determined pursuant to this section, to the number of private school children who reside in that school attendance area; or (D) using an equated measure of low income correlated with the measure of low income used to count public school children. (2) Complaint process Any dispute regarding low-income data for private school students shall be subject to the complaint process authorized in section 5503. (d) Public control of funds (1) In general The control of funds provided under this subpart, and title to materials, equipment, and property purchased with such funds, shall be in a public agency, and a public agency shall administer such funds, materials, equipment, and property. (2) Provision of services (A) Provider The provision of services under this section shall be provided— (i) by employees of a public agency; or (ii) through a contract by such public agency with an individual, association, agency, or organization. (B) Requirement In the provision of such services, such employee, individual, association, agency, or organization shall be independent of such private school and of any religious organization, and such employment or contract shall be under the control and supervision of such public agency. (e) Standards for a bypass If a local educational agency is prohibited by law from providing for the participation in programs on an equitable basis of eligible children enrolled in private elementary schools and secondary schools, or if the Secretary determines that a local educational agency has substantially failed or is unwilling to provide for such participation, as required by this section, the Secretary shall— (1) waive the requirements of this section for such local educational agency; (2) arrange for the provision of services to such children through arrangements that shall be subject to the requirements of this section and sections 5503 and 5504; and (3) in making the determination under this subsection, consider one or more factors, including the quality, size, scope, and location of the program and the opportunity of eligible children to participate. . 121. Fiscal requirements Section 1120A (20 U.S.C. 6321) is amended— (1) by striking part each place it appears and inserting subpart ; and (2) by striking subsection (a) and redesignating subsections (b), (c), and (d) as subsections (a), (b), and (c), respectively. 122. Coordination requirements Section 1120B (20 U.S.C. 6322) is amended— (1) by striking part each place it appears and inserting subpart ; (2) in subsection (a), by striking such as the Early Reading First program ; and (3) in subsection (b)— (A) in the matter preceding paragraph (1), by striking , such as the Early Reading First program, ; (B) in paragraphs (1) through (3), by striking such as the Early Reading First program each place it appears; (C) in paragraph (4), by striking Early Reading First program staff, ; and (D) in paragraph (5), by striking and entities carrying out Early Reading First programs . 123. Grants for the outlying areas and the Secretary of the Interior Section 1121 ( 20 U.S.C. 6331 ) is amended— (1) in subsection (a), by striking appropriated for payments to States for any fiscal year under section 1002(a) and 1125A(f) and inserting reserved for this chapter under section 1122(a) ; (2) in subsection (b)— (A) in paragraph (2), by striking the No Child Left Behind Act of 2001 and inserting the Student Success Act ; and (B) in paragraph (3)— (i) in subparagraph (B), by striking basis, and all that follows through the period at the end and inserting basis. ; (ii) in subparagraph (C)(ii), by striking challenging State academic content standards and inserting State academic standards ; and (iii) by striking subparagraph (D); and (3) in subsection (d)(2), by striking part and inserting subpart . 124. Allocations to States Section 1122 (20 U.S.C. 6332) is amended— (1) by amending subsection (a) to read as follows: (a) Reservation (1) In general From the amounts appropriated under section 3(a)(1), the Secretary shall reserve 91.055 percent of such amounts to carry out this chapter. (2) Allocation formula Of the amount reserved under paragraph (1) for each of fiscal years 2014 to 2019 (referred to in this subsection as the current fiscal year)— (A) an amount equal to the amount made available to carry out section 1124 for fiscal year 2001 shall be used to carry out section 1124; (B) an amount equal to the amount made available to carry out section 1124A for fiscal year 2001 shall be used to carry out section 1124A; and (C) an amount equal to 100 percent of the amount, if any, by which the total amount made available to carry out this chapter for the fiscal year for which the determination is made exceeds the total amount available to carry out sections 1124 and 1124A for fiscal year 2001 shall be used to carry out section 1125 and 1125A and such amount shall be divided equally between section 1125 and section 1125A. ; (2) in subsection (b)(1), by striking subpart and inserting chapter ; (3) in subsection (c)(3), by striking part and inserting subpart ; and (4) in subsection (d)(1), by striking subpart and inserting chapter . 125. Basic grants to local educational agencies Section 1124 ( 20 U.S.C. 6333 ) is amended— (1) in subsection (a)— (A) in paragraph (3)— (i) in subparagraph (B), by striking subpart and inserting chapter ; and (ii) in subparagraph (C)(i), by striking subpart and inserting chapter ; and (B) in paragraph (4)(C), by striking subpart each place it appears and inserting chapter ; and (2) in subsection (c)— (A) in paragraph (1)(B), by striking subpart 1 of part D and inserting chapter A of subpart 3 ; and (B) in paragraph (2), by striking part and inserting subpart . 126. Adequacy of funding of targeted grants to local educational agencies in fiscal years after fiscal year 2001 Section 1125AA ( 20 U.S.C. 6336 ) is amended to read as follows: 1125AA. Adequacy of funding of targeted grants to local educational agencies in fiscal years after fiscal year 2001 Pursuant to section 1122, the total amount allocated in any fiscal year after fiscal year 2001 for programs and activities under this subpart shall not exceed the amount allocated in fiscal year 2001 for such programs and activities unless the amount available for targeted grants to local educational agencies under section 1125 in the applicable fiscal year meets the requirements of section 1122(a). . 127. Education finance incentive grant program Section 1125A ( 20 U.S.C. 6337 ) is amended— (1) by striking part each place it appears and inserting subpart ; (2) in subsection (b)(1)— (A) in subparagraph (A), by striking appropriated pursuant to subsection (f) and inserting made available for any fiscal year to carry out this section ; and (B) in subparagraph (B)(i), by striking total appropriations and inserting the total amount reserved under section 1122(a) to carry out this section ; and (3) by striking subsections (a), (e), and (f) and redesignating subsections (b), (c), (d), and (g) as subsections (a), (b), (c), and (d), respectively. 128. Carryover and waiver Section 1127 (20 U.S.C. 6339) is amended by striking subpart each place it appears and inserting chapter . C Additional Aid to States and School Districts 131. Additional aid (a) In general Title I (20 U.S.C. 6301 et seq.), as amended by the preceding provisions of this Act, is further amended— (1) by striking parts B through D and F through H; and (2) by inserting after subpart 1 of part A the following: 2 Education of Migratory Children 1131. Program purposes The purposes of this subpart are as follows: (1) To assist States in supporting high-quality and comprehensive educational programs and services during the school year, and as applicable, during summer or intercession periods, that address the unique educational needs of migratory children. (2) To ensure that migratory children who move among the States, not be penalized in any manner by disparities among the States in curriculum, graduation requirements, and State academic standards. (3) To help such children succeed in school, meet the State academic standards that all children are expected to meet, and graduate from high school prepared for postsecondary education and the workforce without the need for remediation. (4) To help such children overcome educational disruption, cultural and language barriers, social isolation, various health-related problems, and other factors that inhibit the ability of such children to succeed in school. (5) To help such children benefit from State and local systemic reforms. 1132. Program authorized (a) In General From the amounts appropriated under section 3(a)(1), the Secretary shall reserve 2.37 percent to carry out this subpart. (b) Grants awarded From the amounts reserved under subsection (a) and not reserved under section 1138(c), the Secretary shall make allotments for the fiscal year to State educational agencies, or consortia of such agencies, to establish or improve, directly or through local operating agencies, programs of education for migratory children in accordance with this subpart. 1133. State allocations (a) State allocations Except as provided in subsection (c), each State (other than the Commonwealth of Puerto Rico) is entitled to receive under this subpart an amount equal to the product of— (1) the sum of— (A) the average number of identified eligible full-time equivalent migratory children aged 3 through 21 residing in the State, based on data for the preceding 3 years; and (B) the number of identified eligible migratory children, aged 3 through 21, who received services under this subpart in summer or intersession programs provided by the State during the previous year; multiplied by (2) 40 percent of the average per-pupil expenditure in the State, except that the amount determined under this paragraph shall not be less than 32 percent, nor more than 48 percent, of the average per-pupil expenditure in the United States. (b) Hold harmless Notwithstanding subsection (a), for each of fiscal years 2014 through 2016, no State shall receive less than 90 percent of the State’s allocation under this section for the previous year. (c) Allocation to Puerto Rico For each fiscal year, the grant which the Commonwealth of Puerto Rico shall be eligible to receive under this subpart shall be the amount determined by multiplying the number of children who would be counted under subsection (a)(1) if such subsection applied to the Commonwealth of Puerto Rico by the product of— (1) the percentage that the average per-pupil expenditure in the Commonwealth of Puerto Rico is of the lowest average per-pupil expenditure of any of the 50 States, except that the percentage calculated under this subparagraph shall not be less than 85 percent; and (2) 32 percent of the average per-pupil expenditure in the United States. (d) Ratable reductions; reallocations (1) In general (A) Ratable Reductions If, after the Secretary reserves funds under section 1138(c), the amount appropriated to carry out this subpart for any fiscal year is insufficient to pay in full the amounts for which all States are eligible, the Secretary shall ratably reduce each such amount. (B) Reallocation If additional funds become available for making such payments for any fiscal year, the Secretary shall allocate such funds to States in amounts that the Secretary determines will best carry out the purpose of this subpart. (2) Special rule (A) Further reductions The Secretary shall further reduce the amount of any grant to a State under this subpart for any fiscal year if the Secretary determines, based on available information on the numbers and needs of migratory children in the State and the program proposed by the State to address such needs, that such amount exceeds the amount required under section 1134. (B) Reallocation The Secretary shall reallocate such excess funds to other States whose grants under this subpart would otherwise be insufficient to provide an appropriate level of services to migratory children, in such amounts as the Secretary determines are appropriate. (e) Consortium arrangements (1) In general In the case of a State that receives a grant of $1,000,000 or less under this section, the Secretary shall consult with the State educational agency to determine whether consortium arrangements with another State or other appropriate entity would result in delivery of services in a more effective and efficient manner. (2) Proposals Any State, regardless of the amount of such State’s allocation, may submit a consortium arrangement to the Secretary for approval. (3) Approval The Secretary shall approve a consortium arrangement under paragraph (1) or (2) if the proposal demonstrates that the arrangement will— (A) reduce administrative costs or program function costs for State programs; and (B) make more funds available for direct services to add substantially to the educational achievement of children to be served under this subpart. (f) Determining numbers of eligible children In order to determine the identified number of migratory children residing in each State for purposes of this section, the Secretary shall— (1) use the most recent information that most accurately reflects the actual number of migratory children; (2) develop and implement a procedure for monitoring the accuracy of such information; (3) develop and implement a procedure for more accurately reflecting cost factors for different types of summer and intersession program designs; (4) adjust the full-time equivalent number of migratory children who reside in each State to take into account— (A) the unique needs of those children participating in evidence-based or other effective special programs provided under this subpart that operate during the summer and intersession periods; and (B) the additional costs of operating such programs; and (5) conduct an analysis of the options for adjusting the formula so as to better direct services to migratory children, including the most at-risk migratory children. (g) Nonparticipating states In the case of a State desiring to receive an allocation under this subpart for a fiscal year that did not receive an allocation for the previous fiscal year or that has been participating for less than 3 consecutive years, the Secretary shall calculate the State’s number of identified migratory children aged 3 through 21 for purposes of subsection (a)(1)(A) by using the most recent data available that identifies the migratory children residing in the State until data is available to calculate the 3-year average number of such children in accordance with such subsection. 1134. State applications; services (a) Application required Any State desiring to receive a grant under this subpart for any fiscal year shall submit an application to the Secretary at such time and in such manner as the Secretary may require. (b) Program information Each such application shall include— (1) a description of how, in planning, implementing, and evaluating programs and projects assisted under this subpart, the State and its local operating agencies will ensure that the unique educational needs of migratory children, including preschool migratory children, are identified and addressed through— (A) the full range of services that are available for migratory children from appropriate local, State, and Federal educational programs; (B) joint planning among local, State, and Federal educational programs serving migratory children, including language instruction educational programs under chapter A of subpart 4; and (C) the integration of services available under this subpart with services provided by those other programs; (2) a description of the steps the State is taking to provide all migratory students with the opportunity to meet the same State academic standards that all children are expected to meet; (3) a description of how the State will use funds received under this subpart to promote interstate and intrastate coordination of services for migratory children, including how the State will provide for educational continuity through the timely transfer of pertinent school records, including information on health, when children move from one school to another, whether or not such a move occurs during the regular school year; (4) a description of the State’s priorities for the use of funds received under this subpart, and how such priorities relate to the State’s assessment of needs for services in the State; (5) a description of how the State will determine the amount of any subgrants the State will award to local operating agencies, taking into account the numbers and needs of migratory children, the requirements of subsection (d), and the availability of funds from other Federal, State, and local programs; and (6) a description of how the State will encourage programs and projects assisted under this subpart to offer family literacy services if the programs and projects serve a substantial number of migratory children whose parents do not have a regular high school diploma or its recognized equivalent or who have low levels of literacy. (c) Assurances Each such application shall also include assurances that— (1) funds received under this subpart will be used only— (A) for programs and projects, including the acquisition of equipment, in accordance with section 1136; and (B) to coordinate such programs and projects with similar programs and projects within the State and in other States, as well as with other Federal programs that can benefit migratory children and their families; (2) such programs and projects will be carried out in a manner consistent with the objectives of section 1114, subsections (b) and (d) of section 1115, subsections (b) and (c) of section 1120A, and part C; (3) in the planning and operation of programs and projects at both the State and local agency operating level, there is consultation with parents of migratory children for programs of not less than one school year in duration, and that all such programs and projects are carried out— (A) in a manner that provides for the same parental involvement as is required for programs and projects under section 1118, unless extraordinary circumstances make such provision impractical; and (B) in a format and language understandable to the parents; (4) in planning and carrying out such programs and projects, there has been, and will be, adequate provision for addressing the unmet education needs of preschool migratory children; (5) the effectiveness of such programs and projects will be determined, where feasible, using the same approaches and standards that will be used to assess the performance of students, schools, and local educational agencies under subpart 1; (6) to the extent feasible, such programs and projects will provide for— (A) advocacy and outreach activities for migratory children and their families, including informing such children and families of, or helping such children and families gain access to, other education, health, nutrition, and social services; (B) professional development programs, including mentoring, for teachers and other program personnel; (C) high-quality, evidence-based family literacy programs; (D) the integration of information technology into educational and related programs; and (E) programs to facilitate the transition of secondary school students to postsecondary education or employment without the need for remediation; and (7) the State will assist the Secretary in determining the number of migratory children under paragraph (1) of section 1133(a). (d) Priority for services In providing services with funds received under this subpart, each recipient of such funds shall give priority to migratory children who are failing, or most at risk of failing, to meet the State’s academic standards under section 1111 (b)(1) . (e) Continuation of services Notwithstanding any other provision of this subpart— (1) a child who ceases to be a migratory child during a school term shall be eligible for services until the end of such term; (2) a child who is no longer a migratory child may continue to receive services for one additional school year, but only if comparable services are not available through other programs; and (3) secondary school students who were eligible for services in secondary school may continue to be served through credit accrual programs until graduation. 1135. Secretarial approval; peer review The Secretary shall approve each State application that meets the requirements of this subpart, and may review any such application using a peer review process. 1136. Comprehensive needs assessment and service-delivery plan; authorized activities (a) Comprehensive plan (1) In general Each State that receives assistance under this subpart shall ensure that the State and its local operating agencies identify and address the unique educational needs of migratory children in accordance with a comprehensive State plan that— (A) is integrated with other programs under this Act or other Acts, as appropriate; (B) may be submitted as a part of a consolidated application under section 5302, if— (i) the unique needs of migratory children are specifically addressed in the comprehensive State plan; (ii) the comprehensive State plan is developed in collaboration with parents of migratory children; and (iii) the comprehensive State plan is not used to supplant State efforts regarding, or administrative funding for, this subpart; (C) provides that migratory children will have an opportunity to meet the same State academic standards under section 1111(b)(1) that all children are expected to meet; (D) specifies measurable program goals and outcomes; (E) encompasses the full range of services that are available for migratory children from appropriate local, State, and Federal educational programs; (F) is the product of joint planning among such local, State, and Federal programs, including programs under subpart 1, early childhood programs, and language instruction educational programs under chapter A of subpart 4; and (G) provides for the integration of services available under this subpart with services provided by such other programs. (2) Duration of the plan Each such comprehensive State plan shall— (A) remain in effect for the duration of the State’s participation under this subpart; and (B) be periodically reviewed and revised by the State, as necessary, to reflect changes in the State’s strategies and programs under this subpart. (b) Authorized activities (1) Flexibility In implementing the comprehensive plan described in subsection (a), each State educational agency, where applicable through its local educational agencies, shall have the flexibility to determine the activities to be provided with funds made available under this subpart, except that such funds first shall be used to meet the identified needs of migratory children that result from their migratory lifestyle, and to permit these children to participate effectively in school. (2) Unaddressed needs Funds provided under this subpart shall be used to address the needs of migratory children that are not addressed by services available from other Federal or non-Federal programs, except that migratory children who are eligible to receive services under subpart 1 may receive those services through funds provided under that subpart, or through funds under this subpart that remain after the agency addresses the needs described in paragraph (1). (3) Construction Nothing in this subpart shall be construed to prohibit a local educational agency from serving migratory children simultaneously with students with similar educational needs in the same educational settings, where appropriate. 1137. Bypass The Secretary may use all or part of any State’s allocation under this subpart to make arrangements with any public or private agency to carry out the purpose of this subpart in such State if the Secretary determines that— (1) the State is unable or unwilling to conduct educational programs for migratory children; (2) such arrangements would result in more efficient and economic administration of such programs; or (3) such arrangements would add substantially to the educational achievement of such children. 1138. Coordination of migratory education activities (a) Improvement of coordination (1) In general The Secretary, in consultation with the States, may make grants to, or enter into contracts with, State educational agencies, local educational agencies, institutions of higher education, and other public and private entities to improve the interstate and intrastate coordination among such agencies’ educational programs, including through the establishment or improvement of programs for credit accrual and exchange, available to migratory students. (2) Duration Grants or contracts under this subsection may be awarded for not more than 5 years. (b) Student records (1) Assistance The Secretary shall assist States in developing and maintaining an effective system for the electronic transfer of student records and in determining the number of migratory children in each State. (2) Information system (A) In general The Secretary, in consultation with the States, shall ensure the linkage of migratory student record systems for the purpose of electronically exchanging, among the States, health and educational information regarding all migratory students. The Secretary shall ensure such linkage occurs in a cost-effective manner, utilizing systems used by the States prior to, or developed after, the date of enactment of this Act. The Secretary shall determine the minimum data elements that each State receiving funds under this subpart shall collect and maintain. Such minimum data elements may include— (i) immunization records and other health information; (ii) elementary and secondary academic history (including partial credit), credit accrual, and results from State assessments required under section 1111(b)(2); (iii) other academic information essential to ensuring that migratory children achieve to the States’s academic standards; and (iv) eligibility for services under the Individuals with Disabilities Education Act. (B) The Secretary shall consult with States before updating the data elements that each State receiving funds under this subpart shall be required to collect for purposes of electronic transfer of migratory student information and the requirements that States shall meet for immediate electronic access to such information. (3) No cost for certain transfers A State educational agency or local educational agency receiving assistance under this subpart shall make student records available to another State educational agency or local educational agency that requests the records at no cost to the requesting agency, if the request is made in order to meet the needs of a migratory child. (4) Report to congress (A) In general Not later than April 30, 2014, the Secretary shall report to the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and the Workforce of the House of Representatives the Secretary’s findings and recommendations regarding the maintenance and transfer of health and educational information for migratory students by the States. (B) Required contents The Secretary shall include in such report— (i) a review of the progress of States in developing and linking electronic records transfer systems; (ii) recommendations for maintaining such systems; and (iii) recommendations for improving the continuity of services provided for migratory students. (c) Availability of funds The Secretary shall reserve not more than $10,000,000 of the amount reserved under section 1132 to carry out this section for each fiscal year. (d) Data collection The Secretary shall direct the National Center for Education Statistics to collect data on migratory children. 1139. Definitions As used in this subpart: (1) Local operating agency The term local operating agency means— (A) a local educational agency to which a State educational agency makes a subgrant under this subpart; (B) a public or private agency with which a State educational agency or the Secretary makes an arrangement to carry out a project under this subpart; or (C) a State educational agency, if the State educational agency operates the State’s migratory education program or projects directly. (2) Migratory child The term migratory child means a child who is, or whose parent or spouse is, a migratory agricultural worker, including a migratory dairy worker, or a migratory fisher, and who, in the preceding 36 months, in order to obtain, or accompany such parent or spouse, in order to obtain, temporary or seasonal employment in agricultural or fishing work— (A) has moved from one school district to another; (B) in a State that is comprised of a single school district, has moved from one administrative area to another within such district; or (C) resides in a school district of more than 15,000 square miles, and migrates a distance of 20 miles or more to a temporary residence to engage in a fishing activity. 3 Prevention and Intervention Programs for Children and Youth Who Are Neglected, Delinquent, or At-Risk 1141. Purpose and program authorization (a) Purpose It is the purpose of this subpart— (1) to improve educational services for children and youth in local and State institutions for neglected or delinquent children and youth so that such children and youth have the opportunity to meet the same State academic standards that all children in the State are expected to meet; (2) to provide such children and youth with the services needed to make a successful transition from institutionalization to further schooling or employment; and (3) to prevent at-risk youth from dropping out of school, and to provide dropouts, and children and youth returning from correctional facilities or institutions for neglected or delinquent children and youth, with a support system to ensure their continued education. (b) Program authorized From amounts appropriated under section 3(a)(1), the Secretary shall reserve 0.305 of one percent to carry out this subpart. (c) Grants awarded From the amounts reserved under subsection (b) and not reserved under section 1004 and section 1159, the Secretary shall make grants to State educational agencies that have plans submitted under section 1154 approved to enable such agencies to award subgrants to State agencies and local educational agencies to establish or improve programs of education for neglected, delinquent, or at-risk children and youth. 1142. Payments for programs under this subpart (a) Agency subgrants Based on the allocation amount computed under section 1152, the Secretary shall allocate to each State educational agency an amount necessary to make subgrants to State agencies under chapter A. (b) Local subgrants Each State shall retain, for the purpose of carrying out chapter B, funds generated throughout the State under subpart 1 of this part based on children and youth residing in local correctional facilities, or attending community day programs for delinquent children and youth. A State Agency Programs 1151. Eligibility A State agency is eligible for assistance under this chapter if such State agency is responsible for providing free public education for children and youth— (1) in institutions for neglected or delinquent children and youth; (2) attending community day programs for neglected or delinquent children and youth; or (3) in adult correctional institutions. 1152. Allocation of funds (a) Subgrants to state agencies (1) In general Each State agency described in section 1151 (other than an agency in the Commonwealth of Puerto Rico) is eligible to receive a subgrant under this chapter, for each fiscal year, in an amount equal to the product of— (A) the number of neglected or delinquent children and youth described in section 1151 who— (i) are enrolled for at least 15 hours per week in education programs in adult correctional institutions; and (ii) are enrolled for at least 20 hours per week— (I) in education programs in institutions for neglected or delinquent children and youth; or (II) in community day programs for neglected or delinquent children and youth; and (B) 40 percent of the average per-pupil expenditure in the State, except that the amount determined under this subparagraph shall not be less than 32 percent, nor more than 48 percent, of the average per-pupil expenditure in the United States. (2) Special rule The number of neglected or delinquent children and youth determined under paragraph (1) shall— (A) be determined by the State agency by a deadline set by the Secretary, except that no State agency shall be required to determine the number of such children and youth on a specific date set by the Secretary; and (B) be adjusted, as the Secretary determines is appropriate, to reflect the relative length of such agency’s annual programs. (b) Subgrants to state agencies in Puerto Rico (1) In general For each fiscal year, the amount of the subgrant which a State agency in the Commonwealth of Puerto Rico shall be eligible to receive under this chapter shall be the amount determined by multiplying the number of children counted under subsection (a)(1)(A) for the Commonwealth of Puerto Rico by the product of— (A) the percentage which the average per-pupil expenditure in the Commonwealth of Puerto Rico is of the lowest average per-pupil expenditure of any of the 50 States; and (B) 32 percent of the average per-pupil expenditure in the United States. (2) Minimum percentage The percentage in paragraph (1)(A) shall not be less than 85 percent. (c) Ratable reductions in case of insufficient Appropriations If the amount reserved for any fiscal year for subgrants under subsections (a) and (b) is insufficient to pay the full amount for which all State agencies are eligible under such subsections, the Secretary shall ratably reduce each such amount. 1153. State reallocation of funds If a State educational agency determines that a State agency does not need the full amount of the subgrant for which such State agency is eligible under this chapter for any fiscal year, the State educational agency may reallocate the amount that will not be needed to other eligible State agencies that need additional funds to carry out the purpose of this chapter, in such amounts as the State educational agency shall determine. 1154. State plan and State agency applications (a) State plan (1) In general Each State educational agency that desires to receive a grant under this chapter shall submit, for approval by the Secretary, a plan— (A) for meeting the educational needs of neglected, delinquent, and at-risk children and youth; (B) for assisting in the transition of children and youth from correctional facilities to locally operated programs; and (C) that is integrated with other programs under this Act or other Acts, as appropriate. (2) Contents Each such State plan shall— (A) describe how the State will assess the effectiveness of the program in improving the academic, career, and technical skills of children in the program; (B) provide that, to the extent feasible, such children will have the same opportunities to achieve as such children would have if such children were in the schools of local educational agencies in the State; (C) describe how the State will place a priority for such children to obtain a regular high school diploma, to the extent feasible; and (D) contain an assurance that the State educational agency will— (i) ensure that programs assisted under this chapter will be carried out in accordance with the State plan described in this subsection; (ii) carry out the evaluation requirements of section 1171; and (iii) ensure that the State agencies receiving subgrants under this chapter comply with all applicable statutory and regulatory requirements. (3) Duration of the plan Each such State plan shall— (A) remain in effect for the duration of the State’s participation under this chapter; and (B) be periodically reviewed and revised by the State, as necessary, to reflect changes in the State’s strategies and programs under this chapter. (b) Secretarial approval and peer review (1) Secretarial approval The Secretary shall approve each State plan that meets the requirements of this chapter. (2) Peer review The Secretary may review any State plan with the assistance and advice of individuals with relevant expertise. (c) State agency applications Any State agency that desires to receive funds to carry out a program under this chapter shall submit an application to the State educational agency that— (1) describes the procedures to be used, consistent with the State plan under section 1111, to assess the educational needs of the children to be served under this chapter; (2) provide an assurance that in making services available to children and youth in adult correctional institutions, priority will be given to such children and youth who are likely to complete incarceration within a 2-year period; (3) describes the program, including a budget for the first year of the program, with annual updates to be provided to the State educational agency; (4) describes how the program will meet the goals and objectives of the State plan; (5) describes how the State agency will consult with experts and provide the necessary training for appropriate staff, to ensure that the planning and operation of institution-wide projects under section 1156 are of high quality; (6) describes how the programs will be coordinated with other appropriate State and Federal programs, such as programs under title I of Public Law 105–220 , career and technical education programs, State and local dropout prevention programs, and special education programs; (7) describes how the State agency will encourage correctional facilities receiving funds under this chapter to coordinate with local educational agencies or alternative education programs attended by incarcerated children and youth prior to and after their incarceration to ensure that student assessments and appropriate academic records are shared jointly between the correctional facility and the local educational agency or alternative education program; (8) describes how appropriate professional development will be provided to teachers and other staff; (9) designates an individual in each affected correctional facility or institution for neglected or delinquent children and youth to be responsible for issues relating to the transition of such children and youth from such facility or institution to locally operated programs; (10) describes how the State agency will endeavor to coordinate with businesses for training and mentoring for participating children and youth; (11) provides an assurance that the State agency will assist in locating alternative programs through which students can continue their education if the students are not returning to school after leaving the correctional facility or institution for neglected or delinquent children and youth; (12) provides assurances that the State agency will work with parents to secure parents’ assistance in improving the educational achievement of their children and youth, and preventing their children’s and youth’s further involvement in delinquent activities; (13) provides an assurance that the State agency will work with children and youth with disabilities in order to meet an existing individualized education program and an assurance that the agency will notify the child’s or youth’s local school if the child or youth— (A) is identified as in need of special education services while the child or youth is in the correctional facility or institution for neglected or delinquent children and youth; and (B) intends to return to the local school; (14) provides an assurance that the State agency will work with children and youth who dropped out of school before entering the correctional facility or institution for neglected or delinquent children and youth to encourage the children and youth to reenter school and obtain a regular high school diploma once the term of the incarceration is completed, or provide the child or youth with the skills necessary to gain employment, continue the education of the child or youth, or obtain a regular high school diploma or its recognized equivalent if the child or youth does not intend to return to school; (15) provides an assurance that effective teachers and other qualified staff are trained to work with children and youth with disabilities and other students with special needs taking into consideration the unique needs of such students; (16) describes any additional services to be provided to children and youth, such as career counseling, distance education, and assistance in securing student loans and grants; and (17) provides an assurance that the program under this chapter will be coordinated with any programs operated under the Juvenile Justice and Delinquency Prevention Act of 1974 ( 42 U.S.C. 5601 et seq. ) or other comparable programs, if applicable. 1155. Use of funds (a) Uses (1) In general A State agency shall use funds received under this chapter only for programs and projects that— (A) are consistent with the State plan under section 1154(a); and (B) concentrate on providing participants with the knowledge and skills needed to make a successful transition to secondary school completion, career and technical education, further education, or employment without the need for remediation. (2) Programs and projects Such programs and projects— (A) may include the acquisition of equipment; (B) shall be designed to support educational services that— (i) except for institution-wide projects under section 1156, are provided to children and youth identified by the State agency as failing, or most at-risk of failing, to meet the State’s academic standards; (ii) supplement and improve the quality of the educational services provided to such children and youth by the State agency; and (iii) afford such children and youth an opportunity to meet State academic standards; and (C) shall be carried out in a manner consistent with section 1120A and part C (as applied to programs and projects under this chapter). (b) Supplement, not supplant A program under this chapter that supplements the number of hours of instruction students receive from State and local sources shall be considered to comply with the supplement, not supplant the requirement of section 1120A (as applied to this chapter) without regard to the subject areas in which instruction is given during those hours. 1156. Institution-wide projects A State agency that provides free public education for children and youth in an institution for neglected or delinquent children and youth (other than an adult correctional institution) or attending a community day program for such children and youth may use funds received under this chapter to serve all children in, and upgrade the entire educational effort of, that institution or program if the State agency has developed, and the State educational agency has approved, a comprehensive plan for that institution or program that— (1) provides for a comprehensive assessment of the educational needs of all children and youth in the institution or program serving juveniles; (2) provides for a comprehensive assessment of the educational needs of youth aged 20 and younger in adult facilities who are expected to complete incarceration within a 2-year period; (3) describes the steps the State agency has taken, or will take, to provide all children and youth under age 21 with the opportunity to meet State academic standards in order to improve the likelihood that the children and youth will complete secondary school, obtain a regular high school diploma or its recognized equivalent, or find employment after leaving the institution; (4) describes the instructional program, specialized instructional support services, and procedures that will be used to meet the needs described in paragraph (1), including, to the extent feasible, the provision of mentors for the children and youth described in paragraph (1); (5) specifically describes how such funds will be used; (6) describes the measures and procedures that will be used to assess and improve student achievement; (7) describes how the agency has planned, and will implement and evaluate, the institution-wide or program-wide project in consultation with personnel providing direct instructional services and support services in institutions or community day programs for neglected or delinquent children and youth, and with personnel from the State educational agency; and (8) includes an assurance that the State agency has provided for appropriate training for teachers and other instructional and administrative personnel to enable such teachers and personnel to carry out the project effectively. 1157. Three-year programs or projects If a State agency operates a program or project under this chapter in which individual children or youth are likely to participate for more than one year, the State educational agency may approve the State agency’s application for a subgrant under this chapter for a period of not more than 3 years. 1158. Transition services (a) Transition services Each State agency shall reserve not less than 15 percent and not more than 30 percent of the amount such agency receives under this chapter for any fiscal year to support— (1) projects that facilitate the transition of children and youth from State-operated institutions to schools served by local educational agencies; or (2) the successful re-entry of youth offenders, who are age 20 or younger and have received a regular high school diploma or its recognized equivalent, into postsecondary education, or career and technical training programs, through strategies designed to expose the youth to, and prepare the youth for, postsecondary education, or career and technical training programs, such as— (A) preplacement programs that allow adjudicated or incarcerated youth to audit or attend courses on college, university, or community college campuses, or through programs provided in institutional settings; (B) worksite schools, in which institutions of higher education and private or public employers partner to create programs to help students make a successful transition to postsecondary education and employment; and (C) essential support services to ensure the success of the youth, such as— (i) personal, career and technical, and academic counseling; (ii) placement services designed to place the youth in a university, college, or junior college program; (iii) information concerning, and assistance in obtaining, available student financial aid; (iv) counseling services; and (v) job placement services. (b) Conduct of projects A project supported under this section may be conducted directly by the State agency, or through a contract or other arrangement with one or more local educational agencies, other public agencies, or private organizations. (c) Rule of construction Nothing in this section shall be construed to prohibit a school that receives funds under subsection (a) from serving neglected and delinquent children and youth simultaneously with students with similar educational needs, in the same educational settings where appropriate. 1159. Technical assistance The Secretary shall reserve not more than 1 percent of the amount reserved under section 1141 to provide technical assistance to and support State agency programs assisted under this chapter. B Local Agency Programs 1161. Purpose The purpose of this chapter is to support the operation of local educational agency programs that involve collaboration with locally operated correctional facilities— (1) to carry out high quality education programs to prepare children and youth for secondary school completion, training, employment, or further education; (2) to provide activities to facilitate the transition of such children and youth from the correctional program to further education or employment; and (3) to operate programs in local schools for children and youth returning from correctional facilities, and programs which may serve at-risk children and youth. 1162. Programs operated by local educational agencies (a) Local subgrants With funds made available under section 1142(b), the State educational agency shall award subgrants to local educational agencies with high numbers or percentages of children and youth residing in locally operated (including county operated) correctional facilities for children and youth (including facilities involved in community day programs). (b) Special rule A local educational agency that serves a school operated by a correctional facility is not required to operate a program of support for children and youth returning from such school to a school that is not operated by a correctional agency but served by such local educational agency, if more than 30 percent of the children and youth attending the school operated by the correctional facility will reside outside the boundaries served by the local educational agency after leaving such facility. (c) Notification A State educational agency shall notify local educational agencies within the State of the eligibility of such agencies to receive a subgrant under this chapter. (d) Transitional and academic services Transitional and supportive programs operated in local educational agencies under this chapter shall be designed primarily to meet the transitional and academic needs of students returning to local educational agencies or alternative education programs from correctional facilities. Services to students at-risk of dropping out of school shall not have a negative impact on meeting the transitional and academic needs of the students returning from correctional facilities. 1163. Local educational agency applications Each local educational agency desiring assistance under this chapter shall submit an application to the State educational agency that contains such information as the State educational agency may require. Each such application shall include— (1) a description of the program to be assisted; (2) a description of formal agreements, regarding the program to be assisted, between— (A) the local educational agency; and (B) correctional facilities and alternative school programs serving children and youth involved with the juvenile justice system; (3) as appropriate, a description of how participating schools will coordinate with facilities working with delinquent children and youth to ensure that such children and youth are participating in an education program comparable to one operating in the local school such youth would attend; (4) a description of the program operated by participating schools for children and youth returning from correctional facilities and, as appropriate, the types of services that such schools will provide such children and youth and other at-risk children and youth; (5) a description of the characteristics (including learning difficulties, substance abuse problems, and other needs) of the children and youth who will be returning from correctional facilities and, as appropriate, other at-risk children and youth expected to be served by the program, and a description of how the school will coordinate existing educational programs to meet the unique educational needs of such children and youth; (6) as appropriate, a description of how schools will coordinate with existing social, health, and other services to meet the needs of students returning from correctional facilities and at-risk children or youth, including prenatal health care and nutrition services related to the health of the parent and the child or youth, parenting and child development classes, child care, targeted reentry and outreach programs, referrals to community resources, and scheduling flexibility; (7) as appropriate, a description of any partnerships with local businesses to develop training, curriculum-based youth entrepreneurship education, and mentoring services for participating students; (8) as appropriate, a description of how the program will involve parents in efforts to improve the educational achievement of their children, assist in dropout prevention activities, and prevent the involvement of their children in delinquent activities; (9) a description of how the program under this chapter will be coordinated with other Federal, State, and local programs, such as programs under title I of Public Law 105–220 and career and technical education programs serving at-risk children and youth; (10) a description of how the program will be coordinated with programs operated under the Juvenile Justice and Delinquency Prevention Act of 1974 and other comparable programs, if applicable; (11) as appropriate, a description of how schools will work with probation officers to assist in meeting the needs of children and youth returning from correctional facilities; (12) a description of the efforts participating schools will make to ensure correctional facilities working with children and youth are aware of a child’s or youth’s existing individualized education program; and (13) as appropriate, a description of the steps participating schools will take to find alternative placements for children and youth interested in continuing their education but unable to participate in a traditional public school program. 1164. Uses of funds Funds provided to local educational agencies under this chapter may be used, as appropriate, for— (1) programs that serve children and youth returning to local schools from correctional facilities, to assist in the transition of such children and youth to the school environment and help them remain in school in order to complete their education; (2) dropout prevention programs which serve at-risk children and youth; (3) the coordination of health and social services for such individuals if there is a likelihood that the provision of such services, including day care, drug and alcohol counseling, and mental health services, will improve the likelihood such individuals will complete their education; (4) special programs to meet the unique academic needs of participating children and youth, including career and technical education, special education, career counseling, curriculum-based youth entrepreneurship education, and assistance in securing student loans or grants for postsecondary education; and (5) programs providing mentoring and peer mediation. 1165. Program requirements for correctional facilities receiving funds under this section Each correctional facility entering into an agreement with a local educational agency under section 1163(2) to provide services to children and youth under this chapter shall— (1) where feasible, ensure that educational programs in the correctional facility are coordinated with the student’s home school, particularly with respect to a student with an individualized education program under part B of the Individuals with Disabilities Education Act; (2) if the child or youth is identified as in need of special education services while in the correctional facility, notify the local school of the child or youth of such need; (3) where feasible, provide transition assistance to help the child or youth stay in school, including coordination of services for the family, counseling, assistance in accessing drug and alcohol abuse prevention programs, tutoring, and family counseling; (4) provide support programs that encourage children and youth who have dropped out of school to re-enter school and obtain a regular high school diploma once their term at the correctional facility has been completed, or provide such children and youth with the skills necessary to gain employment or seek a regular high school diploma or its recognized equivalent; (5) work to ensure that the correctional facility is staffed with effective teachers and other qualified staff who are trained to work with children and youth with disabilities taking into consideration the unique needs of such children and youth; (6) ensure that educational programs in the correctional facility are related to assisting students to meet the States’s academic standards; (7) to the extent possible, use technology to assist in coordinating educational programs between the correctional facility and the community school; (8) where feasible, involve parents in efforts to improve the educational achievement of their children and prevent the further involvement of such children in delinquent activities; (9) coordinate funds received under this chapter with other local, State, and Federal funds available to provide services to participating children and youth, such as funds made available under title I of Public Law 105–220 , and career and technical education funds; (10) coordinate programs operated under this chapter with activities funded under the Juvenile Justice and Delinquency Prevention Act of 1974 and other comparable programs, if applicable; (11) if appropriate, work with local businesses to develop training, curriculum-based youth entrepreneurship education, and mentoring programs for children and youth; and (12) consult with the local educational agency for a period jointly determined necessary by the correctional facility and local educational agency upon discharge from that facility to coordinate educational services so as to minimize disruption to the child’s or youth’s achievement. 1166. Accountability The State educational agency— (1) may require correctional facilities or institutions for neglected or delinquent children and youth to demonstrate, after receiving assistance under this chapter for 3 years, that there has been an increase in the number of children and youth returning to school, obtaining a regular high school diploma or its recognized equivalent, or obtaining employment after such children and youth are released; and (2) may reduce or terminate funding for projects under this chapter if a local educational agency does not show progress in the number of children and youth obtaining a regular high school diploma or its recognized equivalent. C General Provisions 1171. Program evaluations (a) Scope of evaluation Each State agency or local educational agency that conducts a program under chapters A or B shall evaluate the program, disaggregating data on participation by gender, race, ethnicity, and age, not less than once every 3 years, to determine the program’s impact on the ability of participants— (1) to maintain and improve educational achievement; (2) to accrue school credits that meet State requirements for grade promotion and high school graduation; (3) to make the transition to a regular program or other education program operated by a local educational agency; (4) to complete high school (or high school equivalency requirements) and obtain employment after leaving the correctional facility or institution for neglected or delinquent children and youth; and (5) as appropriate, to participate in postsecondary education and job training programs. (b) Exception The disaggregation required under subsection (a) shall not be required in a case in which the number of students in a category is insufficient to yield statistically reliable information or the results would reveal personally identifiable information about an individual student. (c) Evaluation measures In conducting each evaluation under subsection (a), a State agency or local educational agency shall use multiple and appropriate measures of student progress. (d) Evaluation results Each State agency and local educational agency shall— (1) submit evaluation results to the State educational agency and the Secretary; and (2) use the results of evaluations under this section to plan and improve subsequent programs for participating children and youth. 1172. Definitions In this subpart: (1) Adult correctional institution The term adult correctional institution means a facility in which persons (including persons under 21 years of age) are confined as a result of a conviction for a criminal offense. (2) At-risk The term at-risk , when used with respect to a child, youth, or student, means a school-aged individual who— (A) is at-risk of academic failure; and (B) has a drug or alcohol problem, is pregnant or is a parent, has come into contact with the juvenile justice system in the past, is at least 1 year behind the expected grade level for the age of the individual, is an English learner, is a gang member, has dropped out of school in the past, or has a high absenteeism rate at school. (3) Community day program The term community day program means a regular program of instruction provided by a State agency at a community day school operated specifically for neglected or delinquent children and youth. (4) Institution for neglected or delinquent children and youth The term institution for neglected or delinquent children and youth means— (A) a public or private residential facility, other than a foster home, that is operated for the care of children who have been committed to the institution or voluntarily placed in the institution under applicable State law, due to abandonment, neglect, or death of their parents or guardians; or (B) a public or private residential facility for the care of children who have been adjudicated to be delinquent or in need of supervision. 4 English Language Acquisition, Language Enhancement, and Academic Achievement 1181. Purposes The purposes of this subpart are— (1) to help ensure that English learners, including immigrant children and youth, attain English proficiency and develop high levels of academic achievement in English; (2) to assist all English learners, including immigrant children and youth, to achieve at high levels in the core academic subjects so that those children can meet the same State academic standards that all children are expected to meet, consistent with section 1111(b)(1); (3) to assist State educational agencies, local educational agencies, and schools in establishing, implementing, and sustaining high-quality, flexible, evidence-based language instruction educational programs designed to assist in teaching English learners, including immigrant children and youth; (4) to assist State educational agencies and local educational agencies to develop and enhance their capacity to provide high-quality, evidence-based instructional programs designed to prepare English learners, including immigrant children and youth, to enter all-English instruction settings; and (5) to promote parental and community participation in language instruction educational programs for the parents and communities of English learners. A Grants and Subgrants for English Language Acquisition and Language Enhancement 1191. Formula grants to States (a) In general In the case of each State educational agency having a plan approved by the Secretary for a fiscal year under section 1192, the Secretary shall reserve 4.4 percent of funds appropriated under section 3(a)(1) to make a grant for the year to the agency for the purposes specified in subsection (b). The grant shall consist of the allotment determined for the State educational agency under subsection (c). (b) Use of funds (1) Subgrants to eligible entities The Secretary may make a grant under subsection (a) only if the State educational agency involved agrees to expend at least 95 percent of the State educational agency’s allotment under subsection (c) for a fiscal year— (A) to award subgrants, from allocations under section 1193, to eligible entities to carry out the activities described in section 1194 (other than subsection (e)); and (B) to award subgrants under section 1193(d)(1) to eligible entities that are described in that section to carry out the activities described in section 1194(e). (2) State activities Subject to paragraph (3), each State educational agency receiving a grant under subsection (a) may reserve not more than 5 percent of the agency’s allotment under subsection (c) to carry out the following activities: (A) Professional development activities, and other activities, which may include assisting personnel in— (i) meeting State and local certification and licensing requirements for teaching English learners; and (ii) improving teacher skills in meeting the diverse needs of English learners, including in how to implement evidence-based programs and curricula on teaching English learners. (B) Planning, evaluation, administration, and interagency coordination related to the subgrants referred to in paragraph (1). (C) Providing technical assistance and other forms of assistance to eligible entities that are receiving subgrants from a State educational agency under this chapter, including assistance in— (i) identifying and implementing evidence-based language instruction educational programs and curricula for teaching English learners; (ii) helping English learners meet the same State academic standards that all children are expected to meet; (iii) identifying or developing, and implementing, measures of English proficiency; and (iv) strengthening and increasing parent, family, and community engagement. (D) Providing recognition, which may include providing financial awards, to subgrantees that have significantly improved the achievement and progress of English learners in— (i) reaching English language proficiency, based on the State’s English language proficiency assessment under section 1111(b)(2)(D); and (ii) meeting the State academic standards under section 1111(b)(1). (3) Administrative expenses From the amount reserved under paragraph (2), a State educational agency may use not more than 40 percent of such amount or $175,000, whichever is greater, for the planning and administrative costs of carrying out paragraphs (1) and (2). (c) Reservations and allotments (1) Reservations From the amount reserved under section 1191(a) for each fiscal year, the Secretary shall reserve— (A) 0.5 percent of such amount for payments to outlying areas, to be allotted in accordance with their respective needs for assistance under this chapter, as determined by the Secretary, for activities, approved by the Secretary, consistent with this chapter; and (B) 6.5 percent of such amount for national activities under sections 1211 and 1222, except that not more than $2,000,000 of such amount may be reserved for the National Clearinghouse for English Language Acquisition and Language Instruction Educational Programs described in section 1222. (2) State allotments (A) In general Except as provided in subparagraph (B), from the amount reserved under section 1191(a) for each fiscal year that remains after making the reservations under paragraph (1), the Secretary shall allot to each State educational agency having a plan approved under section 1192(c)— (i) an amount that bears the same relationship to 80 percent of the remainder as the number of English learners in the State bears to the number of such children in all States, as determined by data available from the American Community Survey conducted by the Department of Commerce or State-reported data; and (ii) an amount that bears the same relationship to 20 percent of the remainder as the number of immigrant children and youth in the State bears to the number of such children and youth in all States, as determined based only on data available from the American Community Survey conducted by the Department of Commerce. (B) Minimum allotments No State educational agency shall receive an allotment under this paragraph that is less than $500,000. (C) Reallotment If any State educational agency described in subparagraph (A) does not submit a plan to the Secretary for a fiscal year, or submits a plan (or any amendment to a plan) that the Secretary, after reasonable notice and opportunity for a hearing, determines does not satisfy the requirements of this chapter, the Secretary shall reallot any portion of such allotment to the remaining State educational agencies in accordance with subparagraph (A). (D) Special rule for Puerto Rico The total amount allotted to Puerto Rico for any fiscal year under subparagraph (A) shall not exceed 0.5 percent of the total amount allotted to all States for that fiscal year. (3) Use of data for determinations In making State allotments under paragraph (2) for each fiscal year, the Secretary shall determine the number of English learners in a State and in all States, using the most accurate, up-to-date data, which shall be— (A) data from the American Community Survey conducted by the Department of Commerce, which may be multiyear estimates; (B) the number of students being assessed for English language proficiency, based on the State’s English language proficiency assessment under section 1111(b)(2)(D), which may be multiyear estimates; or (C) a combination of data available under subparagraphs (A) and (B). 1192. State educational agency plans (a) Plan required Each State educational agency desiring a grant under this chapter shall submit a plan to the Secretary at such time and in such manner as the Secretary may require. (b) Contents Each plan submitted under subsection (a) shall— (1) describe the process that the agency will use in awarding subgrants to eligible entities under section 1193(d)(1); (2) provide an assurance that— (A) the agency will ensure that eligible entities receiving a subgrant under this chapter comply with the requirement in section 1111(b)(2)(B)(x) to annually assess in English learners who have been in the United States for 3 or more consecutive years; (B) the agency will ensure that eligible entities receiving a subgrant under this chapter annually assess the English proficiency of all English learners participating in a program funded under this chapter, consistent with section 1111(b)(2)(D); (C) in awarding subgrants under section 1193, the agency will address the needs of school systems of all sizes and in all geographic areas, including school systems with rural and urban schools; (D) subgrants to eligible entities under section 1193(d)(1) will be of sufficient size and scope to allow such entities to carry out high-quality, evidence-based language instruction educational programs for English learners; (E) the agency will require an eligible entity receiving a subgrant under this chapter to use the subgrant in ways that will build such recipient’s capacity to continue to offer high-quality evidence-based language instruction educational programs that assist English learners in meeting State academic standards; (F) the agency will monitor the eligible entity receiving a subgrant under this chapter for compliance with applicable Federal fiscal requirements; and (G) the plan has been developed in consultation with local educational agencies, teachers, administrators of programs implemented under this chapter, parents, and other relevant stakeholders; (3) describe how the agency will coordinate its programs and activities under this chapter with other programs and activities under this Act and other Acts, as appropriate; (4) describe how eligible entities in the State will be given the flexibility to teach English learners— (A) using a high-quality, evidence-based language instruction curriculum for teaching English learners; and (B) in the manner the eligible entities determine to be the most effective; and (5) describe how the agency will assist eligible entities in increasing the number of English learners who acquire English proficiency. (c) Approval The Secretary, after using a peer review process, shall approve a plan submitted under subsection (a) if the plan meets the requirements of this section. (d) Duration of plan (1) In general Each plan submitted by a State educational agency and approved under subsection (c) shall— (A) remain in effect for the duration of the agency’s participation under this chapter; and (B) be periodically reviewed and revised by the agency, as necessary, to reflect changes to the agency’s strategies and programs carried out under this subpart. (2) Additional information (A) Amendments If the State educational agency amends the plan, the agency shall submit such amendment to the Secretary. (B) Approval The Secretary shall approve such amendment to an approved plan, unless the Secretary determines that the amendment will result in the agency not meeting the requirements, or fulfilling the purposes, of this subpart. (e) Consolidated plan A plan submitted under subsection (a) may be submitted as part of a consolidated plan under section 5302. (f) Secretary assistance The Secretary shall provide technical assistance, if requested, in the development of English proficiency standards and assessments. 1193. Within-State allocations (a) In general After making the reservation required under subsection (d)(1), each State educational agency receiving a grant under section 1191(c)(2) shall award subgrants for a fiscal year by allocating in a timely manner to each eligible entity in the State having a plan approved under section 1195 an amount that bears the same relationship to the amount received under the grant and remaining after making such reservation as the population of English learners in schools served by the eligible entity bears to the population of English learners in schools served by all eligible entities in the State. (b) Limitation A State educational agency shall not award a subgrant from an allocation made under subsection (a) if the amount of such subgrant would be less than $10,000. (c) Reallocation Whenever a State educational agency determines that an amount from an allocation made to an eligible entity under subsection (a) for a fiscal year will not be used by the entity for the purpose for which the allocation was made, the agency shall, in accordance with such rules as it determines to be appropriate, reallocate such amount, consistent with such subsection, to other eligible entities in the State that the agency determines will use the amount to carry out that purpose. (d) Required reservation A State educational agency receiving a grant under this chapter for a fiscal year— (1) shall reserve not more than 15 percent of the agency’s allotment under section 1191(c)(2) to award subgrants to eligible entities in the State that have experienced a significant increase, as compared to the average of the 2 preceding fiscal years, in the percentage or number of immigrant children and youth, who have enrolled, during the fiscal year preceding the fiscal year for which the subgrant is made, in public and nonpublic elementary schools and secondary schools in the geographic areas under the jurisdiction of, or served by, such entities; and (2) in awarding subgrants under paragraph (1)— (A) shall equally consider eligible entities that satisfy the requirement of such paragraph but have limited or no experience in serving immigrant children and youth; and (B) shall consider the quality of each local plan under section 1195 and ensure that each subgrant is of sufficient size and scope to meet the purposes of this subpart. 1194. Subgrants to eligible entities (a) Purposes of subgrants A State educational agency may make a subgrant to an eligible entity from funds received by the agency under this chapter only if the entity agrees to expend the funds to improve the education of English learners, by assisting the children to learn English and meet State academic standards. In carrying out activities with such funds, the eligible entity shall use evidence-based approaches and methodologies for teaching English learners and immigrant children and youth for the following purposes: (1) Developing and implementing new language instruction educational programs and academic content instruction programs for English learners and immigrant children and youth, including programs of early childhood education, elementary school programs, and secondary school programs. (2) Carrying out highly focused, innovative, locally designed, evidence-based activities to expand or enhance existing language instruction educational programs and academic content instruction programs for English learners and immigrant children and youth. (3) Implementing, within an individual school, schoolwide programs for restructuring, reforming, and upgrading all relevant programs, activities, and operations relating to language instruction educational programs and academic content instruction for English learners and immigrant children and youth. (4) Implementing, within the entire jurisdiction of a local educational agency, agencywide programs for restructuring, reforming, and upgrading all relevant programs, activities, and operations relating to language instruction educational programs and academic content instruction for English learners and immigrant children and youth. (b) Administrative expenses Each eligible entity receiving funds under section 1193(a) for a fiscal year shall use not more than 2 percent of such funds for the cost of administering this chapter. (c) Required subgrantee activities An eligible entity receiving funds under section 1193(a) shall use the funds— (1) to increase the English language proficiency of English learners by providing high-quality, evidence-based language instruction educational programs that meet the needs of English learners and have demonstrated success in increasing— (A) English language proficiency; and (B) student academic achievement in the core academic subjects; (2) to provide high-quality, evidence-based professional development to classroom teachers (including teachers in classroom settings that are not the settings of language instruction educational programs), school leaders, administrators, and other school or community-based organization personnel, that is— (A) designed to improve the instruction and assessment of English learners; (B) designed to enhance the ability of teachers and school leaders to understand and implement curricula, assessment practices and measures, and instruction strategies for English learners; (C) evidence-based in increasing children’s English language proficiency or substantially increasing the subject matter knowledge, teaching knowledge, and teaching skills of teachers; and (D) of sufficient intensity and duration (which shall not include activities such as one-day or short-term workshops and conferences) to have a positive and lasting impact on the teachers’ performance in the classroom, except that this subparagraph shall not apply to an activity that is one component of a long-term, comprehensive professional development plan established by a teacher and the teacher’s supervisor based on an assessment of the needs of the teacher, the supervisor, the students of the teacher, and any local educational agency employing the teacher, as appropriate; and (3) to provide and implement other evidence-based activities and strategies that enhance or supplement language instruction educational programs for English learners, including parental and community engagement activities and strategies that serve to coordinate and align related programs. (d) Authorized subgrantee activities Subject to subsection (c), an eligible entity receiving funds under section 1193(a) may use the funds to achieve one of the purposes described in subsection (a) by undertaking one or more of the following activities: (1) Upgrading program objectives and effective instruction strategies. (2) Improving the instruction program for English learners by identifying, acquiring, and upgrading curricula, instruction materials, educational software, and assessment procedures. (3) Providing to English learners— (A) tutorials and academic or career education for English learners; and (B) intensified instruction. (4) Developing and implementing elementary school or secondary school language instruction educational programs that are coordinated with other relevant programs and services. (5) Improving the English language proficiency and academic achievement of English learners. (6) Providing community participation programs, family literacy services, and parent outreach and training activities to English learners and their families— (A) to improve the English language skills of English learners; and (B) to assist parents in helping their children to improve their academic achievement and becoming active participants in the education of their children. (7) Improving the instruction of English learners by providing for— (A) the acquisition or development of educational technology or instructional materials; (B) access to, and participation in, electronic networks for materials, training, and communication; and (C) incorporation of the resources described in subparagraphs (A) and (B) into curricula and programs, such as those funded under this chapter. (8) Carrying out other activities that are consistent with the purposes of this section. (e) Activities by agencies experiencing substantial increases in immigrant children and youth (1) In general An eligible entity receiving funds under section 1193(d)(1) shall use the funds to pay for activities that provide enhanced instructional opportunities for immigrant children and youth, which may include— (A) family literacy, parent outreach, and training activities designed to assist parents to become active participants in the education of their children; (B) support for personnel, including paraprofessionals who have been specifically trained, or are being trained, to provide services to immigrant children and youth; (C) provision of tutorials, mentoring, and academic or career counseling for immigrant children and youth; (D) identification, development, and acquisition of curricular materials, educational software, and technologies to be used in the program carried out with awarded funds; (E) basic instruction services that are directly attributable to the presence in the local educational agency involved of immigrant children and youth, including the payment of costs of providing additional classroom supplies, costs of transportation, or such other costs as are directly attributable to such additional basic instruction services; (F) other instruction services that are designed to assist immigrant children and youth to achieve in elementary schools and secondary schools in the United States, such as programs of introduction to the educational system and civics education; and (G) activities, coordinated with community-based organizations, institutions of higher education, private sector entities, or other entities with expertise in working with immigrants, to assist parents of immigrant children and youth by offering comprehensive community services. (2) Duration of subgrants The duration of a subgrant made by a State educational agency under section 1193(d)(1) shall be determined by the agency in its discretion. (f) Selection of method of instruction (1) In general To receive a subgrant from a State educational agency under this chapter, an eligible entity shall select one or more methods or forms of instruction to be used in the programs and activities undertaken by the entity to assist English learners to attain English language proficiency and meet State academic standards. (2) Consistency Such selection shall be consistent with sections 1204 through 1206. (g) Supplement, not supplant Federal funds made available under this chapter shall be used so as to supplement the level of Federal, State, and local public funds that, in the absence of such availability, would have been expended for programs for English learners and immigrant children and youth and in no case to supplant such Federal, State, and local public funds. 1195. Local plans (a) Plan required Each eligible entity desiring a subgrant from the State educational agency under section 1193 shall submit a plan to the State educational agency at such time, in such manner, and containing such information as the State educational agency may require. (b) Contents Each plan submitted under subsection (a) shall— (1) describe the evidence-based programs and activities proposed to be developed, implemented, and administered under the subgrant that will help English learners increase their English language proficiency and meet the State academic standards; (2) describe how the eligible entity will hold elementary schools and secondary schools receiving funds under this chapter accountable for annually assessing the English language proficiency of all children participating under this subpart, consistent with section 1111(b); (3) describe how the eligible entity will promote parent and community engagement in the education of English learners; (4) contain an assurance that the eligible entity consulted with teachers, researchers, school administrators, parents and community members, public or private organizations, and institutions of higher education, in developing and implementing such plan; (5) describe how language instruction educational programs carried out under the subgrant will ensure that English learners being served by the programs develop English language proficiency; and (6) contain assurances that— (A) each local educational agency that is included in the eligible entity is complying with section 1112(g) prior to, and throughout, each school year; and (B) the eligible entity is not in violation of any State law, including State constitutional law, regarding the education of English learners, consistent with sections 1205 and 1206. (c) Teacher English fluency Each eligible entity receiving a subgrant under section 1193 shall include in its plan a certification that all teachers in any language instruction educational program for English learners that is, or will be, funded under this subpart are fluent in English and any other language used for instruction, including having written and oral communications skills. B Administration 1201. Reporting (a) In general Each eligible entity that receives a subgrant from a State educational agency under chapter A shall provide such agency, at the conclusion of every second fiscal year during which the subgrant is received, with a report, in a form prescribed by the agency, on the activities conducted and students served under this subpart that includes— (1) a description of the programs and activities conducted by the entity with funds received under chapter A during the two immediately preceding fiscal years, including how such programs and activities supplemented programs funded primarily with State or local funds; (2) a description of the progress made by English learners in learning the English language and in meeting State academic standards; (3) the number and percentage of English learners in the programs and activities attaining English language proficiency based on the State English language proficiency standards established under section 1111(b)(1)(E) by the end of each school year, as determined by the State’s English language proficiency assessment under section 1111(b)(2)(D); (4) the number of English learners who exit the language instruction educational programs based on their attainment of English language proficiency and transitioned to classrooms not tailored for English learners; (5) a description of the progress made by English learners in meeting the State academic standards for each of the 2 years after such children are no longer receiving services under this subpart; (6) the number and percentage of English learners who have not attained English language proficiency within five years of initial classification as an English learner and first enrollment in the local educational agency; and (7) any such other information as the State educational agency may require. (b) Use of report A report provided by an eligible entity under subsection (a) shall be used by the entity and the State educational agency— (1) to determine the effectiveness of programs and activities in assisting children who are English learners— (A) to attain English language proficiency; and (B) to make progress in meeting State academic standards under section 1111(b)(1); and (2) upon determining the effectiveness of programs and activities based on the criteria in paragraph (1), to decide how to improve programs. 1202. Annual report (a) States Based upon the reports provided to a State educational agency under section 1201, each such agency that receives a grant under this subpart shall prepare and submit annually to the Secretary a report on programs and activities carried out by the State educational agency under this subpart and the effectiveness of such programs and activities in improving the education provided to English learners. (b) Secretary Annually, the Secretary shall prepare and submit to the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate a report— (1) on programs and activities carried out to serve English learners under this subpart, and the effectiveness of such programs and activities in improving the academic achievement and English language proficiency of English learners; (2) on the types of language instruction educational programs used by local educational agencies or eligible entities receiving funding under this subpart to teach English learners; (3) containing a critical synthesis of data reported by eligible entities to States under section 1201(a); (4) containing a description of technical assistance and other assistance provided by State educational agencies under section 1191(b)(2)(C); (5) containing an estimate of the number of effective teachers working in language instruction educational programs and educating English learners, and an estimate of the number of such teachers that will be needed for the succeeding 5 fiscal years; (6) containing the number of programs or activities, if any, that were terminated because the entities carrying out the programs or activities were not able to reach program goals; (7) containing the number of English learners served by eligible entities receiving funding under this subpart who were transitioned out of language instruction educational programs funded under this subpart into classrooms where instruction is not tailored for English learners; and (8) containing other information gathered from other reports submitted to the Secretary under this subpart when applicable. 1203. Coordination with related programs In order to maximize Federal efforts aimed at serving the educational needs of English learners, the Secretary shall coordinate and ensure close cooperation with other entities carrying out programs serving language-minority and English learners that are administered by the Department and other agencies. 1204. Rules of construction Nothing in this subpart shall be construed— (1) to prohibit a local educational agency from serving English learners simultaneously with children with similar educational needs, in the same educational settings where appropriate; (2) to require a State or a local educational agency to establish, continue, or eliminate any particular type of instructional program for English learners; or (3) to limit the preservation or use of Native American languages. 1205. Legal authority under State law Nothing in this subpart shall be construed to negate or supersede State law, or the legal authority under State law of any State agency, State entity, or State public official, over programs that are under the jurisdiction of the State agency, entity, or official. 1206. Civil rights Nothing in this subpart shall be construed in a manner inconsistent with any Federal law guaranteeing a civil right. 1207. Prohibition In carrying out this subpart, the Secretary shall neither mandate nor preclude the use of a particular curricular or pedagogical approach to educating English learners. 1208. Programs for Native Americans and Puerto Rico Notwithstanding any other provision of this subpart, programs authorized under this subpart that serve Native American (including Native American Pacific Islander) children and children in the Commonwealth of Puerto Rico may include programs of instruction, teacher training, curriculum development, evaluation, and assessment designed for Native American children learning and studying Native American languages and children of limited Spanish proficiency, except that an outcome of programs serving such children shall be increased English proficiency among such children. C National Activities 1211. National professional development project The Secretary shall use funds made available under section 1191(c)(1)(B) to award grants on a competitive basis, for a period of not more than 5 years, to institutions of higher education or public or private organizations with relevant experience and capacity (in consortia with State educational agencies or local educational agencies) to provide for professional development activities that will improve classroom instruction for English learners and assist educational personnel working with such children to meet high professional standards, including standards for certification and licensure as teachers who work in language instruction educational programs or serve English learners. Grants awarded under this subsection may be used— (1) for preservice, evidence-based professional development programs that will assist local schools and institutions of higher education to upgrade the qualifications and skills of educational personnel who are not certified or licensed, especially educational paraprofessionals; (2) for the development of curricula or other instructional strategies appropriate to the needs of the consortia participants involved; (3) to support strategies that strengthen and increase parent and community member engagement in the education of English learners; and (4) to share and disseminate evidence-based practices in the instruction of English learners and in increasing their student achievement. D General Provisions 1221. Definitions Except as otherwise provided, in this subpart: (1) Child The term child means any individual aged 3 through 21. (2) Community-based organization The term community-based organization means a private nonprofit organization of demonstrated effectiveness, Indian tribe, or tribally sanctioned educational authority, that is representative of a community or significant segments of a community and that provides educational or related services to individuals in the community. Such term includes a Native Hawaiian or Native American Pacific Islander native language educational organization. (3) Eligible entity The term eligible entity means— (A) one or more local educational agencies; or (B) one or more local educational agencies, in consortia (or collaboration) with an institution of higher education, community-based organization, or State educational agency. (4) Immigrant children and youth The term immigrant children and youth means individuals who— (A) are age 3 through 21; (B) were not born in any State; and (C) have not been attending one or more schools in any one or more States for more than 3 full academic years. (5) Indian tribe The term Indian tribe means any Indian tribe, band, nation, or other organized group or community, including any Native village or Regional Corporation or Village Corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act, that is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians. (6) Language instruction educational program The term language instruction educational program means an instruction course— (A) in which an English learner is placed for the purpose of developing and attaining English language proficiency, while meeting State academic standards, as required by section 1111(b)(1); and (B) that may make instructional use of both English and a child’s native language to enable the child to develop and attain English language proficiency, and may include the participation of English language proficient children if such course is designed to enable all participating children to become proficient in English and a second language. (7) Native language The term native language , when used with reference to English learner, means— (A) the language normally used by such individual; or (B) in the case of a child or youth, the language normally used by the parents of the child or youth. (8) Paraprofessional The term paraprofessional means an individual who is employed in a preschool, elementary school, or secondary school under the supervision of a certified or licensed teacher, including individuals employed in language instruction educational programs, special education, and migratory education. (9) State The term State means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico. 1222. National clearinghouse The Secretary shall establish and support the operation of a National Clearinghouse for English Language Acquisition and Language Instruction Educational Programs, which shall collect, analyze, synthesize, and disseminate information about language instruction educational programs for English learners, and related programs. The National Clearinghouse shall— (1) be administered as an adjunct clearinghouse of the Educational Resources Information Center Clearinghouses system supported by the Institute of Education Sciences; (2) coordinate activities with Federal data and information clearinghouses and entities operating Federal dissemination networks and systems; (3) develop a system for improving the operation and effectiveness of federally funded language instruction educational programs; (4) collect and disseminate information on— (A) educational research and processes related to the education of English learners; and (B) accountability systems that monitor the academic progress of English learners in language instruction educational programs, including information on academic content and English language proficiency assessments for language instruction educational programs; and (5) publish, on an annual basis, a list of grant recipients under this subpart. 1223. Regulations In developing regulations under this subpart, the Secretary shall consult with State educational agencies and local educational agencies, organizations representing English learners, and organizations representing teachers and other personnel involved in the education of English learners. 5 Rural Education Achievement Program 1230. Purpose It is the purpose of this subpart to address the unique needs of rural school districts that frequently— (1) lack the personnel and resources needed to compete effectively for Federal competitive grants; and (2) receive formula grant allocations in amounts too small to be effective in meeting their intended purposes. A Small, Rural School Achievement Program 1231. Grant program authorized (a) In general From amounts appropriated under section 3(a)(1) for a fiscal year, the Secretary shall reserve 0.54 of one percent to award grants to eligible local educational agencies to enable the local educational agencies to carry out activities authorized under any of the following provisions: (1) Part A of title I. (2) Title II. (3) Title III. (b) Allocation (1) In general Except as provided in paragraph (3), the Secretary shall award a grant under subsection (a) to a local educational agency eligible under subsection (d) for a fiscal year in an amount equal to the initial amount determined under paragraph (2) for the fiscal year minus the total amount received by the agency in subpart 2 of part A of title II for the preceding fiscal year. (2) Determination of initial amount The initial amount referred to in paragraph (1) is equal to $100 multiplied by the total number of students in excess of 50 students, in average daily attendance at the schools served by the local educational agency, plus $20,000, except that the initial amount may not exceed $60,000. (3) Ratable adjustment (A) In general If the amount made available to carry out this section for any fiscal year is not sufficient to pay in full the amounts that local educational agencies are eligible to receive under paragraph (1) for such year, the Secretary shall ratably reduce such amounts for such year. (B) Additional amounts If additional funds become available for making payments under paragraph (1) for such fiscal year, payments that were reduced under subparagraph (A) shall be increased on the same basis as such payments were reduced. (c) Disbursement The Secretary shall disburse the funds awarded to a local educational agency under this section for a fiscal year not later than July 1 of that fiscal year. (d) Eligibility (1) In general A local educational agency shall be eligible to use the applicable funding in accordance with subsection (a) if— (A) (i) (I) the total number of students in average daily attendance at all of the schools served by the local educational agency is fewer than 600; or (II) each county in which a school served by the local educational agency is located has a total population density of fewer than 10 persons per square mile; and (ii) all of the schools served by the local educational agency are designated with a school locale code of 41, 42, or 43, as determined by the Secretary; or (B) the agency meets the criteria established in subparagraph (A)(i) and the Secretary, in accordance with paragraph (2), grants the local educational agency’s request to waive the criteria described in subparagraph (A)(ii). (2) Certification The Secretary shall determine whether to waive the criteria described in paragraph (1)(A)(ii) based on a demonstration by the local educational agency, and concurrence by the State educational agency, that the local educational agency is located in an area defined as rural by a governmental agency of the State. (3) Hold harmless For a local educational agency that is not eligible under this chapter but met the eligibility requirements under this subsection as it was in effect prior to the date of the enactment of the Student Success Act, the agency shall receive— (A) for fiscal year 2014, 75 percent of the amount such agency received for fiscal year 2013; (B) for fiscal year 2015, 50 percent of the amount such agency received for fiscal year 2013; and (C) for fiscal year 2016, 25 percent of the amount such agency received for fiscal year 2013. (e) Special eligibility rule A local educational agency that receives a grant under this chapter for a fiscal year is not eligible to receive funds for such fiscal year under chapter B. B Rural and Low-Income School Program 1235. Program authorized (a) Grants to states (1) In general From amounts appropriated under section 3(a)(1) for a fiscal year, the Secretary shall reserve 0.54 of one percent for this chapter for a fiscal year that are not reserved under subsection (c) to award grants (from allotments made under paragraph (2)) for the fiscal year to State educational agencies that have applications submitted under section 1237 approved to enable the State educational agencies to award grants to eligible local educational agencies for local authorized activities described in section 1236(a). (2) Allotment From amounts described in paragraph (1) for a fiscal year, the Secretary shall allot to each State educational agency for that fiscal year an amount that bears the same ratio to those amounts as the number of students in average daily attendance served by eligible local educational agencies in the State for that fiscal year bears to the number of all such students served by eligible local educational agencies in all States for that fiscal year. (3) Specially qualified agencies (A) Eligibility and Application If a State educational agency elects not to participate in the program under this subpart or does not have an application submitted under section 1237 approved, a specially qualified agency in such State desiring a grant under this subpart may submit an application under such section directly to the Secretary to receive an award under this subpart. (B) Direct awards The Secretary may award, on a competitive basis or by formula, the amount the State educational agency is eligible to receive under paragraph (2) directly to a specially qualified agency in the State that has submitted an application in accordance with subparagraph (A) and obtained approval of the application. (C) Specially qualified agency defined In this subpart, the term specially qualified agency means an eligible local educational agency served by a State educational agency that does not participate in a program under this subpart in a fiscal year, that may apply directly to the Secretary for a grant in such year under this subsection. (b) Local awards (1) Eligibility A local educational agency shall be eligible to receive a grant under this subpart if— (A) 20 percent or more of the children ages 5 through 17 years served by the local educational agency are from families with incomes below the poverty line; and (B) all of the schools served by the agency are designated with a school locale code of 32, 33, 41, 42, 43, as determined by the Secretary. (2) Award basis A State educational agency shall award grants to eligible local educational agencies— (A) on a competitive basis; (B) according to a formula based on the number of students in average daily attendance served by the eligible local educational agencies or schools in the State; or (C) according to an alternative formula, if, prior to awarding the grants, the State educational agency demonstrates, to the satisfaction of the Secretary, that the alternative formula enables the State educational agency to allot the grant funds in a manner that serves equal or greater concentrations of children from families with incomes below the poverty line, relative to the concentrations that would be served if the State educational agency used the formula described in subparagraph (B). (c) Reservations From amounts reserved under section 1235(a)(1) for this chapter for a fiscal year, the Secretary shall reserve— (1) one-half of 1 percent to make awards to elementary schools or secondary schools operated or supported by the Bureau of Indian Education, to carry out the activities authorized under this chapter; and (2) one-half of 1 percent to make awards to the outlying areas in accordance with their respective needs, to carry out the activities authorized under this chapter. 1236. Uses of funds (a) Local awards Grant funds awarded to local educational agencies under this chapter shall be used for activities authorized under any of the following: (1) Part A of title I. (2) Title II. (3) Title III. (b) Administrative costs A State educational agency receiving a grant under this chapter may not use more than 5 percent of the amount of the grant for State administrative costs and to provide technical assistance to eligible local educational agencies. 1237. Applications (a) In general Each State educational agency or specially qualified agency desiring to receive a grant under this chapter shall submit an application to the Secretary at such time and in such manner as the Secretary may require. (b) Contents Each application submitted under subsection (a) shall include— (1) a description of how the State educational agency or specially qualified agency will ensure eligible local educational agencies receiving a grant under this chapter will use such funds to help students meet the State academic standards under section 1111(b)(1); (2) if the State educational agency or specially qualified agency will competitively award grants to eligible local educational agencies, as described in section 1235(b)(2)(A), the application under the section shall include— (A) the methods and criteria the State educational agency or specially qualified agency will use for reviewing applications and awarding funds to local educational agencies on a competitive basis; and (B) how the State educational agency or specially qualified agency will notify eligible local educational agencies of the grant competition; and (3) a description of how the State educational agency or specially qualified agency will provide technical assistance to eligible local educational agencies to help such agencies implement the activities described in section 1236(a). 1238. Accountability Each State educational agency or specially qualified agency that receives a grant under this chapter shall prepare and submit an annual report to the Secretary. The report shall describe— (1) the methods and criteria the State educational agency or specially qualified agency used to award grants to eligible local educational agencies, and to provide assistance to schools, under this chapter; (2) how local educational agencies and schools used funds provided under this chapter; and (3) the degree to which progress has been made toward having all students meet the State academic standards under section 1111(b)(1). 1239. Choice of participation (a) In general If a local educational agency is eligible for funding under chapters A and B of this subpart, such local educational agency may receive funds under either chapter A or chapter B for a fiscal year, but may not receive funds under both chapters. (b) Notification A local educational agency eligible for both chapters A and B of this subpart shall notify the Secretary and the State educational agency under which of such chapters such local educational agency intends to receive funds for a fiscal year by a date that is established by the Secretary for the notification. C General Provisions 1241. Annual average daily attendance determination (a) Census determination Each local educational agency desiring a grant under section 1231 and each local educational agency or specially qualified agency desiring a grant under chapter B shall— (1) not later than December 1 of each year, conduct a census to determine the number of students in average daily attendance in kindergarten through grade 12 at the schools served by the agency; and (2) not later than March 1 of each year, submit the number described in paragraph (1) to the Secretary (and to the State educational agency, in the case of a local educational agency seeking a grant under subpart 2). (b) Penalty If the Secretary determines that a local educational agency or specially qualified agency has knowingly submitted false information under subsection (a) for the purpose of gaining additional funds under section 1231 or chapter B, then the agency shall be fined an amount equal to twice the difference between the amount the agency received under this section and the correct amount the agency would have received under section 1231 or chapter B if the agency had submitted accurate information under subsection (a). 1242. Supplement, not supplant Funds made available under chapter A or chapter B shall be used to supplement, and not supplant, any other Federal, State, or local education funds. 1243. Rule of construction Nothing in this subpart shall be construed to prohibit a local educational agency that enters into cooperative arrangements with other local educational agencies for the provision of special, compensatory, or other education services, pursuant to State law or a written agreement, from entering into similar arrangements for the use, or the coordination of the use, of the funds made available under this subpart. 6 Indian Education 1251. Statement of policy It is the policy of the United States to fulfill the Federal Government’s unique and continuing trust relationship with and responsibility to the Indian people for the education of Indian children. The Federal Government will continue to work with local educational agencies, Indian tribes and organizations, postsecondary institutions, and other entities toward the goal of ensuring that programs that serve Indian children are of the highest quality and provide for not only the basic elementary and secondary educational needs, but also the unique educational and culturally related academic needs of these children. 1252. Purpose It is the purpose of this subpart to support the efforts of local educational agencies, Indian tribes and organizations, postsecondary institutions, and other entities— (1) to meet the unique educational and culturally related academic needs of American Indian and Alaska Native students, so that such students can meet the State academic standards that all students are expected to meet; and (2) to ensure that school leaders, teachers, and other staff who serve Indian and Alaska Native students have the ability and training to provide appropriate instruction to meet the unique academic needs of such students. A Formula Grants to Local Educational Agencies 1261. Purpose It is the purpose of this chapter to support local educational agencies in their efforts to reform elementary school and secondary school programs that serve Indian students in order to ensure that such programs are designed to— (1) meet the unique educational needs of such students; and (2) ensure that such students have the opportunity to meet the State academic standards. 1262. Grants to local educational agencies and tribes (a) In general From amounts appropriated under section 3(a)(1), the Secretary shall reserve 0.59 of one percent to local educational agencies and Indian tribes in accordance with this section and section 1263. (b) Local educational agencies (1) Enrollment requirements A local educational agency shall be eligible for a grant under this chapter for any fiscal year if the number of Indian children eligible under section 1267 who were enrolled in the schools of the agency, and to whom the agency provided free public education, during the preceding fiscal year— (A) was at least 10; or (B) constituted not less than 25 percent of the total number of individuals enrolled in the schools of such agency. (2) Exclusion The requirement of paragraph (1) shall not apply in Alaska, California, or Oklahoma, or with respect to any local educational agency located on, or in proximity to, an Indian reservation. (c) Indian tribes (1) In general If a local educational agency that is otherwise eligible for a grant under this chapter does not establish a committee under section 1264(c)(4) for such grant, an Indian tribe or a consortium of such entities that represents not less than 1/3 of the eligible Indian children who are served by such local educational agency may apply for such grant. (2) Special rule The Secretary shall treat each Indian tribe or consortium of such entities applying for a grant pursuant to paragraph (1) as if such Indian tribe were a local educational agency for purposes of this chapter, except that any such tribe is not subject to section 1264(c)(4) or section 1269. (3) Eligibility If more than 1 Indian tribe qualifies to apply for a grant under paragraph (1), the entity that represents the most eligible Indian children who are served by the local educational agency shall be eligible to receive the grant or the tribes may choose to apply in consortium. 1263. Amount of grants (a) Amount of grant awards (1) In general Except as provided in subsection (b) and paragraph (2), the Secretary shall allocate to each local educational agency that has an approved application under this chapter an amount equal to the product of— (A) the number of Indian children who are eligible under section 1267 and served by such agency; and (B) the greater of— (i) the average per pupil expenditure of the State in which such agency is located; or (ii) 80 percent of the average per pupil expenditure of all the States. (2) Reduction The Secretary shall reduce the amount of each allocation otherwise determined under this section in accordance with subsection (e). (b) Minimum grant (1) In general Notwithstanding subsection (e), an entity that is eligible for a grant under section 1262, and a school that is operated or supported by the Bureau of Indian Education that is eligible for a grant under subsection (d), that submits an application that is approved by the Secretary, shall, subject to appropriations, receive a grant under this chapter in an amount that is not less than $3,000. (2) Consortia Local educational agencies may form a consortium with other local educational agencies or Indian tribes for the purpose of obtaining grants under this chapter. (3) Increase The Secretary may increase the minimum grant under paragraph (1) to not more than $4,000 for all grantees if the Secretary determines such an increase is necessary to ensure the quality of the programs provided. (c) Definition For the purpose of this section, the term average per pupil expenditure , used with respect to a State, means an amount equal to— (1) the sum of the aggregate current expenditures of all the local educational agencies in the State, plus any direct current expenditures by the State for the operation of such agencies, without regard to the sources of funds from which such local or State expenditures were made, during the second fiscal year preceding the fiscal year for which the computation is made; divided by (2) the aggregate number of children who were included in average daily attendance for whom such agencies provided free public education during such preceding fiscal year. (d) Schools operated or supported by the Bureau of Indian Education (1) In general Subject to subsection (e), in addition to the grants awarded under subsection (a), the Secretary shall allocate to the Secretary of the Interior an amount equal to the product of— (A) the total number of Indian children enrolled in schools that are operated by— (i) the Bureau of Indian Education; or (ii) an Indian tribe, or an organization controlled or sanctioned by an Indian tribal government, for the children of that tribe under a contract with, or grant from, the Department of the Interior under the Indian Self-Determination Act or the Tribally Controlled Schools Act of 1988; and (B) the greater of— (i) the average per pupil expenditure of the State in which the school is located; or (ii) 80 percent of the average per pupil expenditure of all the States. (2) Special rule Any school described in paragraph (1)(A) that wishes to receive an allocation under this chapter shall submit an application in accordance with section 1264, and shall otherwise be treated as a local educational agency for the purpose of this chapter, except that such school shall not be subject to section 1264(c)(4) or section 1269. (e) Ratable reductions If the sums reserved for any fiscal year under section 1262(a) are insufficient to pay in full the amounts determined for local educational agencies under subsection (a)(1) and for the Secretary of the Interior under subsection (d), each of those amounts shall be ratably reduced. 1264. Applications (a) Application required Each local educational agency that desires to receive a grant under this chapter shall submit an application to the Secretary at such time and in such manner as the Secretary may reasonably require. (b) Comprehensive program required Each application submitted under subsection (a) shall include a description of a comprehensive program for meeting the needs of Indian children served by the local educational agency, including the language and cultural needs of the children, that— (1) describes how the comprehensive program will offer programs and activities to meet the culturally related academic needs of American Indian and Alaska Native students; (2) (A) is aligned with and supports the State and local plans submitted under other provisions of this Act; and (B) includes academic standards for such children that are based on the State academic standards adopted under subpart 1 for all children; (3) explains how the local educational agency will use the funds made available under this chapter to supplement other Federal, State, and local programs, especially programs carried out under subpart 1, to meet the needs of such students; (4) demonstrates how funds made available under this chapter will be used for activities described in section 1265; (5) describes the professional development opportunities that will be provided, as needed, to ensure that— (A) teachers, school leaders, and other school professionals who are new to the Indian community are prepared to work with Indian children; and (B) all teachers who will be involved in programs assisted under this chapter have been properly trained to carry out such programs; (6) describes how the local educational agency— (A) will periodically assess the progress of all Indian children enrolled in the schools of the local educational agency, including Indian children who do not participate in programs assisted under this chapter, in meeting the standards described in paragraph (2); (B) will provide the results of each assessment referred to in subparagraph (A) to— (i) the committee described in subsection (c)(4); and (ii) the community, including Indian tribes, whose children are served by the local educational agency; and (C) is responding to findings of any previous assessments that are similar to the assessments described in subparagraph (A); and (7) describes the processes the local educational agency used to collaborate with Indian tribes in the community in the development of the comprehensive programs. (c) Assurances Each application submitted under subsection (a) shall include assurances that— (1) the local educational agency will use funds received under this chapter only to supplement the funds that, in the absence of the Federal funds made available under this chapter, such agency would make available for the education of Indian children, and not to supplant such funds; (2) the local educational agency will prepare and submit to the Secretary such reports in such form as the Secretary may require to— (A) carry out the functions of the Secretary under this chapter; and (B) determine the extent to which activities carried out with funds provided to the local educational agency under this chapter are effective in improving the educational achievement of Indian students served by such agency; (3) the program for which assistance is sought— (A) is based on a comprehensive local assessment and prioritization of the unique educational and culturally related academic needs of the American Indian and Alaska Native students for whom the local educational agency is providing an education; (B) will use the best available talents and resources, including individuals from the Indian community; and (C) was developed by such agency in open consultation with parents of Indian children and teachers, and, if appropriate, Indian students from secondary schools, including through public hearings held by such agency to provide to the individuals described in this subparagraph a full opportunity to understand the program and to offer recommendations regarding the program; and (4) the local educational agency developed the program with the participation and written approval of a committee— (A) that is composed of, and selected by— (i) parents of Indian children in the local educational agency’s schools; (ii) teachers in the schools; and (iii) if appropriate, Indian students attending secondary schools of the agency; (B) a majority of whose members are parents of Indian children; (C) that has set forth such policies and procedures, including policies and procedures relating to the hiring of personnel, as will ensure that the program for which assistance is sought will be operated and evaluated in consultation with, and with the involvement of, parents of the children, and representatives of the area, to be served; (D) with respect to an application describing a schoolwide program in accordance with section 1265(c), that has— (i) reviewed in a timely fashion the program; and (ii) determined that the program will not diminish the availability of culturally related activities for American Indian and Alaska Native students; and (E) that has adopted reasonable bylaws for the conduct of the activities of the committee and abides by such bylaws. 1265. Authorized services and activities (a) General requirements Each local educational agency that receives a grant under this chapter shall use the grant funds, in a manner consistent with the purpose specified in section 1261, for services and activities that— (1) are designed to carry out the comprehensive program of the local educational agency for Indian students, and described in the application of the local educational agency submitted to the Secretary under section 1264(a); (2) are designed with special regard for the language and cultural needs of the Indian students; and (3) supplement and enrich the regular school program of such agency. (b) Particular activities The services and activities referred to in subsection (a) may include— (1) culturally related activities that support the program described in the application submitted by the local educational agency; (2) early childhood and family programs that emphasize school readiness; (3) enrichment programs that focus on problem solving and cognitive skills development and directly support the attainment of State academic standards; (4) integrated educational services in combination with other programs that meet the needs of Indian children and their families; (5) programs that help engage parents and tribes to meet the unique educational needs of Indian children; (6) career preparation activities to enable Indian students to participate in programs such as the programs supported by the Carl D. Perkins Career and Technical Education Act of 2006; (7) activities to educate individuals concerning the prevention of substance abuse, violence, and suicide; (8) the acquisition of equipment, but only if the acquisition of the equipment is essential to achieve the purpose described in section 1261; (9) activities that promote the incorporation of culturally responsive teaching and learning strategies into the educational program of the local educational agency; (10) activities that incorporate American Indian and Alaska Native specific curriculum content, consistent with State academic standards into the curriculum used by the local educational agency; (11) family literacy services; and (12) activities that recognize and support the unique cultural and educational needs of Indian children, and incorporate appropriately qualified tribal elders and seniors. (c) Schoolwide programs Notwithstanding any other provision of law, a local educational agency may use funds made available to such agency under this chapter to support a schoolwide program under section 1114 if— (1) the committee established pursuant to section 1264(c)(4) approves the use of the funds for the schoolwide program; and (2) the schoolwide program is consistent with the purpose described in section 1261. (d) Limitation on administrative costs Not more than 5 percent of the funds provided to a grantee under this chapter for any fiscal year may be used for administrative purposes. (e) Limitation on Use of Funds Funds provided to a grantee under this chapter may not be used for long-distance travel expenses for training activities available locally or regionally. 1266. Integration of services authorized (a) Plan An entity receiving funds under this chapter may submit a plan to the Secretary for the integration of education and related services provided to Indian students. (b) Consolidation of programs Upon the receipt of an acceptable plan under subsection (a), the Secretary, in cooperation with each Federal agency providing grants for the provision of education and related services to the entity, shall authorize the entity to consolidate, in accordance with such plan, the federally funded education and related services programs of the entity and the Federal programs, or portions of the programs, serving Indian students in a manner that integrates the program services involved into a single, coordinated, comprehensive program and reduces administrative costs by consolidating administrative functions. (c) Programs affected The funds that may be consolidated in a demonstration project under any such plan referred to in subsection (a) shall include funds for any Federal program exclusively serving Indian children, or the funds reserved under any Federal program to exclusively serve Indian children, under which the entity is eligible for receipt of funds under a statutory or administrative formula for the purposes of providing education and related services that would be used to serve Indian students. (d) Plan requirements For a plan to be acceptable pursuant to subsection (b), the plan shall— (1) identify the programs or funding sources to be consolidated; (2) be consistent with the objectives of this section concerning authorizing the services to be integrated in a demonstration project; (3) describe a comprehensive strategy that identifies the full range of potential educational opportunities and related services to be provided to assist Indian students to achieve the objectives set forth in this chapter; (4) describe the way in which services are to be integrated and delivered and the results expected from the plan; (5) identify the projected expenditures under the plan in a single budget; (6) identify the State, tribal, or local agency or agencies to be involved in the delivery of the services integrated under the plan; (7) identify any statutory provisions, regulations, policies, or procedures that the entity believes need to be waived in order to implement the plan; (8) set forth measures for student academic achievement consistent with State academic standards under section 1111(b)(1); and (9) be approved by a committee formed in accordance with section 1264(c)(4), if such a committee exists. (e) Plan review Upon receipt of the plan from an eligible entity, the Secretary shall consult with the Secretary of each Federal department providing funds to be used to implement the plan, and with the entity submitting the plan. The parties so consulting shall identify any waivers of statutory requirements or of Federal departmental regulations, policies, or procedures necessary to enable the entity to implement the plan. Notwithstanding any other provision of law, the Secretary of the affected department shall have the authority to waive any regulation, policy, or procedure promulgated by that department that has been so identified by the entity or department, unless the Secretary of the affected department determines that such a waiver is inconsistent with the objectives of this chapter or those provisions of the statute from which the program involved derives authority that are specifically applicable to Indian students. (f) Plan Approval Within 90 days after the receipt of an entity’s plan by the Secretary, the Secretary shall inform the entity, in writing, of the Secretary’s approval or disapproval of the plan. If the plan is disapproved, the entity shall be informed, in writing, of the reasons for the disapproval and shall be given an opportunity to amend the plan or to petition the Secretary to reconsider such disapproval. (g) Responsibilities of Department of Education The Secretary of Education, the Secretary of the Interior, and the head of any other Federal department or agency identified by the Secretary of Education, shall enter into an interdepartmental memorandum of agreement providing for the implementation and coordination of the demonstration projects authorized under this section. The lead agency head for a demonstration project under this section shall be— (1) the Secretary of the Interior, in the case of an entity meeting the definition of a contract or grant school under title XI of the Education Amendments of 1978; or (2) the Secretary of Education, in the case of any other entity. (h) Responsibilities of lead agency The responsibilities of the lead agency shall include— (1) the use of a single report format related to the plan for the individual project, which shall be used by an eligible entity to report on the activities undertaken under the project; (2) the use of a single report format related to the projected expenditures for the individual project which shall be used by an eligible entity to report on all project expenditures; (3) the development of a single system of Federal oversight for the project, which shall be implemented by the lead agency; and (4) the provision of technical assistance to an eligible entity appropriate to the project, except that an eligible entity shall have the authority to accept or reject the plan for providing such technical assistance and the technical assistance provider. (i) Report requirements A single report format shall be developed by the Secretary, consistent with the requirements of this section. Such report format shall require that reports described in subsection (h), together with records maintained on the consolidated program at the local level, shall contain such information as will allow a determination that the eligible entity has complied with the requirements incorporated in its approved plan, including making a demonstration of student academic achievement, and will provide assurances to each Secretary that the eligible entity has complied with all directly applicable statutory requirements and with those directly applicable regulatory requirements that have not been waived. (j) No reduction in amounts In no case shall the amount of Federal funds available to an eligible entity involved in any demonstration project be reduced as a result of the enactment of this section. (k) Interagency fund transfers authorized The Secretary is authorized to take such action as may be necessary to provide for an interagency transfer of funds otherwise available to an eligible entity in order to further the objectives of this section. (l) Administration of funds (1) In general Program funds for the consolidated programs shall be administered in such a manner as to allow for a determination that funds from a specific program are spent on allowable activities authorized under such program, except that the eligible entity shall determine the proportion of the funds granted that shall be allocated to such program. (2) Separate records not required Nothing in this section shall be construed as requiring the eligible entity to maintain separate records tracing any services or activities conducted under the approved plan to the individual programs under which funds were authorized for the services or activities, nor shall the eligible entity be required to allocate expenditures among such individual programs. (m) Overage The eligible entity may commingle all administrative funds from the consolidated programs and shall be entitled to the full amount of such funds (under each program’s or agency’s regulations). The overage (defined as the difference between the amount of the commingled funds and the actual administrative cost of the programs) shall be considered to be properly spent for Federal audit purposes, if the overage is used for the purposes provided for under this section. (n) Fiscal accountability Nothing in this subpart shall be construed so as to interfere with the ability of the Secretary or the lead agency to fulfill the responsibilities for the safeguarding of Federal funds pursuant to chapter 75 of title 31, United States Code. (o) Report on statutory obstacles to program integration (1) In general The Secretary of Education shall annually submit a report to the Committee on Health, Education, Labor, and Pensions and the Committee on Indian Affairs of the Senate, and the Committee on Education and the Workforce and the Committee on Natural Resources of the House of Representatives on the status of the implementation of the demonstration projects authorized under this section. (2) Contents Such report shall identify— (A) statutory barriers to the ability of participants to more effectively integrate their education and related services to Indian students in a manner consistent with the objectives of this section; and (B) the effective practices for program integration that result in increased student achievement and other relevant outcomes for Indian students. (p) Definitions For the purposes of this section, the term Secretary means— (1) the Secretary of the Interior, in the case of an entity meeting the definition of a contract or grant school under title XI of the Education Amendments of 1978; or (2) the Secretary of Education, in the case of any other entity. 1267. Student eligibility forms (a) In general The Secretary shall require that, as part of an application for a grant under this chapter, each applicant shall maintain a file, with respect to each Indian child for whom the local educational agency provides a free public education, that contains a form that sets forth information establishing the status of the child as an Indian child eligible for assistance under this chapter, and that otherwise meets the requirements of subsection (b). (b) Forms The form described in subsection (a) shall include— (1) either— (A) (i) the name of the tribe or band of Indians (as defined in section 1291) with respect to which the child claims membership; (ii) the enrollment number establishing the membership of the child (if readily available); and (iii) the name and address of the organization that maintains updated and accurate membership data for such tribe or band of Indians; or (B) the name, the enrollment number (if readily available), and the name and address of the organization responsible for maintaining updated and accurate membership data, of any parent or grandparent of the child from whom the child claims eligibility under this chapter, if the child is not a member of the tribe or band of Indians (as so defined); (2) a statement of whether the tribe or band of Indians (as so defined), with respect to which the child, or parent or grandparent of the child, claims membership, is federally recognized; (3) the name and address of the parent or legal guardian of the child; and (4) a signature of the parent or legal guardian of the child that verifies the accuracy of the information supplied. (c) Statutory construction Nothing in this section shall be construed to affect a definition contained in section 1291. (d) Forms and standards of proof The forms and the standards of proof (including the standard of good faith compliance) that were in use during the 1985–1986 academic year to establish the eligibility of a child for entitlement under the Indian Elementary and Secondary School Assistance Act shall be the forms and standards of proof used— (1) to establish eligibility under this chapter; and (2) to meet the requirements of subsection (a). (e) Documentation For purposes of determining whether a child is eligible to be counted for the purpose of computing the amount of a grant award under section 1263, the membership of the child, or any parent or grandparent of the child, in a tribe or band of Indians (as so defined) may be established by proof other than an enrollment number, notwithstanding the availability of an enrollment number for a member of such tribe or band. Nothing in subsection (b) shall be construed to require the furnishing of an enrollment number. (f) Monitoring and evaluation review (1) In general (A) Review For each fiscal year, in order to provide such information as is necessary to carry out the responsibility of the Secretary to provide technical assistance under this chapter, the Secretary shall conduct a monitoring and evaluation review of a sampling of the recipients of grants under this chapter. The sampling conducted under this subparagraph shall take into account the size of and the geographic location of each local educational agency. (B) Exception A local educational agency may not be held liable to the United States or be subject to any penalty, by reason of the findings of an audit that relates to the date of completion, or the date of submission, of any forms used to establish, before April 28, 1988, the eligibility of a child for an entitlement under the Indian Elementary and Secondary School Assistance Act. (2) False information Any local educational agency that provides false information in an application for a grant under this chapter shall— (A) be ineligible to apply for any other grant under this chapter; and (B) be liable to the United States for any funds from the grant that have not been expended. (3) Excluded children A student who provides false information for the form required under subsection (a) shall not be counted for the purpose of computing the amount of a grant under section 1263. (g) Tribal grant and contract schools Notwithstanding any other provision of this section, in calculating the amount of a grant under this chapter to a tribal school that receives a grant or contract from the Bureau of Indian Education, the Secretary shall use only one of the following, as selected by the school: (1) A count of the number of students in the schools certified by the Bureau. (2) A count of the number of students for whom the school has eligibility forms that comply with this section. (h) Timing of child counts For purposes of determining the number of children to be counted in calculating the amount of a local educational agency’s grant under this chapter (other than in the case described in subsection (g)(1)), the local educational agency shall— (1) establish a date on, or a period not longer than 31 consecutive days during, which the agency counts those children, if that date or period occurs before the deadline established by the Secretary for submitting an application under section 1264; and (2) determine that each such child was enrolled, and receiving a free public education, in a school of the agency on that date or during that period, as the case may be. 1268. Payments (a) In general Subject to subsections (b) and (c), the Secretary shall pay to each local educational agency that submits an application that is approved by the Secretary under this chapter the amount determined under section 1263. The Secretary shall notify the local educational agency of the amount of the payment not later than June 1 of the year for which the Secretary makes the payment. (b) Payments taken into account by the state The Secretary may not make a grant under this chapter to a local educational agency for a fiscal year if, for such fiscal year, the State in which the local educational agency is located takes into consideration payments made under this chapter in determining the eligibility of the local educational agency for State aid, or the amount of the State aid, with respect to the free public education of children during such fiscal year or the preceding fiscal year. (c) Reallocations The Secretary may reallocate, in a manner that the Secretary determines will best carry out the purpose of this chapter, any amounts that— (1) based on estimates made by local educational agencies or other information, the Secretary determines will not be needed by such agencies to carry out approved programs under this chapter; or (2) otherwise become available for reallocation under this chapter. 1269. State educational agency review Before submitting an application to the Secretary under section 1264, a local educational agency shall submit the application to the State educational agency, which may comment on such application. If the State educational agency comments on the application, the agency shall comment on all applications submitted by local educational agencies in the State and shall provide those comments to the respective local educational agencies, with an opportunity to respond. B Special Programs and Projects To Improve Educational Opportunities for Indian Children 1271. Improvement of educational opportunities for Indian children (a) Purpose (1) In general It is the purpose of this section to support projects to develop, test, and demonstrate the effectiveness of services and programs to improve educational opportunities and achievement of Indian children. (2) Coordination The Secretary shall take the necessary actions to achieve the coordination of activities assisted under this chapter with— (A) other programs funded under this Act; and (B) other Federal programs operated for the benefit of American Indian and Alaska Native children. (b) Eligible entities In this section, the term eligible entity means a State educational agency, local educational agency, Indian tribe, Indian organization, federally supported elementary school or secondary school for Indian students, Indian institution (including an Indian institution of higher education), or a consortium of such entities. (c) Grants authorized (1) In general From amounts appropriated under section 3(a)(1), the Secretary shall reserve 0.2 of one percent to award grants to eligible entities to enable such entities to carry out activities under this section and section 1272. (2) Uses of funds An eligible entity that receives a grant under this section shall use the funds for one or more activities, including— (A) innovative programs related to the educational needs of educationally disadvantaged children; (B) educational services that are not available to such children in sufficient quantity or quality, including remedial instruction, to raise the achievement of Indian children in one or more of the core academic subjects of English, mathematics, science, foreign languages, art, history, and geography; (C) bilingual and bicultural programs and projects; (D) special health and nutrition services, and other related activities, that address the special health, social, and psychological problems of Indian children; (E) special compensatory and other programs and projects designed to assist and encourage Indian children to enter, remain in, or reenter school, and to increase the rate of high school graduation for Indian children; (F) comprehensive guidance, counseling, and testing services; (G) early childhood and kindergarten programs, including family-based preschool programs that emphasize school readiness and parental skills, and the provision of services to Indian children with disabilities; (H) partnership projects between local educational agencies and institutions of higher education that allow secondary school students to enroll in courses at the postsecondary level to aid such students in the transition from secondary to postsecondary education; (I) partnership projects between schools and local businesses for career preparation programs designed to provide Indian youth with the knowledge and skills such youth need to make an effective transition from school to a high-skill, high-wage career; (J) programs designed to encourage and assist Indian students to work toward, and gain entrance into, an institution of higher education; (K) family literacy services; (L) activities that recognize and support the unique cultural and educational needs of Indian children, and incorporate appropriately qualified tribal elders and seniors; or (M) other services that meet the purpose described in this section. (3) Professional development Evidence based professional development of teaching professionals and paraprofessionals may be a part of any program assisted under this section. (d) Grant requirements and Applications (1) Grant requirements (A) In general The Secretary may make multiyear grants under subsection (c) for the planning, development, pilot operation, or demonstration of any activity described in subsection (c) for a period not to exceed 5 years. (B) Priority In making multiyear grants described in this paragraph, the Secretary shall give priority to entities submitting applications that present a plan for combining two or more of the activities described in subsection (c) over a period of more than 1 year. (C) Progress The Secretary shall make a grant payment for a grant described in this paragraph to an eligible entity after the initial year of the multiyear grant only if the Secretary determines that the eligible entity has made substantial progress in carrying out the activities assisted under the grant in accordance with the application submitted under paragraph (3) and any subsequent modifications to such application. (2) Dissemination grants (A) In general In addition to awarding the multiyear grants described in paragraph (1), the Secretary may award grants under subsection (c) to eligible entities for the dissemination of exemplary materials or programs assisted under this section. (B) Determination The Secretary may award a dissemination grant described in this paragraph if, prior to awarding the grant, the Secretary determines that the material or program to be disseminated— (i) has been adequately reviewed; (ii) has demonstrated educational merit; and (iii) can be replicated. (3) Application (A) In general Any eligible entity that desires to receive a grant under this section shall submit an application to the Secretary at such time and in such manner as the Secretary may reasonably require. (B) Contents Each application submitted to the Secretary under subparagraph (A), other than an application for a dissemination grant under paragraph (2), shall contain— (i) a description of how parents of Indian children and representatives of Indian tribes have been, and will be, involved in developing and implementing the activities for which assistance is sought; (ii) assurances that the applicant will participate, at the request of the Secretary, in any national evaluation of activities assisted under this section; (iii) information demonstrating that the proposed program for the activities is an evidence-based program, which may include a program that has been modified to be culturally appropriate for students who will be served; and (iv) a description of how the applicant will incorporate the proposed activities into the ongoing school program involved once the grant period is over. (e) Administrative costs Not more than 5 percent of the funds provided to a grantee under this chapter for any fiscal year may be used for administrative purposes. 1272. Professional development for teachers and education professionals (a) Purposes The purposes of this section are— (1) to increase the number of qualified Indian teachers, school leaders, or other education professionals serving Indian students, including through recruitment strategies; (2) to provide training to qualified Indian individuals to enable such individuals to become effective teachers, school leaders, administrators, teacher aides, social workers, and ancillary educational personnel; and (3) to improve the skills of qualified Indian individuals who serve in the capacities described in paragraph (2). (b) Eligible entities For the purpose of this section, the term eligible entity means— (1) an institution of higher education, including an Indian institution of higher education; (2) a State educational agency or local educational agency, in consortium with an institution of higher education; (3) an Indian tribe or organization, in consortium with an institution of higher education; and (4) a Bureau-funded school (as defined in section 1146 of the Education Amendments of 1978). (c) Program authorized The Secretary is authorized to award grants from funds reserved under section 1271(c)(1) to eligible entities having applications approved under this section to enable those entities to carry out the activities described in subsection (d). (d) Authorized activities (1) In general Grant funds under this section shall be used for activities to provide support and training for Indian individuals in a manner consistent with the purposes of this section. (2) Special rules (A) Type of training For education personnel, the training received pursuant to a grant under this section may be inservice or preservice training. (B) Program For individuals who are being trained to enter any education-related field other than teaching, the training received pursuant to a grant under this section shall be in a program that results in a graduate degree. (e) Application Each eligible entity desiring a grant under this section shall submit an application to the Secretary at such time and in such manner as the Secretary may reasonably require. An application shall include how the eligible entity will— (1) recruit qualified Indian individuals, such as students who may not be of traditional college age, to become teachers or school leaders; (2) use funds made available under the grant to support the recruitment, preparation, and professional development of Indian teachers or school leaders in local educational agencies that serve a high proportion of Indian students; and (3) assist participants in meeting the requirements under subsection (h). (f) Special rule In awarding grants under this section, the Secretary— (1) shall consider the prior performance of the eligible entity; and (2) may not limit eligibility to receive a grant under this section on the basis of— (A) the number of previous grants the Secretary has awarded such entity; or (B) the length of any period during which such entity received such grants. (g) Grant period Each grant under this section shall be awarded for an initial period of not more than three years, and may be renewed for not more than an additional two years if the Secretary finds that the grantee is meeting the grant objectives. (h) Service obligation (1) In general The Secretary shall require, by regulation, that an individual who receives training pursuant to a grant made under this section— (A) perform work— (i) related to the training received under this section; and (ii) that benefits Indian people; or (B) repay all or a prorated part of the assistance received. (2) Reporting The Secretary shall establish, by regulation, a reporting procedure under which a grant recipient under this section shall, not later than 12 months after the date of completion of the training, and periodically thereafter, provide information concerning compliance with the work requirement under paragraph (1). C Federal Administration 1281. National Advisory Council on Indian Education (a) Membership There is established a National Advisory Council on Indian Education (hereafter in this section referred to as the Council ), which shall— (1) consist of 15 Indian members, who shall be appointed by the President from lists of nominees furnished, from time to time, by Indian tribes and organizations; and (2) represent different geographic areas of the United States. (b) Duties The Council shall— (1) advise the Secretary concerning the funding and administration (including the development of regulations and administrative policies and practices) of any program, including any program established under this subpart— (A) with respect to which the Secretary has jurisdiction; and (B) (i) that includes Indian children or adults as participants; or (ii) that may benefit Indian children or adults; (2) make recommendations to the Secretary for filling the position of Director of Indian Education whenever a vacancy occurs; and (3) submit to Congress, not later than June 30 of each year, a report on the activities of the Council, including— (A) any recommendations that the Council considers appropriate for the improvement of Federal education programs that include Indian children or adults as participants, or that may benefit Indian children or adults; and (B) recommendations concerning the funding of any program described in subparagraph (A). 1282. Peer review The Secretary may use a peer review process to review applications submitted to the Secretary under chapter B. 1283. Preference for Indian applicants In making grants and entering into contracts or cooperative agreements under chapter B, the Secretary shall give a preference to Indian tribes, organizations, and institutions of higher education under any program with respect to which Indian tribes, organizations, and institutions are eligible to apply for grants, contracts, or cooperative agreements. 1284. Minimum grant criteria The Secretary may not approve an application for a grant, contract, or cooperative agreement under chapter B unless the application is for a grant, contract, or cooperative agreement that is— (1) of sufficient size, scope, and quality to achieve the purpose or objectives of such grant, contract, or cooperative agreement; and (2) based on relevant research findings. D Definitions 1291. Definitions For the purposes of this subpart: (1) Adult The term adult means an individual who— (A) has attained the age of 16 years; or (B) has attained an age that is greater than the age of compulsory school attendance under an applicable State law. (2) Alaska Native The term Alaska Native has the same meaning as the term Native has in section 3(b) of the Alaska Native Claims Settlement Act. (3) Free public education The term free public education means education that is— (A) provided at public expense, under public supervision and direction, and without tuition charge; and (B) provided as elementary or secondary education in the applicable State or to preschool children. (4) Indian The term Indian means an individual who is— (A) a member of an Indian tribe or band, as membership is defined by the tribe or band, including— (i) any tribe or band terminated since 1940; and (ii) any tribe or band recognized by the State in which the tribe or band resides; (B) a descendant, in the first or second degree, of an individual described in subparagraph (A); (C) considered by the Secretary of the Interior to be an Indian for any purpose; (D) an Eskimo, Aleut, or other Alaska Native; or (E) a member of an organized Indian group that received a grant under the Indian Education Act of 1988 as in effect the day preceding the date of enactment of the Improving America’s Schools Act of 1994. . (b) Strike The Act is amended by striking title VII ( 20 U.S.C. 7401 et seq. ). D National assessment 141. National assessment of title I (a) In general Part E of title I (20 U.S.C. 6491 et seq.) is redesignated as part B of title I. (b) Repeals Sections 1502 and 1504 ( 20 U.S.C. 6492 ; 6494) are repealed. (c) Redesignations Sections 1501 and 1503 ( 20 U.S.C. 6491 ; 6493) are redesignated as sections 1301 and 1302, respectively. (d) Amendments to section 1301 Section 1301 ( 20 U.S.C. 6491 ), as so redesignated, is amended— (1) in subsection (a)— (A) in paragraph (1), by inserting , acting through the Director of the Institute of Education Sciences (in this section and section 1302 referred to as the Director ), after The Secretary ; (B) in paragraph (2)— (i) by striking Secretary and inserting Director ; (ii) in subparagraph (A), by striking reaching the proficient level and all that follows and inserting graduating high school prepared for postsecondary education or the workforce. ; (iii) in subparagraph (B), by striking reach the proficient and all that follows and inserting meet State academic standards. ; (iv) by striking subparagraphs (D) and (G) and redesignating subparagraphs (E), (F), and (H) through (O) as subparagraphs (D) through (M), respectively; (v) in subparagraph (D)(v) (as so redesignated), by striking help schools in which and all that follows and inserting address disparities in the percentages of effective teachers teaching in low-income schools. ; (vi) in subparagraph (G) (as so redesignated)— (I) by striking section 1116 and inserting section 1111(b)(3)(B)(iii) ; and (II) by striking , including the following and all that follows and inserting a period; (vii) in subparagraph (I) (as so redesignated), by striking qualifications and inserting effectiveness ; (viii) in subparagraph (J) (as so redesignated), by striking , including funds under section 1002, ; (ix) in subparagraph (L) (as so redesignated), by striking section 1111(b)(2)(C)(v)(II) and inserting section 1111(b)(3)(B)(ii)(II) ; and (x) in subparagraph (M) (as so redesignated), by striking Secretary and inserting Director ; (C) in paragraph (3), by striking Secretary and inserting Director ; (D) in paragraph (4), by striking Secretary and inserting Director ; (E) in paragraph (5), by striking Secretary and inserting Director ; and (F) in paragraph (6)— (i) by striking No Child Left Behind Act of 2001 each place it appears and inserting Student Success Act ; and (ii) by striking Secretary each place it appears and inserting Director ; (2) in subsection (b), by striking Secretary each place it appears and inserting Director ; (3) in subsection (c)— (A) in paragraph (1)— (i) by striking Secretary and inserting Director ; and (ii) by striking part A and inserting subpart 1 of part A ; (B) in paragraph (2)— (i) by striking Secretary and inserting Director ; (ii) in subparagraph (B), by striking challenging academic achievement standards and inserting State academic standards ; (iii) in subparagraph (E), by striking effects of the availability and all that follows and inserting extent to which actions authorized under section 1111(b)(3)(B)(iii) improve the academic achievement of disadvantaged students and low-performing schools. ; and (iv) in subparagraph (F), by striking Secretary and inserting Director ; and (C) in paragraph (3)— (i) by striking Secretary and inserting Director ; and (ii) by striking subparagraph (C) and inserting the following: (C) analyzes varying models or strategies for delivering school services, including schoolwide and targeted services. ; and (4) in subsection (d), by striking Secretary each place it appears and inserting Director . (e) Amendments to section 1302 Section 1302 (20 U.S.C. 6493), as so redesignated, is amended— (1) in subsection (a)— (A) by striking Secretary and inserting Director ; and (B) by striking and for making decisions about the promotion and graduation of students ; (2) in subsection (b)— (A) by striking Secretary the first place it appears and inserting Director ; (B) by striking process, and inserting process consistent with section 1206, ; and (C) by striking Assistant Secretary of Educational Research and Improvement and inserting Director ; (3) in subsection (d)— (A) in paragraph (1)— (i) in subparagraph (A), by striking to the State-defined level of proficiency and inserting toward meeting the State academic standards ; and (ii) in subparagraph (C), by striking pupil-services and inserting specialized instructional support services ; (B) in paragraph (3), by striking limited and nonlimited English proficient students and inserting English learners ; and (C) in paragraph (6), by striking Secretary and inserting Director ; and (4) in subsection (f)— (A) by striking Secretary and inserting Director ; and (B) by striking authorized to be appropriated for this part and inserting appropriated under section 3(a)(2) . E Title I general provisions 151. General provisions for title I Part I of title I ( 20 U.S.C. 6571 et seq. )— (1) is transferred to and redesignated as part C of title I of the Act; and (2) is amended to read as follows: C General Provisions 1401. Federal regulations (a) In General The Secretary may, in accordance with subsections (b) through (d), issue such regulations as are necessary to reasonably ensure there is compliance with this title. (b) Negotiated Rulemaking Process (1) In general Before publishing in the Federal Register proposed regulations to carry out this title, the Secretary shall obtain the advice and recommendations of representatives of Federal, State, and local administrators, parents, teachers, and members of local school boards and other organizations involved with the implementation and operation of programs under this title. (2) Meetings and electronic exchange Such advice and recommendations may be obtained through such mechanisms as regional meetings and electronic exchanges of information. (3) Proposed regulations After obtaining such advice and recommendations, and before publishing proposed regulations, the Secretary shall— (A) establish a negotiated rulemaking process; (B) select individuals to participate in such process from among individuals or groups that provided advice and recommendations, including representation from all geographic regions of the United States, in such numbers as will provide an equitable balance between representatives of parents and students and representatives of educators and education officials; and (C) prepare a draft of proposed policy options that shall be provided to the individuals selected by the Secretary under subparagraph (B) not less than 15 days before the first meeting under such process. (c) Proposed Rulemaking If the Secretary determines that a negotiated rulemaking process is unnecessary or the individuals selected to participate in the process under paragraph (3)(B) fail to reach unanimous agreement, the Secretary may propose regulations under the following procedure: (1) Not less than 30 days prior to beginning a rulemaking process, the Secretary shall provide to Congress, including the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate, notice that shall include— (A) a copy of the proposed regulations; (B) the need to issue regulations; (C) the anticipated burden, including the time, cost, and paperwork burden, the regulations will have on State educational agencies, local educational agencies, schools, and other entities that may be impacted by the regulations; and (D) any regulations that will be repealed when the new regulations are issued. (2) 30 days after giving notice of the proposed rule to Congress, the Secretary may proceed with the rulemaking process after all comments received from the Congress have been addressed and publishing how such comments are addressed with the proposed rule. (3) The comment and review period for any proposed regulation shall be 90 days unless an emergency requires a shorter period, in which case such period shall be not less than 45 days and the Secretary shall— (A) designate the proposed regulation as an emergency with an explanation of the emergency in the notice and report to Congress under paragraph (1); and (B) publish the length of the comment and review period in such notice and in the Federal Register. (4) No regulation shall be made final after the comment and review period until the Secretary has published in the Federal Register an independent assessment of— (A) the burden, including the time, cost, and paperwork burden, the regulation will impose on State educational agencies, local educational agencies, schools and other entities that may be impacted by the regulation; and (B) an explanation of how the entities described in subparagraph (A) may cover the cost of the burden assessed under subparagraph (A). (d) Limitation Regulations to carry out this title may not require local programs to follow a particular instructional model, such as the provision of services outside the regular classroom or school program. 1402. Agreements and records (a) Agreements In the case in which a negotiated rule making process is established under subsection (b) of section 1401, all published proposed regulations shall conform to agreements that result from the rulemaking described in section 1401 unless the Secretary reopens the negotiated rulemaking process. (b) Records The Secretary shall ensure that an accurate and reliable record of agreements reached during the negotiations process is maintained. 1403. State administration (a) Rulemaking (1) In general Each State that receives funds under this title shall— (A) ensure that any State rules, regulations, and policies relating to this title conform to the purposes of this title and provide any such proposed rules, regulations, and policies to the committee of practitioners created under subsection (b) for review and comment; (B) minimize such rules, regulations, and policies to which the State’s local educational agencies and schools are subject; (C) eliminate or modify State and local fiscal accounting requirements in order to facilitate the ability of schools to consolidate funds under schoolwide programs; (D) identify any such rule, regulation, or policy as a State-imposed requirement; and (E) (i) identify any duplicative or contrasting requirements between the State and Federal rules or regulations; (ii) eliminate the rules and regulations that are duplicative of Federal requirements; and (iii) report any conflicting requirements to the Secretary and determine which Federal or State rule or regulation shall be followed. (2) Support and facilitation State rules, regulations, and policies under this title shall support and facilitate local educational agency and school-level systemic reform designed to enable all children to meet the State academic standards. (b) Committee of Practitioners (1) In general Each State educational agency that receives funds under this title shall create a State committee of practitioners to advise the State in carrying out its responsibilities under this title. (2) Membership Each such committee shall include— (A) as a majority of its members, representatives from local educational agencies; (B) administrators, including the administrators of programs described in other parts of this title; (C) teachers from public charter schools, traditional public schools, and career and technical educators; (D) parents; (E) members of local school boards; (F) representatives of private school children; and (G) specialized instructional support personnel. (3) Duties The duties of such committee shall include a review, before publication, of any proposed or final State rule or regulation pursuant to this title. In an emergency situation where such rule or regulation must be issued within a very limited time to assist local educational agencies with the operation of the program under this title, the State educational agency may issue a regulation without prior consultation, but shall immediately thereafter convene the State committee of practitioners to review the emergency regulation before issuance in final form. 1404. Rule of construction on equalized spending Nothing in this title shall be construed to mandate equalized spending per pupil for a State, local educational agency, or school. . II Teacher Preparation and Effectiveness 201. Teacher preparation and effectiveness (a) Heading The title heading for title II (20 U.S.C. 6601 et seq.) is amended to read as follows: II Teacher Preparation and Effectiveness . (b) Part A Part A of title II (20 U.S.C. 6601 et seq.) is amended to read as follows: A Supporting Effective Instruction 2101. Purpose The purpose of this part is to provide grants to State educational agencies and subgrants to local educational agencies to— (1) increase student achievement consistent with State academic standards under section 1111; (2) improve teacher and school leader effectiveness in classrooms and schools respectively; (3) provide evidence-based, job-embedded, continuous professional development; and (4) develop and implement teacher evaluation systems that use, in part, student achievement data to determine teacher effectiveness. 1 Grants to States 2111. Allotments to States (a) In general Of the amounts appropriated under section 3(b), the Secretary shall reserve 75 percent to make grants to States with applications approved under section 2112 to pay for the Federal share of the cost of carrying out the activities specified in section 2113 . Each grant shall consist of the allotment determined for a State under subsection (b). (b) Determination of allotments (1) Reservation of funds Of the amount reserved under subsection (a) for a fiscal year, the Secretary shall reserve— (A) not more than 1 percent to carry out national activities under section 2132; (B) one-half of 1 percent for allotments to outlying areas on the basis of their relative need, as determined by the Secretary, in accordance with the purpose of this part; and (C) one-half of 1 percent for the Secretary of the Interior for programs under this part in schools operated or funded by the Bureau of Indian Education. (2) State allotments (A) In general Subject to subparagraph (B) , from the funds reserved under subsection (a) for any fiscal year and not reserved under paragraph (1), the Secretary shall allot to each State the sum of— (i) an amount that bears the same relationship to 50 percent of the funds as the number of individuals age 5 through 17 in the State, as determined by the Secretary on the basis of the most recent satisfactory data, bears to the number of those individuals in all such States, as so determined; and (ii) an amount that bears the same relationship to 50 percent of the funds as the number of individuals age 5 through 17 from families with incomes below the poverty line in the State, as determined by the Secretary on the basis of the most recent satisfactory data, bears to the number of those individuals in all such States, as so determined. (B) Small State Minimum No State receiving an allotment under subparagraph (A) may receive less than one-half of 1 percent of the total amount of funds allotted under such subparagraph for a fiscal year. (c) Alternate distribution of funds (1) In general Subject to paragraphs (2) through (5), if a State does not apply to the Secretary for an allotment under this section, a local educational agency located in such State may apply to the Secretary for a portion of the funds that would have been allotted to the State had such State applied for an allotment under this section to carry out the activities under this part. (2) Application In order to receive an allotment under paragraph (1) , a local educational agency shall submit to the Secretary an application at such time, in such manner, and containing the information described in section 2122. (3) Use of funds A local educational agency receiving an allotment under paragraph (1)— (A) shall use such funds to carry out the activities described in section 2123(1); and (B) may use such funds to carry out the activities described in section 2123(2). (4) Reporting requirements A local educational agency receiving an allotment under paragraph (1) shall carry out the reporting requirements described in section 2131(a), except that annual reports shall be submitted to the Secretary and not a State educational agency. (5) Amount of allotment An allotment made to a local educational agency under paragraph (1) for a fiscal year shall be equal to the amount of subgrant funds that the local educational agency would have received under subpart 2 had such agency applied for a subgrant under such subpart for such fiscal year. (d) Reallotment If a State does not apply for an allotment under this section for any fiscal year or only a portion of the State’s allotment is allotted under subsection (c) , the Secretary shall reallot the State’s entire allotment or the remaining portion of its allotment, as the case may be, to the remaining States in accordance with subsection (b) . 2112. State application (a) In general For a State to be eligible to receive a grant under this subpart, the State educational agency shall submit an application to the Secretary at such time and in such a manner as the Secretary may reasonably require, which shall include the following: (1) A description of how the State educational agency will meet the requirements of this subpart. (2) A description of how the State educational agency will use a grant received under section 2111, including the grant funds the State will reserve for State-level activities under section 2113(a)(2) . (3) A description of how the State educational agency will facilitate the sharing of evidence-based and other effective strategies among local educational agencies. (4) A description of how, and under what timeline, the State educational agency will allocate subgrants under subpart 2 to local educational agencies. (5) In the case of a State educational agency that is not developing or implementing a statewide teacher evaluation system, a description of how the State educational agency will ensure that each local educational agency in the State receiving a subgrant under subpart 2 will implement a teacher evaluation system that meets the requirements of clauses (i) through (v) of section 2123(1)(A). (6) In the case of a State educational agency that is developing or implementing a statewide teacher evaluation system— (A) a description of how the State educational agency will work with local educational agencies in the State to implement the statewide teacher evaluation system within 3 years of the date of enactment of the Student Success Act; and (B) an assurance that the statewide teacher evaluation system complies with clauses (i) through (v) of section 2123(1)(A). (7) An assurance that the State educational agency will comply with section 5501 (regarding participation by private school children and teachers). (b) Deemed approval An application submitted by a State educational agency under subsection (a) shall be deemed to be approved by the Secretary unless the Secretary makes a written determination, prior to the expiration of the 120-day period beginning on the date on which the Secretary received the application, that the application is not in compliance with this subpart. (c) Disapproval The Secretary shall not finally disapprove an application, except after giving the State educational agency notice and an opportunity for a hearing. (d) Notification If the Secretary finds that an application is not in compliance, in whole or in part, with this subpart, the Secretary shall— (1) give the State educational agency notice and an opportunity for a hearing; and (2) notify the State educational agency of the finding of noncompliance and, in such notification, shall— (A) cite the specific provisions in the application that are not in compliance; and (B) request additional information, only as to the noncompliant provisions, needed to make the application compliant. (e) Response If a State educational agency responds to a notification from the Secretary under subsection (d)(2) during the 45-day period beginning on the date on which the agency received the notification, and resubmits the application with the requested information described in subsection (d)(2)(B) , the Secretary shall approve or disapprove such application prior to the later of— (1) the expiration of the 45-day period beginning on the date on which the application is resubmitted; or (2) the expiration of the 120-day period described in subsection (b) . (f) Failure To respond If a State educational agency does not respond to a notification from the Secretary under subsection (d)(2) during the 45-day period beginning on the date on which the agency received the notification, such application shall be deemed to be disapproved. 2113. State use of funds (a) In general A State educational agency that receives a grant under section 2111 shall— (1) reserve 95 percent of the grant funds to make subgrants to local educational agencies under subpart 2; and (2) use the remainder of the funds, after reserving funds under paragraph (1) , for the State activities described in subsection (b) , except that the State may reserve not more than 1 percent of the grant funds for planning and administration related to carrying out activities described in subsection (b). (b) State-Level activities A State educational agency that receives a grant under section 2111— (1) shall use the amount described in subsection (a)(2) to— (A) provide training and technical assistance to local educational agencies on— (i) in the case of a State educational agency not implementing a statewide teacher evaluation system— (I) the development and implementation of a teacher evaluation system that meets the requirements of clauses (i) through (v) of section 2123(1)(A); and (II) training school leaders in using such evaluation system; or (ii) in the case of a State educational agency implementing a statewide teacher evaluation system, implementing such evaluation system; and (B) fulfill the State educational agency’s responsibilities with respect to the proper and efficient administration of the subgrant program carried out under this part; and (2) may use the amount described in subsection (a)(2) to— (A) disseminate and share evidence-based and other effective practices related to teacher and school leader effectiveness and professional development; (B) provide professional development for teachers and school leaders in the State consistent with section 2123(2)(D); and (C) provide training and technical assistance to local educational agencies on— (i) in the case of a State educational agency not implementing a statewide school leader evaluation system, the development and implementation of a school leader evaluation system; and (ii) in the case of a State educational agency implementing a statewide school leader evaluation system, implementing such evaluation system. 2 Subgrants to local educational agencies 2121. Allocations to local educational agencies (a) In general Each State receiving a grant under section 2111 shall use the funds reserved under section 2113(a)(1) to award subgrants to local educational agencies under this section. (b) Allocation of funds From the funds reserved by a State under section 2113(a)(1) , the State educational agency shall allocate to each local educational agency in the State the sum of— (1) an amount that bears the same relationship to 50 percent of the funds as the number of individuals age 5 through 17 in the geographic area served by the local educational agency, as determined by the State on the basis of the most recent satisfactory data, bears to the number of those individuals in the geographic areas served by all the local educational agencies in the State, as so determined; and (2) an amount that bears the same relationship to 50 percent of the funds as the number of individuals age 5 through 17 from families with incomes below the poverty line in the geographic area served by the local educational agency, as determined by the State on the basis of the most recent satisfactory data, bears to the number of those individuals in the geographic areas served by all the local educational agencies in the State, as so determined. 2122. Local applications To be eligible to receive a subgrant under this subpart, a local educational agency shall submit an application to the State educational agency involved at such time, in such a manner, and containing such information as the State educational agency may reasonably require that, at a minimum, shall include the following: (1) A description of— (A) how the local educational agency will meet the requirements of this subpart; (B) how the activities to be carried out by the local educational agency under this subpart will be evidence-based, improve student academic achievement, and improve teacher and school leader effectiveness; (C) in the case of a local educational agency not in a State with a statewide teacher evaluation system, the teacher evaluation system that will be developed and implemented under section 2123(1) and how such system will meet the requirements described in clauses (i) through (v) of section 2123(1)(A); (D) how, in developing and implementing such a teacher evaluation system, the local educational agency will work with parents, teachers, school leaders, and other staff of the schools served by the local educational agency; and (E) how the local educational agency will develop and implement such a teacher evaluation system within 3 years of the date of enactment of the Student Success Act. (2) In the case of a local educational agency in a State with a statewide teacher evaluation system, a description of how the local educational agency will work with the State educational agency to implement the statewide teacher evaluation system within 3 years of the date of enactment of the Student Success Act. (3) An assurance that the local educational agency will comply with section 5501 (regarding participation by private school children and teachers). 2123. Local use of funds A local educational agency receiving a subgrant under this subpart— (1) shall use such funds— (A) to develop and implement a teacher evaluation system that— (i) uses student achievement data derived from a variety of sources as a significant factor in determining a teacher’s evaluation, with the weight given to such data defined by the local educational agency; (ii) uses multiple measures of evaluation for evaluating teachers; (iii) has more than 2 categories for rating the performance of teachers; (iv) shall be used to make personnel decisions, as determined by the local educational agency; and (v) is based on input from parents, school leaders, teachers, and other staff of schools served by the local educational agency; or (B) in the case of a local educational agency located in a State implementing a statewide teacher evaluation system, to implement such evaluation system; and (2) may use such funds for— (A) the training of school leaders or other individuals for the purpose of evaluating teachers under a teacher evaluation system described in subparagraph (A) or (B) of paragraph (1), as appropriate; (B) in the case of a local educational agency located in a State implementing a statewide school leader evaluation system, to implement such evaluation system; (C) in the case of a local educational agency located in a State not implementing a statewide school leader evaluation system, the development and implementation of a school leader evaluation system; (D) professional development for teachers and school leaders that is evidence-based, job-embedded, and continuous, such as— (i) subject-based professional development for teachers; (ii) professional development aligned with the State’s academic standards; (iii) professional development to assist teachers in meeting the needs of students with different learning styles, particularly students with disabilities and English learners; (iv) professional development for teachers identified as in need of additional support through data provided by a teacher evaluation system described in subparagraph (A) or (B) of paragraph (1), as appropriate; (v) professional development based on the current science of learning, which includes research on positive brain change and cognitive skill development; (vi) professional development for school leaders, including evidence-based mentorship programs for such leaders; or (vii) professional development on integrated, interdisciplinary, and project-based teaching strategies, including for career and technical education teachers; (E) partnering with a public or private organization or a consortium of such organizations to develop and implement a teacher evaluation system described in subparagraph (A) or (B) of paragraph (1), or to administer professional development, as appropriate; (F) any activities authorized under section 2222(a); or (G) class size reduction, except that the local educational agency may use not more than 10 percent of such funds for this purpose. 3 General provisions 2131. Reporting Requirements (a) Local educational agencies Each local educational agency receiving a subgrant under subpart 2 shall submit to the State educational agency involved, on an annual basis until the last year in which the local educational agency receives such subgrant funds, a report on— (1) how the local educational agency is meeting the purposes of this part described in section 2101; (2) how the local educational agency is using such subgrant funds; (3) the number and percentage of teachers in each category established under clause (iii) of section 2123(1)(A), except that such report shall not reveal personally identifiable information about an individual teacher; and (4) any such other information as the State educational agency may require. (b) State educational agencies Each State educational agency receiving a grant under subpart 1 shall submit to the Secretary a report, on an annual basis until the last year in which the State educational agency receives such grant funds, on— (1) how the State educational agency is meeting the purposes of this part described in section 2101; and (2) how the State educational agency is using such grant funds. 2132. National activities From the funds reserved by the Secretary under section 2111(b)(1)(A), the Secretary shall, directly or through grants and contracts— (1) provide technical assistance to States and local educational agencies in carrying out activities under this part; and (2) acting through the Institute of Education Sciences, conduct national evaluations of activities carried out by State educational agencies and local educational agencies under this part. 2133. State defined In this part, the term State means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico. . (c) Part B Part B of title II ( 20 U.S.C. 6661 et seq. ) is amended to read as follows: B Teacher and School Leader Flexible Grant 2201. Purpose The purpose of this part is to improve student academic achievement in the core academic subjects by— (1) supporting all State educational agencies, local educational agencies, schools, teachers, and school leaders to pursue innovative and evidence-based practices to help all students meet the State’s academic standards; and (2) increasing the number of teachers and school leaders who are effective in increasing student academic achievement. 1 Formula grants to States 2211. State Allotments (a) Reservations From the amount appropriated under section 3(b) for any fiscal year, the Secretary— (1) shall reserve 25 percent to award grants to States under this subpart; and (2) of the amount reserved under paragraph (1), shall reserve— (A) not more than 1 percent for national activities described in section 2233; (B) one-half of 1 percent for allotments to outlying areas on the basis of their relative need, as determined by the Secretary, in accordance with the purpose of this part; and (C) one-half of 1 percent for the Secretary of the Interior for programs under this part in schools operated or funded by the Bureau of Indian Education. (b) State allotments (1) In general From the total amount reserved under subsection (a)(1) for each fiscal year and not reserved under subparagraphs (A) through (C) of subsection (a)(2), the Secretary shall allot, and make available in accordance with this section, to each State an amount that bears the same ratio to such sums as the school-age population of the State bears to the school-age population of all States. (2) Small State minimum No State receiving an allotment under paragraph (1) may receive less than one-half of 1 percent of the total amount allotted under such paragraph. (3) Reallotment If a State does not receive an allotment under this subpart for a fiscal year, the Secretary shall reallot the amount of the State’s allotment to the remaining States in accordance with this section. (c) State application In order to receive an allotment under this section for any fiscal year, a State shall submit an application to the Secretary, at such time and in such manner as the Secretary may reasonably require. Such application shall— (1) designate the State educational agency as the agency responsible for the administration and supervision of programs assisted under this part; (2) describe how the State educational agency will use funds received under this section for State level activities described in subsection (d)(3) ; (3) describe the procedures and criteria the State educational agency will use for reviewing applications and awarding subgrants in a timely manner to eligible entities under section 2221 on a competitive basis; (4) describe how the State educational agency will ensure that subgrants made under section 2221 are of sufficient size and scope to support effective programs that will help increase academic achievement in the classroom and are consistent with the purposes of this part; (5) describe the steps the State educational agency will take to ensure that eligible entities use subgrants received under section 2221 to carry out programs that implement effective strategies, including by providing ongoing technical assistance and training, and disseminating evidence-based and other effective strategies to such eligible entities; (6) describe how programs under this part will be coordinated with other programs under this Act; and (7) include an assurance that, other than providing technical and advisory assistance and monitoring compliance with this part, the State educational agency has not exercised, and will not exercise, any influence in the decisionmaking processes of eligible entities as to the expenditure of funds made pursuant to an application submitted under section 2221(b). (d) State use of funds (1) In general Each State that receives an allotment under this section shall reserve not less than 92 percent of the amount allotted to such State under subsection (b) , for each fiscal year, for subgrants to eligible entities under subpart 2. (2) State administration A State educational agency may reserve not more than 1 percent of the amount made available to the State under subsection (b) for the administrative costs of carrying out such State educational agency’s responsibilities under this subpart. (3) State-level activities (A) Innovative Teacher and School Leader Activities A State educational agency shall reserve not more than 4 percent of the amount made available to the State under subsection (b) to carry out, solely, or in partnership with State agencies of higher education, 1 or more of the following activities: (i) Reforming teacher and school leader certification, recertification, licensing, and tenure systems to ensure that such systems are rigorous and that— (I) each teacher has the subject matter knowledge and teaching skills necessary to help students meet the State’s academic standards; and (II) school leaders have the instructional leadership skills to help teachers instruct and students learn. (ii) Carrying out programs that establish, expand, or improve alternative routes for State certification or licensure of teachers and school leaders, including such programs for— (I) mid-career professionals from other occupations, including science, technology, engineering, and math fields; (II) former military personnel; and (III) recent graduates of an institution of higher education, with a record of academic distinction, who demonstrate the potential to become effective teachers or school leaders. (iii) Developing, or assisting eligible entities in developing— (I) performance-based pay systems for teachers and school leaders; (II) strategies that provide differential, incentive, or bonus pay for teachers; or (III) teacher advancement initiatives that promote professional growth and emphasize multiple career paths and pay differentiation. (iv) Developing, or assisting eligible entities in developing, new, evidence-based teacher and school leader induction and mentoring programs that are designed to— (I) improve instruction and student learning and achievement; and (II) increase the retention of effective teachers and school leaders. (v) Providing professional development for teachers and school leaders that is focused on— (I) improving teaching and student learning and achievement in the core academic subjects; and (II) improving teaching, student learning, and achievement for students with different learning styles, particularly students with disabilities, English learners, and other special populations. (vi) Providing training and technical assistance to eligible entities that receive a subgrant under section 2221. (vii) Other activities identified by the State educational agency that meet the purposes of this part, including those activities authorized under subparagraph (B). (B) Teacher or School Leader Preparation Academies (i) In general In the case of a State in which teacher or school leader preparation academies are allowable under State law, a State educational agency may reserve not more than 3 percent of the amount made available to the State under subsection (b) to support the establishment or expansion of one or more teacher or school leader preparation academies and, subject to the limitation under clause (iii), to support State authorizers for such academies. (ii) Matching requirement A State educational agency shall not provide funds under this subparagraph to support the establishment or expansion of a teacher or school leader preparation academy unless the academy agrees to provide, either directly or through private contributions, non-Federal matching funds equal to not less than 10 percent of the amount of the funds the academy will receive under this subparagraph. (iii) Funding for State authorizers Not more than 5 percent of funds provided to a teacher or school leader preparation academy under this subparagraph may be used to support activities of State authorizers for such academy. 2212. Approval and Disapproval of State Applications (a) Deemed approval An application submitted by a State pursuant to section 2211(c) shall be deemed to be approved by the Secretary unless the Secretary makes a written determination, prior to the expiration of the 120-day period beginning on the date on which the Secretary received the application, that the application is not in compliance with section 2211(c) . (b) Disapproval Process (1) In General The Secretary shall not finally disapprove an application submitted under section 2211(c) , except after giving the State educational agency notice and an opportunity for a hearing. (2) Notification If the Secretary finds that an application is not in compliance, in whole or in part, with section 2211(c) the Secretary shall— (A) give the State educational agency notice and an opportunity for a hearing; and (B) notify the State educational agency of the finding of noncompliance and, in such notification, shall— (i) cite the specific provisions in the application that are not in compliance; and (ii) request additional information, only as to the noncompliant provisions, needed to make the application compliant. (3) Response If a State educational agency responds to a notification from the Secretary under paragraph (2)(B) during the 45-day period beginning on the date on which the State educational agency received the notification, and resubmits the application with the requested information described in paragraph (2)(B)(ii) , the Secretary shall approve or disapprove such application prior to the later of— (A) the expiration of the 45-day period beginning on the date on which the application is resubmitted; or (B) the expiration of the 120-day period described in subsection (a) . (4) Failure to respond If the State educational agency does not respond to a notification from the Secretary under paragraph (2)(B) during the 45-day period beginning on the date on which the State educational agency received the notification, such application shall be deemed to be disapproved. 2 Local competitive grant program 2221. Local competitive grant program (a) In general A State that receives an allotment under section 2211(b) for a fiscal year shall use the amount reserved under section 2211(d)(1) to award subgrants, on a competitive basis, to eligible entities in accordance with this section to enable such entities to carry out the programs and activities described in section 2222 . (b) Application (1) In general To be eligible to receive a subgrant under this section, an eligible entity shall submit an application to the State educational agency at such time, in such manner, and including such information as the State educational agency may reasonably require. (2) Contents Each application submitted under paragraph (1) shall include— (A) a description of the programs and activities to be funded and how they are consistent with the purposes of this part; and (B) an assurance that the eligible entity will comply with section 5501 (regarding participation by private school children and teachers). (c) Peer review In reviewing applications under this section, a State educational agency shall use a peer review process or other methods of assuring the quality of such applications but the review shall only judge the likelihood of the activity to increase student academic achievement. The reviewers shall not make a determination based on the policy of the proposed activity. (d) Geographic diversity A State educational agency shall distribute funds under this section equitably among geographic areas within the State, including rural, suburban, and urban communities. (e) Duration of awards A State educational agency may award subgrants under this section for a period of not more than 5 years. (f) Matching An eligible entity receiving a subgrant under this section shall provide, either directly or through private contributions, non-Federal matching funds equal to not less than 10 percent of the amount of the subgrant. 2222. Local authorized activities (a) In General Each eligible entity receiving a subgrant under section 2221 shall use such subgrant funds to develop, implement, and evaluate comprehensive programs and activities, that are in accordance with the purpose of this part and— (1) are consistent with the principles of effectiveness described in subsection (b) ; and (2) may include, among other programs and activities— (A) developing and implementing initiatives to assist in recruiting, hiring, and retaining highly effective teachers and school leaders, including initiatives that provide— (i) differential, incentive, or bonus pay for teachers; (ii) performance-based pay systems for teachers and school leaders; (iii) teacher advancement initiatives that promote professional growth and emphasize multiple career paths and pay differentiation; (iv) new teacher and school leader induction and mentoring programs that are designed to improve instruction, student learning and achievement, and to increase teacher and school leader retention; and (v) teacher residency programs, and school leader residency programs, designed to develop and support new teachers or new school leaders, respectively; (B) supporting the establishment or expansion of teacher or school leader preparation academies under section 2211(d)(3)(B); (C) recruiting qualified individuals from other fields, including individuals from science, technology, engineering, and math fields, mid-career professionals from other occupations, and former military personnel; (D) establishing, improving, or expanding model instructional programs in the core academic subjects to ensure that all children meet the State’s academic standards; (E) providing evidence-based, job embedded, continuous professional development for teachers and school leaders focused on improving teaching and student learning and achievement in the core academic subjects; (F) implementing programs based on the current science of learning, which includes research on positive brain change and cognitive skill development; and (G) other activities and programs identified as necessary by the local educational agency that meet the purpose of this part. (b) Principles of effectiveness For a program or activity developed pursuant to this section to meet the principles of effectiveness, such program or activity shall— (1) be based upon an assessment of objective data regarding the need for programs and activities in the elementary schools and secondary schools served to increase the number of teachers and school leaders who are effective in improving student academic achievement; (2) reflect evidence-based research, or in the absence of a strong research base, reflect effective strategies in the field, that provide evidence that the program or activity will improve student academic achievement in the core academic subjects; and (3) include meaningful and ongoing consultation with, and input from, teachers, school leaders, and parents, in the development of the application and administration of the program or activity. 3 General provisions 2231. Periodic evaluation (a) In general Each eligible entity and each teacher or school leader preparation academy that receives funds under this part shall undergo a periodic evaluation by the State educational agency involved to assess such entity’s or such academy’s progress toward achieving the purposes of this part. (b) Use of results The results of an evaluation described in subsection (a) of an eligible entity or academy shall be— (1) used to refine, improve, and strengthen such eligible entity or such academy, respectively; and (2) made available to the public upon request, with public notice of such availability provided. 2232. Reporting requirements (a) Eligible entities and academies Each eligible entity and each teacher or school leader preparation academy that receives funds from a State educational agency under this part shall prepare and submit annually to such State educational agency a report that includes— (1) a description of the progress of the eligible entity or teacher or school leader preparation academy, respectively, in meeting the purposes of this part; (2) a description of the programs and activities conducted by the eligible entity or teacher or school leader preparation academy, respectively, with funds received under this part; (3) how the eligible entity or teacher or school leader preparation academy, respectively, is using such funds; and (4) any such other information as the State educational agency may require. (b) State educational agencies Each State educational agency that receives a grant under this part shall prepare and submit, annually, to the Secretary a report that includes— (1) a description of the programs and activities conducted by the State educational agency with grant funds received under this part; (2) a description of the progress of the State educational agency in meeting the purposes of this part described in section 2201; (3) how the State educational agency is using grant funds received under this part; (4) the methods and criteria the State educational agency used to award subgrants in a timely manner to eligible entities under section 2221 and, if applicable, funds in a timely manner to teacher or school leader academies under section 2211(d)(3)(B); and (5) the results of the periodic evaluations conducted under section 2231. 2233. National activities From the funds reserved by the Secretary under section 2211(a)(2)(A), the Secretary shall, directly or through grants and contracts— (1) provide technical assistance to States and eligible entities in carrying out activities under this part; and (2) acting through the Institute of Education Sciences, conduct national evaluations of activities carried out by States and eligible entities under this part. 2234. Definitions In this part: (1) Eligible entity The term eligible entity means— (A) a local educational agency or consortium of local educational agencies; (B) an institution of higher education or consortium of such institutions in partnership with a local educational agency or consortium of local educational agencies; (C) a for-profit organization, a nonprofit organization, or a consortium of for-profit or nonprofit organizations in partnership with a local educational agency or consortium of local educational agencies; or (D) a consortium of the entities described in subparagraphs (B) and (C). (2) State The term State means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico. (3) State authorizer The term State authorizer means an entity designated by the Governor of a State to authorize teacher or school leader preparation academies within the State that— (A) enters into an agreement with a teacher or school leader preparation academy that— (i) specifies the goals expected of the academy, which, at a minimum, include the goals described in paragraph (4); and (ii) does not reauthorize the academy if such goals are not met; and (B) may be a nonprofit organization, a State educational agency, or other public entity, or consortium of such entities (including a consortium of State educational agencies). (4) Teacher or school leader preparation academy The term teacher or school leader preparation academy means a public or private entity, or a nonprofit or for-profit organization, which may be an institution of higher education or an organization affiliated with an institution of higher education, that will prepare teachers or school leaders to serve in schools, and that— (A) enters into an agreement with a State authorizer that specifies the goals expected of the academy, including— (i) a requirement that prospective teachers or school leaders who are enrolled in a teacher or school leader preparation academy receive a significant part of their training through clinical preparation that partners the prospective candidate with an effective teacher or school leader, respectively, with a demonstrated record of increasing student achievement, while also receiving concurrent instruction from the academy in the content area (or areas) in which the prospective teacher or school leader will become certified or licensed; (ii) the number of effective teachers or school leaders, respectively, who will demonstrate success in increasing student achievement that the academy will produce; and (iii) a requirement that a teacher or school leader preparation academy will only award a certificate of completion after the graduate demonstrates that the graduate is an effective teacher or school leader, respectively, with a demonstrated record of increasing student achievement, except that an academy may award a provisional certificate for the period necessary to allow the graduate to demonstrate such effectiveness; (B) does not have restrictions on the methods the academy will use to train prospective teacher or school leader candidates, including— (i) obligating (or prohibiting) the academy’s faculty to hold advanced degrees or conduct academic research; (ii) restrictions related to the academy's physical infrastructure; (iii) restrictions related to the number of course credits required as part of the program of study; (iv) restrictions related to the undergraduate coursework completed by teachers teaching or working on alternative certificates, licenses, or credentials, as long as such teachers have successfully passed all relevant State-approved content area examinations; or (v) restrictions related to obtaining accreditation from an accrediting body for purposes of becoming an academy; (C) limits admission to its program to prospective teacher or school leader candidates who demonstrate strong potential to improve student achievement, based on a rigorous selection process that reviews a candidate’s prior academic achievement or record of professional accomplishment; and (D) results in a certificate of completion that the State may recognize as at least the equivalent of a master’s degree in education for the purposes of hiring, retention, compensation, and promotion in the State. (5) Teacher residency program The term teacher residency program means a school-based teacher preparation program in which a prospective teacher— (A) for one academic year, teaches alongside an effective teacher, as determined by a teacher evaluation system implemented under part A, who is the teacher of record; (B) receives concurrent instruction during the year described in subparagraph (A) from the partner institution (as defined in section 200 of the Higher Education Act of 1965 ( 20 U.S.C. 1021 )), which courses may be taught by local educational agency personnel or residency program faculty, in the teaching of the content area in which the teacher will become certified or licensed; and (C) acquires effective teaching skills. . (d) Part C Part C of title II (20 U.S.C. 6671 et seq.) is amended— (1) by striking subparts 1 through 4; (2) by striking the heading relating to subpart 5; (3) by striking sections 2361 and 2368; (4) in section 2362, by striking principals and inserting school leaders ; (5) in section 2363(6)(A), by striking principal and inserting school leader ; (6) in section 2366(b), by striking ate law and inserting (3) A State law ; (7) by redesignating section 2362 as section 2361; (8) by redesignating sections 2364 through 2367 as sections 2362 through 2365, respectively; and (9) by redesignating section 2363 as section 2366 and transferring such section to appear after section 2365 (as so redesignated). (e) Part D Part D of title II ( 20 U.S.C. 6751 et seq. ) is amended to read as follows: D General Provisions 2401. Inclusion of charter schools In this title, the term local educational agency includes a charter school (as defined in section 5101) that, in the absence of this section, would not have received funds under this title. 2402. Parents’ Right to Know At the beginning of each school year, a local educational agency that receives funds under this title shall notify the parents of each student attending any school receiving funds under this title that the parents may request, and the agency will provide the parents on request (and in a timely manner), information regarding the professional qualifications of the student’s classroom teachers. 2403. Supplement, not supplant Funds received under this title shall be used to supplement, and not supplant, non-Federal funds that would otherwise be used for activities authorized under this title. . 202. Conforming repeals (a) Conforming repeals Title II of the Higher Education Act of 1965 ( 20 U.S.C. 1021 et seq. ) is amended by repealing sections 201 through 204. (b) Effective date The repeals made by subsection (a) shall take effect October 1, 2013. III Parental Engagement and Local Flexibility 301. Parental engagement and local flexibility Title III ( 20 U.S.C. 6801 et seq. ) is amended to read as follows: III Parental Engagement and Local Flexibility A Parental Engagement 1 Charter School Program 3101. Purpose It is the purpose of this subpart to— (1) improve the United States education system and educational opportunities for all Americans by supporting innovation in public education in public school settings that prepare students to compete and contribute to the global economy; (2) provide financial assistance for the planning, program design, and initial implementation of charter schools; (3) expand the number of high-quality charter schools available to students across the Nation; (4) evaluate the impact of such schools on student achievement, families, and communities, and share best practices between charter schools and other public schools; (5) encourage States to provide support to charter schools for facilities financing in an amount more nearly commensurate to the amount the States have typically provided for traditional public schools; (6) improve student services to increase opportunities for students with disabilities, English learners, and other traditionally underserved students to attend charter schools and meet challenging State academic achievement standards; and (7) support efforts to strengthen the charter school authorizing process to improve performance management, including transparency, monitoring, and evaluation of such schools. 3102. Program authorized (a) In general From the amounts appropriated under section 3(c)(1)(A), the Secretary shall carry out a charter school program under this subpart that supports charter schools that serve elementary school and secondary school students by— (1) supporting the startup, replication, and expansion of charter schools; (2) assisting charter schools in accessing credit to acquire and renovate facilities for school use; and (3) carrying out national activities to support— (A) charter school development; (B) the dissemination of best practices of charter schools for all schools; and (C) the evaluation of the impact of the program on schools participating in the program. (b) Funding Allotment From the amount made available under section 3(c)(1)(A) for a fiscal year, the Secretary shall— (1) reserve 15 percent to support charter school facilities assistance under section 3104; (2) reserve not more than 5 percent to carry out national activities under section 3105; and (3) use the remaining amount after the Secretary reserves funds under paragraphs (1) and (2) to carry out section 3103. (c) Prior grants and subgrants The recipient of a grant or subgrant under this subpart or subpart 2, as such subpart was in effect on the day before the date of enactment of the Student Success Act, shall continue to receive funds in accordance with the terms and conditions of such grant or subgrant. 3103. Grants to support high-quality charter schools (a) In general From the amount reserved under section 3102(b)(3), the Secretary shall award grants to State entities having applications approved pursuant to subsection (f) to enable such entities to— (1) award subgrants to eligible applicants for— (A) opening new charter schools; (B) opening replicable, high-quality charter school models; or (C) expanding high-quality charter schools; and (2) provide technical assistance to eligible applicants and authorized public chartering agencies in carrying out the activities described in paragraph (1) and work with authorized public chartering agencies in the State to improve authorizing quality. (b) State uses of funds (1) In general A State entity receiving a grant under this section shall— (A) use 90 percent of the grant funds to award subgrants to eligible applicants, in accordance with the quality charter school program described in the entity’s application approved pursuant to subsection (f), for the purposes described in subparagraphs (A) through (C) of subsection (a)(1); and (B) reserve 10 percent of such funds to carry out the activities described in subsection (a)(2), of which not more than 30 percent may be used for administrative costs which may include technical assistance. (2) Contracts and grants A State entity may use a grant received under this section to carry out the activities described in subparagraphs (A) and (B) of paragraph (1) directly or through grants, contracts, or cooperative agreements. (c) Program periods; peer review; grant number and amount; diversity of projects; waivers (1) Program periods (A) Grants A grant awarded by the Secretary to a State entity under this section shall be for a period of not more than 5 years. (B) Subgrants A subgrant awarded by a State entity under this section shall be for a period of not more than 5 years, of which an eligible applicant may use not more than 18 months for planning and program design. (2) Peer Review The Secretary, and each State entity receiving a grant under this section, shall use a peer review process to review applications for assistance under this section. (3) Grant number and amount The Secretary shall ensure that the number of grants awarded under this section and the award amounts will allow for a sufficient number of new grants to be awarded under this section for each succeeding fiscal year. (4) Diversity of Projects Each State entity receiving a grant under this section shall award subgrants under this section in a manner that, to the extent possible, ensures that such subgrants— (A) are distributed throughout different areas, including urban, suburban, and rural areas; and (B) will assist charter schools representing a variety of educational approaches. (5) Waivers The Secretary may waive any statutory or regulatory requirement without requiring the adoption of any unrelated requirements over which the Secretary exercises administrative authority except any such requirement relating to the elements of a charter school described in section 5101(3), if— (A) the waiver is requested in an approved application under this section; and (B) the Secretary determines that granting such a waiver will promote the purpose of this subpart. (d) Limitations (1) Grants A State entity may not receive more than 1 grant under this section for a 5-year period. (2) Subgrants An eligible applicant may not receive more than 1 subgrant under this section for an individual charter school for a 5-year period, unless the eligible applicant demonstrates to the State entity not less than 3 years of improved educational results in the areas described in subparagraphs (A) and (D) of section 3110(5) for students enrolled in such charter school. (e) Applications A State entity desiring to receive a grant under this section shall submit an application to the Secretary at such time and in such manner as the Secretary may require. The application shall include the following: (1) Description of Program A description of the State entity’s objectives in running a quality charter school program under this section and how the objectives of the program will be carried out, including a description— (A) of how the entity— (i) will support both new charter school startup and the expansion and replication of high-quality charter school models; (ii) will inform eligible charter schools, developers, and authorized public chartering agencies of the availability of funds under the program; (iii) will work with eligible applicants to ensure that the applicants access all Federal funds that they are eligible to receive, and help the charter schools supported by the applicants and the students attending the charter schools— (I) participate in the Federal programs in which the schools and students are eligible to participate; and (II) receive the commensurate share of Federal funds the schools and students are eligible to receive under such programs; (iv) in the case in which the entity is not a State educational agency— (I) will work with the State educational agency and the charter schools in the State to maximize charter school participation in Federal and State programs for charter schools; and (II) will work with the State educational agency to adequately operate the entity’s program under this section, where applicable; (v) will ensure eligible applicants that receive a subgrant under the entity’s program are prepared to continue to operate the charter schools receiving the subgrant funds once the funds have expired; (vi) will support charter schools in local educational agencies with large numbers of schools implementing requirements under the State’s school improvement system under section 1111(b)(3)(B)(iii); (vii) will work with charter schools to promote inclusion of all students and support all students once they are enrolled to promote retention; (viii) will work with charter schools on recruitment practices, including efforts to engage groups that may otherwise have limited opportunities to participate in charter schools; (ix) will share best and promising practices between charter schools and other public schools, including, where appropriate, instruction and professional development in science, math, technology, and engineering education; (x) will ensure the charter schools receiving funds under the entity’s program can meet the educational needs of their students, including students with disabilities and English learners; and (xi) will support efforts to increase quality initiatives, including meeting the quality authorizing elements described in paragraph (2)(E); (B) of the extent to which the entity— (i) is able to meet and carry out the priorities listed in subsection (f)(2); and (ii) is working to develop or strengthen a cohesive statewide system to support the opening of new charter schools and replicable, high-quality charter school models, and the expansion of high-quality charter schools; (C) of how the entity will carry out the subgrant competition, including— (i) a description of the application each eligible applicant desiring to receive a subgrant will submit, including— (I) a description of the roles and responsibilities of eligible applicants, partner organizations, and management organizations, including the administrative and contractual roles and responsibilities; (II) a description of the quality controls agreed to between the eligible applicant and the authorized public chartering agency involved, such as a contract or performance agreement, and how a school’s performance in the State’s academic accountability system will be a primary factor for renewal; and (III) a description of how the eligible applicant will solicit and consider input from parents and other members of the community on the implementation and operation of each charter school receiving funds under the entity’s program; and (ii) a description of how the entity will review applications; (D) in the case of an entity that partners with an outside organization to carry out the entity’s quality charter school program, in whole or in part, of the roles and responsibilities of this partner; (E) of how the entity will help the charter schools receiving funds under the entity’s program consider the transportation needs of the schools’ students; and (F) of how the entity will support diverse charter school models, including models that serve rural communities. (2) Assurances Assurances, including a description of how the assurances will be met, that— (A) each charter school receiving funds under the entity’s program will have a high degree of autonomy over budget and operations; (B) the entity will support charter schools in meeting the educational needs of their students as described in paragraph (1)(A)(x); (C) the entity will ensure that the authorized public chartering agency of any charter school that receives funds under the entity’s program— (i) ensures that each charter school is meeting the obligations under this Act, part B of the Individuals with Disabilities Education Act, title VI of the Civil Rights Act of 1964, section 504 of the Rehabilitation Act of 1973, the Age Discrimination Act of 1975, and title IX of the Education Amendments of 1972; (ii) adequately monitors and helps each charter school in recruiting, enrolling, and meeting the needs of all students, including students with disabilities and English learners; and (iii) ensures that each charter school solicits and considers input from parents and other members of the community on the implementation and operation of the school; (D) the entity will provide adequate technical assistance to eligible applicants to— (i) meet the objectives described in clauses (vii), (viii), and (x) of paragraph (1)(A); and (ii) enroll traditionally underserved students, including students with disabilities and English learners, to promote an inclusive education environment; (E) the entity will promote quality authorizing, such as through providing technical assistance, to support all authorized public chartering agencies in the State to improve the monitoring of their charter schools, including by— (i) assessing annual performance data of the schools, including, as appropriate, graduation rates and student growth; and (ii) reviewing the schools’ independent, annual audits of financial statements conducted in accordance with generally accepted accounting principles, and ensuring any such audits are publically reported; (F) the entity will work to ensure that charter schools are included with the traditional public schools in decisionmaking about the public school system in the State; and (G) the entity will ensure that each charter school in the State make publicly available, consistent with the dissemination requirements of the annual State report card, the information parents need to make informed decisions about the education options available to their children, including information on the educational program, student support services, and annual performance and enrollment data for the groups of students described in section 1111(b)(3)(B)(ii)(II). (3) Requests for waivers A request and justification for waivers of any Federal statutory or regulatory provisions that the entity believes are necessary for the successful operation of the charter schools that will receive funds under the entity’s program under this section, and a description of any State or local rules, generally applicable to public schools, that will be waived, or otherwise not apply to such schools. (f) Selection criteria; priority (1) Selection criteria The Secretary shall award grants to State entities under this section on the basis of the quality of the applications submitted under subsection (e), after taking into consideration— (A) the degree of flexibility afforded by the State’s public charter school law and how the entity will work to maximize the flexibility provided to charter schools under the law; (B) the ambitiousness of the entity’s objectives for the quality charter school program carried out under this section; (C) the quality of the strategy for assessing achievement of those objectives; (D) the likelihood that the eligible applicants receiving subgrants under the program will meet those objectives and improve educational results for students; (E) the proposed number of new charter schools to be opened, and the proposed number of high-quality charter schools to be replicated or expanded under the program; (F) the entity’s plan to— (i) adequately monitor the eligible applicants receiving subgrants under the entity’s program; and (ii) work with the authorized public chartering agencies involved to avoid duplication of work for the charter schools and authorized public chartering agencies; (G) the entity’s plan to provide adequate technical assistance, as described in the entity’s application under subsection (e), for the eligible applicants receiving subgrants under the entity’s program under this section; (H) the entity’s plan to support quality authorizing efforts in the State, consistent with the objectives described in subparagraph (B); and (I) the entity’s plan to solicit and consider input from parents and other members of the community on the implementation and operation of the charter schools in the State. (2) Priority In awarding grants under this section, the Secretary shall give priority to State entities to the extent that they meet the following criteria: (A) In the case of a State entity located in a State that allows an entity other than a local educational agency to be an authorized public chartering agency, the State has a quality authorized public chartering agency that is an entity other than a local educational agency. (B) The State entity is located in a State that does not impose any limitation on the number or percentage of charter schools that may exist or the number or percentage of students that may attend charter schools in the State. (C) The State entity is located in a State that ensures equitable financing, as compared to traditional public schools, for charter schools and students in a prompt manner. (D) The State entity is located in a State that uses charter schools and best practices from charter schools to help improve struggling schools and local educational agencies. (E) The State entity partners with an organization that has a demonstrated record of success in developing management organizations to support the development of charter schools in the State. (F) The State entity demonstrates quality policies and practices to support and monitor charter schools through factors including— (i) the proportion of high-quality charter schools in the State; and (ii) the proportion of charter schools enrolling, at a rate similar to traditional public schools, traditionally underserved students, including students with disabilities and English learners. (G) The State entity supports charter schools that support at-risk students through activities such as dropout prevention or dropout recovery. (H) The State entity authorizes all charter schools in the State to serve as school food authorities. (g) Local uses of funds An eligible applicant receiving a subgrant under this section shall use such funds to open new charter schools, open replicable, high-quality charter school models, or expand existing high-quality charter schools. (h) Reporting requirements Each State entity receiving a grant under this section shall submit to the Secretary, at the end of the third year of the 5-year grant period and at the end of such grant period, a report on— (1) the number of students served under each subgrant awarded under this section and, if applicable, how many new students were served during each year of the subgrant period; (2) the number of subgrants awarded under this section to carry out each of the following— (A) the opening of new charter schools; (B) the opening of replicable, high-quality charter school models; and (C) the expansion of high-quality charter schools; (3) the progress the entity made toward meeting the priorities described in subsection (f)(2), as applicable; (4) how the entity met the objectives of the quality charter school program described in the entity’s application under subsection (e); (5) how the entity complied with, and ensured that eligible applicants complied with, the assurances described in the entity’s application; and (6) how the entity worked with authorized public chartering agencies and how such agencies worked with the management company or leadership of the schools that received subgrants under this section. (i) State entity defined For purposes of this section, the term State entity means— (1) a State educational agency; (2) a State charter school board; or (3) a Governor of a State. 3104. Facilities Financing Assistance (a) Grants to eligible entities (1) In general From the amount reserved under section 3102(b)(1), the Secretary shall award grants to eligible entities that have the highest-quality applications approved under subsection (d), after considering the diversity of such applications, to demonstrate innovative methods of assisting charter schools to address the cost of acquiring, constructing, and renovating facilities by enhancing the availability of loans or bond financing. (2) Eligible entity defined For purposes of this section, the term eligible entity means— (A) a public entity, such as a State or local governmental entity; (B) a private nonprofit entity; or (C) a consortium of entities described in subparagraphs (A) and (B). (b) Grantee Selection The Secretary shall evaluate each application submitted under subsection (d), and shall determine whether the application is sufficient to merit approval. (c) Grant Characteristics Grants under subsection (a) shall be of a sufficient size, scope, and quality so as to ensure an effective demonstration of an innovative means of enhancing credit for the financing of charter school acquisition, construction, or renovation. (d) Applications (1) In general To receive a grant under subsection (a), an eligible entity shall submit to the Secretary an application in such form as the Secretary may reasonably require. (2) Contents An application submitted under paragraph (1) shall contain— (A) a statement identifying the activities proposed to be undertaken with funds received under subsection (a), including how the eligible entity will determine which charter schools will receive assistance, and how much and what types of assistance charter schools will receive; (B) a description of the involvement of charter schools in the application’s development and the design of the proposed activities; (C) a description of the eligible entity’s expertise in capital market financing; (D) a description of how the proposed activities will leverage the maximum amount of private-sector financing capital relative to the amount of Federal, State, or local government funding used and otherwise enhance credit available to charter schools, including how the entity will offer a combination of rates and terms more favorable than the rates and terms that a charter school could receive without assistance from the entity under this section; (E) a description of how the eligible entity possesses sufficient expertise in education to evaluate the likelihood of success of a charter school program for which facilities financing is sought; and (F) in the case of an application submitted by a State governmental entity, a description of the actions that the entity has taken, or will take, to ensure that charter schools within the State receive the funding the charter schools need to have adequate facilities. (e) Charter school objectives An eligible entity receiving a grant under this section shall use the funds deposited in the reserve account established under subsection (f) to assist one or more charter schools to access private sector capital to accomplish one or both of the following objectives: (1) The acquisition (by purchase, lease, donation, or otherwise) of an interest (including an interest held by a third party for the benefit of a charter school) in improved or unimproved real property that is necessary to commence or continue the operation of a charter school. (2) The construction of new facilities, including predevelopment costs, or the renovation, repair, or alteration of existing facilities, necessary to commence or continue the operation of a charter school. (f) Reserve account (1) Use of funds To assist charter schools to accomplish the objectives described in subsection (e), an eligible entity receiving a grant under subsection (a) shall, in accordance with State and local law, directly or indirectly, alone or in collaboration with others, deposit the funds received under subsection (a) (other than funds used for administrative costs in accordance with subsection (g)) in a reserve account established and maintained by the eligible entity for this purpose. Amounts deposited in such account shall be used by the eligible entity for one or more of the following purposes: (A) Guaranteeing, insuring, and reinsuring bonds, notes, evidences of debt, loans, and interests therein, the proceeds of which are used for an objective described in subsection (e). (B) Guaranteeing and insuring leases of personal and real property for an objective described in subsection (e). (C) Facilitating financing by identifying potential lending sources, encouraging private lending, and other similar activities that directly promote lending to, or for the benefit of, charter schools. (D) Facilitating the issuance of bonds by charter schools, or by other public entities for the benefit of charter schools, by providing technical, administrative, and other appropriate assistance (including the recruitment of bond counsel, underwriters, and potential investors and the consolidation of multiple charter school projects within a single bond issue). (2) Investment Funds received under this section and deposited in the reserve account established under paragraph (1) shall be invested in obligations issued or guaranteed by the United States or a State, or in other similarly low-risk securities. (3) Reinvestment of Earnings Any earnings on funds received under subsection (a) shall be deposited in the reserve account established under paragraph (1) and used in accordance with such paragraph. (g) Limitation on administrative costs An eligible entity may use not more than 2.5 percent of the funds received under subsection (a) for the administrative costs of carrying out its responsibilities under this section (excluding subsection (k)). (h) Audits and reports (1) Financial Record Maintenance and Audit The financial records of each eligible entity receiving a grant under subsection (a) shall be maintained in accordance with generally accepted accounting principles and shall be subject to an annual audit by an independent public accountant. (2) Reports (A) Grantee annual reports Each eligible entity receiving a grant under subsection (a) annually shall submit to the Secretary a report of its operations and activities under this section. (B) Contents Each annual report submitted under subparagraph (A) shall include— (i) a copy of the most recent financial statements, and any accompanying opinion on such statements, prepared by the independent public accountant reviewing the financial records of the eligible entity; (ii) a copy of any report made on an audit of the financial records of the eligible entity that was conducted under paragraph (1) during the reporting period; (iii) an evaluation by the eligible entity of the effectiveness of its use of the Federal funds provided under subsection (a) in leveraging private funds; (iv) a listing and description of the charter schools served during the reporting period, including the amount of funds used by each school, the type of project facilitated by the grant, and the type of assistance provided to the charter schools; (v) a description of the activities carried out by the eligible entity to assist charter schools in meeting the objectives set forth in subsection (e); and (vi) a description of the characteristics of lenders and other financial institutions participating in the activities undertaken by the eligible entity under this section (excluding subsection (k)) during the reporting period. (C) Secretarial report The Secretary shall review the reports submitted under subparagraph (A) and shall provide a comprehensive annual report to Congress on the activities conducted under this section (excluding subsection (k)). (i) No full faith and credit for grantee obligation No financial obligation of an eligible entity entered into pursuant to this section (such as an obligation under a guarantee, bond, note, evidence of debt, or loan) shall be an obligation of, or guaranteed in any respect by, the United States. The full faith and credit of the United States is not pledged to the payment of funds which may be required to be paid under any obligation made by an eligible entity pursuant to any provision of this section. (j) Recovery of funds (1) In General The Secretary, in accordance with chapter 37 of title 31, United States Code, shall collect— (A) all of the funds in a reserve account established by an eligible entity under subsection (f)(1) if the Secretary determines, not earlier than 2 years after the date on which the eligible entity first received funds under this section (excluding subsection (k)), that the eligible entity has failed to make substantial progress in carrying out the purposes described in subsection (f)(1); or (B) all or a portion of the funds in a reserve account established by an eligible entity under subsection (f)(1) if the Secretary determines that the eligible entity has permanently ceased to use all or a portion of the funds in such account to accomplish any purpose described in subsection (f)(1). (2) Exercise of Authority The Secretary shall not exercise the authority provided in paragraph (1) to collect from any eligible entity any funds that are being properly used to achieve one or more of the purposes described in subsection (f)(1). (3) Procedures The provisions of sections 451, 452, and 458 of the General Education Provisions Act ( 20 U.S.C. 1234 , 1234a, 1234g) shall apply to the recovery of funds under paragraph (1). (4) Construction This subsection shall not be construed to impair or affect the authority of the Secretary to recover funds under part D of the General Education Provisions Act ( 20 U.S.C. 1234 et seq. ). (k) Per-Pupil facilities aid program (1) Definition of per-pupil facilities aid program In this subsection, the term per-pupil facilities aid program means a program in which a State makes payments, on a per-pupil basis, to charter schools to provide the schools with financing— (A) that is dedicated solely for funding charter school facilities; or (B) a portion of which is dedicated for funding charter school facilities. (2) Grants (A) In general From the amount reserved under section 3102(b)(1) and remaining after the Secretary makes grants under subsection (a), the Secretary shall make grants, on a competitive basis, to States to pay for the Federal share of the cost of establishing or enhancing, and administering per-pupil facilities aid programs. (B) Period The Secretary shall award grants under this subsection for periods of not more than 5 years. (C) Federal share The Federal share of the cost described in subparagraph (A) for a per-pupil facilities aid program shall be not more than— (i) 90 percent of the cost, for the first fiscal year for which the program receives assistance under this subsection; (ii) 80 percent in the second such year; (iii) 60 percent in the third such year; (iv) 40 percent in the fourth such year; and (v) 20 percent in the fifth such year. (D) State share A State receiving a grant under this subsection may partner with 1 or more organizations to provide up to 50 percent of the State share of the cost of establishing or enhancing, and administering the per-pupil facilities aid program. (E) Multiple grants A State may receive more than 1 grant under this subsection, so long as the amount of such funds provided to charter schools increases with each successive grant. (3) Use of funds (A) In general A State that receives a grant under this subsection shall use the funds made available through the grant to establish or enhance, and administer, a per-pupil facilities aid program for charter schools in the State of the applicant. (B) Evaluations; technical assistance; dissemination From the amount made available to a State through a grant under this subsection for a fiscal year, the State may reserve not more than 5 percent to carry out evaluations, to provide technical assistance, and to disseminate information. (C) Supplement, not supplant Funds made available under this subsection shall be used to supplement, and not supplant, State, and local public funds expended to provide per pupil facilities aid programs, operations financing programs, or other programs, for charter schools. (4) Requirements (A) Voluntary participation No State may be required to participate in a program carried out under this subsection. (B) State law (i) In general Except as provided in clause (ii), to be eligible to receive a grant under this subsection, a State shall establish or enhance, and administer, a per-pupil facilities aid program for charter schools in the State, that— (I) is specified in State law; and (II) provides annual financing, on a per-pupil basis, for charter school facilities. (ii) Special Rule Notwithstanding clause (i), a State that is required under State law to provide its charter schools with access to adequate facility space, but which does not have a per-pupil facilities aid program for charter schools specified in State law, may be eligible to receive a grant under this subsection if the State agrees to use the funds to develop a per-pupil facilities aid program consistent with the requirements of this subsection. (5) Applications To be eligible to receive a grant under this subsection, a State shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require. 3105. National Activities (a) In general From the amount reserved under section 3102(b)(2), the Secretary shall— (1) use not less than 50 percent of such funds to award grants in accordance with subsection (b); and (2) use the remainder of such funds to— (A) disseminate technical assistance to State entities in awarding subgrants under section 3103, and eligible entities and States receiving grants under section 3104; (B) disseminate best practices; and (C) evaluate the impact of the charter school program, including the impact on student achievement, carried out under this subpart. (b) Grants (1) In general The Secretary shall make grants, on a competitive basis, to eligible applicants for the purpose of carrying out the activities described in section 3102(a)(1), subparagraphs (A) through (C) of section 3103(a)(1), and section 3103(g). (2) Terms and conditions Except as otherwise provided in this subsection, grants awarded under this subsection shall have the same terms and conditions as grants awarded to State entities under section 3103. (3) Eligible applicant defined For purposes of this subsection, the term eligible applicant means an eligible applicant that desires to open a charter school in— (A) a State that did not apply for a grant under section 3103; (B) a State that did not receive a grant under section 3103; or (C) a State that received a grant under section 3103 and is in the 4th or 5th year of the grant period for such grant. (c) Contracts and grants The Secretary may carry out any of the activities described in this section directly or through grants, contracts, or cooperative agreements. 3106. Federal formula allocation during first year and for successive enrollment expansions (a) In General For purposes of the allocation to schools by the States or their agencies of funds under part A of title I, and any other Federal funds which the Secretary allocates to States on a formula basis, the Secretary and each State educational agency shall take such measures as are necessary to ensure that every charter school receives the Federal funding for which the charter school is eligible not later than 5 months after the charter school first opens, notwithstanding the fact that the identity and characteristics of the students enrolling in that charter school are not fully and completely determined until that charter school actually opens. The measures similarly shall ensure that every charter school expanding its enrollment in any subsequent year of operation receives the Federal funding for which the charter school is eligible not later than 5 months after such expansion. (b) Adjustment and Late Openings (1) In general The measures described in subsection (a) shall include provision for appropriate adjustments, through recovery of funds or reduction of payments for the succeeding year, in cases where payments made to a charter school on the basis of estimated or projected enrollment data exceed the amounts that the school is eligible to receive on the basis of actual or final enrollment data. (2) Rule For charter schools that first open after November 1 of any academic year, the State, in accordance with guidance provided by the Secretary and applicable Federal statutes and regulations, shall ensure that such charter schools that are eligible for the funds described in subsection (a) for such academic year have a full and fair opportunity to receive those funds during the charter schools' first year of operation. 3107. Solicitation of input from charter school operators To the extent practicable, the Secretary shall ensure that administrators, teachers, and other individuals directly involved in the operation of charter schools are consulted in the development of any rules or regulations required to implement this subpart, as well as in the development of any rules or regulations relevant to charter schools that are required to implement part A of title I, the Individuals with Disabilities Education Act, or any other program administered by the Secretary that provides education funds to charter schools or regulates the activities of charter schools. 3108. Records transfer State educational agencies and local educational agencies, as quickly as possible and to the extent practicable, shall ensure that a student’s records and, if applicable, a student’s individualized education program as defined in section 602(14) of the Individuals with Disabilities Education Act, are transferred to a charter school upon the transfer of the student to the charter school, and to another public school upon the transfer of the student from a charter school to another public school, in accordance with applicable State law. 3109. Paperwork reduction To the extent practicable, the Secretary and each authorized public chartering agency shall ensure that implementation of this subpart results in a minimum of paperwork for any eligible applicant or charter school. 3110. Definitions In this subpart: (1) Developer The term developer means an individual or group of individuals (including a public or private nonprofit organization), which may include teachers, administrators and other school staff, parents, or other members of the local community in which a charter school project will be carried out. (2) Eligible applicant The term eligible applicant means a developer that has— (A) applied to an authorized public chartering authority to operate a charter school; and (B) provided adequate and timely notice to that authority. (3) Authorized public chartering agency The term authorized public chartering agency means a State educational agency, local educational agency, or other public entity that has the authority pursuant to State law and approved by the Secretary to authorize or approve a charter school. (4) Expansion of a high-quality charter school The term expansion of a high-quality charter school means to significantly increase the enrollment of, or add one or more grades to, a high-quality charter school. (5) High-quality charter school The term high-quality charter school means a charter school that— (A) shows evidence of strong academic results, which may include strong academic growth as determined by a State; (B) has no significant issues in the areas of student safety, financial management, or statutory or regulatory compliance; (C) has demonstrated success in significantly increasing student academic achievement and attainment for all students served by the charter school; and (D) has demonstrated success in increasing student academic achievement for the groups of students described in section 1111(b)(3)(B)(ii)(II), except that such demonstration is not required in a case in which the number of students in a group is insufficient to yield statistically reliable information or the results would reveal personally identifiable information about an individual student. (6) Replicable, high-quality charter school model The term replicable, high-quality charter school model means a high-quality charter school that has the capability of opening another such charter school under an existing charter. 2 Magnet School Assistance 3121. Purpose The purpose of this subpart is to assist in the desegregation of schools served by local educational agencies by providing financial assistance to eligible local educational agencies for— (1) the elimination, reduction, or prevention of minority group isolation in elementary schools and secondary schools with substantial proportions of minority students, which shall include assisting in the efforts of the United States to achieve voluntary desegregation in public schools; (2) the development and implementation of magnet school programs that will assist local educational agencies in achieving systemic reforms and providing all students the opportunity to meet State academic standards; (3) the development and design of innovative educational methods and practices that promote diversity and increase choices in public elementary schools and public secondary schools and public educational programs; (4) courses of instruction within magnet schools that will substantially strengthen the knowledge of academic subjects and the attainment of tangible and marketable career, technical, and professional skills of students attending such schools; (5) improving the ability of local educational agencies, including through professional development, to continue operating magnet schools at a high performance level after Federal funding for the magnet schools is terminated; and (6) ensuring that students enrolled in the magnet school programs have equitable access to a quality education that will enable the students to succeed academically and continue with postsecondary education or employment. 3122. Definition For the purpose of this subpart, the term magnet school means a public elementary school, public secondary school, public elementary education center, or public secondary education center that offers a special curriculum capable of attracting substantial numbers of students of different racial backgrounds. 3123. Program authorized From the amount appropriated under section 3(c)(1)(B), the Secretary, in accordance with this subpart, is authorized to award grants to eligible local educational agencies, and consortia of such agencies where appropriate, to carry out the purpose of this subpart for magnet schools that are— (1) part of an approved desegregation plan; and (2) designed to bring students from different social, economic, ethnic, and racial backgrounds together. 3124. Eligibility A local educational agency, or consortium of such agencies where appropriate, is eligible to receive a grant under this subpart to carry out the purpose of this subpart if such agency or consortium— (1) is implementing a plan undertaken pursuant to a final order issued by a court of the United States, or a court of any State, or any other State agency or official of competent jurisdiction, that requires the desegregation of minority-group-segregated children or faculty in the elementary schools and secondary schools of such agency; or (2) without having been required to do so, has adopted and is implementing, or will, if a grant is awarded to such local educational agency, or consortium of such agencies, under this subpart, adopt and implement a plan that has been approved by the Secretary as adequate under title VI of the Civil Rights Act of 1964 for the desegregation of minority-group-segregated children or faculty in such schools. 3125. Applications and requirements (a) Applications An eligible local educational agency, or consortium of such agencies, desiring to receive a grant under this subpart shall submit an application to the Secretary at such time and in such manner as the Secretary may reasonably require. (b) Information and assurances Each application submitted under subsection (a) shall include— (1) a description of— (A) how a grant awarded under this subpart will be used to promote desegregation, including how the proposed magnet school programs will increase interaction among students of different social, economic, ethnic, and racial backgrounds; (B) the manner and extent to which the magnet school program will increase student academic achievement in the instructional area or areas offered by the school; (C) how the applicant will continue the magnet school program after assistance under this subpart is no longer available, and, if applicable, an explanation of why magnet schools established or supported by the applicant with grant funds under this subpart cannot be continued without the use of grant funds under this subpart; (D) how grant funds under this subpart will be used— (i) to improve student academic achievement for all students attending the magnet school programs; and (ii) to implement services and activities that are consistent with other programs under this Act, and other Acts, as appropriate; and (E) the criteria to be used in selecting students to attend the proposed magnet school program; and (2) assurances that the applicant will— (A) use grant funds under this subpart for the purposes specified in section 3121; (B) employ effective teachers in the courses of instruction assisted under this subpart; (C) not engage in discrimination based on race, religion, color, national origin, sex, or disability in— (i) the hiring, promotion, or assignment of employees of the applicant or other personnel for whom the applicant has any administrative responsibility; (ii) the assignment of students to schools, or to courses of instruction within the schools, of such applicant, except to carry out the approved plan; and (iii) designing or operating extracurricular activities for students; (D) carry out a quality education program that will encourage greater parental decisionmaking and involvement; and (E) give students residing in the local attendance area of the proposed magnet school program equitable consideration for placement in the program, consistent with desegregation guidelines and the capacity of the applicant to accommodate the students. (c) Special rule No grant shall be awarded under this subpart unless the Assistant Secretary of Education for Civil Rights determines that the assurances described in subsection (b)(2)(C) will be met. 3126. Priority In awarding grants under this subpart, the Secretary shall give priority to applicants that— (1) demonstrate the greatest need for assistance, based on the expense or difficulty of effectively carrying out approved desegregation plans and the magnet school program for which the grant is sought; (2) propose to carry out new magnet school programs, or significantly revise existing magnet school programs; (3) propose to select students to attend magnet school programs by methods such as lottery, rather than through academic examination; and (4) propose to serve the entire student population of a school. 3127. Use of funds (a) In general Grant funds made available under this subpart may be used by an eligible local educational agency, or consortium of such agencies— (1) for planning and promotional activities directly related to the development, expansion, continuation, or enhancement of academic programs and services offered at magnet schools; (2) for the acquisition of books, materials, and equipment, including computers and the maintenance and operation of materials, equipment, and computers, necessary to conduct programs in magnet schools; (3) for the compensation, or subsidization of the compensation, of elementary school and secondary school teachers, and instructional staff where applicable, who are necessary to conduct programs in magnet schools; (4) with respect to a magnet school program offered to less than the entire student population of a school, for instructional activities that— (A) are designed to make available the special curriculum that is offered by the magnet school program to students who are enrolled in the school but who are not enrolled in the magnet school program; and (B) further the purpose of this subpart; (5) for activities, which may include professional development, that will build the recipient’s capacity to operate magnet school programs once the grant period has ended; (6) to enable the local educational agency, or consortium of such agencies, to have more flexibility in the administration of a magnet school program in order to serve students attending a school who are not enrolled in a magnet school program; and (7) to enable the local educational agency, or consortium of such agencies, to have flexibility in designing magnet schools for students in all grades. (b) Special rule Grant funds under this subpart may be used for activities described in paragraphs (2) and (3) of subsection (a) only if the activities are directly related to improving student academic achievement based on the State’s academic standards or directly related to improving student reading skills or knowledge of mathematics, science, history, geography, English, foreign languages, art, or music, or to improving career, technical, and professional skills. 3128. Limitations (a) Duration of awards A grant under this subpart shall be awarded for a period that shall not exceed 3 fiscal years. (b) Limitation on planning funds A local educational agency, or consortium of such agencies, may expend for planning (professional development shall not be considered to be planning for purposes of this subsection) not more than 50 percent of the grant funds received under this subpart for the first year of the program and not more than 15 percent of such funds for each of the second and third such years. (c) Amount No local educational agency, or consortium of such agencies, awarded a grant under this subpart shall receive more than $4,000,000 under this subpart for any 1 fiscal year. (d) Timing To the extent practicable, the Secretary shall award grants for any fiscal year under this subpart not later than July 1 of the applicable fiscal year. 3129. Evaluations (a) Reservation The Secretary may reserve not more than 2 percent of the funds appropriated under section 3(c)(1)(B) for any fiscal year to carry out evaluations, provide technical assistance, and carry out dissemination projects with respect to magnet school programs assisted under this subpart. (b) Contents Each evaluation described in subsection (a), at a minimum, shall address— (1) how and the extent to which magnet school programs lead to educational quality and academic improvement; (2) the extent to which magnet school programs enhance student access to a quality education; (3) the extent to which magnet school programs lead to the elimination, reduction, or prevention of minority group isolation in elementary schools and secondary schools with substantial proportions of minority students; and (4) the extent to which magnet school programs differ from other school programs in terms of the organizational characteristics and resource allocations of such magnet school programs. (c) Dissemination The Secretary shall collect and disseminate to the general public information on successful magnet school programs. 3130. Reservation In any fiscal year for which the amount appropriated under section 3(c)(1)(B) exceeds $75,000,000, the Secretary shall give priority in using such amounts in excess of $75,000,000 to awarding grants to local educational agencies or consortia of such agencies that did not receive a grant under this subpart in the preceding fiscal year. 3 Family Engagement in Education Programs 3141. Purposes The purposes of this subpart are the following: (1) To provide financial support to organizations to provide technical assistance and training to State and local educational agencies in the implementation and enhancement of systemic and effective family engagement policies, programs, and activities that lead to improvements in student development and academic achievement. (2) To assist State educational agencies, local educational agencies, community-based organizations, schools, and educators in strengthening partnerships among parents, teachers, school leaders, administrators, and other school personnel in meeting the educational needs of children and fostering greater parental engagement. (3) To support State educational agencies, local educational agencies, schools, educators, and parents in developing and strengthening the relationship between parents and their children’s school in order to further the developmental progress of children. (4) To coordinate activities funded under this subpart with parent involvement initiatives funded under section 1118 and other provisions of this Act. (5) To assist the Secretary, State educational agencies, and local educational agencies in the coordination and integration of Federal, State, and local services and programs to engage families in education. 3142. Grants authorized (a) Statewide family engagement centers From the amount appropriated under section 3(c)(1)(C), the Secretary is authorized to award grants for each fiscal year to statewide organizations (or consortia of such organizations), to establish Statewide Family Engagement Centers that provide comprehensive training and technical assistance to State educational agencies, local educational agencies, schools identified by State educational agencies and local educational agencies, organizations that support family-school partnerships, and other organizations that carry out, or carry out directly, parent education and family engagement in education programs. (b) Minimum award In awarding grants under this section, the Secretary shall, to the extent practicable, ensure that a grant is awarded for a Statewide Family Engagement Center in an amount not less than $500,000. 3143. Applications (a) Submissions Each statewide organization, or a consortium of such organizations, that desires a grant under this subpart shall submit an application to the Secretary at such time, in such manner, and including the information described in subsection (b) . (b) Contents Each application submitted under subsection (a) shall include, at a minimum, the following: (1) A description of the applicant’s approach to family engagement in education. (2) A description of the support that the Statewide Family Engagement Center that will be operated by the applicant will have from the State educational agency and any partner organization outlining the commitment to work with the center. (3) A description of the applicant’s plan for building a statewide infrastructure for family engagement in education, that includes— (A) management and governance; (B) statewide leadership; or (C) systemic services for family engagement in education. (4) A description of the applicant’s demonstrated experience in providing training, information, and support to State educational agencies, local educational agencies, schools, educators, parents, and organizations on family engagement in education policies and practices that are effective for parents (including low-income parents) and families, English learners, minorities, parents of students with disabilities, parents of homeless students, foster parents and students, and parents of migratory students, including evaluation results, reporting, or other data exhibiting such demonstrated experience. (5) An assurance that the applicant will— (A) establish a special advisory committee, the membership of which includes— (i) parents, who shall constitute a majority of the members of the special advisory committee; (ii) representatives of education professionals with expertise in improving services for disadvantaged children; (iii) representatives of local elementary schools and secondary schools, including students; (iv) representatives of the business community; and (v) representatives of State educational agencies and local educational agencies; (B) use not less than 65 percent of the funds received under this subpart in each fiscal year to serve local educational agencies, schools, and community-based organizations that serve high concentrations of disadvantaged students, including English learners, minorities, parents of students with disabilities, parents of homeless students, foster parents and students, and parents of migratory students; (C) operate a Statewide Family Engagement Center of sufficient size, scope, and quality to ensure that the Center is adequate to serve the State educational agency, local educational agencies, and community-based organizations; (D) ensure that the Center will retain staff with the requisite training and experience to serve parents in the State; (E) serve urban, suburban, and rural local educational agencies and schools; (F) work with— (i) other Statewide Family Engagement Centers assisted under this subpart; and (ii) parent training and information centers and community parent resource centers assisted under sections 671 and 672 of the Individuals with Disabilities Education Act; (G) use not less than 30 percent of the funds received under this subpart for each fiscal year to establish or expand technical assistance for evidence-based parent education programs; (H) provide assistance to State educational agencies and local educational agencies and community-based organizations that support family members in supporting student academic achievement; (I) work with State educational agencies, local educational agencies, schools, educators, and parents to determine parental needs and the best means for delivery of services to address such needs; and (J) conduct sufficient outreach to assist parents, including parents who the applicant may have a difficult time engaging with a school or local educational agency. 3144. Uses of funds (a) In general Grantees shall use grant funds received under this subpart, based on the needs determined under section 3143(b)(5)(I) , to provide training and technical assistance to State educational agencies, local educational agencies, and organizations that support family-school partnerships, and activities, services, and training for local educational agencies, school leaders, educators, and parents— (1) to assist parents in participating effectively in their children’s education and to help their children meet State standards, such as assisting parents— (A) to engage in activities that will improve student academic achievement, including understanding how they can support learning in the classroom with activities at home and in afterschool and extracurricular programs; (B) to communicate effectively with their children, teachers, school leaders, counselors, administrators, and other school personnel; (C) to become active participants in the development, implementation, and review of school-parent compacts, family engagement in education policies, and school planning and improvement; (D) to participate in the design and provision of assistance to students who are not making academic progress; (E) to participate in State and local decisionmaking; (F) to train other parents; and (G) to help the parents learn and use technology applied in their children's education; (2) to develop and implement, in partnership with the State educational agency, statewide family engagement in education policy and systemic initiatives that will provide for a continuum of services to remove barriers for family engagement in education and support school reform efforts; and (3) to develop and implement parental involvement policies under this Act. (b) Matching funds for grant renewal For each fiscal year after the first fiscal year for which an organization or consortium receives assistance under this section, the organization or consortium shall demonstrate in the application that a portion of the services provided by the organization or consortium is supported through non-Federal contributions, which may be in cash or in-kind. (c) Technical assistance The Secretary shall reserve not more than 2 percent of the funds appropriated under section 3(c)(1)(C) to carry out this subpart to provide technical assistance, by competitive grant or contract, for the establishment, development, and coordination of Statewide Family Engagement Centers. (d) Rule of construction Nothing in this section shall be construed to prohibit a Statewide Family Engagement Center from— (1) having its employees or agents meet with a parent at a site that is not on school grounds; or (2) working with another agency that serves children. (e) Parental rights Notwithstanding any other provision of this section— (1) no person (including a parent who educates a child at home, a public school parent, or a private school parent) shall be required to participate in any program of parent education or developmental screening under this section; and (2) no program or center assisted under this section shall take any action that infringes in any manner on the right of a parent to direct the education of their children. 3145. Family engagement in Indian schools The Secretary of the Interior, in consultation with the Secretary of Education, shall establish, or enter into contracts and cooperative agreements with local Indian nonprofit parent organizations to establish and operate Family Engagement Centers. B Local Academic Flexible Grant 3201. Purpose The purpose of this part is to— (1) provide local educational agencies with the opportunity to access funds to support the initiatives important to their schools and students to improve academic achievement, including protecting student safety; and (2) provide nonprofit and for-profit entities the opportunity to work with students to improve academic achievement, including student safety. 3202. Allotments to States (a) Reservations From the funds appropriated under section 3(c)(2) for any fiscal year, the Secretary shall reserve— (1) not more than one-half of 1 percent for national activities to provide technical assistance to eligible entities in carrying out programs under this part; and (2) not more than one-half of 1 percent for payments to the outlying areas and the Bureau of Indian Education, to be allotted in accordance with their respective needs for assistance under this part, as determined by the Secretary, to enable the outlying areas and the Bureau to carry out the purpose of this part. (b) State allotments (1) Determination From the funds appropriated under section 3(c)(2) for any fiscal year and remaining after the Secretary makes reservations under subsection (a), the Secretary shall allot to each State for the fiscal year an amount that bears the same relationship to the remainder as the amount the State received under chapter B of subpart 1 of part A of title I for the preceding fiscal year bears to the amount all States received under that chapter for the preceding fiscal year, except that no State shall receive less than an amount equal to one-half of 1 percent of the total amount made available to all States under this subsection. (2) Reallotment of unused funds If a State does not receive an allotment under this part for a fiscal year, the Secretary shall reallot the amount of the State's allotment to the remaining States in accordance with this section. (c) State use of funds (1) In general Each State that receives an allotment under this part shall reserve not less than 75 percent of the amount allotted to the State under subsection (b) for each fiscal year for awards to eligible entities under section 3204. (2) Awards to nongovernmental entities to improve student academic achievement Each State that receives an allotment under subsection (b) for each fiscal year shall reserve not less than 10 percent of the amount allotted to the State for awards to nongovernmental entities under section 3205. (3) State activities and State administration A State educational agency may reserve not more than 15 percent of the amount allotted to the State under subsection (b) for each fiscal year for the following: (A) Enabling the State educational agency— (i) to pay the costs of developing the State assessments and standards required under section 1111(b), which may include the costs of working, at the sole discretion of the State, in voluntary partnerships with other States to develop such assessments and standards; or (ii) if the State has developed the assessments and standards required under section 1111(b), to administer those assessments or carry out other activities related to ensuring that the State’s schools and local educational agencies are helping students meet the State’s academic standards under such section. (B) The administrative costs of carrying out its responsibilities under this part, except that not more than 5 percent of the reserved amount may be used for this purpose. (C) Monitoring and evaluation of programs and activities assisted under this part. (D) Providing training and technical assistance under this part. (E) Statewide academic focused programs. (F) Sharing evidence-based and other effective strategies with eligible entities. 3203. State application (a) In general In order to receive an allotment under section 3202 for any fiscal year, a State shall submit to the Secretary, at such time as the Secretary may require, an application that— (1) designates the State educational agency as the agency responsible for the administration and supervision of programs assisted under this part; (2) describes how the State educational agency will use funds reserved for State-level activities, including how, if any, of the funds will be used to support student safety; (3) describes the procedures and criteria the State educational agency will use for reviewing applications and awarding funds to eligible entities on a competitive basis, which shall include reviewing how the proposed project will help increase student academic achievement; (4) describes how the State educational agency will ensure that awards made under this part are— (A) of sufficient size and scope to support high-quality, effective programs that are consistent with the purpose of this part; and (B) in amounts that are consistent with section 3204(f); (5) describes the steps the State educational agency will take to ensure that programs implement effective strategies, including providing ongoing technical assistance and training, and dissemination of evidence-based and other effective strategies; (6) describes how the State educational agency will consider students across all grades when making these awards; (7) an assurance that, other than providing technical and advisory assistance and monitoring compliance with this part, the State educational agency has not exercised and will not exercise any influence in the decisionmaking process of eligible entities as to the expenditure of funds received by the eligible entities under this part; (8) describes how programs under this part will be coordinated with programs under this Act, and other programs as appropriate; (9) contains an assurance that the State educational agency— (A) will make awards for programs for a period of not more than 5 years; and (B) will require each eligible entity seeking such an award to submit a plan describing how the project to be funded through the award will continue after funding under this part ends, if applicable; and (10) contains an assurance that funds appropriated to carry out this part will be used to supplement, and not supplant, State and local public funds expended to provide programs and activities authorized under this part and other similar programs. (b) Deemed approval An application submitted by a State educational agency pursuant to subsection (a) shall be deemed to be approved by the Secretary unless the Secretary makes a written determination, prior to the expiration of the 120-day period beginning on the date on which the Secretary received the application, that the application is not in compliance with this part. (c) Disapproval The Secretary shall not finally disapprove the application, except after giving the State educational agency notice and an opportunity for a hearing. (d) Notification If the Secretary finds that the application is not in compliance, in whole or in part, with this part, the Secretary shall— (1) give the State educational agency notice and an opportunity for a hearing; and (2) notify the State educational agency of the finding of noncompliance, and, in such notification, shall— (A) cite the specific provisions in the application that are not in compliance; and (B) request additional information, only as to the noncompliant provisions, needed to make the application compliant. (e) Response If the State educational agency responds to the Secretary's notification described in subsection (d)(2) during the 45-day period beginning on the date on which the agency received the notification, and resubmits the application with the requested information described in subsection (d)(2)(B), the Secretary shall approve or disapprove such application prior to the later of— (1) the expiration of the 45-day period beginning on the date on which the application is resubmitted; or (2) the expiration of the 120-day period described in subsection (b). (f) Failure To respond If the State educational agency does not respond to the Secretary's notification described in subsection (d)(2) during the 45-day period beginning on the date on which the agency received the notification, such application shall be deemed to be disapproved. (g) Rule of Construction An application submitted by a State educational agency pursuant to subsection (a) shall not be approved or disapproved based upon the activities for which the agency may make funds available to eligible entities under section 3204 if the agency’s use of funds is consistent with section 3204(b). 3204. Local competitive grant program (a) In general A State that receives funds under this part for a fiscal year shall provide the amount made available under section 3202(c)(1) to eligible entities in accordance with this section. (b) Use of funds (1) In general An eligible entity that receives an award under this part shall use the funds for activities that— (A) are evidence-based; (B) will improve student academic achievement; (C) are allowable under State law; and (D) focus on one or more projects from the following two categories: (i) Supplemental student support activities such as before, after, or summer school activities, tutoring, and expanded learning time, but not including athletics or in-school learning activities. (ii) Activities designed to support students, such as academic subject specific programs, adjunct teacher programs, extended learning time programs, and parent engagement, but not including activities to— (I) support smaller class sizes or construction; or (II) provide compensation or benefits to teachers, school leaders, other school officials, or local educational agency staff. (2) Participation of children enrolled in private schools An eligible entity that receives an award under this part shall ensure compliance with section 5501 (relating to participation of children enrolled in private schools). (c) Application (1) In general To be eligible to receive an award under this part, an eligible entity shall submit an application to the State educational agency at such time, in such manner, and including such information as the State educational agency may reasonably require, including the contents required by paragraph (2). (2) Contents Each application submitted under paragraph (1) shall include— (A) a description of the activities to be funded and how they are consistent with subsection (b); (B) an assurance that funds under this part will be used to increase the level of State, local, and other non-Federal funds that would, in the absence of funds under this part, be made available for programs and activities authorized under this part, and in no case supplant State, local, or non-Federal funds; (C) an assurance that the community will be given notice of an intent to submit an application with an opportunity for comment, and that the application will be available for public review after submission of the application; and (D) an assurance that students who benefit from any activity funded under this part shall continue to maintain enrollment in a public elementary or secondary school, until graduation or transfer to another school. (d) Review In reviewing local applications under this section, a State educational agency shall use a peer review process or other methods of assuring the quality of such applications but the review shall be limited to the likelihood that the project will increase student academic achievement. (e) Geographic diversity A State educational agency shall distribute funds under this part equitably among geographic areas within the State, including rural, suburban, and urban communities. (f) Award A grant shall be awarded to all eligible entities that submit an application that meets the requirements of this section in an amount that is not less than $10,000, but there shall be only one award granted to any one local educational agency, but such award may be for multiple projects or programs with the local educational agency. (g) Duration of awards Grants under this part may be awarded for a period of not more than 5 years. (h) Eligible entity defined In this section, the term eligible entity means— (1) a local educational agency in partnership with a community-based organization, business entity, or nongovernmental entity; (2) a consortium of local educational agencies working in partnership with a community-based organization, business entity, or nongovernmental entity; (3) a community-based organization in partnership with a local educational agency and, if applicable, a business entity or nongovernmental entity; or (4) a business entity in partnership with a local educational agency and, if applicable, a community-based organization or nongovernmental entity. 3205. Awards to nongovernmental entities to improve academic achievement (a) In general From the amount reserved under section 3202(c)(2) , a State educational agency shall award grants to nongovernmental entities, including public or private organizations, community-based or faith-based organizations, and business entities for a program or project to increase the academic achievement of public school students attending public elementary or secondary schools (or both) in compliance with the requirements in this section. Subject to the availability of funds, the State educational agency shall award a grant to each eligible applicant that meets the requirements in a sufficient size and scope to support the program. (b) Application The State educational agency shall require an application that includes the following information: (1) A description of the program or project the applicant will use the funds to support. (2) A description of how the applicant is using or will use other State, local, or private funding to support the program or project. (3) A description of how the program or project will help increase student academic achievement, including the evidence to support this claim. (4) A description of the student population the program or project is targeting to impact, and if the program will prioritize students in high-need local educational agencies. (5) A description of how the applicant will conduct sufficient outreach to ensure students can participate in the program or project. (6) A description of any partnerships the applicant has entered into with local educational agencies or other entities the applicant will work with, if applicable. (7) A description of how the applicant will work to share evidence-based and other effective strategies from the program or project with local educational agencies and other entities working with students to increase academic achievement. (8) An assurance that students who benefit from any program or project funded under this section shall continue to maintain enrollment in a public elementary or secondary school, until graduation or transfer to another school. (c) Matching contribution An eligible applicant receiving a grant under this section shall provide, either directly or through private contributions, non-Federal matching funds equal to not less than 50 percent of the amount of the grant. (d) Review The State educational agency shall review the application to ensure that— (1) the applicant is an eligible applicant; (2) the application clearly describes the required elements in subsection (b) ; (3) the entity meets the matching requirement described in subsection (c) ; and (4) the program is allowable and complies with Federal, State, and local laws. (e) Distribution of funds If the application requests exceed the funds available, the State educational agency shall prioritize projects that support students in high-need local educational agencies and ensure geographic diversity, including serving rural, suburban, and urban areas. (f) Administrative costs Not more than 1 percent of a grant awarded under this section may be used for administrative costs. 3206. Report Each recipient of a grant under section 3204 or 3 205 shall report to the State educational agency on— (1) the success of the program in reaching the goals of the program; (2) a description of the students served by the program and how the students’ academic achievement improved; and (3) the results of any evaluation conducted on the success of the program. . IV Impact Aid 401. Purpose Section 8001 ( 20 U.S.C. 7701 ) is amended by striking challenging State standards and inserting State academic standards . 402. Payments relating to Federal acquisition of real property Section 8002 ( 20 U.S.C. 7702 ) is amended— (1) in subsection (b)(1)(B), by striking section 8014(a) and inserting section 3(d)(1) ; and (2) by amending subsection (f) to read as follows: (f) Special Rule Beginning with fiscal year 2014, a local educational agency shall be deemed to meet the requirements of subsection (a)(1)(C) if records to determine eligibility under such subsection were destroyed prior to fiscal year 2000 and the agency received funds under subsection (b) in the previous year. ; (3) by amending subsection (g) to read as follows: (g) Former Districts (1) Consolidations For fiscal year 2006 and each succeeding fiscal year, if a local educational agency described in paragraph (2) is formed at any time after 1938 by the consolidation of two or more former school districts, the local educational agency may elect to have the Secretary determine its eligibility and any amount for which the local educational agency is eligible under this section for such fiscal year on the basis of one or more of those former districts, as designated by the local educational agency. (2) Eligible local educational agencies A local educational agency described in this paragraph is— (A) any local educational agency that, for fiscal year 1994 or any preceding fiscal year, applied for, and was determined to be eligible under section 2(c) of the Act of September 20, 1950 (Public Law 874, 81st Congress) as that section was in effect for that fiscal year; or (B) a local educational agency formed by the consolidation of 2 or more school districts, at least one of which was eligible for assistance under this section for the fiscal year preceding the year of the consolidation, if— (i) for fiscal years 2006 through 2013, the local educational agency notifies the Secretary not later than 30 days after the date of enactment of the Student Success Act of the designation described in paragraph (1); and (ii) for fiscal year 2014, and each subsequent fiscal year, the local educational agency includes the designation in its application under section 8005 or any timely amendment to such application. (3) Availability of Funds Notwithstanding any other provision of law limiting the period during which the Secretary may obligate funds appropriated for any fiscal year after fiscal year 2005, the Secretary may obligate funds remaining after final payments have been made for any of such fiscal years to carry out this subsection. ; (4) in subsection (h)— (A) in paragraph (2)— (i) in subparagraph (C)(ii), by striking section 8014(a) and inserting section 3(d)(1) ; and (ii) in subparagraph (D), by striking section 8014(a) and inserting section 3(d)(1) ; and (B) in paragraph (4), by striking Impact Aid Improvement Act of 2012 and inserting Student Success Act ; (5) by repealing subsection (k); (6) by redesignating subsection (l) as subsection (k); (7) by amending subsection (k) (as so redesignated) by striking (h)(4)(B) and inserting (h)(2) ; (8) by repealing subsection (m); and (9) by redesignating subsection (n) as subsection (j). 403. Payments for eligible federally connected children (a) Computation of payment Section 8003(a) ( 20 U.S.C. 7703(a) ) is amended— (1) in the matter preceding subparagraph (A) of paragraph (1), by inserting after schools of such agency the following: (including those children enrolled in such agency as a result of the open enrollment policy of the State in which the agency is located, but not including children who are enrolled in a distance education program at such agency and who are not residing within the geographic boundaries of such agency) ; and (2) in paragraph (5)(A), by striking 1984 and all that follows through situated and inserting 1984, or under lease of off-base property under subchapter IV of chapter 169 of title 10, United States Code, to be children described under paragraph (1)(B) if the property described is within the fenced security perimeter of the military facility or attached to and under any type of force protection agreement with the military installation upon which such housing is situated. (b) Basic support payments for heavily impacted local educational agencies Section 8003(b) ( 20 U.S.C. 7703(b) ) is amended— (1) by striking section 8014(b) each place it appears and inserting section 3(d)(2) ; (2) in paragraph (1), by repealing subparagraph (E); (3) in paragraph (2)— (A) in subparagraph (A), by inserting at the end the following: (iii) The Secretary shall— (I) deem each local educational agency that received a basic support payment under this paragraph for fiscal year 2009 as eligible to receive a basic support payment under this paragraph for each of fiscal years 2012, 2013, and 2014; and (II) make a payment to each such local educational agency under this paragraph for each of fiscal years 2012, 2013, and 2014. ; and (B) in subparagraph (B)— (i) by striking continuing in the heading; (ii) by amending clause (i) to read as follows: (i) In general A heavily impacted local educational agency is eligible to receive a basic support payment under subparagraph (A) with respect to a number of children determined under subsection (a)(1) if the agency— (I) is a local educational agency— (aa) whose boundaries are the same as a Federal military installation or an island property designated by the Secretary of the Interior to be property that is held in trust by the Federal Government; and (bb) that has no taxing authority; (II) is a local educational agency that— (aa) has an enrollment of children described in subsection (a)(1) that constitutes a percentage of the total student enrollment of the agency that is not less than 45 percent; (bb) has a per-pupil expenditure that is less than— (AA) for an agency that has a total student enrollment of 500 or more students, 125 percent of the average per-pupil expenditure of the State in which the agency is located; or (BB) for any agency that has a total student enrollment less than 500, 150 percent of the average per-pupil expenditure of the State in which the agency is located or the average per-pupil expenditure of 3 or more comparable local educational agencies in the State in which the agency is located; and (cc) is an agency that— (AA) has a tax rate for general fund purposes that is not less than 95 percent of the average tax rate for general fund purposes of comparable local educational agencies in the State; or (BB) was eligible to receive a payment under this subsection for fiscal year 2013 and is located in a State that by State law has eliminated ad valorem tax as a revenue for local educational agencies; (III) is a local educational agency that— (aa) has an enrollment of children described in subsection (a)(1) that constitutes a percentage of the total student enrollment of the agency that is not less than 20 percent; (bb) for the 3 fiscal years preceding the fiscal year for which the determination is made, the average enrollment of children who are not described in subsection (a)(1) and who are eligible for a free or reduced price lunch under the Richard B. Russell National School Lunch Act constitutes a percentage of the total student enrollment of the agency that is not less than 65 percent; and (cc) has a tax rate for general fund purposes which is not less than 125 percent of the average tax rate for general fund purposes for comparable local educational agencies in the State; (IV) is a local educational agency that has a total student enrollment of not less than 25,000 students, of which— (aa) not less than 50 percent are children described in subsection (a)(1); and (bb) not less than 5,500 of such children are children described in subparagraphs (A) and (B) of subsection (a)(1); or (V) is a local educational agency that— (aa) has an enrollment of children described in subsection (a)(1) including, for purposes of determining eligibility, those children described in subparagraphs (F) and (G) of such subsection, that is not less than 35 percent of the total student enrollment of the agency; and (bb) was eligible to receive assistance under subparagraph (A) for fiscal year 2001. ; and (iii) in clause (ii)— (I) by striking A heavily and inserting the following: (I) In general Subject to subclause (II), a heavily ; and (II) by adding at the end the following: (II) Loss of eligibility due to falling below 95 percent of the average tax rate for general fund purposes In a case of a heavily impacted local educational agency that fails to meet the requirements of clause (i) for a fiscal year by reason of having a tax rate for general fund purposes that falls below 95 percent of the average tax rate for general fund purposes of comparable local educational agencies in the State, subclause (I) shall be applied as if and the subsequent fiscal year were inserted before the period at the end. ; (C) by striking subparagraph (C); (D) by redesignating subparagraphs (D) through (H) as subparagraphs (C) through (G), respectively; (E) in subparagraph (C) (as so redesignated)— (i) in the heading, by striking regular ; (ii) by striking Except as provided in subparagraph (E) and inserting Except as provided in subparagraph (D) ; (iii) by amending subclause (I) of clause (ii) to read as follows: (ii) (I) (aa) For a local educational agency with respect to which 35 percent or more of the total student enrollment of the schools of the agency are children described in subparagraph (D) or (E) (or a combination thereof) of subsection (a)(1), and that has an enrollment of children described in subparagraphs (A), (B), or (C) of such subsection equal to at least 10 percent of the agency’s total enrollment, the Secretary shall calculate the weighted student units of those children described in subparagraph (D) or (E) of such subsection by multiplying the number of such children by a factor of 0.55. (bb) Notwithstanding subitem (aa), a local educational agency that received a payment under this paragraph for fiscal year 2012 shall not be required to have an enrollment of children described in subparagraphs (A), (B), or (C) of subsection (a)(1) equal to at least 10 percent of the agency’s total enrollment. ; and (iv) by amending subclause (III) of clause (ii) by striking (B)(i)(II)(aa) and inserting subparagraph (B)(i)(I) ; (F) in subparagraph (D)(i)(II) (as so redesignated), by striking 6,000 and inserting 5,500 ; (G) in subparagraph (E) (as so redesignated)— (i) by striking Secretary and all that follows through shall use and inserting Secretary shall use ; (ii) by striking ; and and inserting a period; and (iii) by striking clause (ii); (H) in subparagraph (F) (as so redesignated), by striking subparagraph (C)(i)(II)(bb) and inserting subparagraph (B)(i)(II)(bb)(BB) ; and (I) in subparagraph (G) (as so redesignated)— (i) in clause (i)— (I) by striking subparagraph (B), (C), (D), or (E) and inserting subparagraph (B), (C), or (D) ; (II) by striking by reason of and inserting due to ; (III) by inserting after clause (iii) the following , or as the direct result of base realignment and closure or modularization as determined by the Secretary of Defense and force structure change or force relocation ; and (IV) by inserting before the period, the following: or during such time as activities associated with base closure and realignment, modularization, force structure change, or force relocation are ongoing ; and (ii) in clause (ii), by striking (D) or (E) each place it appears and inserting (C) or (D) ; (4) in paragraph (3)— (A) in subparagraph (B)— (i) by amending clause (iii) to read as follows: (iii) In the case of a local educational agency providing a free public education to students enrolled in kindergarten through grade 12, but which enrolls students described in subparagraphs (A), (B), and (D) of subsection (a)(1) only in grades 9 through 12, and which received a final payment in fiscal year 2009 calculated under this paragraph (as this paragraph was in effect on the day before the date of enactment of the Student Success Act) for students in grades 9 through 12, the Secretary shall, in calculating the agency’s payment, consider only that portion of such agency’s total enrollment of students in grades 9 through 12 when calculating the percentage under clause (i)(I) and only that portion of the total current expenditures attributed to the operation of grades 9 through 12 in such agency when calculating the percentage under clause (i)(II). ; and (ii) by adding at the end the following: (v) In the case of a local educational agency that is providing a program of distance education to children not residing within the geographic boundaries of the agency, the Secretary shall— (I) for purposes of the calculation under clause (i)(I), disregard such children from the total number of children in average daily attendance at the schools served by such agency; and (II) for purposes of the calculation under clause (i)(II), disregard any funds received for such children from the total current expenditures for such agency. ; (B) in subparagraph (C), by striking subparagraph (D) or (E) of paragraph (2), as the case may be and inserting paragraph (2)(D) ; and (C) by amending subparagraph (D) to read as follows: (D) Ratable distribution For any fiscal year described in subparagraph (A) for which the sums available exceed the amount required to pay each local educational agency 100 percent of its threshold payment, the Secretary shall distribute the excess sums to each eligible local educational agency that has not received its full amount computed under paragraph (1) or (2) (as the case may be) by multiplying— (i) a percentage, the denominator of which is the difference between the full amount computed under paragraph (1) or (2) (as the case may be) for all local educational agencies and the amount of the threshold payment (as calculated under subparagraphs (B) and (C)) of all local educational agencies, and the numerator of which is the aggregate of the excess sums, by; (ii) the difference between the full amount computed under paragraph (1) or (2) (as the case may be) for the agency and the amount of the threshold payment as calculated under subparagraphs (B) and (C) of the agency. ; and (D) by inserting at the end the following new subparagraphs: (E) Insufficient payments For each fiscal year described in subparagraph (A) for which the sums appropriated under section 3(d)(2) are insufficient to pay each local educational agency all of the local educational agency’s threshold payment described in subparagraph (D), the Secretary shall ratably reduce the payment to each local educational agency under this paragraph. (F) Increases If the sums appropriated under section 3(d)(2) are sufficient to increase the threshold payment above the 100 percent threshold payment described in subparagraph (D), then the Secretary shall increase payments on the same basis as such payments were reduced, except no local educational agency may receive a payment amount greater than 100 percent of the maximum payment calculated under this subsection. ; and (5) in paragraph (4)— (A) in subparagraph (A), by striking through (D) and inserting and (C) ; and (B) in subparagraph (B), by striking subparagraph (D) or (E) and inserting subparagraph (C) or (D) . (c) Prior year data Paragraph (2) of section 8003(c) ( 20 U.S.C. 7703(c) ) is amended to read as follows: (2) Exception Calculation of payments for a local educational agency shall be based on data from the fiscal year for which the agency is making an application for payment if such agency— (A) is newly established by a State, for the first year of operation of such agency only; (B) was eligible to receive a payment under this section for the previous fiscal year and has had an overall increase in enrollment (as determined by the Secretary in consultation with the Secretary of Defense, the Secretary of the Interior, or the heads of other Federal agencies)— (i) of not less than 10 percent, or 100 students, of children described in— (I) subparagraph (A), (B), (C), or (D) of subsection (a)(1); or (II) subparagraph (F) and (G) of subsection (a)(1), but only to the extent such children are civilian dependents of employees of the Department of Defense or the Department of the Interior; and (ii) that is the direct result of closure or realignment of military installations under the base closure process or the relocation of members of the Armed Forces and civilian employees of the Department of Defense as part of the force structure changes or movements of units or personnel between military installations or because of actions initiated by the Secretary of the Interior or the head of another Federal agency; or (C) was eligible to receive a payment under this section for the previous fiscal year and has had an increase in enrollment (as determined by the Secretary)— (i) of not less than 10 percent of children described in subsection (a)(1) or not less than 100 of such children; and (ii) that is the direct result of the closure of a local educational agency that received a payment under subsection (b)(1) or (b)(2) in the previous fiscal year. . (d) Children with disabilities Section 8003(d)(1) ( 20 U.S.C. 7703(d) ) is amended by striking section 8014(c) and inserting section 3(d)(3) . (e) Hold-Harmless Section 8003(e) ( 20 U.S.C. 7703(e) ) is amended— (1) by amending paragraph (1) to read as follows: (1) In general Subject to paragraph (2), the total amount the Secretary shall pay a local educational agency under subsection (b)— (A) for fiscal year 2014, shall not be less than 90 percent of the total amount that the local educational agency received under subsection (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal year 2013; (B) for fiscal year 2015, shall not be less than 85 percent of the total amount that the local educational agency received under subsection (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal year 2013; and (C) for fiscal year 2016, shall not be less than 80 percent of the total amount that the local educational agency received under subsection (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal year 2013. ; and (2) by amending paragraph (2) to read as follows: (2) Maximum amount The total amount provided to a local educational agency under subparagraph (A), (B), or C of paragraph (1) for a fiscal year shall not exceed the maximum basic support payment amount for such agency determined under paragraph (1) or (2) of subsection (b), as the case may be, for such fiscal year. . (f) Maintenance of effort Section 8003 (20 U.S.C. 7703) is amended by striking subsection (g). 404. Policies and procedures relating to children residing on Indian lands Section 8004(e)(9) is amended by striking Bureau of Indian Affairs and inserting Bureau of Indian Education . 405. Application for payments under sections 8002 and 8003 Section 8005(b) ( 20 U.S.C. 7705(b) ) is amended in the matter preceding paragraph (1) by striking and shall contain such information, . 406. Construction Section 8007 ( 20 U.S.C. 7707 ) is amended— (1) in subsection (a)— (A) in paragraph (1), by striking section 8014(e) and inserting section 3(d)(4) ; (B) in paragraph (2), by adding at the end the following: (C) The agency is eligible under section 4003(b)(2) or is receiving basic support payments under circumstances described in section 4003(b)(2)(B)(ii). ; and (C) in paragraph (3), by striking section 8014(e) each place it appears and inserting section 3(d)(4) ; and (2) in subsection (b)— (A) in paragraph (1), by striking section 8014(e) and inserting section 3(d)(4) ; (B) in paragraph (3)— (i) in subparagraph (C)(i)(I), by adding at the end the following: (cc) At least 10 percent of the property in the agency is exempt from State and local taxation under Federal law. ; and (ii) by adding at the end the following: (F) Limitations on eligibility requirements The Secretary shall not limit eligibility— (i) under subparagraph (C)(i)(I)(aa), to those local educational agencies in which the number of children determined under section 8003(a)(1)(C) for each such agency for the preceding school year constituted more than 40 percent of the total student enrollment in the schools of each such agency during the preceding school year; and (ii) under subparagraph (C)(i)(I)(cc), to those local educational agencies in which more than 10 percent of the property in each such agency is exempt from State and local taxation under Federal law. ; (C) in paragraph (6)— (i) in the matter preceding subparagraph (A), by striking in such manner, and accompanied by such information and inserting and in such manner ; and (ii) by striking subparagraph (F); and (D) by striking paragraph (7). 407. Facilities Section 8008 ( 20 U.S.C. 7708 ) is amended in subsection (a), by striking section 8014(f) and inserting section 3(d)(5) . 408. State consideration of payments providing State aid Section 8009(c)(1)(B) (20 U.S.C. 7709(c)(1)(B)) is amended by striking and contain the information . 409. Federal administration Section 8010(d)(2) ( 20 U.S.C. 7710(d)(2) ) is amended, by striking section 8014 and inserting section 3(d) . 410. Administrative hearings and judicial review Section 8011(a) ( 20 U.S.C. 7711(a) ) is amended by striking or under the Act and all the follows through 1994) . 411. Definitions Section 8013 ( 20 U.S.C. 7713 ) is amended— (1) in paragraph (1), by striking and Marine Corps and inserting Marine Corps, and Coast Guard ; (2) in paragraph (4), by striking and title VI ; (3) in paragraph (5)(A)(iii)— (A) in subclause (II), by striking Stewart B. McKinney Homeless Assistance Act and inserting McKinney-Vento Homeless Assistance Act (42 U.S.C. 11411) ; and (B) in subclause (III), by inserting before the semicolon, ( 25 U.S.C. 4101 et seq. ) ; (4) in paragraph (8)(A), by striking and verified by and inserting , and verified by, ; and (5) in paragraph (9)(B), by inserting a comma before on a case-by-case basis . 412. Authorization of appropriations Section 8014 ( 20 U.S.C. 7801 ) is repealed. 413. Conforming amendments (a) Impact Aid Improvement Act of 2012 Subsection (c) of the Impact Aid Improvement Act of 2012 ( 20 U.S.C. 6301 note) is amended— (1) by striking paragraphs (1) and (4); and (2) by redesignating paragraphs (2) and (3), as paragraphs (1) and (2), respectively. (b) Transfer and redesignation Title VIII (20 U.S.C. 7701 et seq.), as amended by this title, is redesignated as title IV (20 U.S.C. 7101 et seq.), and transferred and inserted after title III (as amended by this Act). (c) Title IV The heading relating to title IV of such Act ( 20 U.S.C. 7101 et seq. ) is amended to read as follows: IV Impact Aid . (d) Title VIII references The Act (20 U.S.C. 6301 et seq.) is amended— (1) by redesignating sections 8001 through 8005 as sections 4001 through 4005, respectively; (2) by redesignating sections 8007 through 8013 as sections 4007 through 4013, respectively; (3) by striking section 8002 each place it appears and inserting section 4002 ; (4) by striking section 8002(b) each place it appears and inserting section 4002(b) ; (5) by striking section 8003 each place it appears and inserting section 4003 , respectively; (6) by striking section 8003(a) each place it appears and inserting section 4003(a) ; (7) by striking section 8003(a)(1) each place it appears and inserting section 4003(a)(1) ; (8) by striking section 8003(a)(1)(C) each place it appears and inserting section 4003(a)(1)(C) ; (9) by striking section 8002(a)(2) each place it appears and inserting section 4002(a)(2) ; (10) by striking section 8003(b) each place it appears and inserting section 4003(b) ; (11) by striking section 8003(b)(1) each place it appears and inserting section 4003(b)(1) ; (12) in section 4002(b)(1)(C), by striking section 8003(b)(1)(C) and inserting section 4003(b)(1)(C) ; (13) in section 4002(j)(1) (as so redesignated), by striking section 8013(5)(C)(iii) and inserting section 4013(5)(C)(iii) ; (14) in section 4005 (as so redesignated)— (A) in the section heading, by striking 8002 and 8003 and inserting 4002 and 4003 ; (B) by striking or 8003 each place it appears and inserting or 4003 ; (C) in subsection (b)(2), by striking section 8004 and inserting section 4004 ; and (D) in subsection (d)(2), by striking section 8003(e) and inserting section 4003(e) ; (15) in section 4007(a)(3)(A)(i) (as so redesignated), by striking section 8008(a) and inserting section 4008(a) ; (16) in section 4007(a)(4) (as so redesignated), by striking section 8013(3) and inserting section 4013(3) ; (17) in section 4009 (as so redesignated)— (A) in subsection (b)(1)— (i) by striking or 8003(b) and inserting or 4003(b) ; (ii) by striking section 8003(a)(2)(B) and inserting section 4003(a)(2)(B) ; and (iii) by striking section 8003(b)(2) and inserting section 4003(b)(2) ; and (B) by striking section 8011(a) each place it appears and inserting section 4011(a) ; and (18) in section 4010(c)(2)(D) (as so redesignated) by striking section 8009(b) and inserting section 4009(b) . V General provisions for the Act 501. General provisions for the Act (a) Amending title V Title V (20 U.S.C. 7201 et seq.) is amended to read as follows: V General Provisions A Definitions 5101. Definitions Except as otherwise provided, in this Act: (1) Average daily attendance (A) In general Except as provided otherwise by State law or this paragraph, the term average daily attendance means— (i) the aggregate number of days of attendance of all students during a school year; divided by (ii) the number of days school is in session during that year. (B) Conversion The Secretary shall permit the conversion of average daily membership (or other similar data) to average daily attendance for local educational agencies in States that provide State aid to local educational agencies on the basis of average daily membership (or other similar data). (C) Special rule If the local educational agency in which a child resides makes a tuition or other payment for the free public education of the child in a school located in another school district, the Secretary shall, for the purpose of this Act— (i) consider the child to be in attendance at a school of the agency making the payment; and (ii) not consider the child to be in attendance at a school of the agency receiving the payment. (D) Children with disabilities If a local educational agency makes a tuition payment to a private school or to a public school of another local educational agency for a child with a disability, as defined in section 602 of the Individuals with Disabilities Education Act, the Secretary shall, for the purpose of this Act, consider the child to be in attendance at a school of the agency making the payment. (2) Average per-pupil expenditure The term average per-pupil expenditure means, in the case of a State or of the United States— (A) without regard to the source of funds— (i) the aggregate current expenditures, during the third fiscal year preceding the fiscal year for which the determination is made (or, if satisfactory data for that year are not available, during the most recent preceding fiscal year for which satisfactory data are available) of all local educational agencies in the State or, in the case of the United States, for all States (which, for the purpose of this paragraph, means the 50 States and the District of Columbia); plus (ii) any direct current expenditures by the State for the operation of those agencies; divided by (B) the aggregate number of children in average daily attendance to whom those agencies provided free public education during that preceding year. (3) Charter school The term charter school means a public school that— (A) in accordance with a specific State statute authorizing the granting of charters to schools, is exempt from significant State or local rules that inhibit the flexible operation and management of public schools, but not from any rules relating to the other requirements of this paragraph; (B) is created by a developer as a public school, or is adapted by a developer from an existing public school, and is operated under public supervision and direction; (C) operates in pursuit of a specific set of educational objectives determined by the school's developer and agreed to by the authorized public chartering agency; (D) provides a program of elementary or secondary education, or both; (E) is nonsectarian in its programs, admissions policies, employment practices, and all other operations, and is not affiliated with a sectarian school or religious institution; (F) does not charge tuition; (G) complies with the Age Discrimination Act of 1975, title VI of the Civil Rights Act of 1964, title IX of the Education Amendments of 1972, section 504 of the Rehabilitation Act of 1973, and part B of the Individuals with Disabilities Education Act; (H) is a school to which parents choose to send their children, and that admits students on the basis of a lottery, if more students apply for admission than can be accommodated; (I) agrees to comply with the same Federal and State audit requirements as do other elementary schools and secondary schools in the State, unless such requirements are specifically waived for the purpose of this program; (J) meets all applicable Federal, State, and local health and safety requirements; (K) operates in accordance with State law; (L) has a written performance contract with the authorized public chartering agency in the State that includes a description of how student performance will be measured in charter schools pursuant to State assessments that are required of other schools and pursuant to any other assessments mutually agreeable to the authorized public chartering agency and the charter school; and (M) may serve prekindergarten or post secondary students. (4) Child The term child means any person within the age limits for which the State provides free public education. (5) Child with a disability The term child with a disability has the same meaning given that term in section 602 of the Individuals with Disabilities Education Act. (6) Community-based organization The term community-based organization means a public or private nonprofit organization of demonstrated effectiveness that— (A) is representative of a community or significant segments of a community; and (B) provides educational or related services to individuals in the community. (7) Consolidated local application The term consolidated local application means an application submitted by a local educational agency pursuant to section 5305. (8) Consolidated local plan The term consolidated local plan means a plan submitted by a local educational agency pursuant to section 5305. (9) Consolidated state application The term consolidated State application means an application submitted by a State educational agency pursuant to section 5302. (10) Consolidated state plan The term consolidated State plan means a plan submitted by a State educational agency pursuant to section 5302. (11) Core academic subjects The term core academic subjects means English, reading or language arts, mathematics, science, foreign languages, civics and government, economics, arts, history, and geography. (12) County The term county means one of the divisions of a State used by the Secretary of Commerce in compiling and reporting data regarding counties. (13) Covered program The term covered program means each of the programs authorized by— (A) part A of title I; (B) title II; and (C) title III. (14) Current expenditures The term current expenditures means expenditures for free public education— (A) including expenditures for administration, instruction, attendance and health services, pupil transportation services, operation and maintenance of plant, fixed charges, and net expenditures to cover deficits for food services and student body activities; but (B) not including expenditures for community services, capital outlay, and debt service, or any expenditures made from funds received under title I. (15) Department The term Department means the Department of Education. (16) Direct student services The term direct student services means public school choice or high-quality academic tutoring that are designed to help increase academic achievement for students. (17) Distance education The term distance education means the use of one or more technologies to deliver instruction to students who are separated from the instructor and to support regular and substantive interaction between the students and the instructor synchronously or nonsynchronously. (18) Educational service agency The term educational service agency means a regional public multiservice agency authorized by State statute to develop, manage, and provide services or programs to local educational agencies. (19) Elementary school The term elementary school means a nonprofit institutional day or residential school, including a public elementary charter school, that provides elementary education, as determined under State law. (20) English learner The term English learner , when used with respect to an individual, means an individual— (A) who is aged 3 through 21; (B) who is enrolled or preparing to enroll in an elementary school or secondary school; (C) (i) who was not born in the United States or whose native language is a language other than English; (ii) (I) who is a Native American or Alaska Native, or a native resident of the outlying areas; and (II) who comes from an environment where a language other than English has had a significant impact on the individual’s level of English language proficiency; or (iii) who is migratory, whose native language is a language other than English, and who comes from an environment where a language other than English is dominant; and (D) whose difficulties in speaking, reading, writing, or understanding the English language may be sufficient to deny the individual— (i) the ability to meet the State’s academic standards described in section 1111; (ii) the ability to successfully achieve in classrooms where the language of instruction is English; or (iii) the opportunity to participate fully in society. (21) Extended-year adjusted cohort graduation rate (A) In general The term extended-year adjusted cohort graduation rate means the ratio where— (i) the denominator consists of the number of students who form the original cohort of students who entered the entry grade together in the entry year of high school, adjusted by— (I) adding the students who joined that cohort, after the time of the determination of the original cohort; and (II) subtracting only those students who left that cohort, after the time of the determination of the original cohort, as described in subparagraph (B); and (ii) the numerator consists of the number of students in the cohort, as adjusted under clause (i), who earned a regular high school diploma before, during, or at the conclusion of— (I) one or more additional years beyond the fourth year of high school; or (II) a summer session immediately following the additional year of high school. (B) Cohort removal To remove a student from a cohort, a school or local educational agency shall require documentation to confirm that the student has transferred out, emigrated to another country, transferred to a prison or juvenile facility, or is deceased. (C) Transferred out (i) In general For purposes of this paragraph, the term transferred out means a student who the high school or local educational agency has confirmed, according to clause (ii), has transferred— (I) to another school from which the student is expected to receive a regular high school diploma; or (II) to another educational program from which the student is expected to receive a regular high school diploma. (ii) Confirmation requirements (I) Documentation required The confirmation of a student’s transfer to another school or educational program described in clause (i) requires documentation from the receiving school or program that the student enrolled in the receiving school or program. (II) Lack of confirmation A student who was enrolled, but for whom there is no confirmation of the student having transferred out, shall remain in the extended-year adjusted cohort. (iii) Programs not providing credit A student who is retained in grade or who is enrolled in a GED or other alternative educational program that does not issue or provide credit toward the issuance of a regular high school diploma shall not be considered transferred out and shall remain in the extended-year adjusted cohort. (D) Special rule For those high schools that start after grade 9, the original cohort shall be calculated for the earliest high school grade students attend no later than the effective date for student membership data submitted annually by State educational agencies to the National Center for Education Statistics pursuant to section 153 of the Education Sciences Reform Act. (22) Family literacy services The term family literacy services means services provided to participants on a voluntary basis that are of sufficient intensity in terms of hours, and of sufficient duration, to make sustainable changes in a family, and that integrate all of the following activities: (A) Interactive literacy activities between parents and their children. (B) Training for parents regarding how to be the primary teacher for their children and full partners in the education of their children. (C) Parent literacy training that leads to economic self-sufficiency. (D) An age-appropriate education to prepare children for success in school and life experiences. (23) Four-year adjusted cohort graduation rate (A) In general The term four-year adjusted cohort graduation rate means the ratio where— (i) the denominator consists of the number of students who form the original cohort of entering first-time 9th grade students enrolled in the high school no later than the effective date for student membership data submitted annually by State educational agencies to the National Center for Education Statistics pursuant to section 153 of the Education Sciences Reform Act, adjusted by— (I) adding the students who joined that cohort, after the time of the determination of the original cohort; and (II) subtracting only those students who left that cohort, after the time of the determination of the original cohort, as described in subparagraph (B); and (ii) the numerator consists of the number of students in the cohort, as adjusted under clause (i), who earned a regular high school diploma before, during, or at the conclusion of— (I) the fourth year of high school; or (II) a summer session immediately following the fourth year of high school. (B) Cohort removal To remove a student from a cohort, a school or local educational agency shall require documentation to confirm that the student has transferred out, emigrated to another country, transferred to a prison or juvenile facility, or is deceased. (C) Transferred out (i) In general For purposes of this paragraph, the term transferred out means a student who the high school or local educational agency has confirmed, according to clause (ii), has transferred— (I) to another school from which the student is expected to receive a regular high school diploma; or (II) to another educational program from which the student is expected to receive a regular high school diploma. (ii) Confirmation requirements (I) Documentation required The confirmation of a student’s transfer to another school or educational program described in clause (i) requires documentation from the receiving school or program that the student enrolled in the receiving school or program. (II) Lack of confirmation A student who was enrolled, but for whom there is no confirmation of the student having transferred out, shall remain in the adjusted cohort. (iii) Programs not providing credit A student who is retained in grade or who is enrolled in a GED or other alternative educational program that does not issue or provide credit toward the issuance of a regular high school diploma shall not be considered transferred out and shall remain in the adjusted cohort. (D) Special rule For those high schools that start after grade 9, the original cohort shall be calculated for the earliest high school grade students attend no later than the effective date for student membership data submitted annually by State educational agencies to the National Center for Education Statistics pursuant to section 153 of the Education Sciences Reform Act. (24) Free public education The term free public education means education that is provided— (A) at public expense, under public supervision and direction, and without tuition charge; and (B) as elementary school or secondary school education as determined under applicable State law, except that the term does not include any education provided beyond grade 12. (25) High-quality academic tutoring The term ‘high-quality academic tutoring’ means supplemental academic services that— (A) are in addition to instruction provided during the school day; (B) are provided by a non-governmental entity or local educational agency that— (i) is included on a State educational agency approved provider list after demonstrating to the State educational agency that its program consistently improves the academic achievement of students; and (ii) agrees to provide parents of children receiving high-quality academic tutoring, the appropriate local educational agency, and school with information on participating students increases in academic achievement, in a format, and to the extent practicable, a language that such parent can understand, and in a manner that protects the privacy of individuals consistent with section 444 of the General Education Provisions Act ( 20 U.S.C. 1232g ); (C) are selected by the parents of students who are identified by the local educational agency as being eligible for such services from among providers on the approved provider list described in subparagraph (B)(i); (D) meet all applicable Federal, State, and local health, safety, and civil rights laws; and (E) ensure that all instruction and content are secular, neutral, and non-ideological. (26) High school The term high school means a secondary school that— (A) grants a diploma, as defined by the State; and (B) includes, at least, grade 12. (27) Institution of higher education The term institution of higher education has the meaning given that term in section 101(a) of the Higher Education Act of 1965. (28) Local educational agency (A) In general The term local educational agency means a public board of education or other public authority legally constituted within a State for either administrative control or direction of, or to perform a service function for, public elementary schools or secondary schools in a city, county, township, school district, or other political subdivision of a State, or of or for a combination of school districts or counties that is recognized in a State as an administrative agency for its public elementary schools or secondary schools. (B) Administrative control and direction The term includes any other public institution or agency having administrative control and direction of a public elementary school or secondary school. (C) BIE schools The term includes an elementary school or secondary school funded by the Bureau of Indian Education but only to the extent that including the school makes the school eligible for programs for which specific eligibility is not provided to the school in another provision of law and the school does not have a student population that is smaller than the student population of the local educational agency receiving assistance under this Act with the smallest student population, except that the school shall not be subject to the jurisdiction of any State educational agency other than the Bureau of Indian Education. (D) Educational service agencies The term includes educational service agencies and consortia of those agencies. (E) State educational agency The term includes the State educational agency in a State in which the State educational agency is the sole educational agency for all public schools. (29) Native American and native American language The terms Native American and Native American language have the same meaning given those terms in section 103 of the Native American Languages Act of 1990. (30) Other staff The term other staff means specialized instructional support personnel, librarians, career guidance and counseling personnel, education aides, and other instructional and administrative personnel. (31) Outlying area The term outlying area — (A) means American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, and the United States Virgin Islands; (B) means the Republic of Palau, to the extent permitted under section 105(f)(1)(B)(ix) of the Compact of Free Association Amendments Act of 2003 ( Public Law 99–658 ; 117 Stat. 2751) and until an agreement for the extension of United States education assistance under the Compact of Free Association becomes effective for the Republic of Palau; and (C) for the purpose of any discretionary grant program under this Act, includes the Republic of the Marshall Islands and the Federated States of Micronesia, to the extent permitted under section 105(f)(1)(B)(viii) of the Compact of Free Association Amendments Act of 2003 ( Public Law 108–188 ; 117 Stat. 2751). (32) Parent The term parent includes a legal guardian or other person standing in loco parentis (such as a grandparent, stepparent, or foster parent with whom the child lives, or a person who is legally responsible for the child’s welfare). (33) Parental involvement The term parental involvement means the participation of parents in regular, two-way, and meaningful communication involving student academic learning and other school activities, including ensuring— (A) that parents play an integral role in assisting in their child’s learning; (B) that parents are encouraged to be actively involved in their child’s education at school; (C) that parents are full partners in their child’s education and are included, as appropriate, in decisionmaking and on advisory committees to assist in the education of their child; and (D) the carrying out of other activities, such as those described in section 1118. (34) Poverty line The term poverty line means the poverty line (as defined by the Office of Management and Budget and revised annually in accordance with section 673(2) of the Community Services Block Grant Act) applicable to a family of the size involved. (35) Professional development The term professional development — (A) includes evidence-based, job-embedded, continuous activities that— (i) improve and increase teachers’ knowledge of the academic subjects the teachers teach, and enable teachers to become effective educators; (ii) are an integral part of broad schoolwide and districtwide educational improvement plans; (iii) give teachers, school leaders, other staff, and administrators the knowledge and skills to provide students with the opportunity to meet State academic standards; (iv) improve classroom management skills; (v) (I) have a positive and lasting impact on classroom instruction and the teacher’s performance in the classroom; and (II) are not 1-day or short-term workshops or conferences; (vi) support the recruiting, hiring, and training of effective teachers, including teachers who became certified or licensed through State and local alternative routes to certification; (vii) advance teacher understanding of effective instructional strategies that are strategies for improving student academic achievement or substantially increasing the knowledge and teaching skills of teachers, including through addressing the social and emotional development needs of students; (viii) are aligned with and directly related to— (I) State academic standards and assessments; and (II) the curricula and programs tied to the standards described in subclause (I); (ix) are developed with extensive participation of teachers, school leaders, parents, and administrators of schools to be served under this Act; (x) are designed to give teachers of English learners and other teachers and instructional staff, the knowledge and skills to provide instruction and appropriate language and academic support services to those children, including the appropriate use of curricula and assessments; (xi) to the extent appropriate, provide training for teachers, other staff, and school leaders in the use of technology so that technology and technology applications are effectively used to improve teaching and learning in the curricula and core academic subjects in which the students receive instruction; (xii) as a whole, are regularly evaluated for their impact on increased teacher effectiveness and improved student academic achievement, with the findings of the evaluations used to improve the quality of the professional development; (xiii) provide instruction in methods of teaching children with special needs; (xiv) include instruction in the use of data and assessments to inform and instruct classroom practice; and (xv) include instruction in ways that teachers, school leaders, specialized instructional support personnel, other staff, and school administrators may work more effectively with parents; and (B) may include evidence-based, job-embedded, continuous activities that— (i) involve the forming of partnerships with institutions of higher education to establish school-based teacher training programs that provide prospective teachers and new teachers with an opportunity to work under the guidance of experienced teachers and college faculty; (ii) create programs to enable paraprofessionals (assisting teachers employed by a local educational agency receiving assistance under subpart 1 of part A of title I) to obtain the education necessary for those paraprofessionals to become certified and licensed teachers; and (iii) provide follow-up training to individuals who have participated in activities described in subparagraph (A) or another clause of this subparagraph that are designed to ensure that the knowledge and skills learned by the teachers are implemented in the classroom. (36) Regular high school diploma (A) In general The term regular high school diploma means the standard high school diploma awarded to the preponderance of students in the State that is fully aligned with State standards, or a higher diploma. Such term shall not include a GED or other recognized equivalent of a diploma, a certificate of attendance, or any lesser diploma award. (B) Exception for students with significant cognitive disabilities For a student who is assessed using an alternate assessment aligned to alternate academic standards under section 1111(b)(1)(D), receipt of a regular high school diploma as defined under subparagraph (A) or a State-defined alternate diploma obtained within the time period for which the State ensures the availability of a free appropriate public education and in accordance with section 612(a)(1) of the Individuals with Disabilities Education Act shall be counted as graduating with a regular high school diploma for the purposes of this Act. (37) School leader The term school leader means a principal, assistant principal, or other individual who is— (A) an employee or officer of a school, local educational agency, or other entity operating the school; and (B) responsible for— (i) the daily instructional leadership and managerial operations of the school; and (ii) creating the optimum conditions for student learning. (38) Secondary school The term secondary school means a nonprofit institutional day or residential school, including a public secondary charter school, that provides secondary education, as determined under State law, except that the term does not include any education beyond grade 12. (39) Secretary The term Secretary means the Secretary of Education. (40) Specialized instructional support personnel; specialized instructional support services (A) Specialized instructional support personnel The term specialized instructional support personnel means school counselors, school social workers, school psychologists, and other qualified professional personnel involved in providing assessment, diagnosis, counseling, educational, therapeutic, and other necessary services (including related services as that term is defined in section 602 of the Individuals with Disabilities Education Act) as part of a comprehensive program to meet student needs. (B) Specialized instructional support services The term specialized instructional support services means the services provided by specialized instructional support personnel. (41) State The term State means each of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, and each of the outlying areas. (42) State educational agency The term State educational agency means the agency primarily responsible for the State supervision of public elementary schools and secondary schools. (43) Technology The term technology means modern information, computer and communication technology products, services, or tools, including, but not limited to, the Internet and other communications networks, computer devices and other computer and communications hardware, software applications, data systems, and other electronic content and data storage. 5102. Applicability of title Parts B, C, D, and E of this title do not apply to title IV of this Act. 5103. Applicability to Bureau of Indian Education operated schools For the purpose of any competitive program under this Act— (1) a consortium of schools operated by the Bureau of Indian Education; (2) a school operated under a contract or grant with the Bureau of Indian Education in consortium with another contract or grant school or a tribal or community organization; or (3) a Bureau of Indian Education school in consortium with an institution of higher education, a contract or grant school, or a tribal or community organization, shall be given the same consideration as a local educational agency. B Flexibility in the Use of Administrative and Other Funds 5201. Consolidation of State administrative funds for elementary and secondary education programs (a) Consolidation of administrative funds (1) In general A State educational agency may consolidate the amounts specifically made available to it for State administration under one or more of the programs under paragraph (2). (2) Applicability This section applies to any program under this Act under which funds are authorized to be used for administration, and such other programs as the Secretary may designate. (b) Use of funds (1) In general A State educational agency shall use the amount available under this section for the administration of the programs included in the consolidation under subsection (a). (2) Additional uses A State educational agency may also use funds available under this section for administrative activities designed to enhance the effective and coordinated use of funds under programs included in the consolidation under subsection (a), such as— (A) the coordination of those programs with other Federal and non-Federal programs; (B) the establishment and operation of peer-review mechanisms under this Act; (C) the administration of this title; (D) the dissemination of information regarding model programs and practices; (E) technical assistance under any program under this Act; (F) State-level activities designed to carry out this title; (G) training personnel engaged in audit and other monitoring activities; and (H) implementation of the Cooperative Audit Resolution and Oversight Initiative of the Department. (c) Records A State educational agency that consolidates administrative funds under this section shall not be required to keep separate records, by individual program, to account for costs relating to the administration of programs included in the consolidation under subsection (a). (d) Review To determine the effectiveness of State administration under this section, the Secretary may periodically review the performance of State educational agencies in using consolidated administrative funds under this section and take such steps as the Secretary finds appropriate to ensure the effectiveness of that administration. (e) Unused administrative funds If a State educational agency does not use all of the funds available to the agency under this section for administration, the agency may use those funds during the applicable period of availability as funds available under one or more programs included in the consolidation under subsection (a). (f) Consolidation of funds for standards and assessment development In order to develop State academic standards and assessments, a State educational agency may consolidate the amounts described in subsection (a) for those purposes under title I. 5202. Single local educational agency States A State educational agency that also serves as a local educational agency shall, in its applications or plans under this Act, describe how the agency will eliminate duplication in conducting administrative functions. 5203. Consolidated set-aside for Department of the Interior funds (a) General authority (1) Transfer The Secretary shall transfer to the Department of the Interior, as a consolidated amount for covered programs, the Indian education programs under subpart 6 of part A of title I, and the education for homeless children and youth program under subtitle B of title VII of the McKinney-Vento Homeless Assistance Act, the amounts allotted to the Department of the Interior under those programs. (2) Agreement (A) In general The Secretary and the Secretary of the Interior shall enter into an agreement, consistent with the requirements of the programs specified in paragraph (1), for the distribution and use of those program funds under terms that the Secretary determines best meet the purposes of those programs. (B) Contents The agreement shall— (i) set forth the plans of the Secretary of the Interior for the use of the amount transferred and the achievement measures to assess program effectiveness; and (ii) be developed in consultation with Indian tribes. (b) Administration The Department of the Interior may use not more than 1.5 percent of the funds consolidated under this section for its costs related to the administration of the funds transferred under this section. C Coordination of Programs; Consolidated State and Local Plans and Applications 5301. Purposes The purposes of this part are— (1) to improve teaching and learning by encouraging greater cross-program coordination, planning, and service delivery; (2) to provide greater flexibility to State and local authorities through consolidated plans, applications, and reporting; and (3) to enhance the integration of programs under this Act with State and local programs. 5302. Optional consolidated State plans or applications (a) General authority (1) Simplification In order to simplify application requirements and reduce the burden for State educational agencies under this Act, the Secretary, in accordance with subsection (b), shall establish procedures and criteria under which, after consultation with the Governor, a State educational agency may submit a consolidated State plan or a consolidated State application meeting the requirements of this section for— (A) each of the covered programs in which the State participates; and (B) such other programs as the Secretary may designate. (2) Consolidated applications and plans After consultation with the Governor, a State educational agency that submits a consolidated State plan or a consolidated State application under this section shall not be required to submit separate State plans or applications under any of the programs to which the consolidated State plan or consolidated State application under this section applies. (b) Collaboration (1) In general In establishing criteria and procedures under this section, the Secretary shall collaborate with State educational agencies and, as appropriate, with other State agencies, local educational agencies, public and private agencies, organizations, and institutions, private schools, and parents, students, and teachers. (2) Contents Through the collaborative process described in paragraph (1), the Secretary shall establish, for each program under this Act to which this section applies, the descriptions, information, assurances, and other material required to be included in a consolidated State plan or consolidated State application. (3) Necessary materials The Secretary shall require only descriptions, information, assurances (including assurances of compliance with applicable provisions regarding participation by private school children and teachers), and other materials that are absolutely necessary for the consideration of the consolidated State plan or consolidated State application. 5303. Consolidated reporting (a) In general In order to simplify reporting requirements and reduce reporting burdens, the Secretary shall establish procedures and criteria under which a State educational agency, in consultation with the Governor of the State, may submit a consolidated State annual report. (b) Contents The report shall contain information about the programs included in the report, including the performance of the State under those programs, and other matters as the Secretary determines are necessary, such as monitoring activities. (c) Replacement The report shall replace separate individual annual reports for the programs included in the consolidated State annual report. 5304. General applicability of State educational agency assurances (a) Assurances A State educational agency, in consultation with the Governor of the State, that submits a consolidated State plan or consolidated State application under this Act, whether separately or under section 5302, shall have on file with the Secretary a single set of assurances, applicable to each program for which the plan or application is submitted, that provides that— (1) each such program will be administered in accordance with all applicable statutes, regulations, program plans, and applications; (2) (A) the control of funds provided under each such program and title to property acquired with program funds will be in a public agency, an eligible private agency, institution, or organization, or an Indian tribe, if the law authorizing the program provides for assistance to those entities; and (B) the public agency, eligible private agency, institution, or organization, or Indian tribe will administer those funds and property to the extent required by the authorizing law; (3) the State will adopt and use proper methods of administering each such program, including— (A) the enforcement of any obligations imposed by law on agencies, institutions, organizations, and other recipients responsible for carrying out each program; (B) the correction of deficiencies in program operations that are identified through audits, monitoring, or evaluation; and (C) the adoption of written procedures for the receipt and resolution of complaints alleging violations of law in the administration of the programs; (4) the State will cooperate in carrying out any evaluation of each such program conducted by or for the Secretary or other Federal officials; (5) the State will use such fiscal control and fund accounting procedures that will ensure proper disbursement of, and accounting for, Federal funds paid to the State under each such program; (6) the State will— (A) make reports to the Secretary as may be necessary to enable the Secretary to perform the Secretary’s duties under each such program; and (B) maintain such records, provide such information to the Secretary, and afford such access to the records as the Secretary may find necessary to carry out the Secretary’s duties; and (7) before the plan or application was submitted to the Secretary, the State afforded a reasonable opportunity for public comment on the plan or application and considered such comment. (b) GEPA provision Section 441 of the General Education Provisions Act shall not apply to programs under this Act. 5305. Consolidated local plans or applications (a) General authority (1) Consolidated plan A local educational agency receiving funds under more than one covered program may submit plans or applications to the State educational agency under those programs on a consolidated basis. (2) Availability to governor The State educational agency shall make any consolidated local plans and applications available to the Governor. (b) Required consolidated plans or applications A State educational agency that has an approved consolidated State plan or application under section 5302 may require local educational agencies in the State receiving funds under more than one program included in the consolidated State plan or consolidated State application to submit consolidated local plans or applications under those programs, but may not require those agencies to submit separate plans. (c) Collaboration A State educational agency, in consultation with the Governor, shall collaborate with local educational agencies in the State in establishing procedures for the submission of the consolidated State plans or consolidated State applications under this section. (d) Necessary materials The State educational agency shall require only descriptions, information, assurances, and other material that are absolutely necessary for the consideration of the local educational agency plan or application. 5306. Other general assurances (a) Assurances Any applicant, other than a State educational agency that submits a plan or application under this Act, shall have on file with the State educational agency a single set of assurances, applicable to each program for which a plan or application is submitted, that provides that— (1) each such program will be administered in accordance with all applicable statutes, regulations, program plans, and applications; (2) (A) the control of funds provided under each such program and title to property acquired with program funds will be in a public agency or in an eligible private agency, institution, organization, or Indian tribe, if the law authorizing the program provides for assistance to those entities; and (B) the public agency, eligible private agency, institution, or organization, or Indian tribe will administer the funds and property to the extent required by the authorizing statutes; (3) the applicant will adopt and use proper methods of administering each such program, including— (A) the enforcement of any obligations imposed by law on agencies, institutions, organizations, and other recipients responsible for carrying out each program; and (B) the correction of deficiencies in program operations that are identified through audits, monitoring, or evaluation; (4) the applicant will cooperate in carrying out any evaluation of each such program conducted by or for the State educational agency, the Secretary, or other Federal officials; (5) the applicant will use such fiscal control and fund accounting procedures as will ensure proper disbursement of, and accounting for, Federal funds paid to the applicant under each such program; (6) the applicant will— (A) submit such reports to the State educational agency (which shall make the reports available to the Governor) and the Secretary as the State educational agency and Secretary may require to enable the State educational agency and the Secretary to perform their duties under each such program; and (B) maintain such records, provide such information, and afford such access to the records as the State educational agency (after consultation with the Governor) or the Secretary may reasonably require to carry out the State educational agency’s or the Secretary’s duties; and (7) before the application was submitted, the applicant afforded a reasonable opportunity for public comment on the application and considered such comment. (b) GEPA provision Section 442 of the General Education Provisions Act shall not apply to programs under this Act. D Waivers 5401. Waivers of statutory and regulatory requirements (a) In general (1) Request for waiver A State educational agency, local educational agency, or Indian tribe that receives funds under a program authorized under this Act may submit a request to the Secretary to waive any statutory or regulatory requirement of this Act. (2) Receipt of waiver Except as provided in subsection (c) and subject to the limits in subsection (b)(5)(A), the Secretary shall waive any statutory or regulatory requirement of this Act for a State educational agency, local educational agency, Indian tribe, or school (through a local educational agency), that submits a waiver request pursuant to this subsection. (b) Plan (1) In general A State educational agency, local educational agency, or Indian tribe that desires a waiver under this section shall submit a waiver request to the Secretary, which shall include a plan that— (A) identifies the Federal programs affected by the requested waiver; (B) describes which Federal statutory or regulatory requirements are to be waived; (C) reasonably demonstrates that the waiver will improve instruction for students and advance student academic achievement; (D) describes the methods the State educational agency, local educational agency, or Indian tribe will use to monitor the effectiveness of the implementation of the plan; and (E) describes how schools will continue to provide assistance to the same populations served by programs for which the waiver is requested. (2) Additional information A waiver request under this section— (A) may provide for waivers of requirements applicable to State educational agencies, local educational agencies, Indian tribes, and schools; and (B) shall be developed and submitted— (i) (I) by local educational agencies (on behalf of those agencies and schools) to State educational agencies; and (II) by State educational agencies (on their own behalf, or on behalf of, and based on the requests of, local educational agencies in the State) to the Secretary; or (ii) by Indian tribes (on behalf of schools operated by the tribes) to the Secretary. (3) General requirements (A) State educational agencies In the case of a waiver request submitted by a State educational agency acting on its own behalf, or on behalf of local educational agencies in the State, the State educational agency shall— (i) provide the public and local educational agencies in the State with notice and a reasonable opportunity to comment and provide input on the request; (ii) submit the comments and input to the Secretary, with a description of how the State addressed the comments and input; and (iii) provide notice and a reasonable time to comment to the public and local educational agencies in the manner in which the applying agency customarily provides similar notice and opportunity to comment to the public. (B) Local educational agencies In the case of a waiver request submitted by a local educational agency that receives funds under this Act— (i) the request shall be reviewed by the State educational agency and be accompanied by the comments, if any, of the State educational agency and the public; and (ii) notice and a reasonable opportunity to comment regarding the waiver request shall be provided to the State educational agency and the public by the agency requesting the waiver in the manner in which that agency customarily provides similar notice and opportunity to comment to the public. (4) Peer review (A) Establishment The Secretary shall establish a multi-disciplinary peer review team, which shall meet the requirements of section 5543, to review waiver requests under this section. (B) Applicability The Secretary may approve a waiver request under this section without conducting a peer review of the request, but shall use the peer review process under this paragraph before disapproving such a request. (C) Standard and nature of review Peer reviewers shall conduct a good faith review of waiver requests submitted to them under this section. Peer reviewers shall review such waiver requests— (i) in their totality; (ii) in deference to State and local judgment; and (iii) with the goal of promoting State- and local-led innovation. (5) Waiver determination, demonstration, and revision (A) In general The Secretary shall approve a waiver request not more than 60 days after the date on which such request is submitted, unless the Secretary determines and demonstrates that— (i) the waiver request does not meet the requirements of this section; (ii) the waiver is not permitted under subsection (c); (iii) the plan that is required under paragraph (1)(C), and reviewed with deference to State and local judgment, provides no reasonable evidence to determine that a waiver will enhance student academic achievement; or (iv) the waiver request does not provide for adequate evaluation to ensure review and continuous improvement of the plan. (B) Waiver determination and revision If the Secretary determines and demonstrates that the waiver request does not meet the requirements of this section, the Secretary shall— (i) immediately— (I) notify the State educational agency, local educational agency, or Indian tribe of such determination; and (II) at the request of the State educational agency, local educational agency, or Indian tribe, provide detailed reasons for such determination in writing; (ii) offer the State educational agency, local educational agency, or Indian tribe an opportunity to revise and resubmit the waiver request not more than 60 days after the date of such determination; and (iii) if the Secretary determines that the resubmission does not meet the requirements of this section, at the request of the State educational agency, local educational agency, or Indian tribe, conduct a public hearing not more than 30 days after the date of such resubmission. (C) Waiver disapproval The Secretary may disapprove a waiver request if— (i) the State educational agency, local educational agency, or Indian tribe has been notified and offered an opportunity to revise and resubmit the waiver request, as described under clauses (i) and (ii) of subparagraph (B); and (ii) the State educational agency, local educational agency, or Indian tribe— (I) does not revise and resubmit the waiver request; or (II) revises and resubmits the waiver request, and the Secretary determines that such waiver request does not meet the requirements of this section after a hearing conducted under subparagraph (B)(iii), if requested. (D) External conditions The Secretary shall not, directly or indirectly, require or impose new or additional requirements in exchange for receipt of a waiver if such requirements are not specified in this Act. (c) Restrictions The Secretary shall not waive under this section any statutory or regulatory requirements relating to— (1) the allocation or distribution of funds to States, local educational agencies, Indian tribes, or other recipients of funds under this Act; (2) comparability of services; (3) use of Federal funds to supplement, not supplant, non-Federal funds; (4) equitable participation of private school students and teachers; (5) parental participation and involvement; (6) applicable civil rights requirements; (7) the prohibitions— (A) in subpart 2 of part E; (B) regarding use of funds for religious worship or instruction in section 5505; and (C) regarding activities in section 5524; or (8) the selection of a school attendance area or school under subsections (a) and (b) of section 1113, except that the Secretary may grant a waiver to allow a school attendance area or school to participate in activities under subpart 1 of part A of title I if the percentage of children from low-income families in the school attendance area or who attend the school is not more than 10 percentage points below the lowest percentage of those children for any school attendance area or school of the local educational agency that meets the requirements of subsections (a) and (b) of section 1113. (d) Duration and extension of waiver; limitations (1) In general Except as provided in paragraph (2), a waiver approved by the Secretary under this section may be for a period not to exceed 3 years. (2) Extension The Secretary may extend the period described in paragraph (1) if the State demonstrates that— (A) the waiver has been effective in enabling the State or affected recipient to carry out the activities for which the waiver was requested and the waiver has contributed to improved student achievement; and (B) the extension is in the public interest. (3) Specific limitations The Secretary shall not require a State educational agency, local educational agency, or Indian tribe, as a condition of approval of a waiver request, to— (A) include in, or delete from, such request, specific academic standards; (B) use specific academic assessment instruments or items; or (C) include in, or delete from, such waiver request any criterion that specifies, defines, describes, or prescribes the standards or measures that a State or local educational agency or Indian tribe uses to establish, implement, or improve— (i) State academic standards; (ii) academic assessments; (iii) State accountability systems; or (iv) teacher and school leader evaluation systems. (e) Reports (1) Waiver reports A State educational agency, local educational agency, or Indian tribe that receives a waiver under this section shall, at the end of the second year for which a waiver is received under this section and each subsequent year, submit a report to the Secretary that— (A) describes the uses of the waiver by the agency or by schools; (B) describes how schools continued to provide assistance to the same populations served by the programs for which waivers were granted; and (C) evaluates the progress of the agency and schools, or Indian tribe, in improving the quality of instruction or the academic achievement of students. (2) Report to Congress The Secretary shall annually submit to the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate a report— (A) summarizing the uses of waivers by State educational agencies, local educational agencies, Indian tribes, and schools; and (B) describing the status of the waivers in improving academic achievement. (f) Termination of waivers The Secretary shall terminate a waiver under this section if the Secretary determines, after notice and an opportunity for a hearing, that the performance of the State or other recipient affected by the waiver has been inadequate to justify a continuation of the waiver and the recipient of the waiver has failed to make revisions needed to carry out the purpose of the waiver, or if the waiver is no longer necessary to achieve its original purpose. (g) Publication A notice of the Secretary’s decision to grant each waiver under subsection (a) shall be published in the Federal Register and the Secretary shall provide for the dissemination of the notice to State educational agencies, interested parties, including educators, parents, students, advocacy and civil rights organizations, and the public. E Uniform Provisions 1 Private Schools 5501. Participation by private school children and teachers (a) Private school participation (1) In general Except as otherwise provided in this Act, to the extent consistent with the number of eligible children in areas served by a State educational agency, local educational agency, educational service agency, consortium of those agencies, or another entity receiving financial assistance under a program specified in subsection (b), who are enrolled in private elementary schools and secondary schools in areas served by such agency, consortium, or entity, the agency, consortium, or entity shall, after timely and meaningful consultation with appropriate private school officials or their representatives, provide to those children and their teachers or other educational personnel, on an equitable basis, special educational services or other benefits that address their needs under the program. (2) Secular, neutral, and nonideological services or benefits Educational services or other benefits, including materials and equipment, provided under this section, shall be secular, neutral, and nonideological. (3) Special rule Educational services and other benefits provided under this section for private school children, teachers, and other educational personnel shall be equitable in comparison to services and other benefits for public school children, teachers, and other educational personnel participating in the program and shall be provided in a timely manner. (4) Expenditures (A) In general Expenditures for educational services and other benefits to eligible private school children, teachers, and other service personnel shall be equal to the expenditures for participating public school children, taking into account the number and educational needs, of the children to be served. (B) Obligation of funds Funds allocated to a local educational agency for educational services and other benefits to eligible private school children shall— (i) be obligated in the fiscal year for which the funds are received by the agency; and (ii) with respect to any such funds that cannot be so obligated, be used to serve such children in the following fiscal year. (C) Notice of allocation Each State educational agency shall— (i) determine, in a timely manner, the proportion of funds to be allocated to each local educational agency in the State for educational services and other benefits under this subpart to eligible private school children; and (ii) provide notice, simultaneously, to each such local educational agency and the appropriate private school officials or their representatives in the State of such allocation of funds. (5) Provision of services An agency, consortium, or entity described in subsection (a)(1) of this section may provide those services directly or through contracts with public and private agencies, organizations, and institutions. (b) Applicability (1) In general This section applies to programs under— (A) subpart 2 of part A of title I; (B) subpart 4 of part A of title I; (C) part A of title II; (D) part B of title II; and (E) part B of title III. (2) Definition For the purpose of this section, the term eligible children means children eligible for services under a program described in paragraph (1). (c) Consultation (1) In general To ensure timely and meaningful consultation, a State educational agency, local educational agency, educational service agency, consortium of those agencies, or entity shall consult, in order to reach an agreement, with appropriate private school officials or their representatives during the design and development of the programs under this Act, on issues such as— (A) how the children’s needs will be identified; (B) what services will be offered; (C) how, where, and by whom the services will be provided; (D) how the services will be assessed and how the results of the assessment will be used to improve those services; (E) the size and scope of the equitable services to be provided to the eligible private school children, teachers, and other educational personnel and the amount of funds available for those services; (F) how and when the agency, consortium, or entity will make decisions about the delivery of services, including a thorough consideration and analysis of the views of the private school officials or their representatives on the provision of services through potential third-party providers or contractors; and (G) how, if the agency disagrees with the views of the private school officials or their representatives on the provision of services through a contract, the local educational agency will provide in writing to such private school officials or their representatives an analysis of the reasons why the local educational agency has chosen not to use a contractor. (2) Disagreement If the agency, consortium, or entity disagrees with the views of the private school officials or their representatives with respect to an issue described in paragraph (1), the agency, consortium, or entity shall provide to the private school officials or their representatives a written explanation of the reasons why the local educational agency has chosen not to adopt the course of action requested by such officials or their representatives. (3) Timing The consultation required by paragraph (1) shall occur before the agency, consortium, or entity makes any decision that affects the opportunities of eligible private school children, teachers, and other educational personnel to participate in programs under this Act, and shall continue throughout the implementation and assessment of activities under this section. (4) Discussion required The consultation required by paragraph (1) shall include a discussion of service delivery mechanisms that the agency, consortium, or entity could use to provide equitable services to eligible private school children, teachers, administrators, and other staff. (5) Documentation Each local educational agency shall maintain in the agency’s records and provide to the State educational agency involved a written affirmation signed by officials or their representatives of each participating private school that the meaningful consultation required by this section has occurred. The written affirmation shall provide the option for private school officials or their representatives to indicate that timely and meaningful consultation has not occurred or that the program design is not equitable with respect to eligible private school children. If such officials or their representatives do not provide such affirmation within a reasonable period of time, the local educational agency shall forward the documentation that such consultation has, or attempts at such consultation have, taken place to the State educational agency. (6) Compliance (A) In general If the consultation required under this section is with a local educational agency or educational service agency, a private school official or representative shall have the right to file a complaint with the State educational agency that the consultation required under this section was not meaningful and timely, did not give due consideration to the views of the private school official or representative, or did not treat the private school or its students equitably as required by this section. (B) Procedure If the private school official or representative wishes to file a complaint, the private school official or representative shall provide the basis of the noncompliance with this section and all parties shall provide the appropriate documentation to the appropriate officials or representatives. (C) Services A State educational agency shall provide services under this section directly or through contracts with public and private agencies, organizations, and institutions, if— (i) the appropriate private school officials or their representatives have— (I) requested that the State educational agency provide such services directly; and (II) demonstrated that the local educational agency or Education Service Agency involved has not met the requirements of this section; or (ii) in a case in which— (I) a local educational agency has more than 10,000 children from low-income families who attend private elementary schools or secondary schools in such agency’s school attendance areas, as defined in section 1113(a)(2)(A), that are not being served by the agency’s program under this section; or (II) 90 percent of the eligible private school students in a school attendance area, as defined in section 1113(a)(2)(A), are not being served by the agency’s program under this section. (d) Public control of funds (1) In general The control of funds used to provide services under this section, and title to materials, equipment, and property purchased with those funds, shall be in a public agency for the uses and purposes provided in this Act, and a public agency shall administer the funds and property. (2) Provision of services (A) In general The provision of services under this section shall be provided— (i) by employees of a public agency; or (ii) through contract by the public agency with an individual, association, agency, organization, or other entity. (B) Independence; public agency In the provision of those services, the employee, person, association, agency, organization, or other entity shall be independent of the private school and of any religious organization, and the employment or contract shall be under the control and supervision of the public agency. (C) Commingling of funds prohibited Funds used to provide services under this section shall not be commingled with non-Federal funds. 5502. Standards for by-pass (a) In general If, by reason of any provision of law, a State educational agency, local educational agency, educational service agency, consortium of those agencies, or other entity is prohibited from providing for the participation in programs of children enrolled in, or teachers or other educational personnel from, private elementary schools and secondary schools, on an equitable basis, or if the Secretary determines that the agency, consortium, or entity has substantially failed or is unwilling to provide for that participation, as required by section 5501, the Secretary shall— (1) waive the requirements of that section for the agency, consortium, or entity; and (2) arrange for the provision of equitable services to those children, teachers, or other educational personnel through arrangements that shall be subject to the requirements of this section and of sections 5501, 5503, and 5504. (b) Determination In making the determination under subsection (a), the Secretary shall consider one or more factors, including the quality, size, scope, and location of the program, and the opportunity of private school children, teachers, and other educational personnel to participate in the program. 5503. Complaint process for participation of private school children (a) Procedures for complaints The Secretary shall develop and implement written procedures for receiving, investigating, and resolving complaints from parents, teachers, or other individuals and organizations concerning violations of section 5501 by a State educational agency, local educational agency, educational service agency, consortium of those agencies, or entity. The individual or organization shall submit the complaint to the State educational agency for a written resolution by the State educational agency within 45 days. (b) Appeals to Secretary The resolution may be appealed by an interested party to the Secretary not later than 30 days after the State educational agency resolves the complaint or fails to resolve the complaint within the 45-day time limit. The appeal shall be accompanied by a copy of the State educational agency’s resolution, and, if there is one, a complete statement of the reasons supporting the appeal. The Secretary shall investigate and resolve the appeal not later than 90 days after receipt of the appeal. 2 Prohibitions 5521. Prohibition against Federal mandates, direction, or control (a) In general No officer or employee of the Federal Government shall, directly or indirectly, through grants, contracts, or other cooperative agreements, mandate, direct, or control a State, local educational agency, or school’s specific instructional content, academic standards and assessments, curricula, or program of instruction, nor shall anything in this Act be construed to authorize such officer or employee to do so. (b) Financial support No officer or employee of the Federal Government shall, directly or indirectly, through grants, contracts, or other cooperative agreements, make financial support available in a manner that is conditioned upon a State, local educational agency, or school’s adoption of specific instructional content, academic standards and assessments, curriculum, or program of instruction even if such requirements are specified in an Act other than this Act, nor shall anything in this Act be construed to authorize such officer or employee to do so. 5522. Prohibitions on Federal Government and use of Federal funds (a) General prohibition Nothing in this Act shall be construed to authorize an officer or employee of the Federal Government directly or indirectly, whether through a grant, contract, or cooperative agreement, to mandate, direct, or control a State, local educational agency, or school’s curriculum, program of instruction, or allocation of State or local resources, or mandate a State or any subdivision thereof to spend any funds or incur any costs not paid for under this Act. (b) Prohibition on endorsement of curriculum Notwithstanding any other prohibition of Federal law, no funds provided to the Department under this Act may be used by the Department directly or indirectly—whether through a grant, contract, or cooperative agreement—to endorse, approve, develop, require, or sanction any curriculum designed to be used in an elementary school or secondary school. (c) Local control Nothing in this Act shall be construed to— (1) authorize an officer or employee of the Federal Government directly or indirectly—whether through a grant, contract, or cooperative agreement—to mandate, direct, review, or control a State, local educational agency, or school’s instructional content, curriculum, and related activities; (2) limit the application of the General Education Provisions Act; (3) require the distribution of scientifically or medically false or inaccurate materials or to prohibit the distribution of scientifically or medically true or accurate materials; or (4) create any legally enforceable right. (d) Prohibition on requiring Federal approval or certification of standards Notwithstanding any other provision of Federal law, no State shall be required to have academic standards approved or certified by the Federal Government, in order to receive assistance under this Act. (e) Rule of construction on building standards Nothing in this Act shall be construed to mandate national school building standards for a State, local educational agency, or school. 5523. Prohibition on federally sponsored testing (a) General prohibition Notwithstanding any other provision of Federal law and except as provided in subsection (b), no funds provided under this Act to the Secretary or to the recipient of any award may be used to develop, pilot test, field test, implement, administer, or distribute any federally sponsored national test or testing materials in reading, mathematics, or any other subject, unless specifically and explicitly authorized by law. (b) Exceptions Subsection (a) shall not apply to international comparative assessments developed under the authority of section 153(a)(5) of the Education Sciences Reform Act of 2002 and administered to only a representative sample of pupils in the United States and in foreign nations. 5524. Limitations on national testing or certification for teachers (a) Mandatory national testing or certification of teachers Notwithstanding any other provision of this Act or any other provision of law, no funds available to the Department or otherwise available under this Act may be used for any purpose relating to a mandatory nationwide test or certification of teachers or education paraprofessionals, including any planning, development, implementation, or administration of such test or certification. (b) Prohibition on withholding funds The Secretary is prohibited from withholding funds from any State educational agency or local educational agency if the State educational agency or local educational agency fails to adopt a specific method of teacher or paraprofessional certification. 5525. Prohibited uses of funds No funds under this Act may be used— (1) for construction, renovation, or repair of any school facility, except as authorized under title IV or otherwise authorized under this Act; (2) for medical services, drug treatment or rehabilitation, except for specialized instructional support services or referral to treatment for students who are victims of, or witnesses to, crime or who illegally use drugs; (3) for transportation unless otherwise authorized under this Act; (4) to develop or distribute materials, or operate programs or courses of instruction directed at youth, that are designed to promote or encourage sexual activity, whether homosexual or heterosexual; (5) to distribute or to aid in the distribution by any organization of legally obscene materials to minors on school grounds; (6) to provide sex education or HIV-prevention education in schools unless that instruction is age appropriate and includes the health benefits of abstinence; or (7) to operate a program of contraceptive distribution in schools. 5526. Prohibition regarding State aid A State shall not take into consideration payments under this Act (other than under title IV) in determining the eligibility of any local educational agency in that State for State aid, or the amount of State aid, with respect to free public education of children. 3 Other Provisions 5541. Armed forces recruiter access to students and student recruiting information (a) Policy (1) Access to student recruiting information Notwithstanding section 444(a)(5)(B) of the General Education Provisions Act, each local educational agency receiving assistance under this Act shall provide, upon a request made by a military recruiter or an institution of higher education, access to the name, address, and telephone listing of each secondary school student served by the local educational agency, unless the parent of such student has submitted the prior consent request under paragraph (2). (2) Consent (A) Opt-out process A parent of a secondary school student may submit a written request, to the local educational agency, that the student’s name, address, and telephone listing not be released for purposes of paragraph (1) without prior written consent of the parent. Upon receiving such request, the local educational agency may not release the student’s name, address, and telephone listing for such purposes without the prior written consent of the parent. (B) Notification of opt-out process Each local educational agency shall notify the parents of the students served by the agency of the option to make a request described in subparagraph (A). (3) Same access to students Each local educational agency receiving assistance under this Act shall provide military recruiters the same access to secondary school students as is provided generally to institutions of higher education or to prospective employers of those students. (4) Rule of construction prohibiting opt-in processes Nothing in this subsection shall be construed to allow a local educational agency to withhold access to a student’s name, address, and telephone listing from a military recruiter or institution of higher education by implementing an opt-in process or any other process other than the written consent request process under paragraph (2)(A). (5) Parental consent For purposes of this subsection, whenever a student has attained 18 years of age, the permission or consent required of and the rights accorded to the parents of the student shall only be required of and accorded to the student. (b) Notification The Secretary, in consultation with the Secretary of Defense, shall, not later than 120 days after the date of enactment of the Student Success Act, notify school leaders, school administrators, and other educators about the requirements of this section. (c) Exception The requirements of this section do not apply to a private secondary school that maintains a religious objection to service in the Armed Forces if the objection is verifiable through the corporate or other organizational documents or materials of that school. 5542. Rulemaking The Secretary shall issue regulations under this Act as prescribed under section 1401 only to the extent that such regulations are necessary to ensure that there is compliance with the specific requirements and assurances required by this Act. 5543. Peer review (a) In general If the Secretary uses a peer review panel to evaluate an application for any program required under this Act, the Secretary shall conduct the panel in accordance with this section. (b) Makeup The Secretary shall— (1) solicit nominations for peers to serve on the panel from States that are— (A) practitioners in the subject matter; or (B) experts in the subject matter; and (2) select the peers from such nominees, except that there shall be at least 75 percent practitioners on each panel and in each group formed from the panel. (c) Guidance The Secretary shall issue the peer review guidance concurrently with the notice of the grant. (d) Reporting The Secretary shall— (1) make the names of the peer reviewers available to the public before the final deadline for the application of the grant; (2) make the peer review notes publically available once the review has concluded; and (3) make any deviations from the peer reviewers’ recommendations available to the public with an explanation of the deviation. (e) Applicant reviews An applicant shall have an opportunity within 30 days to review the peer review notes and appeal the score to the Secretary prior to the Secretary making any final determination. (f) Prohibition The Secretary, and the Secretary’s staff, may not attempt to participate in, or influence, the peer review process. No Federal employee may participate in, or attempt to influence the peer review process, except to respond to questions of a technical nature, which shall be publicly reported. 5544. Parental consent Upon receipt of written notification from the parents or legal guardians of a student, the local educational agency shall withdraw such student from any program funded under part B of title III. The local educational agency shall make reasonable efforts to inform parents or legal guardians of the content of such programs or activities funded under this Act, other than classroom instruction. 5548. Severability If any provision of this Act is held invalid, the remainder of this Act shall be unaffected thereby. 5549. Department staff The Secretary shall— (1) not later than 60 days after the date of the enactment of the Student Success Act, identify the number of Department employees who worked on or administered each education program and project authorized under this Act, as such program or project was in effect on the day before such enactment date, and publish such information on the Department’s website; (2) not later than 60 days after such enactment date, identify the number of full-time equivalent employees who work on or administer programs or projects authorized under this Act, as in effect on the day before such enactment date, that have been eliminated or consolidated since such date; (3) not later than 1 year after such enactment date, reduce the workforce of the Department by the number of full-time equivalent employees the Department calculated under paragraph (2); and (4) not later than 1 year after such enactment date, report to the Congress on— (A) the number of employees associated with each program or project authorized under this Act administered by the Department; (B) the number of full-time equivalent employees who were determined to be associated with eliminated or consolidated programs or projects under paragraph (2); and (C) how the Secretary reduced the number of employees at the Department under paragraph (3). F Evaluations 5601. Evaluations (a) Reservation of funds Except as provided in subsections (c) and (d), the Secretary may reserve not more than 0.5 percent of the amount appropriated to carry out each categorical program authorized under this Act. The reserved amounts shall be used by the Secretary, acting through the Director of the Institute of Education Sciences— (1) to conduct— (A) comprehensive evaluations of the program or project; and (B) studies of the effectiveness of the program or project and its administrative impact on schools and local educational agencies; (2) to evaluate the aggregate short- and long-term effects and cost efficiencies across Federal programs assisted or authorized under this Act and related Federal preschool, elementary, and secondary programs under any other Federal law; and (3) to increase the usefulness of evaluations of grant recipients in order to ensure the continuous progress of the program or project by improving the quality, timeliness, efficiency, and use of information relating to performance under the program or project. (b) Required plan The Secretary, acting through the Director of the Institute of Education Sciences, may use the reserved amount under subsection (a) only after completion of a comprehensive, multi-year plan— (1) for the periodic evaluation of each of the major categorical programs authorized under this Act, and as resources permit, the smaller categorical programs authorized under this Act; (2) that shall be developed and implemented with the involvement of other officials at the Department, as appropriate; and (3) that shall not be finalized until— (A) the publication of a notice in the Federal Register seeking public comment on such plan and after review by the Secretary of such comments; and (B) the plan is submitted for comment to the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate and after review by the Secretary of such comments. (c) Title I excluded The Secretary may not reserve under subsection (a) funds appropriated to carry out any program authorized under title I. (d) Evaluation activities authorized elsewhere If, under any other provision of this Act (other than title I), funds are authorized to be reserved or used for evaluation activities with respect to a program or project, the Secretary may not reserve additional funds under this section for the evaluation of that program or project. . (b) Technical amendments (1) Title IX (A) Subpart 1 of part E of title V (i) Transfer and Redesignation Sections 9504 through 9506 ( 20 U.S.C. 7884 ; 7885; 7886) are— (I) transferred to title V, as amended by subsection (a) of this section; (II) inserted after section 5503 of such title; and (III) redesignated as sections 5504 through 5506, respectively. (ii) Amendments Section 5504 (as so redesignated) is amended— (I) in subsection (a)(1)(A), by striking section 9502 and inserting section 5502 ; (II) in subsection (b), by striking section 9501 and inserting section 5501 ; and (III) in subsection (d), by striking No Child Left Behind Act of 2001 and inserting Student Success Act . (B) Subpart 2 of part E of title V (i) Transfer and Redesignation Sections 9531, 9533, and 9534 ( 20 U.S.C. 7911 ; 7913; 7914) are— (I) transferred to title V, as amended by subparagraph (A) of this paragraph; (II) inserted after section 5525 of such title; and (III) redesignated as sections 5526 through 5528, respectively. (ii) Amendments Section 5528 (as so redesignated) is amended— (I) by striking (a) In general.— Nothing and inserting Nothing ; and (II) by striking subsection (b). (C) Subpart 3 of part E of title V Sections 9523, 9524, and 9525 ( 20 U.S.C. 7903 ; 7904; 7905) are— (i) transferred to title V, as amended by subparagraph (B) of this paragraph; (ii) inserted after section 5544 of such title; and (iii) redesignated as sections 5545 through 5547, respectively. (2) Title IV Sections 4141 and 4155 ( 20 U.S.C. 7151 ; 7161) are— (A) transferred to title V, as amended by paragraph (1) of this subsection; (B) inserted after section 5548 (as so redesignated by paragraph (1)(C)(iii) of this subsection); and (C) redesignated as sections 5549 and 5550, respectively. 502. Repeal Title IX ( 20 U.S.C. 7801 et seq. ), as amended by section 201(b)(1) of this title, is repealed. 503. Other laws Beginning on the date of the enactment of this Act, any reference in law to the term “highly qualified” as defined in section 9101 of the Elementary and Secondary Education Act of 1965 shall be treated as a reference to such term under section 9101 of the Elementary and Secondary Education Act of 1965 as in effect on the day before the date of the enactment of this Act. 504. Amendment to IDEA Section 602 of the Individuals with Disabilities Education Act ( 20 U.S.C. 1401 ) is amended by striking paragraph (10). VI Repeal 601. Repeal of title VI The Act is amended by striking title VI ( 20 U.S.C. 7301 et seq. ). VII Homeless Education 701. Statement of policy Section 721 of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11431 ) is amended— (1) by amending paragraph (2) to read as follows: (2) In any State where compulsory residency requirements or other requirements, laws, regulations, practices, or policies may act as a barrier to the identification, enrollment, attendance, or success in school of homeless children and youths, the State and local educational agencies will review and undertake steps to revise such laws, regulations, practices, or policies to ensure that homeless children and youths are afforded the same free, appropriate public education as is provided to other children and youths. ; (2) in paragraph (3), by striking alone ; and (3) in paragraph (4), by striking challenging State student academic achievement and inserting State academic . 702. Grants for State and local activities for the education of homeless children and youths Section 722 of such Act ( 42 U.S.C. 11432 ) is amended— (1) in subsection (a), by striking (g). and inserting (h). ; (2) by striking subsection (b); (3) in subsection (c)— (A) in paragraph (1)(A)— (i) in clause (i), by adding or at the end; (ii) in clause (ii), by striking ; or at the end and inserting a period; and (iii) by striking clause (iii); and (B) by striking paragraph (3); (4) in subsection (d)— (A) in the matter preceding paragraph (1), by striking Grants and inserting Grant funds from a grant made to a State ; (B) by amending paragraph (2) to read as follows: (2) To provide services and activities to improve the identification of homeless children (including preschool-aged homeless children and youths) that enable such children and youths to enroll in, attend, and succeed in school, or, if appropriate, in preschool programs. ; (C) in paragraph (3), by inserting before the period at the end the following: that can sufficiently carry out the duties described in this subtitle ; and (D) by amending paragraph (5) to read as follows: (5) To develop and implement professional development programs for liaisons designated under subsection (g)(1)(J)(ii) and other local educational agency personnel— (A) to improve their identification of homeless children and youths; and (B) to heighten their awareness of, and capacity to respond to, specific needs in the education of homeless children and youths. ; (5) in subsection (e)— (A) in paragraph (1)— (i) by striking sums and inserting grant funds ; and (ii) by inserting a State under subsection (a) to after each year to ; (B) in paragraph (2), by striking funds made available for State use under this subtitle and inserting the grant funds remaining after the State educational agency distributes subgrants under paragraph (1) ; and (C) in paragraph (3)— (i) in subparagraph (C)(iv)(II), by striking sections 1111 and 1116 and inserting section 1111 ; and (ii) in subparagraph (F)— (I) in clause (i)— (aa) in the matter preceding subclause (I), by striking a report and inserting an annual report ; (bb) by striking and at the end of subclause (II); (cc) by striking the period at the end of subclause (III) and inserting ; and ; and (dd) by adding at the end the following: (IV) the progress the separate schools are making in helping all students meet the State academic standards. ; and (II) in clause (iii), by striking Not later than 2 years after the date of enactment of the McKinney-Vento Homeless Education Assistance Improvements Act of 2001, the and inserting The ; (6) by amending subsection (f) to read as follows: (f) Functions of the Office of Coordinator The Coordinator for Education of Homeless Children and Youths established in each State shall— (1) gather and make publically available reliable, valid, and comprehensive information on— (A) the number of homeless children and youths identified in the State, posted annually on the State educational agency’s website; (B) the nature and extent of the problems homeless children and youths have in gaining access to public preschool programs and to public elementary schools and secondary schools; (C) the difficulties in identifying the special needs and barriers to the participation and achievement of such children and youths; (D) any progress made by the State educational agency and local educational agencies in the State in addressing such problems and difficulties; and (E) the success of the programs under this subtitle in identifying homeless children and youths and allowing such children and youths to enroll in, attend, and succeed in, school; (2) develop and carry out the State plan described in subsection (g); (3) collect data for and transmit to the Secretary, at such time and in such manner as the Secretary may require, a report containing information necessary to assess the educational needs of homeless children and youths within the State, including data necessary for the Secretary to fulfill the responsibilities under section 724(h); (4) in order to improve the provision of comprehensive education and related support services to homeless children and youths and their families, coordinate and collaborate with— (A) educators, including teachers, special education personnel, administrators, and child development and preschool program personnel; (B) providers of services to homeless children and youths and their families, including services of public and private child welfare and social services agencies, law enforcement agencies, juvenile and family courts, agencies providing mental health services, domestic violence agencies, child care providers, runaway and homeless youth centers, and providers of services and programs funded under the Runaway and Homeless Youth Act ( 42 U.S.C. 5701 et seq. ); (C) providers of emergency, transitional, and permanent housing to homeless children and youths, and their families, including public housing agencies, shelter operators, operators of transitional housing facilities, and providers of transitional living programs for homeless youths; (D) local educational agency liaisons designated under subsection (g)(1)(J)(ii) for homeless children and youths; and (E) community organizations and groups representing homeless children and youths and their families; (5) provide technical assistance to local educational agencies, in coordination with local educational agency liaisons designated under subsection (g)(1)(J)(ii), to ensure that local educational agencies comply with the requirements of subsection (e)(3), paragraphs (3) through (7) of subsection (g), and subsection (h); (6) provide professional development opportunities for local educational agency personnel and the homeless liaison designated under subsection (g)(1)(J)(ii) to assist such personnel in meeting the needs of homeless children and youths; and (7) respond to inquiries from parents and guardians of homeless children and youths and unaccompanied youths to ensure that each child or youth who is the subject of such an inquiry receives the full protections and services provided by this subtitle. ; (7) by amending subsection (g) to read as follows: (g) State plan (1) In general In order to be eligible to receive a grant under this section, each State educational agency shall submit to the Secretary a plan to provide for the education of homeless children and youths within the State that includes the following: (A) A description of how such children and youths are (or will be) given the opportunity to meet the same State academic standards that all students are expected to meet. (B) A description of the procedures the State educational agency will use to identify such children and youths in the State and to assess their needs. (C) A description of procedures for the prompt resolution of disputes regarding the educational placement of homeless children and youths. (D) A description of programs for school personnel (including liaisons, school leaders, attendance officers, teachers, enrollment personnel, and specialized instructional support personnel) to heighten the awareness of such personnel of the specific needs of homeless adolescents, including runaway and homeless youths. (E) A description of procedures that ensure that homeless children and youths who meet the relevant eligibility criteria are able to participate in Federal, State, or local nutrition programs. (F) A description of procedures that ensure that— (i) homeless children have equal access to public preschool programs, administered by the State educational agency or local educational agency, as provided to other children in the State; (ii) homeless youths and youths separated from public schools are identified and accorded equal access to appropriate secondary education and support services; and (iii) homeless children and youth who meet the relevant eligibility criteria are able to participate in Federal, State, or local education programs. (G) Strategies to address problems identified in the report provided to the Secretary under subsection (f)(3). (H) Strategies to address other problems with respect to the education of homeless children and youths, including problems resulting from enrollment delays that are caused by— (i) immunization and other health records requirements; (ii) residency requirements; (iii) lack of birth certificates, school records, or other documentation; (iv) guardianship issues; or (v) uniform or dress code requirements. (I) A demonstration that the State educational agency and local educational agencies in the State have developed, and shall review and revise, policies to remove barriers to the identification, enrollment, and retention of homeless children and youths in schools in the State. (J) Assurances that the following will be carried out: (i) The State educational agency and local educational agencies in the State will adopt policies and practices to ensure that homeless children and youths are not stigmatized or segregated on the basis of their status as homeless. (ii) Local educational agencies will designate an appropriate staff person, who may also be a coordinator for other Federal programs, as a local educational agency liaison for homeless children and youths, to carry out the duties described in paragraph (6)(A). (iii) The State and its local educational agencies will adopt policies and practices to ensure that transportation is provided, at the request of the parent or guardian (or in the case of an unaccompanied youth, the liaison), to and from the school of origin, as determined in paragraph (3)(A), in accordance with the following, as applicable: (I) If the child or youth continues to live in the area served by the local educational agency in which the school of origin is located, the child's or youth's transportation to and from the school of origin shall be provided or arranged by the local educational agency in which the school of origin is located. (II) If the child’s or youth’s living arrangements in the area served by the local educational agency of origin terminate and the child or youth, though continuing his or her education in the school of origin, begins living in an area served by another local educational agency, the local educational agency of origin and the local educational agency in which the child or youth is living shall agree upon a method to apportion the responsibility and costs for providing the child with transportation to and from the school of origin. If the local educational agencies are unable to agree upon such method, the responsibility and costs for transportation shall be shared equally. (2) Compliance (A) In general Each plan adopted under this subsection shall also describe how the State will ensure that local educational agencies in the State will comply with the requirements of paragraphs (3) through (7). (B) Coordination Such plan shall indicate what technical assistance the State will furnish to local educational agencies and how compliance efforts will be coordinated with the local educational agency liaisons designated under paragraph (1)(J)(ii). (3) Local educational agency requirements (A) In general The local educational agency serving each child or youth to be assisted under this subtitle shall, according to the child's or youth's best interest— (i) continue the child's or youth's education in the school of origin for the duration of homelessness— (I) in any case in which a family becomes homeless between academic years or during an academic year; or (II) for the remainder of the academic year, if the child or youth becomes permanently housed during an academic year; or (ii) enroll the child or youth in any public school that nonhomeless students who live in the attendance area in which the child or youth is actually living are eligible to attend. (B) School stability In determining the best interest of the child or youth under subparagraph (A), the local educational agency shall— (i) presume that keeping the child or youth in the school of origin is in the child or youth’s best interest, except when doing so is contrary to the wishes of the child's or youth's parent or guardian, or the unaccompanied youth; (ii) consider student-centered factors related to the child’s or youth’s best interest, including factors related to the impact of mobility on achievement, education, health, and safety of homeless children and youth, giving priority to the wishes of the homeless child’s or youth’s parent of guardian or the unaccompanied youth involved; (iii) if, after conducting the best interest determination based on consideration of the presumption in clause (i) and the student-centered factors in clause (ii), the local educational agency determines that it is not in the child's or youth's best interest to attend the school of origin or the school requested by the parent, guardian, or unaccompanied youth, provide the child's or youth's parent or guardian or the unaccompanied youth with a written explanation of the reasons for its determination, in a manner and form understandable to such parent, guardian, or unaccompanied youth, including information regarding the right to appeal under subparagraph (E); and (iv) in the case of an unaccompanied youth, ensure that the homeless liaison designated under paragraph (1)(J)(ii) assists in placement or enrollment decisions under this subparagraph, gives priority to the views of such unaccompanied youth, and provides notice to such youth of the right to appeal under subparagraph (E). (C) Enrollment (i) In general The school selected in accordance with this paragraph shall immediately enroll the homeless child or youth, even if the child or youth— (I) is unable to produce records normally required for enrollment, such as previous academic records, records of immunization and other required health records, proof of residency, or other documentation; or (II) has missed application or enrollment deadlines during any period of homelessness. (ii) Relevant academic records The enrolling school shall immediately contact the school last attended by the child or youth to obtain relevant academic and other records. (iii) Relevant health records If the child or youth needs to obtain immunizations or other required health records, the enrolling school shall immediately refer the parent or guardian of the child or youth, or the unaccompanied child or youth, to the local educational agency liaison designated under paragraph (1)(J)(ii), who shall assist in obtaining necessary immunizations or screenings, or immunization or other required health records, in accordance with subparagraph (D). (D) Records Any record ordinarily kept by the school, including immunization or other required health records, academic records, birth certificates, guardianship records, and evaluations for special services or programs, regarding each homeless child or youth shall be maintained— (i) so that the records involved are available, in a timely fashion, when a child or youth enters a new school or school district; and (ii) in a manner consistent with section 444 of the General Education Provisions Act (20 U.S.C. 1232g). (E) Enrollment disputes If a dispute arises over school selection or enrollment in a school— (i) the child or youth shall be immediately enrolled in the school in which enrollment is sought, pending final resolution of the dispute, including all available appeals; (ii) the parent, guardian, or unaccompanied youth shall be provided with a written explanation of any decisions made by the school, the local educational agency, or the State educational agency involved, including the rights of the parent, guardian, or youth to appeal such decisions; (iii) the parent, guardian, or unaccompanied youth shall be referred to the local educational agency liaison designated under paragraph (1)(J)(ii), who shall carry out the dispute resolution process as described in paragraph (1)(C) as expeditiously as possible after receiving notice of the dispute; and (iv) in the case of an unaccompanied youth, the liaison shall ensure that the youth is immediately enrolled in school in which the youth seeks enrollment pending resolution of such dispute. (F) Placement choice The choice regarding placement shall be made regardless of whether the child or youth lives with the homeless parents or has been temporarily placed elsewhere. (G) School of origin defined (i) In general In this paragraph, the term school of origin means the school that a child or youth attended when permanently housed or the school in which the child or youth was last enrolled. (ii) Receiving school When the child or youth completes the final grade level served by the school of origin, as described in clause (i), the term “school of origin” shall include the designated receiving school at the next grade level for all feeder schools. (H) Contact information Nothing in this subtitle shall prohibit a local educational agency from requiring a parent or guardian of a homeless child to submit contact information. (I) Privacy Information about a homeless child's or youth's living situation shall be treated as a student education record under section 444 of the General Education Provisions Act ( 20 U.S.C. 1232g ) and shall not be released to housing providers, employers, law enforcement personnel, or other persons or agencies not authorized to have such information under section 99.31 of title 34, Code of Federal Regulations. (J) Academic achievement The school selected in accordance with this paragraph shall ensure that homeless children and youth have opportunities to meet the same State academic standards to which other students are held. (4) Comparable services Each homeless child or youth to be assisted under this subtitle shall be provided services comparable to services offered to other students in the school selected under paragraph (3), including the following: (A) Transportation services. (B) Educational services for which the child or youth meets the eligibility criteria, such as services provided under title I of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6301 et seq. ) or similar State or local programs, educational programs for children with disabilities, and educational programs for English learners. (C) Programs in career and technical education. (D) Programs for gifted and talented students. (E) School nutrition programs. (5) Coordination (A) In general Each local educational agency serving homeless children and youths that receives assistance under this subtitle shall coordinate— (i) the provision of services under this subtitle with local social services agencies and other agencies or entities providing services to homeless children and youths and their families, including services and programs funded under the Runaway and Homeless Youth Act ( 42 U.S.C. 5701 et seq. ); and (ii) transportation, transfer of school records, and other interdistrict activities, with other local educational agencies. (B) Housing assistance If applicable, each State educational agency and local educational agency that receives assistance under this subtitle shall coordinate with State and local housing agencies responsible for developing the comprehensive housing affordability strategy described in section 105 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12705 ) to minimize educational disruption for children and youths who become homeless. (C) Coordination purpose The coordination required under subparagraphs (A) and (B) shall be designed to— (i) ensure that all homeless children and youths are promptly identified; (ii) ensure that homeless children and youths have access to, and are in reasonable proximity to, available education and related support services; and (iii) raise the awareness of school personnel and service providers of the effects of short-term stays in a shelter and other challenges associated with homelessness. (D) Homeless children and youths with disabilities For children and youth who are to be assisted both under this subtitle, and under the Individuals with Disabilities Education Act ( 20 U.S.C. 1400 et seq. ) or section 504 of the Rehabilitation Act of 1973 ( 29 U.S.C. 794 ), each local educational agency shall coordinate the provision of services under this subtitle with the provision of programs for children with disabilities served by that local educational agency and other involved local educational agencies. (6) Local educational agency liaison (A) Duties Each local educational agency liaison for homeless children and youths, designated under paragraph (1)(J)(ii), shall ensure that— (i) homeless children and youths are identified by school personnel through outreach and coordination activities with other entities and agencies; (ii) homeless children and youths are enrolled in, and have a full and equal opportunity to succeed in, schools of that local educational agency; (iii) homeless families, children, and youths have access to and receive educational services for which such families, children, and youths are eligible, including services through Head Start, Early Head Start, early intervention, and preschool programs administered by the local educational agency; (iv) homeless families, children, and youths receive referrals to health care services, dental services, mental health and substances abuse services, housing services, and other appropriate services; (v) the parents or guardians of homeless children and youths are informed of the educational and related opportunities available to their children and are provided with meaningful opportunities to participate in the education of their children; (vi) public notice of the educational rights of homeless children and youths is disseminated in locations frequented by parents or guardians of such children and youths, and unaccompanied youths, including schools, shelters, public libraries, and soup kitchens in a manner and form understandable to the parents and guardians of homeless children and youths, and unaccompanied youths; (vii) enrollment disputes are mediated in accordance with paragraph (3)(E); (viii) the parent or guardian of a homeless child or youth, and any unaccompanied youth, is fully informed of all transportation services, including transportation to the school of origin, as described in paragraph (1)(J)(iii), and is assisted in accessing transportation to the school that is selected under paragraph (3)(A); (ix) school personnel providing services under this subtitle receive professional development and other support; and (x) unaccompanied youths— (I) are enrolled in school; (II) have opportunities to meet the same State academic standards to which other students are held, including through implementation of the policies and practices required by paragraph (1)(F)(ii); and (III) are informed of their status as independent students under section 480 of the Higher Education Act of 1965 ( 20 U.S.C. 1087vv ) and receive verification of such status for purposes of the Free Application for Federal Student Aid described in section 483 of such Act ( 20 U.S.C. 1090 ). (B) Notice State coordinators established under subsection (d)(3) and local educational agencies shall inform school personnel, service providers, advocates working with homeless families, parents and guardians of homeless children and youths, and homeless children and youths of the duties of the local educational agency liaisons, including publishing an annually updated list of the liaisons on the State educational agency’s website. (C) Local and State coordination Local educational agency liaisons for homeless children and youths shall, as a part of their duties, coordinate and collaborate with State coordinators and community and school personnel responsible for the provision of education and related services to homeless children and youths. Such coordination shall include collecting and providing to the State Coordinator the reliable, valid, and comprehensive data needed to meet the requirements of paragraphs (1) and (3) of subsection (f). (7) Review and revisions (A) In general Each State educational agency and local educational agency that receives assistance under this subtitle shall review and revise any policies that may act as barriers to the enrollment of homeless children and youths in schools that are selected under paragraph (3). (B) Consideration In reviewing and revising such policies, consideration shall be given to issues concerning transportation, immunization, residency, birth certificates, school records and other documentation, and guardianship. (C) Special attention Special attention shall be given to ensuring the enrollment and attendance of homeless children and youths who are not currently attending school. ; (8) in subsection (h)(1)(A), by striking fiscal year 2009, and inserting fiscal years 2014 through 2019, ; and (9) in subsection (h)(4), by striking fiscal year 2009 and inserting fiscal years 2014 through 2019 . 703. Local educational agency subgrants for the education of homeless children and youths Section 723 of such Act ( 42 U.S.C. 11433 ) is amended— (1) in subsection (a)— (A) in paragraph (1), by striking facilitating the enrollment, and inserting facilitating the identification, enrollment, ; (B) in paragraph (2)(A)— (i) by adding and at the end of clause (i); (ii) by striking ; and and inserting a period at the end of clause (ii); and (iii) by striking clause (iii); and (C) by adding at the end the following: (4) Duration of grants Subgrants awarded under this section shall be for terms of not to exceed 3 years. ; (2) in subsection (b)— (A) by striking paragraph (3) and redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively; and (B) by adding at the end the following: (5) An assurance that the local educational agency will collect and promptly provide data requested by the State Coordinator pursuant to paragraphs (1) and (3) of section 722(f). (6) An assurance that the local educational agency has removed barriers to complying with the requirements of section 722(g)(1)(I). ; (3) in subsection (c)— (A) in paragraph (1), by striking 726 and inserting 722(a) ; (B) in paragraph (2)— (i) in subparagraph (A), by inserting identification, before enrollment ; (ii) by amending subparagraph (B) to read as follows: (B) The extent to which the application reflects coordination with other local and State agencies that serve homeless children and youths. ; and (iii) in subparagraph (C), by inserting (as of the date of submission of the application) after current practice ; (C) in paragraph (3)— (i) by amending subparagraph (C) to read as follows: (C) The extent to which the applicant will promote meaningful involvement of parents or guardians of homeless children or youths in the education of their children. ; (ii) in subparagraph (D), by striking within and inserting into ; (iii) in subparagraph (G)— (I) by striking Such and inserting The extent to which the applicant’s program meets such ; and (II) by striking case management or related ; (iv) by redesignating subparagraph (G) as subparagraph (I) and inserting after subparagraph (F) the following: (G) The extent to which the local educational agency will use the subgrant to leverage resources, including by maximizing nonsubgrant funding for the position of the liaison described in section 722(g)(1)(J)(ii) and the provision of transportation. (H) How the local educational agency uses funds to serve homeless children and youths under section 1113(c)(3) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6313(c)(3)). ; and (v) by adding at the end the following: (J) An assurance that the applicant will meet the requirements of section 722(g)(3). ; and (D) by striking paragraph (4); and (4) in subsection (d)— (A) in paragraph (1)— (i) by striking challenging State academic content standards and inserting State academic standards ; and (ii) by striking and challenging State student academic achievement standards ; (B) in paragraph (2)— (i) by striking students with limited English proficiency, and inserting English learners, ; and (ii) by striking vocational and inserting career ; (C) in paragraph (3), by striking pupil services and inserting specialized instructional support ; (D) in paragraph (7), by striking , and unaccompanied youths, and inserting , particularly homeless children and youths who are not enrolled in school, ; (E) in paragraph (9) by striking medical and inserting other required health ; (F) in paragraph (10), by inserting before the period at the end , and other activities designed to increase the meaningful involvement of parents or guardians of homeless children or youths in the education of their children ; (G) in paragraph (12), by striking pupil and inserting specialized instructional support ; and (H) in paragraph (13), by inserting before the period at the end and parental mental health or substance abuse problems . 704. Secretarial responsibilities Section 724 of such Act ( 42 U.S.C. 11434 ) is amended— (1) by amending subsection (c) to read as follows: (c) Notice (1) In general The Secretary shall, before the next school year that begins after the date of the enactment of the Student Success Act, update and disseminate nationwide the public notice described in this subsection (as in effect prior to such date) of the educational rights of homeless children and youths. (2) Dissemination The Secretary shall disseminate the notice nationally to all Federal agencies, program grantees, and grant recipients serving homeless families, children, and youths. ; (2) in subsection (d), by striking and dissemination and inserting , dissemination, and technical assistance ; (3) in subsection (e)— (A) by striking applications for grants under this subtitle and inserting plans for the use of grant funds under section 722 ; (B) by striking 60-day and inserting 120-day ; and (C) by striking 120-day and inserting 180-day ; (4) in subsection (f), by adding at the end the following: The Secretary shall provide support and technical assistance to State educational agencies in areas in which barriers to a free appropriate public education persist. ; (5) by amending subsection (g) to read as follows: (g) Guidelines The Secretary shall develop, issue, and publish in the Federal Register, not later than 60 days after the date of the enactment of the Student Success Act, strategies by which a State— (1) may assist local educational agencies to implement the provisions amended by the Act; and (2) can review and revise State policies and procedures that may present barriers to the identification, enrollment, attendance, and success of homeless children and youths in school. ; (6) in subsection (h)(1)(A), by inserting in all areas served by local educational agencies before the semicolon at the end; and (7) in subsection (i), by striking McKinney-Vento Homeless Education Assistance Improvements Act of 2001 and inserting Student Success Act . 705. Definitions Section 725 of such Act ( 42 U.S.C. 11434a ) is amended— (1) in paragraph (2)(B)(iv), by striking 1309 and inserting 1139 ; and (2) in paragraph (3), by striking 9101 and inserting 5101 . 706. Authorization of appropriations Section 726 of such Act ( 42 U.S.C. 11435 ) is amended to read as follows: 726. Authorization of appropriations For the purpose of carrying out this subtitle, there are authorized to be appropriated $61,771,000 for each of fiscal years 2014 through 2019. .

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113-hr-6

I 113th CONGRESS 2d Session H. R. 6 IN THE HOUSE OF REPRESENTATIVES March 6, 2014 Mr. Gardner (for himself, Mr. Ryan of Ohio , Mr. Upton , Mr. Shimkus , Mr. Whitfield , Mr. Barton , Mr. Olson , Mrs. McMorris Rodgers , Mr. Guthrie , Mrs. Ellmers , Mr. Gingrey of Georgia , Mr. Burgess , Mr. Johnson of Ohio , Mr. Lance , Mr. Cassidy , Mr. Scalise , Mr. Latta , Mr. Griffith of Virginia , Mr. Pitts , Mr. Rogers of Michigan , Mr. Hall , Mr. Turner , Mr. Boustany , and Mr. Womack ) introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To provide for expedited approval of exportation of natural gas to World Trade Organization countries, and for other purposes. 1. Short title This Act may be cited as the Domestic Prosperity and Global Freedom Act . 2. Amendments Section 3(c) of the Natural Gas Act ( 15 U.S.C. 717b(c) ) is amended— (1) by inserting (1) before For purposes ; (2) by striking a nation with which there is in effect a free trade agreement requiring national treatment for trade in natural gas and inserting a World Trade Organization member nation ; and (3) by adding at the end the following: (2) For purposes of this subsection, the term World Trade Organization member nation means a country described in section 2(10) of the Uruguay Round Agreements Act ( 19 U.S.C. 3501(10) ). . 3. Pending applications Any application for authorization to export natural gas under section 3 of the Natural Gas Act ( 15 U.S.C. 717b ) for which a notice has been published in the Federal Register before March 6, 2014, shall be granted without modification or delay.

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113-hr-7

I 113th CONGRESS 1st Session H. R. 7 IN THE HOUSE OF REPRESENTATIVES May 14, 2013 Mr. Smith of New Jersey (for himself, Mr. Lipinski , Mr. Pitts , Mr. Fleming , Mrs. Roby , Mrs. Blackburn , Mr. Jones , Mr. Buchanan , Mr. Franks of Arizona , Mr. Rogers of Alabama , Mr. Flores , Mr. Fleischmann , Mr. Boustany , Mr. Duncan of South Carolina , Mr. Fincher , Mr. Carter , Mr. Westmoreland , Mr. Garrett , Mr. Pearce , Mr. Roe of Tennessee , Mr. Neugebauer , Mr. Poe of Texas , Mr. Goodlatte , Mr. Bentivolio , Mr. Harper , Mr. Schweikert , Mr. Wilson of South Carolina , Mr. Scalise , Mr. Woodall , Mr. Stutzman , Mr. Huizenga of Michigan , Mr. Wenstrup , Mrs. Bachmann , Mr. Amash , Mr. Shimkus , Mr. LaMalfa , Mr. Walberg , Mr. Brady of Texas , Mrs. Black , Mr. Huelskamp , Mr. Cassidy , Mr. Gowdy , Mr. Meadows , Mr. Fortenberry , Mr. Wolf , Mr. Bridenstine , Mr. Salmon , Mr. King of Iowa , Mr. Gingrey of Georgia , Mr. Holding , Mrs. Ellmers , Mr. Long , Mr. Sessions , Mr. Marino , Ms. Ros-Lehtinen , Mr. Conaway , Mr. Pompeo , Mr. Lamborn , Mr. Kelly of Pennsylvania , Mr. Johnson of Ohio , Mr. Jordan , Mr. Guthrie , Ms. Foxx , Mr. Hultgren , Mr. Messer , Mr. Royce , Mr. Broun of Georgia , Mr. Gibbs , Mr. Thornberry , Mr. Aderholt , Mr. Rahall , Mr. Rogers of Michigan , Mr. Mulvaney , Mrs. Hartzler , Mrs. Wagner , Mr. Alexander , Mr. Lankford , Mr. Harris , Mrs. Walorski , Mr. Olson , Mr. Rothfus , Mr. Barton , Mr. Duffy , Mr. Smith of Nebraska , Mr. Nugent , Mr. Burgess , Mr. Womack , Mr. Rodney Davis of Illinois , Mr. Bachus , Mr. Kline , Mr. Benishek , Mr. Southerland , Mr. Miller of Florida , Mr. Stewart , Mr. McKinley , and Mr. Yoder ) introduced the following bill; which was referred to the Committee on Ways and Means , and in addition to the Committees on the Judiciary and Energy and Commerce , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To prohibit taxpayer funded abortions. 1. Short title; table of contents (a) Short title This Act may be cited as the No Taxpayer Funding for Abortion Act . (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Title I—Prohibiting Federally Funded Abortions Sec. 101. Prohibiting taxpayer funded abortions. Sec. 102. Amendment to table of chapters. Title II—Elimination of Certain Tax Benefits Relating to Abortion Sec. 201. Deduction for medical expenses not allowed for abortions. Sec. 202. Disallowance of refundable credit for coverage under qualified health plan which provides coverage for abortion. Sec. 203. Disallowance of small employer health insurance expense credit for plan which includes coverage for abortion. Sec. 204. Distributions for abortion expenses from certain accounts and arrangements included in gross income. I Prohibiting Federally Funded Abortions 101. Prohibiting taxpayer funded abortions Title 1, United States Code is amended by adding at the end the following new chapter: 4 Prohibiting taxpayer funded abortions 301. Prohibition on funding for abortions. 302. Prohibition on funding for health benefits plans that cover abortion. 303. Limitation on Federal facilities and employees. 304. Construction relating to separate coverage. 305. Construction relating to the use of non-Federal funds for health coverage. 306. Non-preemption of other Federal laws. 307. Construction relating to complications arising from abortion. 308. Treatment of abortions related to rape, incest, or preserving the life of the mother. 309. Application to District of Columbia. 301. Prohibition on funding for abortions No funds authorized or appropriated by Federal law, and none of the funds in any trust fund to which funds are authorized or appropriated by Federal law, shall be expended for any abortion. 302. Prohibition on funding for health benefits plans that cover abortion None of the funds authorized or appropriated by Federal law, and none of the funds in any trust fund to which funds are authorized or appropriated by Federal law, shall be expended for health benefits coverage that includes coverage of abortion. 303. Limitation on Federal facilities and employees No health care service furnished— (1) by or in a health care facility owned or operated by the Federal Government; or (2) by any physician or other individual employed by the Federal Government to provide health care services within the scope of the physician’s or individual’s employment, may include abortion. 304. Construction relating to separate coverage Nothing in this chapter shall be construed as prohibiting any individual, entity, or State or locality from purchasing separate abortion coverage or health benefits coverage that includes abortion so long as such coverage is paid for entirely using only funds not authorized or appropriated by Federal law and such coverage shall not be purchased using matching funds required for a federally subsidized program, including a State’s or locality’s contribution of Medicaid matching funds. 305. Construction relating to the use of non-Federal funds for health coverage Nothing in this chapter shall be construed as restricting the ability of any non-Federal health benefits coverage provider from offering abortion coverage, or the ability of a State or locality to contract separately with such a provider for such coverage, so long as only funds not authorized or appropriated by Federal law are used and such coverage shall not be purchased using matching funds required for a federally subsidized program, including a State’s or locality’s contribution of Medicaid matching funds. 306. Non-preemption of other Federal laws Nothing in this chapter shall repeal, amend, or have any effect on any other Federal law to the extent such law imposes any limitation on the use of funds for abortion or for health benefits coverage that includes coverage of abortion, beyond the limitations set forth in this chapter. 307. Construction relating to complications arising from abortion Nothing in this chapter shall be construed to apply to the treatment of any infection, injury, disease, or disorder that has been caused by or exacerbated by the performance of an abortion. This rule of construction shall be applicable without regard to whether the abortion was performed in accord with Federal or State law, and without regard to whether funding for the abortion is permissible under section 308. 308. Treatment of abortions related to rape, incest, or preserving the life of the mother The limitations established in sections 301, 302, and 303 shall not apply to an abortion— (1) if the pregnancy is the result of an act of rape or incest; or (2) in the case where a woman suffers from a physical disorder, physical injury, or physical illness that would, as certified by a physician, place the woman in danger of death unless an abortion is performed, including a life-endangering physical condition caused by or arising from the pregnancy itself. 309. Application to District of Columbia In this chapter: (1) Any reference to funds appropriated by Federal law shall be treated as including any amounts within the budget of the District of Columbia that have been approved by Act of Congress pursuant to section 446 of the District of Columbia Home Rule Act (or any applicable successor Federal law). (2) The term Federal Government includes the government of the District of Columbia. . 102. Amendment to table of chapters The table of chapters for title 1, United States Code, is amended by adding at the end the following new item: 4. Prohibiting taxpayer funded abortions 301 . II Elimination of Certain Tax Benefits Relating to Abortion 201. Deduction for medical expenses not allowed for abortions (a) In general Section 213 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (g) Amounts paid for abortion not taken into account (1) In general An amount paid during the taxable year for an abortion shall not be taken into account under subsection (a). (2) Exceptions Paragraph (1) shall not apply to— (A) an abortion— (i) in the case of a pregnancy that is the result of an act of rape or incest, or (ii) in the case where a woman suffers from a physical disorder, physical injury, or physical illness that would, as certified by a physician, place the woman in danger of death unless an abortion is performed, including a life-endangering physical condition caused by or arising from the pregnancy, and (B) the treatment of any infection, injury, disease, or disorder that has been caused by or exacerbated by the performance of an abortion. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 202. Disallowance of refundable credit for coverage under qualified health plan which provides coverage for abortion (a) In general Subparagraph (A) of section 36B(c)(3) of the Internal Revenue Code of 1986 is amended by inserting before the period at the end the following: or any health plan that includes coverage for abortions (other than any abortion or treatment described in section 213(g)(2)) . (b) Option To purchase or offer separate coverage or plan Paragraph (3) of section 36B(c) of such Code is amended by adding at the end the following new subparagraph: (C) Separate abortion coverage or plan allowed (i) Option to purchase separate coverage or plan Nothing in subparagraph (A) shall be construed as prohibiting any individual from purchasing separate coverage for abortions described in such subparagraph, or a health plan that includes such abortions, so long as no credit is allowed under this section with respect to the premiums for such coverage or plan. (ii) Option to offer coverage or plan Nothing in subparagraph (A) shall restrict any non-Federal health insurance issuer offering a health plan from offering separate coverage for abortions described in such subparagraph, or a plan that includes such abortions, so long as premiums for such separate coverage or plan are not paid for with any amount attributable to the credit allowed under this section (or the amount of any advance payment of the credit under section 1412 of the Patient Protection and Affordable Care Act). . (c) Effective date The amendment made by this section shall apply to taxable years ending after December 31, 2013. 203. Disallowance of small employer health insurance expense credit for plan which includes coverage for abortion (a) In general Subsection (h) of section 45R of the Internal Revenue Code of 1986 is amended— (1) by striking Any term and inserting the following: (1) In general Any term , and (2) by adding at the end the following new paragraph: (2) Exclusion of health plans including coverage for abortion The terms qualified health plan and health insurance coverage shall not include any health plan or benefit that includes coverage for abortions (other than any abortion or treatment described in section 213(g)(2)). . (b) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 204. Distributions for abortion expenses from certain accounts and arrangements included in gross income (a) Flexible spending arrangements under cafeteria plans Section 125 of the Internal Revenue Code of 1986 is amended by redesignating subsections (k) and (l) as subsections (l) and (m), respectively, and by inserting after subsection (j) the following new subsection: (k) Abortion reimbursement from flexible spending arrangement included in gross income Notwithstanding section 105(b), gross income shall include any reimbursement for expenses incurred for an abortion (other than any abortion or treatment described in section 213(g)(2)) from a health flexible spending arrangement provided under a cafeteria plan. Such reimbursement shall not fail to be a qualified benefit for purposes of this section merely as a result of such inclusion in gross income. . (b) Archer MSAs Paragraph (1) of section 220(f) of such Code is amended by inserting before the period at the end the following: , except that any such amount used to pay for an abortion (other than any abortion or treatment described in section 213(g)(2)) shall be included in the gross income of such holder . (c) HSAs Paragraph (1) of section 223(f) of such Code is amended by inserting before the period at the end the following: , except that any such amount used to pay for an abortion (other than any abortion or treatment described in section 213(g)(2)) shall be included in the gross income of such beneficiary . (d) Effective dates (1) FSA reimbursements The amendment made by subsection (a) shall apply to expenses incurred with respect to taxable years beginning after the date of the enactment of this Act. (2) Distributions from savings accounts The amendments made by subsection (b) and (c) shall apply to amounts paid with respect to taxable years beginning after the date of the enactment of this Act.

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113-hr-10

I 113th CONGRESS 2d Session H. R. 10 IN THE HOUSE OF REPRESENTATIVES April 1, 2014 Mr. Kline (for himself and Mr. George Miller of California ) introduced the following bill; which was referred to the Committee on Education and the Workforce A BILL To amend the charter school program under the Elementary and Secondary Education Act of 1965. 1. Short title This Act may be cited as the Success and Opportunity through Quality Charter Schools Act . 2. References Except as otherwise specifically provided, whenever in this Act a section or other provision is amended or repealed, such amendment or repeal shall be considered to be made to that section or other provision of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6301 et seq. ). 3. Purpose Section 5201 ( 20 U.S.C. 7221 ) is amended to read as follows: 5201. Purpose It is the purpose of this subpart to— (1) improve the United States education system and education opportunities for all Americans by supporting innovation in public education in public school settings that prepare students to compete and contribute to the global economy; (2) provide financial assistance for the planning, program design, and initial implementation of charter schools; (3) expand the number of high-quality charter schools available to students across the Nation; (4) evaluate the impact of such schools on student achievement, families, and communities, and share best practices between charter schools and other public schools; (5) encourage States to provide support to charter schools for facilities financing in an amount more nearly commensurate to the amount the States have typically provided for traditional public schools; (6) improve student services to increase opportunities for students with disabilities, limited English proficient students, and other traditionally underserved students to attend charter schools and meet challenging State academic achievement standards; (7) support efforts to strengthen the charter school authorizing process to improve performance management, including transparency, oversight, monitoring, and evaluation of such schools; and (8) support quality accountability and transparency in the operational performance of all authorized public chartering agencies, which include State educational agencies, local educational agencies, and other authorizing entities. . 4. Program authorized Section 5202 ( 20 U.S.C. 7221a ) is amended to read as follows: 5202. Program authorized (a) In general This subpart authorizes the Secretary to carry out a charter school program that supports charter schools that serve elementary school and secondary school students by— (1) supporting the startup of charter schools, and the replication and expansion of high-quality charter schools; (2) assisting charter schools in accessing credit to acquire and renovate facilities for school use; and (3) carrying out national activities to support— (A) charter school development; (B) the dissemination of best practices of charter schools for all schools; (C) the evaluation of the impact of the program on schools participating in the program; and (D) stronger charter school authorizing. (b) Funding Allotment From the amount made available under section 5211 for a fiscal year, the Secretary shall— (1) reserve 15 percent to support charter school facilities assistance under section 5204; (2) reserve not more than 10 percent to carry out national activities under section 5205; and (3) use the remaining amount after the Secretary reserves funds under paragraphs (1) and (2) to carry out section 5203. (c) Prior grants and subgrants The recipient of a grant or subgrant under this subpart or subpart 2, as such subpart was in effect on the day before the date of enactment of the Success and Opportunity through Quality Charter Schools Act , shall continue to receive funds in accordance with the terms and conditions of such grant or subgrant. . 5. Grants to support high-quality charter schools Section 5203 ( 20 U.S.C. 7221b ) is amended to read as follows: 5203. Grants to support high-quality charter schools (a) In general From the amount reserved under section 5202(b)(3), the Secretary shall award grants to State entities having applications approved pursuant to subsection (f) to enable such entities to— (1) award subgrants to eligible applicants for opening and preparing to operate— (A) new charter schools; (B) replicated, high-quality charter school models; or (C) expanded, high-quality charter schools; and (2) provide technical assistance to eligible applicants and authorized public chartering agencies in carrying out the activities described in paragraph (1) and work with authorized public chartering agencies in the State to improve authorizing quality. (b) State uses of funds (1) In general A State entity receiving a grant under this section shall— (A) use not less than 90 percent of the grant funds to award subgrants to eligible applicants, in accordance with the quality charter school program described in the State entity’s application approved pursuant to subsection (f), for the purposes described in subparagraphs (A) through (C) of subsection (a)(1); (B) reserve not less than 7 percent of such funds to carry out the activities described in subsection (a)(2); and (C) reserve not more than 3 percent of such funds for administrative costs which may include technical assistance. (2) Contracts and grants A State entity may use a grant received under this section to carry out the activities described in subparagraphs (A) and (B) of paragraph (1) directly or through grants, contracts, or cooperative agreements. (3) Rule of construction Nothing in this Act shall prohibit the Secretary from awarding grants to States that use a weighted lottery to give slightly better chances for admission to all or a subset of educationally disadvantaged students if the use of weighted lotteries in favor of such students is not prohibited by State law, and such State law is consistent with laws described in section 5210(1)(G). (c) Program periods; peer review; grant number and amount; diversity of projects; waivers (1) Program periods (A) Grants A grant awarded by the Secretary to a State entity under this section shall be for a period of not more than 5 years. (B) Subgrants A subgrant awarded by a State entity under this section shall be for a period of not more than 5 years, of which an eligible applicant may use not more than 18 months for planning and program design. (2) Peer Review The Secretary, and each State entity receiving a grant under this section, shall use a peer review process to review applications for assistance under this section. (3) Grant awards The Secretary shall— (A) for each fiscal year for which funds are appropriated under section 5211— (i) award not less than 3 grants under this section; (ii) wholly fund each grant awarded under this section, without making continuation awards; and (iii) fully obligate the funds appropriated for the purpose of awarding grants under this section in the fiscal year for which such grants are awarded; and (B) midway through the grant period of each grant awarded under this section to a State entity, review the grant to determine whether the State entity will meet the agreed upon uses of funds in the State entity’s application, and if not, reallot the grant funds that will not be used to other State entities during the succeeding grant competition under this section. (4) Diversity of Projects Each State entity receiving a grant under this section shall award subgrants under this section in a manner that, to the extent possible, ensures that such subgrants— (A) are distributed throughout different areas, including urban, suburban, and rural areas; and (B) will assist charter schools representing a variety of educational approaches. (5) Waivers The Secretary may waive any statutory or regulatory requirement over which the Secretary exercises administrative authority except any such requirement relating to the elements of a charter school described in section 5210(1), if— (A) the waiver is requested in an approved application under this section; and (B) the Secretary determines that granting such a waiver will promote the purpose of this subpart. (d) Limitations (1) Grants A State entity may not receive more than 1 grant under this section for a 5-year period. (2) Subgrants An eligible applicant may not receive more than 1 subgrant under this section per individual charter school for a 5-year period, unless the eligible applicant demonstrates to the State entity not less than 3 years of improved educational results in the areas described in subparagraphs (A) and (D) of section 5210(6) for students enrolled in such charter school. (e) Applications A State entity desiring to receive a grant under this section shall submit an application to the Secretary at such time and in such manner as the Secretary may require. The application shall include the following: (1) Description of Program A description of the State entity’s objectives under this section and how the objectives of the program will be carried out, including a description— (A) of how the State entity— (i) will support the opening of new charter schools, replicated, high-quality charter school models, and expanded, high-quality charter schools, and a description of the proposed number of each type of charter school or model to be opened under the State entity’s program; (ii) will inform eligible charter schools, developers, and authorized public chartering agencies of the availability of funds under the program; (iii) will work with eligible applicants to ensure that the eligible applicants access all Federal funds that they are eligible to receive, and help the charter schools supported by the applicants and the students attending the charter schools— (I) participate in the Federal programs in which the schools and students are eligible to participate; (II) receive the commensurate share of Federal funds the schools and students are eligible to receive under such programs; and (III) meet the needs of students served under such programs, including student with disabilities and English learners; (iv) in the case in which the State entity is not a State educational agency— (I) will work with the State educational agency and the charter schools in the State to maximize charter school participation in Federal and State programs for charter schools; and (II) will work with the State educational agency to adequately operate the State entity’s program under this section, where applicable; (v) will ensure each eligible applicant that receives a subgrant under the State entity’s program to open and prepare to operate a new charter school, a replicated, high-quality charter school model, or an expanded, high-quality charter school is prepared to continue to operate such school or model, in a manner consistent with the eligible applicant’s application, after the subgrant funds have expired; (vi) will support charter schools in local educational agencies with large numbers of schools identified by the State for improvement; (vii) will work with charter schools to promote inclusion of all students and support all students once they are enrolled to promote retention; (viii) will work with charter schools on recruitment practices, including efforts to engage groups that may otherwise have limited opportunities to participate in charter schools; (ix) will share best and promising practices between charter schools and other public schools, including, where appropriate, instruction and professional development in science, math, technology, and engineering education; (x) will ensure the charter schools receiving funds under the State entity’s program meet the educational needs of their students, including students with disabilities and English learners; (xi) will support efforts to increase quality initiatives, including meeting the quality authorizing elements described in paragraph (2)(E); (xii) will provide oversight of authorizing activity, including how the State will approve, actively monitor, and re-approve or revoke the authority of an authorized public chartering agency based on the performance of the charter schools authorized by such agency in the areas of student achievement, student safety, financial management, and compliance with all applicable statutes and regulations; and (xiii) in the case of a State entity defined in subsection (i)(4), will work with the State to provide assistance to and oversight of authorized public chartering agencies for authorizing activity described in clause (xii); (B) of the extent to which the State entity— (i) is able to meet and carry out the priorities listed in subsection (f)(2); and (ii) is working to develop or strengthen a cohesive statewide system to support the opening of new charter schools, replicated, high-quality charter school models, or expanded, high-quality charter schools; (C) of how the State entity will carry out the subgrant competition, including— (i) a description of the application each eligible applicant desiring to receive a subgrant will submit, including— (I) a description of the roles and responsibilities of eligible applicants, partner organizations, and management organizations, including the administrative and contractual roles and responsibilities; (II) a description of the quality controls agreed to between the eligible applicant and the authorized public chartering agency involved, such as a contract or performance agreement, how a school’s performance in the State’s academic accountability system will be a primary factor for renewal or revocation of the school’s charter, and how the State entity and the authorized public chartering agency involved will reserve the right to revoke or not renew a school’s charter based on financial, structural, or operational factors involving the management of the school; (III) a description of how the eligible applicant will solicit and consider input from parents and other members of the community on the implementation and operation of each charter school receiving funds under the State entity’s program; and (IV) a description of the planned activities and expenditures for the subgrant funds for purposes of opening and preparing to operate a new charter school, a replicated, high-quality charter school model, or an expanded, high-quality charter school, and how the school or model will maintain financial sustainability after the end of the subgrant period; and (ii) a description of how the State entity will review applications; (D) in the case of an entity that partners with an outside organization to carry out the State entity’s quality charter school program, in whole or in part, of the roles and responsibilities of this partner; (E) of how the State entity will help the charter schools receiving funds under the State entity’s program consider the transportation needs of the schools’ students; and (F) of how the State entity will support diverse charter school models, including models that serve rural communities. (2) Assurances Assurances, including a description of how the assurances will be met, that— (A) each charter school receiving funds under the State entity’s program will have a high degree of autonomy over budget and operations; (B) the State entity will support charter schools in meeting the educational needs of their students as described in paragraph (1)(A)(x); (C) the State entity will ensure that the authorized public chartering agency of any charter school that receives funds under the State entity’s program— (i) adequately monitors each charter school in recruiting, enrolling, and meeting the needs of all students, including students with disabilities and English learners; and (ii) ensures that each charter school solicits and considers input from parents and other members of the community on the implementation and operation of the school; (D) the State entity will provide adequate technical assistance to eligible applicants to— (i) meet the objectives described in clauses (vii) and (viii) of paragraph (1)(A) and paragraph (2)(B); and (ii) recruit, enroll, and retain traditionally underserved students, including students with disabilities and English learners, at rates similar to traditional public schools; (E) the State entity will promote quality authorizing, such as through providing technical assistance and supporting all authorized public chartering agencies in the State to improve the oversight of their charter schools, including by— (i) assessing annual performance data of the schools, including, as appropriate, graduation rates and student academic growth; (ii) reviewing the schools’ independent, annual audits of financial statements conducted in accordance with generally accepted accounting principles, and ensuring any such audits are publically reported; and (iii) holding charter schools accountable to the academic, financial, and operational quality controls agreed to between the charter school and the authorized public chartering agency involved, such as through renewal, non-renewal, or revocation of the school’s charter; (F) the State entity will work to ensure that charter schools are included with the traditional public schools in decision-making about the public school system in the State; and (G) the State entity will ensure that each charter school in the State make publicly available, consistent with the dissemination requirements of the annual State report card, information to help parents make informed decisions about the education options available to their children, including information on the educational program, student support services, and annual performance and enrollment data for the groups of students described in section 1111(b)(2)(C)(v)(II). (3) Requests for waivers A request and justification for waivers of any Federal statutory or regulatory provisions that the State entity believes are necessary for the successful operation of the charter schools that will receive funds under the State entity’s program under this section, and a description of any State or local rules, generally applicable to public schools, that will be waived, or otherwise not apply to such schools or, in the case of a State entity defined in subsection (i)(4), a description of how the State entity will work with the State to request necessary waivers where applicable. (f) Selection criteria; priority (1) Selection criteria The Secretary shall award grants to State entities under this section on the basis of the quality of the applications submitted under subsection (e), after taking into consideration— (A) the degree of flexibility afforded by the State’s public charter school law and how the State entity will work to maximize the flexibility provided to charter schools under the law; (B) the ambitiousness of the State entity’s objectives for the quality charter school program carried out under this section; (C) the quality of the strategy for assessing achievement of those objectives; (D) the likelihood that the eligible applicants receiving subgrants under the program will meet those objectives and improve educational results for students; (E) the State entity’s plan to— (i) adequately monitor the eligible applicants receiving subgrants under the State entity’s program; (ii) work with the authorized public chartering agencies involved to avoid duplication of work for the charter schools and authorized public chartering agencies; and (iii) provide adequate technical assistance and support for— (I) the charter schools receiving funds under the State entity’s program; and (II) quality authorizing efforts in the State; and (F) the State entity’s plan to solicit and consider input from parents and other members of the community on the implementation and operation of the charter schools in the State. (2) Priority In awarding grants under this section, the Secretary shall give priority to State entities to the extent that they meet the following criteria: (A) In the case of a State entity located in a State that allows an entity other than a local educational agency to be an authorized public chartering agency, the State has a quality authorized public chartering agency that is an entity other than a local educational agency. (B) The State entity is located in a State that does not impose any limitation on the number or percentage of charter schools that may exist or the number or percentage of students that may attend charter schools in the State. (C) The State entity is located in a State that ensures equitable financing, as compared to traditional public schools, for charter schools and students in a prompt manner. (D) The State entity is located in a State that uses charter schools and best practices from charter schools to help improve struggling schools and local educational agencies. (E) The State entity partners with an organization that has a demonstrated record of success in developing management organizations to support the development of charter schools in the State. (F) The State entity supports charter schools that support at-risk students through activities such as dropout prevention or dropout recovery. (G) The State entity authorizes all charter schools in the State to serve as school food authorities. (H) The State entity has taken steps to ensure that all authorizing public chartering agencies implement best practices for charter school authorizing. (g) Local uses of funds An eligible applicant receiving a subgrant under this section shall use such funds to carry out activities related to opening and preparing to operate a new charter school, a replicated, high-quality charter school model, or an expanded, high-quality charter school, such as— (1) preparing teachers and school leaders, including through professional development; (2) purchasing instructional materials; and (3) necessary renovations and minor facilities repairs (excluding construction). (h) Reporting requirements Each State entity receiving a grant under this section shall submit to the Secretary, at the end of the third year of the 5-year grant period and at the end of such grant period, a report on— (1) the number of students served by each subgrant awarded under this section and, if applicable, how many new students were served during each year of the subgrant period; (2) the progress the State entity made toward meeting the priorities described in subsection (f)(2), as applicable; (3) how the State entity met the objectives of the quality charter school program described in the State entity’s application under subsection (e); (4) how the State entity complied with, and ensured that eligible applicants complied with, the assurances described in the State entity’s application; (5) how the State entity worked with authorized public chartering agencies, including how the agencies worked with the management company or leadership of the schools that received subgrants under this section; and (6) the number of subgrants awarded under this section to carry out each of the following: (A) The opening of new charter schools. (B) The opening of replicated, high-quality charter school models. (C) The opening of expanded, high-quality charter schools. (i) State entity defined For purposes of this section, the term State entity means— (1) a State educational agency; (2) a State charter school board; (3) a Governor of a State; or (4) a charter school support organization. . 6. Facilities Financing Assistance Section 5204 ( 20 U.S.C. 7221c ) is amended to read as follows: 5204. Facilities Financing Assistance (a) Grants to eligible entities (1) In general From the amount reserved under section 5202(b)(1), the Secretary shall not use less than 50 percent to award grants to eligible entities that have the highest-quality applications approved under subsection (d), after considering the diversity of such applications, to demonstrate innovative methods of assisting charter schools to address the cost of acquiring, constructing, and renovating facilities by enhancing the availability of loans or bond financing. (2) Eligible entity defined For purposes of this section, the term eligible entity means— (A) a public entity, such as a State or local governmental entity; (B) a private nonprofit entity; or (C) a consortium of entities described in subparagraphs (A) and (B). (b) Grantee Selection The Secretary shall evaluate each application submitted under subsection (d), and shall determine whether the application is sufficient to merit approval. (c) Grant Characteristics Grants under subsection (a) shall be of a sufficient size, scope, and quality so as to ensure an effective demonstration of an innovative means of enhancing credit for the financing of charter school acquisition, construction, or renovation. (d) Applications (1) In general To receive a grant under subsection (a), an eligible entity shall submit to the Secretary an application in such form as the Secretary may reasonably require. (2) Contents An application submitted under paragraph (1) shall contain— (A) a statement identifying the activities proposed to be undertaken with funds received under subsection (a), including how the eligible entity will determine which charter schools will receive assistance, and how much and what types of assistance charter schools will receive; (B) a description of the involvement of charter schools in the application’s development and the design of the proposed activities; (C) a description of the eligible entity’s expertise in capital market financing; (D) a description of how the proposed activities will leverage the maximum amount of private-sector financing capital relative to the amount of public funding used and otherwise enhance credit available to charter schools, including how the eligible entity will offer a combination of rates and terms more favorable than the rates and terms that a charter school could receive without assistance from the eligible entity under this section; (E) a description of how the eligible entity possesses sufficient expertise in education to evaluate the likelihood of success of a charter school program for which facilities financing is sought; and (F) in the case of an application submitted by a State governmental entity, a description of the actions that the entity has taken, or will take, to ensure that charter schools within the State receive the funding the charter schools need to have adequate facilities. (e) Charter school objectives An eligible entity receiving a grant under this section shall use the funds deposited in the reserve account established under subsection (f) to assist one or more charter schools to access private sector capital to accomplish one or more of the following objectives: (1) The acquisition (by purchase, lease, donation, or otherwise) of an interest (including an interest held by a third party for the benefit of a charter school) in improved or unimproved real property that is necessary to commence or continue the operation of a charter school. (2) The construction of new facilities, or the renovation, repair, or alteration of existing facilities, necessary to commence or continue the operation of a charter school. (3) The predevelopment costs required to assess sites for purposes of paragraph (1) or (2) and which are necessary to commence or continue the operation of a charter school. (f) Reserve account (1) Use of funds To assist charter schools to accomplish the objectives described in subsection (e), an eligible entity receiving a grant under subsection (a) shall, in accordance with State and local law, directly or indirectly, alone or in collaboration with others, deposit the funds received under subsection (a) (other than funds used for administrative costs in accordance with subsection (g)) in a reserve account established and maintained by the eligible entity for this purpose. Amounts deposited in such account shall be used by the eligible entity for one or more of the following purposes: (A) Guaranteeing, insuring, and reinsuring bonds, notes, evidences of debt, loans, and interests therein, the proceeds of which are used for an objective described in subsection (e). (B) Guaranteeing and insuring leases of personal and real property for an objective described in subsection (e). (C) Facilitating financing by identifying potential lending sources, encouraging private lending, and other similar activities that directly promote lending to, or for the benefit of, charter schools. (D) Facilitating the issuance of bonds by charter schools, or by other public entities for the benefit of charter schools, by providing technical, administrative, and other appropriate assistance (including the recruitment of bond counsel, underwriters, and potential investors and the consolidation of multiple charter school projects within a single bond issue). (2) Investment Funds received under this section and deposited in the reserve account established under paragraph (1) shall be invested in obligations issued or guaranteed by the United States or a State, or in other similarly low-risk securities. (3) Reinvestment of Earnings Any earnings on funds received under subsection (a) shall be deposited in the reserve account established under paragraph (1) and used in accordance with such paragraph. (g) Limitation on administrative costs An eligible entity may use not more than 2.5 percent of the funds received under subsection (a) for the administrative costs of carrying out its responsibilities under this section (excluding subsection (k)). (h) Audits and reports (1) Financial Record Maintenance and Audit The financial records of each eligible entity receiving a grant under subsection (a) shall be maintained in accordance with generally accepted accounting principles and shall be subject to an annual audit by an independent public accountant. (2) Reports (A) Grantee annual reports Each eligible entity receiving a grant under subsection (a) annually shall submit to the Secretary a report of its operations and activities under this section. (B) Contents Each annual report submitted under subparagraph (A) shall include— (i) a copy of the most recent financial statements, and any accompanying opinion on such statements, prepared by the independent public accountant reviewing the financial records of the eligible entity; (ii) a copy of any report made on an audit of the financial records of the eligible entity that was conducted under paragraph (1) during the reporting period; (iii) an evaluation by the eligible entity of the effectiveness of its use of the Federal funds provided under subsection (a) in leveraging private funds; (iv) a listing and description of the charter schools served during the reporting period, including the amount of funds used by each school, the type of project facilitated by the grant, and the type of assistance provided to the charter schools; (v) a description of the activities carried out by the eligible entity to assist charter schools in meeting the objectives set forth in subsection (e); and (vi) a description of the characteristics of lenders and other financial institutions participating in the activities undertaken by the eligible entity under this section (excluding subsection (k)) during the reporting period. (C) Secretarial report The Secretary shall review the reports submitted under subparagraph (A) and shall provide a comprehensive annual report to Congress on the activities conducted under this section (excluding subsection (k)). (i) No full faith and credit for grantee obligation No financial obligation of an eligible entity entered into pursuant to this section (such as an obligation under a guarantee, bond, note, evidence of debt, or loan) shall be an obligation of, or guaranteed in any respect by, the United States. The full faith and credit of the United States is not pledged to the payment of funds which may be required to be paid under any obligation made by an eligible entity pursuant to any provision of this section. (j) Recovery of funds (1) In General The Secretary, in accordance with chapter 37 of title 31, United States Code, shall collect— (A) all of the funds in a reserve account established by an eligible entity under subsection (f)(1) if the Secretary determines, not earlier than 2 years after the date on which the eligible entity first received funds under this section (excluding subsection (k)), that the eligible entity has failed to make substantial progress in carrying out the purposes described in subsection (f)(1); or (B) all or a portion of the funds in a reserve account established by an eligible entity under subsection (f)(1) if the Secretary determines that the eligible entity has permanently ceased to use all or a portion of the funds in such account to accomplish any purpose described in subsection (f)(1). (2) Exercise of Authority The Secretary shall not exercise the authority provided in paragraph (1) to collect from any eligible entity any funds that are being properly used to achieve one or more of the purposes described in subsection (f)(1). (3) Procedures The provisions of sections 451, 452, and 458 of the General Education Provisions Act 20 U.S.C. 124 , 1234a, 1234g shall apply to the recovery of funds under paragraph (1). (4) Construction This subsection shall not be construed to impair or affect the authority of the Secretary to recover funds under part D of the General Education Provisions Act (20 U.S.C. 1234 et seq.). (k) Per-Pupil facilities aid program (1) Definition of per-pupil facilities aid program In this subsection, the term per-pupil facilities aid program means a program in which a State makes payments, on a per-pupil basis, to charter schools to provide the schools with financing— (A) that is dedicated solely for funding charter school facilities; or (B) a portion of which is dedicated for funding charter school facilities. (2) Grants (A) In general From the amount under section 5202(b)(1) remaining after the Secretary makes grants under subsection (a), the Secretary shall make grants, on a competitive basis, to States to pay for the Federal share of the cost of establishing or enhancing, and administering per-pupil facilities aid programs. (B) Period The Secretary shall award grants under this subsection for periods of not more than 5 years. (C) Federal share The Federal share of the cost described in subparagraph (A) for a per-pupil facilities aid program shall be not more than— (i) 90 percent of the cost, for the first fiscal year for which the program receives assistance under this subsection; (ii) 80 percent in the second such year; (iii) 60 percent in the third such year; (iv) 40 percent in the fourth such year; and (v) 20 percent in the fifth such year. (D) State share A State receiving a grant under this subsection may partner with 1 or more organizations to provide up to 50 percent of the State share of the cost of establishing or enhancing, and administering the per-pupil facilities aid program. (E) Multiple grants A State may receive more than 1 grant under this subsection, so long as the amount of such funds provided to charter schools increases with each successive grant. (3) Use of funds (A) In general A State that receives a grant under this subsection shall use the funds made available through the grant to establish or enhance, and administer, a per-pupil facilities aid program for charter schools in the State of the applicant. (B) Evaluations; technical assistance; dissemination From the amount made available to a State through a grant under this subsection for a fiscal year, the State may reserve not more than 5 percent to carry out evaluations, to provide technical assistance, and to disseminate information. (C) Supplement, not supplant Funds made available under this subsection shall be used to supplement, and not supplant, State and local public funds expended to provide per pupil facilities aid programs, operations financing programs, or other programs, for charter schools. (4) Requirements (A) Voluntary participation No State may be required to participate in a program carried out under this subsection. (B) State law (i) In general Except as provided in clause (ii), to be eligible to receive a grant under this subsection, a State shall establish or enhance, and administer, a per-pupil facilities aid program for charter schools in the State, that— (I) is specified in State law; and (II) provides annual financing, on a per-pupil basis, for charter school facilities. (ii) Special Rule Notwithstanding clause (i), a State that is required under State law to provide its charter schools with access to adequate facility space, but which does not have a per-pupil facilities aid program for charter schools specified in State law, may be eligible to receive a grant under this subsection if the State agrees to use the funds to develop a per-pupil facilities aid program consistent with the requirements of this subsection. (5) Applications To be eligible to receive a grant under this subsection, a State shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require. . 7. National activities Section 5205 ( 20 U.S.C. 7221d ) is amended to read as follows: 5205. National Activities (a) In general From the amount reserved under section 5202(b)(2), the Secretary shall— (1) use not less than 75 percent of such funds to award grants in accordance with subsection (b); and (2) use not more than 25 percent of such funds to— (A) disseminate technical assistance to State entities in awarding subgrants under section 5203, and eligible entities and States receiving grants under section 5204; (B) disseminate best practices; and (C) evaluate the impact of the charter school program, including the impact on student achievement, carried out under this subpart. (b) Grants (1) In general The Secretary shall make grants, on a competitive basis, to eligible applicants for the purpose of carrying out the activities described in section 5202(a)(1), subparagraphs (A) through (C) of section 5203(a)(1), and section 5203(g). (2) Terms and conditions Except as otherwise provided in this subsection, grants awarded under this subsection shall have the same terms and conditions as grants awarded to State entities under section 5203. (3) Charter management organizations The Secretary shall— (A) use not less than 75 percent of the funds described in subsection (a)(1) to make grants, on a competitive basis, to eligible applicants described in paragraph (4)(C); and (B) notwithstanding paragraphs (1)(A) and (2) of section 5203(f)— (i) award grants to eligible applicants on the basis of the quality of the applications submitted under this subsection; and (ii) in awarding grants to eligible applicants described in paragraph (4)(C), give priority to each such eligible applicant that— (I) demonstrates a high proportion of high-quality charter schools within the network of the eligible applicant; (II) demonstrates success in serving students who are educationally disadvantaged; (III) does not have a significant proportion of charter schools that have been closed, had the charter revoked for compliance issues, or the affiliation with such eligible applicant revoked; (IV) has sufficient procedures in effect to ensure timely closure of low-performing or financially mismanaged charter schools and clear plans and procedures in effect for the students in such schools to attend other high-quality schools; and (V) demonstrates success in working with schools identified for improvement by the State. (4) Eligible applicant defined For purposes of this subsection, the term eligible applicant means an eligible applicant (as defined in section 5210) that— (A) desires to open a charter school in— (i) a State that did not apply for a grant under section 5203; or (ii) a State that did not receive a grant under section 5203; or (B) is a charter management organization. (c) Contracts and grants The Secretary may carry out any of the activities described in this section directly or through grants, contracts, or cooperative agreements. . 8. Records transfer Section 5208 ( 20 U.S.C. 7221g ) is amended— (1) by inserting as quickly as possible and before to the extent practicable ; and (2) by striking section 602 and inserting section 602(14) . 9. Definitions Section 5210 ( 20 U.S.C. 7221i ) is amended— (1) by amending paragraph (1) to read as follows: (1) Charter school The term charter school means a public school that— (A) in accordance with a specific State statute authorizing the granting of charters to schools, is exempt from significant State or local rules that inhibit the flexible operation and management of public schools, but not from any rules relating to the other requirements of this paragraph; (B) is created by a developer as a public school, or is adapted by a developer from an existing public school, and is operated under public supervision and direction; (C) operates in pursuit of a specific set of educational objectives determined by the school’s developer and agreed to by the authorized public chartering agency; (D) provides a program of elementary or secondary education, or both; (E) is nonsectarian in its programs, admissions policies, employment practices, and all other operations, and is not affiliated with a sectarian school or religious institution; (F) does not charge tuition; (G) complies with the Age Discrimination Act of 1975, title VI of the Civil Rights Act of 1964, title IX of the Education Amendments of 1972, section 504 of the Rehabilitation Act of 1973, part B of the Individuals with Disabilities Education Act, the Americans with Disabilities Act of 1990 ( 42 U.S.C. 12101 et seq. ), and section 444 of the General Education Provisions Act ( 20 U.S.C. 1232(g) ) (commonly known as the Family Education Rights and Privacy Act of 1974 ); (H) is a school to which parents choose to send their children, and admits students on the basis of a lottery if more students apply for admission than can be accommodated, except that in cases in which students who are enrolled in an affiliated charter school (such as one that is part of the same network) in the immediate prior grade level are automatically enrolled, and, in such exceptions, a lottery is used to fill seats created through regular attrition in student enrollment in the affiliated charter school and the enrolling charter school; (I) agrees to comply with the same Federal and State audit requirements as do other elementary schools and secondary schools in the State, unless such State audit requirements are waived by the State; (J) meets all applicable Federal, State, and local health and safety requirements; (K) operates in accordance with State law; (L) has a written performance contract with the authorized public chartering agency in the State that includes a description of how student performance will be measured in charter schools pursuant to State assessments that are required of other schools and pursuant to any other assessments mutually agreeable to the authorized public chartering agency and the charter school; and (M) may serve prekindergarten or postsecondary students. ; (2) by redesignating paragraphs (2) through (4) as paragraphs (4) through (6), respectively; (3) by inserting after paragraph (1), the following: (2) Charter management organization The term charter management organization means a not-for-profit organization that manages a network of charter schools linked by centralized support, operations, and oversight. (3) Charter school support organization The term charter school support organization means a nonprofit, nongovernmental entity that is not an authorized public chartering agency, which provides on a statewide basis— (A) assistance to developers during the planning, program design, and initial implementation of a charter school; and (B) technical assistance to charter schools to operate such schools. ; (4) in paragraph (5)(B), as so redesignated, by striking under section 5203(d)(3) ; and (5) by adding at the end the following: (5) Expanded, high-quality charter school The term expanded, high-quality charter school means a high-quality charter school that has either significantly increased its enrollment or added one or more grades to its school. (6) High-quality charter school The term high-quality charter school means a charter school that— (A) shows evidence of strong academic results, which may include strong academic growth as determined by a State; (B) has no significant issues in the areas of student safety, operational and financial management, or statutory or regulatory compliance; (C) has demonstrated success in significantly increasing student academic achievement, including graduation rates where applicable, consistent with the requirements under title I, for all students served by the charter school; and (D) has demonstrated success in increasing student academic achievement, including graduation rates where applicable, for the groups of students described in section 1111(b)(2)(C)(v)(II), except that such demonstration is not required in a case in which the number of students in a group is insufficient to yield statistically reliable information or the results would reveal personally identifiable information about an individual student. (7) Replicated, high-quality charter school model The term replicated, high-quality charter school model means a high-quality charter school that has opened a new campus under an existing charter. . 10. Authorization of appropriations Section 5211 ( 20 U.S.C. 7221j ) is amended to read as follows: 5211. Authorization of appropriations There are authorized to be appropriated to carry out this subpart $300,000,000 for fiscal year 2015 and each of the 5 succeeding fiscal years. . 11. Conforming amendments (a) Repeal Subpart 2 of part B of title V ( 20 U.S.C. 7223 et seq. ) is repealed. (b) Table of contents The table of contents in section 2 is amended— (1) by striking the item relating to section 5203 and inserting the following: Sec. 5203. Grants to support high-quality charter schools. ; (2) by striking the item relating to section 5204 and inserting the following: Sec. 5204. Facilities Financing Assistance. ; and (3) by striking subpart 2 of part B of title V.

https://www.govinfo.gov/content/pkg/BILLS-113hr10ih/xml/BILLS-113hr10ih.xml

113-hr-11

I 113th CONGRESS 1st Session H. R. 11 IN THE HOUSE OF REPRESENTATIVES January 22, 2013 Ms. Moore (for herself, Mr. Conyers , Ms. Bass , Mrs. Beatty , Mr. Bera of California , Mr. Bishop of New York , Mr. Blumenauer , Ms. Bonamici , Ms. Bordallo , Mr. Brady of Pennsylvania , Mr. Braley of Iowa , Ms. Brown of Florida , Ms. Brownley of California , Mrs. Bustos , Mrs. Capps , Mr. Capuano , Mr. Cárdenas , Mr. Carney , Mr. Carson of Indiana , Ms. Castor of Florida , Mr. Castro of Texas , Mrs. Christensen , Ms. Chu , Mr. Cicilline , Ms. Clarke , Mr. Clay , Mr. Cleaver , Mr. Cohen , Mr. Connolly , Mr. Costa , Mr. Courtney , Mr. Cummings , Mrs. Davis of California , Mr. Danny K. Davis of Illinois , Ms. DeGette , Mr. Delaney , Ms. DeLauro , Ms. DelBene , Mr. Deutch , Mr. Dingell , Mr. Doggett , Mr. Doyle , Ms. Duckworth , Ms. Edwards , Mr. Ellison , Mr. Engel , Mr. Enyart , Ms. Eshoo , Ms. Esty , Mr. Faleomavaega , Mr. Farr , Mr. Fattah , Mr. Foster , Ms. Frankel of Florida , Ms. Fudge , Ms. Gabbard , Mr. Garcia , Mr. Grijalva , Ms. Hahn , Ms. Hanabusa , Mr. Hastings of Florida , Mr. Heck of Washington , Mr. Higgins , Mr. Himes , Mr. Hinojosa , Mr. Holt , Mr. Honda , Mr. Horsford , Mr. Huffman , Ms. Jackson Lee , Mr. Jeffries , Ms. Eddie Bernice Johnson of Texas , Mr. Johnson of Georgia , Ms. Kaptur , Mr. Kildee , Mr. Kilmer , Mrs. Kirkpatrick , Ms. Kuster , Mr. Langevin , Mr. Larsen of Washington , Mr. Larson of Connecticut , Ms. Lee of California , Mr. Levin , Mr. Lewis , Mr. Loebsack , Ms. Lofgren , Mr. Lowenthal , Mrs. Lowey , Mr. Ben Ray Luján of New Mexico , Ms. Michelle Lujan Grisham of New Mexico , Mr. Lynch , Mr. Maffei , Mrs. Carolyn B. Maloney of New York , Mr. Markey , Ms. Matsui , Mrs. McCarthy of New York , Ms. McCollum , Mr. McGovern , Mr. McNerney , Mr. Meeks , Ms. Meng , Mr. Michaud , Mr. George Miller of California , Mr. Moran , Mr. Murphy of Florida , Mr. Nadler , Mrs. Napolitano , Mrs. Negrete McLeod , Mr. Nolan , Ms. Norton , Mr. O'Rourke , Mr. Owens , Mr. Pallone , Mr. Pascrell , Mr. Peters of Michigan , Mr. Pierluisi , Ms. Pingree of Maine , Mr. Pocan , Mr. Price of North Carolina , Mr. Quigley , Mr. Rangel , Ms. Roybal-Allard , Mr. Ruppersberger , Mr. Rush , Mr. Sablan , Ms. Loretta Sanchez of California , Ms. Linda T. Sánchez of California , Mr. Sarbanes , Ms. Schakowsky , Mr. Schiff , Mr. Schneider , Mr. Schrader , Ms. Schwartz , Mr. Serrano , Ms. Sewell of Alabama , Ms. Shea-Porter , Mr. Sherman , Ms. Sinema , Mr. Sires , Ms. Slaughter , Mr. Smith of Washington , Ms. Speier , Mr. Takano , Ms. Titus , Ms. Tsongas , Mr. Van Hollen , Mr. Vargas , Ms. Velázquez , Ms. Wasserman Schultz , Ms. Waters , Mr. Waxman , Mr. Welch , Ms. Wilson of Florida , and Mr. Yarmuth ) introduced the following bill; which was referred to the Committee on the Judiciary , and in addition to the Committees on Energy and Commerce , Education and the Workforce , Financial Services , and Natural Resources , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To reauthorize the Violence Against Women Act of 1994. 1. Short title This Act may be cited as the Violence Against Women Reauthorization Act of 2013 . 2. Table of contents The table of contents for this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. Sec. 3. Universal definitions and grant conditions. Sec. 4. Effective date. TITLE I—Enhancing judicial and law enforcement tools to combat violence against women Sec. 101. Stop grants. Sec. 102. Grants to encourage arrest policies and enforcement of protection orders. Sec. 103. Legal assistance for victims. Sec. 104. Consolidation of grants to support families in the justice system. Sec. 105. Sex offender management. Sec. 106. Court-appointed special advocate program. Sec. 107. Criminal provision relating to stalking, including cyberstalking. Sec. 108. Outreach and services to underserved populations grant. Sec. 109. Culturally specific services grant. TITLE II—Improving services for victims of domestic violence, dating violence, sexual assault, and stalking Sec. 201. Sexual assault services program. Sec. 202. Rural domestic violence, dating violence, sexual assault, stalking, and child abuse enforcement assistance. Sec. 203. Training and services to end violence against women with disabilities grants. Sec. 204. Enhanced training and services to end abuse in later life. TITLE III—Services, protection, and justice for young victims of violence Sec. 301. Rape prevention and education grant. Sec. 302. Creating hope through outreach, options, services, and education for children and youth. Sec. 303. Grants to combat violent crimes on campuses. Sec. 304. Campus sexual violence, domestic violence, dating violence, and stalking education and prevention. TITLE IV—Violence reduction practices Sec. 401. Study conducted by the centers for disease control and prevention. Sec. 402. Saving money and reducing tragedies through prevention grants. TITLE V—Strengthening the healthcare system’s response to domestic violence, dating violence, sexual assault, and stalking Sec. 501. Consolidation of grants to strengthen the healthcare system’s response to domestic violence, dating violence, sexual assault, and stalking. TITLE VI—Safe homes for victims of domestic violence, dating violence, sexual assault, and stalking Sec. 601. Housing protections for victims of domestic violence, dating violence, sexual assault, and stalking. Sec. 602. Transitional housing assistance grants for victims of domestic violence, dating violence, sexual assault, and stalking. Sec. 603. Addressing the housing needs of victims of domestic violence, dating violence, sexual assault, and stalking. TITLE VII—Economic security for victims of violence Sec. 701. National Resource Center on Workplace Responses to assist victims of domestic and sexual violence. TITLE VIII—Protection of battered immigrants Sec. 801. U nonimmigrant definition. Sec. 802. Annual report on immigration applications made by victims of abuse. Sec. 803. Protection for children of VAWA self-petitioners. Sec. 804. Public charge. Sec. 805. Requirements applicable to U visas. Sec. 806. Hardship waivers. Sec. 807. Protections for a fiancée or fiancé of a citizen. Sec. 808. Regulation of international marriage brokers. Sec. 809. Eligibility of crime and trafficking victims in the Commonwealth of the Northern Mariana Islands to adjust status. Sec. 810. Disclosure of information for national security purposes. TITLE IX—Safety for Indian women Sec. 901. Grants to Indian tribal governments. Sec. 902. Grants to Indian tribal coalitions. Sec. 903. Consultation. Sec. 904. Tribal jurisdiction over crimes of domestic violence. Sec. 905. Tribal protection orders. Sec. 906. Amendments to the Federal assault statute. Sec. 907. Analysis and research on violence against Indian women. Sec. 908. Effective dates; pilot project. Sec. 909. Indian law and order commission; Report on the Alaska Rural Justice and Law Enforcement Commission. Sec. 910. Limitation. TITLE X—SAFER Act Sec. 1001. Short title. Sec. 1002. Debbie Smith grants for auditing sexual assault evidence backlogs. Sec. 1003. Reports to congress. Sec. 1004. Reducing the rape kit backlog. Sec. 1005. Oversight and accountability. Sec. 1006. Sunset. TITLE XI—Other matters Sec. 1101. Sexual abuse in custodial settings. Sec. 1102. Anonymous online harassment. Sec. 1103. Stalker database. Sec. 1104. Federal victim assistants reauthorization. Sec. 1105. Child abuse training programs for judicial personnel and practitioners reauthorization. 3. Universal definitions and grant conditions (a) Definitions Subsection (a) of section 40002 of the Violence Against Women Act of 1994 ( 42 U.S.C. 13925(a) ) is amended— (1) by striking paragraphs (5), (17), (18), (23), (29), (33), (36), and (37); (2) by redesignating— (A) paragraphs (34) and (35) as paragraphs (41) and (42), respectively; (B) paragraphs (30), (31), and (32) as paragraphs (36), (37), and (38), respectively; (C) paragraphs (24) through (28) as paragraphs (30) through (34), respectively; (D) paragraphs (21) and (22) as paragraphs (26) and (27), respectively; (E) paragraphs (19) and (20) as paragraphs (23) and (24), respectively; (F) paragraphs (10) through (16) as paragraphs (13) through (19), respectively; (G) paragraphs (6), (7), (8), and (9) as paragraphs (8), (9), (10), and (11), respectively; and (H) paragraphs (1), (2), (3), and (4) as paragraphs (2), (3), (4), and (5), respectively; (3) by inserting before paragraph (2), as redesignated, the following: (1) Alaska Native village The term Alaska Native village has the same meaning given such term in the Alaska Native Claims Settlement Act ( 43 U.S.C. 1601 et seq. ). ; (4) in paragraph (3), as redesignated, by striking serious harm. and inserting serious harm to an unemancipated minor. ; (5) in paragraph (4), as redesignated, by striking The term through that— and inserting The term community-based organization means a nonprofit, nongovernmental, or tribal organization that serves a specific geographic community that— ; (6) by inserting after paragraph (5), as redesignated, the following: (6) Culturally specific The term culturally specific means primarily directed toward racial and ethnic minority groups (as defined in section 1707(g) of the Public Health Service Act ( 42 U.S.C. 300u–6(g) )). (7) Culturally specific services The term culturally specific services means community-based services that include culturally relevant and linguistically specific services and resources to culturally specific communities. ; (7) in paragraph (8), as redesignated, by inserting or intimate partner after former spouse and as a spouse ; (8) by inserting after paragraph (11), as redesignated, the following: (12) Homeless The term homeless has the meaning provided in section 41403(6). ; (9) in paragraph (18), as redesignated, by inserting or Village Public Safety Officers after governmental victim services programs ; (10) in paragraph (19), as redesignated, by inserting at the end the following: Intake or referral, by itself, does not constitute legal assistance. ; (11) by inserting after paragraph (19), as redesignated, the following: (20) Personally identifying information or personal information The term personally identifying information or personal information means individually identifying information for or about an individual including information likely to disclose the location of a victim of domestic violence, dating violence, sexual assault, or stalking, regardless of whether the information is encoded, encrypted, hashed, or otherwise protected, including— (A) a first and last name; (B) a home or other physical address; (C) contact information (including a postal, e-mail or Internet protocol address, or telephone or facsimile number); (D) a social security number, driver license number, passport number, or student identification number; and (E) any other information, including date of birth, racial or ethnic background, or religious affiliation, that would serve to identify any individual. (21) Population specific organization The term population specific organization means a nonprofit, nongovernmental organization that primarily serves members of a specific underserved population and has demonstrated experience and expertise providing targeted services to members of that specific underserved population. (22) Population specific services The term population specific services means victim-centered services that address the safety, health, economic, legal, housing, workplace, immigration, confidentiality, or other needs of victims of domestic violence, dating violence, sexual assault, or stalking, and that are designed primarily for and are targeted to a specific underserved population. ; (12) in paragraph (23), as redesignated, by striking services and inserting assistance ; (13) by inserting after paragraph (24), as redesignated, the following: (25) Rape crisis center The term rape crisis center means a nonprofit, nongovernmental, or tribal organization, or governmental entity in a State other than a Territory that provides intervention and related assistance, as specified in section 41601(b)(2)(C), to victims of sexual assault without regard to their age. In the case of a governmental entity, the entity may not be part of the criminal justice system (such as a law enforcement agency) and must be able to offer a comparable level of confidentiality as a nonprofit entity that provides similar victim services. ; (14) in paragraph (26), as redesignated— (A) in subparagraph (A), by striking or after the semicolon; (B) in subparagraph (B), by striking the period and inserting ; or ; and (C) by inserting at the end the following: (C) any federally recognized Indian tribe. ; (15) in paragraph (27), as redesignated— (A) by striking 52 and inserting 57 ; and (B) by striking 150,000 and inserting 250,000 ; (16) by inserting after paragraph (27), as redesignated, the following: (28) Sex trafficking The term sex trafficking means any conduct proscribed by section 1591 of title 18, United States Code, whether or not the conduct occurs in interstate or foreign commerce or within the special maritime and territorial jurisdiction of the United States. (29) Sexual assault The term sexual assault means any nonconsensual sexual act proscribed by Federal, tribal, or State law, including when the victim lacks capacity to consent. ; (17) by inserting after paragraph (34), as redesignated, the following: (35) Tribal coalition The term tribal coalition means an established nonprofit, nongovernmental Indian organization, Alaska Native organization, or a Native Hawaiian organization that— (A) provides education, support, and technical assistance to member Indian service providers in a manner that enables those member providers to establish and maintain culturally appropriate services, including shelter and rape crisis services, designed to assist Indian women and the dependents of those women who are victims of domestic violence, dating violence, sexual assault, and stalking; and (B) is comprised of board and general members that are representative of— (i) the member service providers described in subparagraph (A); and (ii) the tribal communities in which the services are being provided. ; (18) by inserting after paragraph (38), as redesignated, the following: (39) Underserved populations The term underserved populations means populations who face barriers in accessing and using victim services, and includes populations underserved because of geographic location, religion, sexual orientation, gender identity, underserved racial and ethnic populations, populations underserved because of special needs (such as language barriers, disabilities, alienage status, or age), and any other population determined to be underserved by the Attorney General or by the Secretary of Health and Human Services, as appropriate. (40) Unit of local government The term unit of local government means any city, county, township, town, borough, parish, village, or other general purpose political subdivision of a State. ; and (19) by inserting after paragraph (42), as redesignated, the following: (43) Victim service provider The term victim service provider means a nonprofit, nongovernmental or tribal organization or rape crisis center, including a State or tribal coalition, that assists or advocates for domestic violence, dating violence, sexual assault, or stalking victims, including domestic violence shelters, faith-based organizations, and other organizations, with a documented history of effective work concerning domestic violence, dating violence, sexual assault, or stalking. (44) Victim services or services The terms victim services and services mean services provided to victims of domestic violence, dating violence, sexual assault, or stalking, including telephonic or web-based hotlines, legal advocacy, economic advocacy, emergency and transitional shelter, accompaniment and advocacy through medical, civil or criminal justice, immigration, and social support systems, crisis intervention, short-term individual and group support services, information and referrals, culturally specific services, population specific services, and other related supportive services. (45) Youth The term youth means a person who is 11 to 24 years old. . (b) Grants conditions Subsection (b) of section 40002 of the Violence Against Women Act of 1994 ( 42 U.S.C. 13925(b) ) is amended— (1) in paragraph (2)— (A) in subparagraph (B), by striking clauses (i) and (ii) and inserting the following: (i) disclose, reveal, or release any personally identifying information or individual information collected in connection with services requested, utilized, or denied through grantees' and subgrantees' programs, regardless of whether the information has been encoded, encrypted, hashed, or otherwise protected; or (ii) disclose, reveal, or release individual client information without the informed, written, reasonably time-limited consent of the person (or in the case of an unemancipated minor, the minor and the parent or guardian or in the case of legal incapacity, a court-appointed guardian) about whom information is sought, whether for this program or any other Federal, State, tribal, or territorial grant program, except that consent for release may not be given by the abuser of the minor, incapacitated person, or the abuser of the other parent of the minor. If a minor or a person with a legally appointed guardian is permitted by law to receive services without the parent’s or guardian’s consent, the minor or person with a guardian may release information without additional consent. ; (B) by amending subparagraph (D), to read as follows: (D) Information sharing (i) Grantees and subgrantees may share— (I) nonpersonally identifying data in the aggregate regarding services to their clients and nonpersonally identifying demographic information in order to comply with Federal, State, tribal, or territorial reporting, evaluation, or data collection requirements; (II) court-generated information and law enforcement-generated information contained in secure, governmental registries for protection order enforcement purposes; and (III) law enforcement-generated and prosecution-generated information necessary for law enforcement and prosecution purposes. (ii) In no circumstances may— (I) an adult, youth, or child victim of domestic violence, dating violence, sexual assault, or stalking be required to provide a consent to release his or her personally identifying information as a condition of eligibility for the services provided by the grantee or subgrantee; (II) any personally identifying information be shared in order to comply with Federal, tribal, or State reporting, evaluation, or data collection requirements, whether for this program or any other Federal, tribal, or State grant program. ; (C) by redesignating subparagraph (E) as subparagraph (F); (D) by inserting after subparagraph (D) the following: (E) Statutorily mandated reports of abuse or neglect Nothing in this section prohibits a grantee or subgrantee from reporting suspected abuse or neglect, as those terms are defined and specifically mandated by the State or tribe involved. ; and (E) by inserting after subparagraph (F), as redesignated, the following: (G) Confidentiality assessment and assurances Grantees and subgrantees must document their compliance with the confidentiality and privacy provisions required under this section. ; (2) by striking paragraph (3) and inserting the following: (3) Approved activities In carrying out the activities under this title, grantees and subgrantees may collaborate with or provide information to Federal, State, local, tribal, and territorial public officials and agencies to develop and implement policies and develop and promote State, local, or tribal legislation or model codes designed to reduce or eliminate domestic violence, dating violence, sexual assault, and stalking. ; (3) in paragraph (7), by inserting at the end the following: Final reports of such evaluations shall be made available to the public via the agency’s website. ; and (4) by inserting after paragraph (11) the following: (12) Delivery of legal assistance Any grantee or subgrantee providing legal assistance with funds awarded under this title shall comply with the eligibility requirements in section 1201(d) of the Violence Against Women Act of 2000 ( 42 U.S.C. 3796gg–6(d) ). (13) Civil Rights (A) Nondiscrimination No person in the United States shall, on the basis of actual or perceived race, color, religion, national origin, sex, gender identity (as defined in paragraph 249(c)(4) of title 18, United States Code), sexual orientation, or disability, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available under the Violence Against Women Act of 1994 (title IV of Public Law 103–322 ; 108 Stat. 1902), the Violence Against Women Act of 2000 (division B of Public Law 106–386 ; 114 Stat. 1491), the Violence Against Women and Department of Justice Reauthorization Act of 2005 (title IX of Public Law 109–162 ; 119 Stat. 3080), the Violence Against Women Reauthorization Act of 2013 , and any other program or activity funded in whole or in part with funds appropriated for grants, cooperative agreements, and other assistance administered by the Office on Violence Against Women. (B) Exception If sex segregation or sex-specific programming is necessary to the essential operation of a program, nothing in this paragraph shall prevent any such program or activity from consideration of an individual’s sex. In such circumstances, grantees may meet the requirements of this paragraph by providing comparable services to individuals who cannot be provided with the sex-segregated or sex-specific programming. (C) Discrimination The authority of the Attorney General and the Office of Justice Programs to enforce this paragraph shall be the same as it is under section 3789d of title 42, United States Code. (D) Construction Nothing contained in this paragraph shall be construed, interpreted, or applied to supplant, displace, preempt, or otherwise diminish the responsibilities and liabilities under other State or Federal civil rights law, whether statutory or common. (14) Clarification of victim services and legal assistance Victim services and legal assistance under this title also include services and assistance to victims of domestic violence, dating violence, sexual assault, or stalking who are also victims of severe forms of trafficking in persons as defined by section 103 of the Trafficking Victims Protection Act of 2000 ( 22 U.S.C. 7102 ). (15) Conferral (A) In general The Office on Violence Against Women shall establish a biennial conferral process with State and tribal coalitions and technical assistance providers who receive funding through grants administered by the Office on Violence Against Women and authorized by this Act, and other key stakeholders. (B) Areas covered The areas of conferral under this paragraph shall include— (i) the administration of grants; (ii) unmet needs; (iii) promising practices in the field; and (iv) emerging trends. (C) Initial conferral The first conferral shall be initiated not later than 6 months after the date of enactment of the Violence Against Women Reauthorization Act of 2013 . (D) Report Not later than 90 days after the conclusion of each conferral period, the Office on Violence Against Women shall publish a comprehensive report that— (i) summarizes the issues presented during conferral and what, if any, policies it intends to implement to address those issues; and (ii) is made available to the public on the Office on Violence Against Women’s website and submitted to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives. (16) Accountability All grants awarded by the Attorney General under this Act shall be subject to the following accountability provisions: (A) Audit requirement (i) In general Beginning in the first fiscal year beginning after the date of the enactment of this Act, and in each fiscal year thereafter, the Inspector General of the Department of Justice shall conduct audits of recipients of grants under this Act to prevent waste, fraud, and abuse of funds by grantees. The Inspector General shall determine the appropriate number of grantees to be audited each year. (ii) Definition In this paragraph, the term unresolved audit finding means a finding in the final audit report of the Inspector General of the Department of Justice that the audited grantee has utilized grant funds for an unauthorized expenditure or otherwise unallowable cost that is not closed or resolved within 12 months from the date when the final audit report is issued. (iii) Mandatory exclusion A recipient of grant funds under this Act that is found to have an unresolved audit finding shall not be eligible to receive grant funds under this Act during the following 2 fiscal years. (iv) Priority In awarding grants under this Act, the Attorney General shall give priority to eligible entities that did not have an unresolved audit finding during the 3 fiscal years prior to submitting an application for a grant under this Act. (v) Reimbursement If an entity is awarded grant funds under this Act during the 2-fiscal-year period in which the entity is barred from receiving grants under paragraph (2), the Attorney General shall— (I) deposit an amount equal to the grant funds that were improperly awarded to the grantee into the General Fund of the Treasury; and (II) seek to recoup the costs of the repayment to the fund from the grant recipient that was erroneously awarded grant funds. (B) Nonprofit organization requirements (i) Definition For purposes of this paragraph and the grant programs described in this Act, the term nonprofit organization means an organization that is described in section 501(c)(3) of the Internal Revenue Code of 1986 and is exempt from taxation under section 501(a) of such Code. (ii) Prohibition The Attorney General may not award a grant under any grant program described in this Act to a nonprofit organization that holds money in offshore accounts for the purpose of avoiding paying the tax described in section 511(a) of the Internal Revenue Code of 1986. (iii) Disclosure Each nonprofit organization that is awarded a grant under a grant program described in this Act and uses the procedures prescribed in regulations to create a rebuttable presumption of reasonableness for the compensation of its officers, directors, trustees and key employees, shall disclose to the Attorney General, in the application for the grant, the process for determining such compensation, including the independent persons involved in reviewing and approving such compensation, the comparability data used, and contemporaneous substantiation of the deliberation and decision. Upon request, the Attorney General shall make the information disclosed under this subsection available for public inspection. (C) Conference expenditures (i) Limitation No amounts authorized to be appropriated to the Department of Justice under this Act may be used by the Attorney General, or by any individual or organization awarded discretionary funds through a cooperative agreement under this Act, to host or support any expenditure for conferences that uses more than $20,000 in Department funds, unless the Deputy Attorney General or such Assistant Attorney Generals, Directors, or principal deputies as the Deputy Attorney General may designate, provides prior written authorization that the funds may be expended to host a conference. (ii) Written approval Written approval under clause (i) shall include a written estimate of all costs associated with the conference, including the cost of all food and beverages, audiovisual equipment, honoraria for speakers, and any entertainment. (iii) Report The Deputy Attorney General shall submit an annual report to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives on all approved conference expenditures referenced in this paragraph. (D) Annual certification Beginning in the first fiscal year beginning after the date of the enactment of this Act, the Attorney General shall submit, to the Committee on the Judiciary and the Committee on Appropriations of the Senate and the Committee on the Judiciary and the Committee on Appropriations of the House of Representatives, an annual certification that— (i) all audits issued by the Office of the Inspector General under paragraph (1) have been completed and reviewed by the appropriate Assistant Attorney General or Director; (ii) all mandatory exclusions required under subparagraph (A)(iii) have been issued; (iii) all reimbursements required under subparagraph (A)(v) have been made; and (iv) includes a list of any grant recipients excluded under subparagraph (A) from the previous year. . 4. Effective date Except as otherwise specifically provided in this Act, the provisions of titles I, II, III, IV, VII, and sections 3, 602, 901, and 902 of this Act shall not take effect until the beginning of the fiscal year following the date of enactment of this Act. I Enhancing judicial and law enforcement tools to combat violence against women 101. Stop grants Title I of the Omnibus Crime Control and Safe Streets Act of 1968 ( 42 U.S.C. 3711 et seq. ) is amended— (1) in section 1001(a)(18) ( 42 U.S.C. 3793(a)(18) ), by striking $225,000,000 for each of fiscal years 2007 through 2011 and inserting $222,000,000 for each of fiscal years 2014 through 2018 ; (2) in section 2001(b) ( 42 U.S.C. 3796gg(b) )— (A) in the matter preceding paragraph (1)— (i) by striking equipment and inserting resources ; and (ii) by inserting for the protection and safety of victims, after women, ; (B) in paragraph (1), by striking sexual assault and all that follows through dating violence and inserting domestic violence, dating violence, sexual assault, and stalking, including the appropriate use of nonimmigrant status under subparagraphs (T) and (U) of section 101(a)(15) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a) ) ; (C) in paragraph (2), by striking sexual assault and domestic violence and inserting domestic violence, dating violence, sexual assault, and stalking ; (D) in paragraph (3), by striking sexual assault and domestic violence and inserting domestic violence, dating violence, sexual assault, and stalking, as well as the appropriate treatment of victims ; (E) in paragraph (4)— (i) by striking sexual assault and domestic violence and inserting domestic violence, dating violence, sexual assault, and stalking ; and (ii) by inserting , classifying, after identifying ; (F) in paragraph (5)— (i) by inserting and legal assistance after victim services ; (ii) by striking domestic violence and dating violence and inserting domestic violence, dating violence, and stalking ; and (iii) by striking sexual assault and domestic violence and inserting domestic violence, dating violence, sexual assault, and stalking ; (G) by striking paragraph (6) and redesignating paragraphs (7) through (14) as paragraphs (6) through (13), respectively; (H) in paragraph (6), as redesignated by subparagraph (G), by striking sexual assault and domestic violence and inserting domestic violence, dating violence, sexual assault, and stalking ; (I) in paragraph (7), as redesignated by subparagraph (G), by striking and dating violence and inserting dating violence, and stalking ; (J) in paragraph (9), as redesignated by subparagraph (G), by striking domestic violence or sexual assault and inserting domestic violence, dating violence, sexual assault, or stalking ; (K) in paragraph (12), as redesignated by subparagraph (G)— (i) in subparagraph (A), by striking triage protocols to ensure that dangerous or potentially lethal cases are identified and prioritized and inserting the use of evidence-based indicators to assess the risk of domestic and dating violence homicide and prioritize dangerous or potentially lethal cases ; and (ii) by striking and at the end; (L) in paragraph (13), as redesignated by subparagraph (G)— (i) by striking to provide and inserting providing ; (ii) by striking nonprofit nongovernmental ; (iii) by striking the comma after local governments ; (iv) in the matter following subparagraph (C), by striking paragraph (14) and inserting paragraph (13) ; and (v) by striking the period at the end and inserting a semicolon; and (M) by inserting after paragraph (13), as redesignated by subparagraph (G), the following: (14) developing and promoting State, local, or tribal legislation and policies that enhance best practices for responding to domestic violence, dating violence, sexual assault, and stalking; (15) developing, implementing, or enhancing Sexual Assault Response Teams, or other similar coordinated community responses to sexual assault; (16) developing and strengthening policies, protocols, best practices, and training for law enforcement agencies and prosecutors relating to the investigation and prosecution of sexual assault cases and the appropriate treatment of victims; (17) developing, enlarging, or strengthening programs addressing sexual assault against men, women, and youth in correctional and detention settings; (18) identifying and conducting inventories of backlogs of sexual assault evidence collection kits and developing protocols and policies for responding to and addressing such backlogs, including protocols and policies for notifying and involving victims; (19) developing, enlarging, or strengthening programs and projects to provide services and responses targeting male and female victims of domestic violence, dating violence, sexual assault, or stalking, whose ability to access traditional services and responses is affected by their sexual orientation or gender identity, as defined in section 249(c) of title 18, United States Code; and (20) developing, enhancing, or strengthening prevention and educational programming to address domestic violence, dating violence, sexual assault, or stalking, with not more than 5 percent of the amount allocated to a State to be used for this purpose. ; (3) in section 2007 ( 42 U.S.C. 3796gg–1 )— (A) in subsection (a), by striking nonprofit nongovernmental victim service programs and inserting victim service providers ; (B) in subsection (b)(6), by striking (not including populations of Indian tribes) ; (C) in subsection (c)— (i) by striking paragraph (2) and inserting the following: (2) grantees and subgrantees shall develop a plan for implementation and shall consult and coordinate with— (A) the State sexual assault coalition; (B) the State domestic violence coalition; (C) the law enforcement entities within the State; (D) prosecution offices; (E) State and local courts; (F) tribal governments in those States with State or federally recognized Indian tribes; (G) representatives from underserved populations, including culturally specific populations; (H) victim service providers; (I) population specific organizations; and (J) other entities that the State or the Attorney General identifies as needed for the planning process; ; (ii) by redesignating paragraph (3) as paragraph (4); (iii) by inserting after paragraph (2), as amended by clause (i), the following: (3) grantees shall coordinate the State implementation plan described in paragraph (2) with the State plans described in section 307 of the Family Violence Prevention and Services Act ( 42 U.S.C. 10407 ) and the programs described in section 1404 of the Victims of Crime Act of 1984 ( 42 U.S.C. 10603 ) and section 393A of the Public Health Service Act ( 42 U.S.C. 280b–1b ). ; (iv) in paragraph (4), as redesignated by clause (ii)— (I) in subparagraph (A), by striking and not less than 25 percent shall be allocated for prosecutors ; (II) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D); (III) by inserting after subparagraph (A), the following: (B) not less than 25 percent shall be allocated for prosecutors; ; and (IV) in subparagraph (D) as redesignated by subclause (II) by striking for and inserting to ; and (v) by adding at the end the following: (5) not later than 2 years after the date of enactment of this Act, and every year thereafter, not less than 20 percent of the total amount granted to a State under this subchapter shall be allocated for programs or projects in 2 or more allocations listed in paragraph (4) that meaningfully address sexual assault, including stranger rape, acquaintance rape, alcohol or drug-facilitated rape, and rape within the context of an intimate partner relationship. ; (D) by striking subsection (d) and inserting the following: (d) Application requirements An application for a grant under this section shall include— (1) the certifications of qualification required under subsection (c); (2) proof of compliance with the requirements for the payment of forensic medical exams and judicial notification, described in section 2010; (3) proof of compliance with the requirements for paying fees and costs relating to domestic violence and protection order cases, described in section 2011 of this title; (4) proof of compliance with the requirements prohibiting polygraph examinations of victims of sexual assault, described in section 2013 of this title; (5) an implementation plan required under subsection (i); and (6) any other documentation that the Attorney General may require. ; (E) in subsection (e)— (i) in paragraph (2)— (I) in subparagraph (A), by striking domestic violence and sexual assault and inserting domestic violence, dating violence, sexual assault, and stalking ; and (II) in subparagraph (D), by striking linguistically and ; and (ii) by adding at the end the following: (3) Conditions In disbursing grants under this part, the Attorney General may impose reasonable conditions on grant awards to ensure that the States meet statutory, regulatory, and other program requirements. ; (F) in subsection (f), by striking the period at the end and inserting , except that, for purposes of this subsection, the costs of the projects for victim services or tribes for which there is an exemption under section 40002(b)(1) of the Violence Against Women Act of 1994 ( 42 U.S.C. 13925(b)(1) ) shall not count toward the total costs of the projects. ; and (G) by adding at the end the following: (i) Implementation plans A State applying for a grant under this part shall— (1) develop an implementation plan in consultation with the entities listed in subsection (c)(2), that identifies how the State will use the funds awarded under this part, including how the State will meet the requirements of subsection (c)(5); and (2) submit to the Attorney General— (A) the implementation plan developed under paragraph (1); (B) documentation from each member of the planning committee as to their participation in the planning process; (C) documentation from the prosecution, law enforcement, court, and victim services programs to be assisted, describing— (i) the need for the grant funds; (ii) the intended use of the grant funds; (iii) the expected result of the grant funds; and (iv) the demographic characteristics of the populations to be served, including age, disability, race, ethnicity, and language background; (D) a description of how the State will ensure that any subgrantees will consult with victim service providers during the course of developing their grant applications in order to ensure that the proposed activities are designed to promote the safety, confidentiality, and economic independence of victims; (E) demographic data on the distribution of underserved populations within the State and a description of how the State will meet the needs of underserved populations, including the minimum allocation for population specific services required under subsection (c)(4)(C); (F) a description of how the State plans to meet the regulations issued pursuant to subsection (e)(2); (G) goals and objectives for reducing domestic violence-related homicides within the State; and (H) any other information requested by the Attorney General. (j) Reallocation of funds A State may use any returned or remaining funds for any authorized purpose under this part if— (1) funds from a subgrant awarded under this part are returned to the State; or (2) the State does not receive sufficient eligible applications to award the full funding within the allocations in subsection (c)(4) ; (4) in section 2010 ( 42 U.S.C. 3796gg–4 )— (A) in subsection (a), by striking paragraph (1) and inserting the following: (1) In general A State, Indian tribal government, or unit of local government shall not be entitled to funds under this subchapter unless the State, Indian tribal government, unit of local government, or another governmental entity— (A) incurs the full out-of-pocket cost of forensic medical exams described in subsection (b) for victims of sexual assault; and (B) coordinates with health care providers in the region to notify victims of sexual assault of the availability of rape exams at no cost to the victims. ; (B) in subsection (b)— (i) in paragraph (1), by inserting or after the semicolon; (ii) in paragraph (2), by striking ; or and inserting a period; and (iii) by striking paragraph (3); and (C) by amending subsection (d) to read as follows: (d) Noncooperation (1) In general To be in compliance with this section, a State, Indian tribal government, or unit of local government shall comply with subsection (b) without regard to whether the victim participates in the criminal justice system or cooperates with law enforcement. (2) Compliance period States, territories, and Indian tribal governments shall have 3 years from the date of enactment of this Act to come into compliance with this section. ; and (5) in section 2011(a)(1) ( 42 U.S.C. 3796gg–5(a)(1) )— (A) by inserting modification, enforcement, dismissal, withdrawal after registration, each place it appears; (B) by inserting “, dating violence, sexual assault, or stalking” after “felony domestic violence”; and (C) by striking victim of domestic violence and all that follows through sexual assault and inserting victim of domestic violence, dating violence, sexual assault, or stalking . 102. Grants to encourage arrest policies and enforcement of protection orders (a) In general Part U of title I of the Omnibus Crime Control and Safe Streets Act of 1968 ( 42 U.S.C. 3796hh et seq. ) is amended— (1) in section 2101 ( 42 U.S.C. 3796hh )— (A) in subsection (b)— (i) in the matter preceding paragraph (1), by striking States, and all that follows through units of local government and inserting grantees ; (ii) in paragraph (1), by inserting and enforcement of protection orders across State and tribal lines before the period; (iii) in paragraph (2), by striking and training in police departments to improve tracking of cases and inserting data collection systems, and training in police departments to improve tracking of cases and classification of complaints ; (iv) in paragraph (4), by inserting and provide the appropriate training and education about domestic violence, dating violence, sexual assault, and stalking after computer tracking systems ; (v) in paragraph (5), by inserting and other victim services after legal advocacy service programs ; (vi) in paragraph (6), by striking judges and inserting Federal, State, tribal, territorial, and local judges, courts, and court-based and court-related personnel ; (vii) in paragraph (8), by striking and sexual assault and inserting dating violence, sexual assault, and stalking ; (viii) in paragraph (10), by striking non-profit, non-governmental victim services organizations, and inserting victim service providers, staff from population specific organizations, ; and (ix) by adding at the end the following: (14) To develop and implement training programs for prosecutors and other prosecution-related personnel regarding best practices to ensure offender accountability, victim safety, and victim consultation in cases involving domestic violence, dating violence, sexual assault, and stalking. (15) To develop or strengthen policies, protocols, and training for law enforcement, prosecutors, and the judiciary in recognizing, investigating, and prosecuting instances of domestic violence, dating violence, sexual assault, and stalking against immigrant victims, including the appropriate use of applications for nonimmigrant status under subparagraphs (T) and (U) of section 101(a)(15) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15) ). (16) To develop and promote State, local, or tribal legislation and policies that enhance best practices for responding to the crimes of domestic violence, dating violence, sexual assault, and stalking, including the appropriate treatment of victims. (17) To develop, implement, or enhance sexual assault nurse examiner programs or sexual assault forensic examiner programs, including the hiring and training of such examiners. (18) To develop, implement, or enhance Sexual Assault Response Teams or similar coordinated community responses to sexual assault. (19) To develop and strengthen policies, protocols, and training for law enforcement officers and prosecutors regarding the investigation and prosecution of sexual assault cases and the appropriate treatment of victims. (20) To provide human immunodeficiency virus testing programs, counseling, and prophylaxis for victims of sexual assault. (21) To identify and inventory backlogs of sexual assault evidence collection kits and to develop protocols for responding to and addressing such backlogs, including policies and protocols for notifying and involving victims. (22) To develop multidisciplinary high-risk teams focusing on reducing domestic violence and dating violence homicides by— (A) using evidence-based indicators to assess the risk of homicide and link high-risk victims to immediate crisis intervention services; (B) identifying and managing high-risk offenders; and (C) providing ongoing victim advocacy and referrals to comprehensive services including legal, housing, health care, and economic assistance. ; (B) in subsection (c)— (i) in paragraph (1)— (I) in the matter preceding subparagraph (A), by inserting except for a court, before certify ; and (II) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), and adjusting the margin accordingly; (ii) in paragraph (2), by inserting except for a court, before demonstrate ; (iii) in paragraph (3)— (I) by striking spouses each place it appears and inserting parties ; and (II) by striking spouse and inserting party ; (iv) in paragraph (4)— (I) by inserting , dating violence, sexual assault, or stalking after felony domestic violence ; (II) by inserting modification, enforcement, dismissal, after registration, each place it appears; (III) by inserting dating violence, after victim of domestic violence, ; and (IV) by striking and at the end; (v) in paragraph (5)— (I) in the matter preceding subparagraph (A), by striking , not later than 3 years after January 5, 2006 ; (II) by inserting , trial of, or sentencing for after investigation of each place it appears; (III) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), and adjusting the margin accordingly; (IV) in clause (ii), as redesignated by subclause (III) of this clause, by striking subparagraph (A) and inserting clause (i) ; and (V) by striking the period at the end and inserting ; and ; (vi) by redesignating paragraphs (1) through (5), as amended by this subparagraph, as subparagraphs (A) through (E), respectively; (vii) in the matter preceding subparagraph (A), as redesignated by clause (v) of this subparagraph— (I) by striking the comma that immediately follows another comma; and (II) by striking grantees are States and inserting the following: “grantees are— (1) States ; and (viii) by adding at the end the following: (2) a State, tribal, or territorial domestic violence or sexual assault coalition or a victim service provider that partners with a State, Indian tribal government, or unit of local government that certifies that the State, Indian tribal government, or unit of local government meets the requirements under paragraph (1). ; (C) in subsection (d)— (i) in paragraph (1)— (I) in the matter preceding subparagraph (A), by inserting , policy, after law ; and (II) in subparagraph (A), by inserting and the defendant is in custody or has been served with the information or indictment before the semicolon; and (ii) in paragraph (2), by striking it and inserting its ; and (D) by adding at the end the following: (f) Allocation for tribal coalitions Of the amounts appropriated for purposes of this part for each fiscal year, not less than 5 percent shall be available for grants under section 2001 of title I of the Omnibus Crime Control and Safe Streets Act of 1968 ( 42 U.S.C. 3796gg ). (g) Allocation for sexual assault Of the amounts appropriated for purposes of this part for each fiscal year, not less than 25 percent shall be available for projects that address sexual assault, including stranger rape, acquaintance rape, alcohol or drug-facilitated rape, and rape within the context of an intimate partner relationship. ; and (2) in section 2102(a) ( 42 U.S.C. 3796hh–1(a) )— (A) in paragraph (1), by inserting court, after tribal government, ; and (B) in paragraph (4), by striking nonprofit, private sexual assault and domestic violence programs and inserting victim service providers and, as appropriate, population specific organizations . (b) Authorization of appropriations Section 1001(a)(19) of title I of the Omnibus Crime Control and Safe Streets Act of 1968 ( 42 U.S.C. 3793(a)(19) ) is amended— (1) by striking $75,000,000 and all that follows through 2011. and inserting $73,000,000 for each of fiscal years 2014 through 2018. ; and (2) by striking the period that immediately follows another period. 103. Legal assistance for victims Section 1201 of the Violence Against Women Act of 2000 ( 42 U.S.C. 3796gg–6 ) is amended— (1) in subsection (a)— (A) in the first sentence, by striking arising as a consequence of and inserting relating to or arising out of ; and (B) in the second sentence, by inserting or arising out of after relating to ; (2) in subsection (b)— (A) in the heading, by inserting and grant conditions after Definitions ; and (B) by inserting and grant conditions after definitions ; (3) in subsection (c)— (A) in paragraph (1), by striking victims services organizations and inserting victim service providers ; and (B) by striking paragraph (3) and inserting the following: (3) to implement, expand, and establish efforts and projects to provide competent, supervised pro bono legal assistance for victims of domestic violence, dating violence, sexual assault, or stalking, except that not more than 10 percent of the funds awarded under this section may be used for the purpose described in this paragraph. ; (4) in subsection (d)— (A) in paragraph (1), by striking this section has completed and all that follows and inserting the following: this section— (A) has demonstrated expertise in providing legal assistance to victims of domestic violence, dating violence, sexual assault, or stalking in the targeted population; or (B) (i) is partnered with an entity or person that has demonstrated expertise described in subparagraph (A); and (ii) has completed, or will complete, training in connection with domestic violence, dating violence, stalking, or sexual assault and related legal issues, including training on evidence-based risk factors for domestic and dating violence homicide; ; and (B) in paragraph (2), by striking stalking organization and inserting stalking victim service provider ; and (5) in subsection (f) in paragraph (1), by striking this section and all that follows and inserting the following: this section $57,000,000 for each of fiscal years 2014 through 2018. . 104. Consolidation of grants to support families in the justice system (a) In general Title III of division B of the Victims of Trafficking and Violence Protection Act of 2000 ( Public Law 106–386 ; 114 Stat. 1509) is amended by striking the section preceding section 1302 ( 42 U.S.C. 10420 ), as amended by section 306 of the Violence Against Women and Department of Justice Reauthorization Act of 2005 ( Public Law 109–162 ; 119 Stat. 316), and inserting the following: 1301. Grants to support families in the Justice System (a) In general The Attorney General may make grants to States, units of local government, courts (including juvenile courts), Indian tribal governments, nonprofit organizations, legal services providers, and victim services providers to improve the response of all aspects of the civil and criminal justice system to families with a history of domestic violence, dating violence, sexual assault, or stalking, or in cases involving allegations of child sexual abuse. (b) Use of funds A grant under this section may be used to— (1) provide supervised visitation and safe visitation exchange of children and youth by and between parents in situations involving domestic violence, dating violence, child sexual abuse, sexual assault, or stalking; (2) develop and promote State, local, and tribal legislation, policies, and best practices for improving civil and criminal court functions, responses, practices, and procedures in cases involving a history of domestic violence or sexual assault, or in cases involving allegations of child sexual abuse, including cases in which the victim proceeds pro se; (3) educate court-based and court-related personnel and court-appointed personnel (including custody evaluators and guardians ad litem) and child protective services workers on the dynamics of domestic violence, dating violence, sexual assault, and stalking, including information on perpetrator behavior, evidence-based risk factors for domestic and dating violence homicide, and on issues relating to the needs of victims, including safety, security, privacy, and confidentiality, including cases in which the victim proceeds pro se; (4) provide appropriate resources in juvenile court matters to respond to dating violence, domestic violence, sexual assault (including child sexual abuse), and stalking and ensure necessary services dealing with the health and mental health of victims are available; (5) enable courts or court-based or court-related programs to develop or enhance— (A) court infrastructure (such as specialized courts, consolidated courts, dockets, intake centers, or interpreter services); (B) community-based initiatives within the court system (such as court watch programs, victim assistants, pro se victim assistance programs, or community-based supplementary services); (C) offender management, monitoring, and accountability programs; (D) safe and confidential information-storage and information-sharing databases within and between court systems; (E) education and outreach programs to improve community access, including enhanced access for underserved populations; and (F) other projects likely to improve court responses to domestic violence, dating violence, sexual assault, and stalking; (6) provide civil legal assistance and advocacy services, including legal information and resources in cases in which the victim proceeds pro se, to— (A) victims of domestic violence; and (B) nonoffending parents in matters— (i) that involve allegations of child sexual abuse; (ii) that relate to family matters, including civil protection orders, custody, and divorce; and (iii) in which the other parent is represented by counsel; (7) collect data and provide training and technical assistance, including developing State, local, and tribal model codes and policies, to improve the capacity of grantees and communities to address the civil justice needs of victims of domestic violence, dating violence, sexual assault, and stalking who have legal representation, who are proceeding pro se, or who are proceeding with the assistance of a legal advocate; and (8) to improve training and education to assist judges, judicial personnel, attorneys, child welfare personnel, and legal advocates in the civil justice system. (c) Considerations (1) In general In making grants for purposes described in paragraphs (1) through (7) of subsection (b), the Attorney General shall consider— (A) the number of families to be served by the proposed programs and services; (B) the extent to which the proposed programs and services serve underserved populations; (C) the extent to which the applicant demonstrates cooperation and collaboration with nonprofit, nongovernmental entities in the local community with demonstrated histories of effective work on domestic violence, dating violence, sexual assault, or stalking, including State or tribal domestic violence coalitions, State or tribal sexual assault coalitions, local shelters, and programs for domestic violence and sexual assault victims; and (D) the extent to which the applicant demonstrates coordination and collaboration with State, tribal, and local court systems, including mechanisms for communication and referral. (2) Other grants In making grants under subsection (b)(8) the Attorney General shall take into account the extent to which the grantee has expertise addressing the judicial system’s handling of family violence, child custody, child abuse and neglect, adoption, foster care, supervised visitation, divorce, and parentage. (d) Applicant requirements The Attorney General may make a grant under this section to an applicant that— (1) demonstrates expertise in the areas of domestic violence, dating violence, sexual assault, stalking, or child sexual abuse, as appropriate; (2) ensures that any fees charged to individuals for use of supervised visitation programs and services are based on the income of those individuals, unless otherwise provided by court order; (3) for a court-based program, certifies that victims of domestic violence, dating violence, sexual assault, or stalking are not charged fees or any other costs related to the filing, petitioning, modifying, issuance, registration, enforcement, withdrawal, or dismissal of matters relating to the domestic violence, dating violence, sexual assault, or stalking; (4) demonstrates that adequate security measures, including adequate facilities, procedures, and personnel capable of preventing violence, and adequate standards are, or will be, in place (including the development of protocols or policies to ensure that confidential information is not shared with courts, law enforcement agencies, or child welfare agencies unless necessary to ensure the safety of any child or adult using the services of a program funded under this section), if the applicant proposes to operate supervised visitation programs and services or safe visitation exchange; (5) certifies that the organizational policies of the applicant do not require mediation or counseling involving offenders and victims being physically present in the same place, in cases where domestic violence, dating violence, sexual assault, or stalking is alleged; (6) certifies that any person providing legal assistance through a program funded under this section has completed or will complete training on domestic violence, dating violence, sexual assault, and stalking, including child sexual abuse, and related legal issues; and (7) certifies that any person providing custody evaluation or guardian ad litem services through a program funded under this section has completed or will complete training developed with input from and in collaboration with a tribal, State, territorial, or local domestic violence, dating violence, sexual assault, or stalking victim service provider or coalition on the dynamics of domestic violence and sexual assault, including child sexual abuse, that includes training on how to review evidence of past abuse and the use of evidenced-based theories to make recommendations on custody and visitation. (e) Authorization of appropriations There is authorized to be appropriated to carry out this section, $22,000,000 for each of fiscal years 2014 through 2018. Amounts appropriated pursuant to this subsection shall remain available until expended. (f) Allotment for Indian tribes (1) In general Not less than 10 percent of the total amount available under this section for each fiscal year shall be available for grants under the program authorized by section 3796gg–10 of this title. (2) Applicability of part The requirements of this section shall not apply to funds allocated for the program described in paragraph (1). . (b) Technical and conforming amendment Subtitle J of the Violence Against Women Act of 1994 ( 42 U.S.C. 14043 et seq. ) is repealed. 105. Sex offender management Section 40152(c) of the Violence Against Women Act of 1994 ( 42 U.S.C. 13941 ) is amended by striking $5,000,000 and all that follows and inserting $5,000,000 for each of fiscal years 2014 through 2018. . 106. Court-appointed special advocate program Subtitle B of title II of the Crime Control Act of 1990 ( 42 U.S.C. 13011 et seq. ) is amended— (1) in section 216 ( 42 U.S.C. 13012 ), by striking January 1, 2010 and inserting January 1, 2015 ; (2) in section 217 ( 42 U.S.C. 13013 )— (A) by striking Code of Ethics in section (c)(2) and inserting Standards for Programs ; and (B) by adding at the end the following: (e) Reporting An organization that receives a grant under this section for a fiscal year shall submit to the Administrator a report regarding the use of the grant for the fiscal year, including a discussion of outcome performance measures (which shall be established by the Administrator) to determine the effectiveness of the programs of the organization in meeting the needs of children in the child welfare system. ; and (3) in section 219(a) ( 42 U.S.C. 13014(a) ), by striking fiscal years 2007 through 2011 and inserting fiscal years 2014 through 2018 . 107. Criminal provision relating to stalking, including cyberstalking (a) Interstate domestic violence Section 2261(a)(1) of title 18, United States Code, is amended— (1) by inserting is present after Indian Country or ; and (2) by inserting or presence after as a result of such travel ; (b) Stalking Section 2261A of title 18, United States Code, is amended to read as follows: 2261A. Stalking Whoever— (1) travels in interstate or foreign commerce or is present within the special maritime and territorial jurisdiction of the United States, or enters or leaves Indian country, with the intent to kill, injure, harass, intimidate, or place under surveillance with intent to kill, injure, harass, or intimidate another person, and in the course of, or as a result of, such travel or presence engages in conduct that— (A) places that person in reasonable fear of the death of, or serious bodily injury to— (i) that person; (ii) an immediate family member (as defined in section 115) of that person; or (iii) a spouse or intimate partner of that person; or (B) causes, attempts to cause, or would be reasonably expected to cause substantial emotional distress to a person described in clause (i), (ii), or (iii) of subparagraph (A); or (2) with the intent to kill, injure, harass, intimidate, or place under surveillance with intent to kill, injure, harass, or intimidate another person, uses the mail, any interactive computer service or electronic communication service or electronic communication system of interstate commerce, or any other facility of interstate or foreign commerce to engage in a course of conduct that— (A) places that person in reasonable fear of the death of or serious bodily injury to a person described in clause (i), (ii), or (iii) of paragraph (1)(A); or (B) causes, attempts to cause, or would be reasonably expected to cause substantial emotional distress to a person described in clause (i), (ii), or (iii) of paragraph (1)(A), shall be punished as provided in section 2261(b) of this title. . (c) Interstate violation of protection order Section 2262(a)(2) of title 18, United States Code, is amended by inserting is present after Indian Country or . 108. Outreach and services to underserved populations grant Section 120 of the Violence Against Women and Department of Justice Reauthorization Act of 2005 ( 42 U.S.C. 14045 ) is amended to read as follows: 120. Grants for outreach and services to underserved populations (a) Grants authorized (1) In general Of the amounts appropriated under the grant programs identified in paragraph (2), the Attorney General shall take 2 percent of such appropriated amounts and combine them to award grants to eligible entities described in subsection (b) of this section to develop and implement outreach strategies targeted at adult or youth victims of domestic violence, dating violence, sexual assault, or stalking in underserved populations and to provide victim services to meet the needs of adult and youth victims of domestic violence, dating violence, sexual assault, and stalking in underserved populations. The requirements of the grant programs identified in paragraph (2) shall not apply to this grant program. (2) Programs covered The programs covered by paragraph (1) are the programs carried out under the following provisions: (A) Section 2001 of the Omnibus Crime Control and Safe Streets Act of 1968 (Grants to Combat Violent Crimes Against Women). (B) Section 2101 of the Omnibus Crime Control and Safe Streets Act of 1968 (Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program). (b) Eligible entities Eligible entities under this section are— (1) population specific organizations that have demonstrated experience and expertise in providing population specific services in the relevant underserved communities, or population specific organizations working in partnership with a victim service provider or domestic violence or sexual assault coalition; (2) victim service providers offering population specific services for a specific underserved population; or (3) victim service providers working in partnership with a national, State, tribal, or local organization that has demonstrated experience and expertise in providing population specific services in the relevant underserved population. (c) Planning grants The Attorney General may use up to 25 percent of funds available under this section to make one-time planning grants to eligible entities to support the planning and development of specially designed and targeted programs for adult and youth victims in one or more underserved populations, including— (1) identifying, building and strengthening partnerships with potential collaborators within underserved populations, Federal, State, tribal, territorial or local government entities, and public and private organizations; (2) conducting a needs assessment of the community and the targeted underserved population or populations to determine what the barriers are to service access and what factors contribute to those barriers, using input from the targeted underserved population or populations; (3) identifying promising prevention, outreach and intervention strategies for victims from a targeted underserved population or populations; and (4) developing a plan, with the input of the targeted underserved population or populations, for implementing prevention, outreach and intervention strategies to address the barriers to accessing services, promoting community engagement in the prevention of domestic violence, dating violence, sexual assault, and stalking within the targeted underserved populations, and evaluating the program. (d) Implementation grants The Attorney General shall make grants to eligible entities for the purpose of providing or enhancing population specific outreach and services to adult and youth victims in one or more underserved populations, including— (1) working with Federal, State, tribal, territorial and local governments, agencies, and organizations to develop or enhance population specific services; (2) strengthening the capacity of underserved populations to provide population specific services; (3) strengthening the capacity of traditional victim service providers to provide population specific services; (4) strengthening the effectiveness of criminal and civil justice interventions by providing training for law enforcement, prosecutors, judges and other court personnel on domestic violence, dating violence, sexual assault, or stalking in underserved populations; or (5) working in cooperation with an underserved population to develop and implement outreach, education, prevention, and intervention strategies that highlight available resources and the specific issues faced by victims of domestic violence, dating violence, sexual assault, or stalking from underserved populations. (e) Application An eligible entity desiring a grant under this section shall submit an application to the Director of the Office on Violence Against Women at such time, in such form, and in such manner as the Director may prescribe. (f) Reports Each eligible entity receiving a grant under this section shall submit to the Director of the Office on Violence Against Women a report that describes the activities carried out with grant funds. (g) Authorization of appropriations In addition to the funds identified in subsection (a)(1), there are authorized to be appropriated to carry out this section $2,000,000 for each of fiscal years 2014 through 2018. (h) Definitions and grant conditions In this section the definitions and grant conditions in section 40002 of the Violence Against Women Act of 1994 ( 42 U.S.C. 13925 ) shall apply. . 109. Culturally specific services grant Section 121 of the Violence Against Women and Department of Justice Reauthorization Act of 2005 ( 42 U.S.C. 14045a ) is amended— (1) in the section heading, by striking and linguistically ; (2) by striking and linguistically each place it appears; (3) by striking and linguistic each place it appears; (4) by striking subsection (a)(2) and inserting: (2) Programs covered The programs covered by paragraph (1) are the programs carried out under the following provisions: (A) Section 2101 of the Omnibus Crime Control and Safe Streets Act of 1968 (Grants to Encourage Arrest Policies and Enforcement of Protection Orders). (B) Section 14201 of division B of the Victims of Trafficking and Violence Protection Act of 2000 ( 42 U.S.C. 3796gg–6 ) (Legal Assistance for Victims). (C) Section 40295 of the Violence Against Women Act of 1994 ( 42 U.S.C. 13971 ) (Rural Domestic Violence, Dating Violence, Sexual Assault, Stalking, and Child Abuse Enforcement Assistance). (D) Section 40802 of the Violence Against Women Act of 1994 ( 42 U.S.C. 14041a ) (Enhanced Training and Services to End Violence Against Women Later in Life). (E) Section 1402 of division B of the Victims of Trafficking and Violence Protection Act of 2000 ( 42 U.S.C. 3796gg–7 ) (Education, Training, and Enhanced Services to End Violence Against and Abuse of Women with Disabilities). ; and (5) in subsection (g), by striking linguistic and . II Improving services for victims of domestic violence, dating violence, sexual assault, and stalking 201. Sexual assault services program (a) Grants to States and territories Section 41601(b) of the Violence Against Women Act of 1994 ( 42 U.S.C. 14043g(b) ) is amended— (1) in paragraph (1), by striking other programs and all that follows and inserting other nongovernmental or tribal programs and projects to assist individuals who have been victimized by sexual assault, without regard to the age of the individual. ; (2) in paragraph (2)— (A) in subparagraph (B), by inserting or tribal programs and activities after nongovernmental organizations ; and (B) in subparagraph (C)(v), by striking linguistically and ; and (3) in paragraph (4)— (A) by inserting (including the District of Columbia and Puerto Rico) after The Attorney General shall allocate to each State ; (B) by striking the District of Columbia, Puerto Rico, after Guam ; (C) by striking 0.125 percent and inserting 0.25 percent ; and (D) by striking The District of Columbia shall be treated as a territory for purposes of calculating its allocation under the preceding formula. . (b) Authorization of appropriations Section 41601(f)(1) of the Violence Against Women Act of 1994 ( 42 U.S.C. 14043g(f)(1) ) is amended by striking $50,000,000 to remain available until expended for each of the fiscal years 2007 through 2011 and inserting $40,000,000 to remain available until expended for each of fiscal years 2014 through 2018 . 202. Rural domestic violence, dating violence, sexual assault, stalking, and child abuse enforcement assistance Section 40295 of the Violence Against Women Act of 1994 ( 42 U.S.C. 13971 ) is amended— (1) in subsection (a)(1)(H), by inserting , including sexual assault forensic examiners before the semicolon; (2) in subsection (b)— (A) in paragraph (1)— (i) by striking victim advocacy groups and inserting victim service providers ; and (ii) by inserting , including developing multidisciplinary teams focusing on high risk cases with the goal of preventing domestic and dating violence homicides before the semicolon; (B) in paragraph (2)— (i) by striking and other long- and short-term assistance and inserting legal assistance, and other long-term and short-term victim and population specific services ; and (ii) by striking and at the end; (C) in paragraph (3), by striking the period at the end and inserting ; and ; and (D) by adding at the end the following: (4) developing, enlarging, or strengthening programs addressing sexual assault, including sexual assault forensic examiner programs, Sexual Assault Response Teams, law enforcement training, and programs addressing rape kit backlogs. (5) developing programs and strategies that focus on the specific needs of victims of domestic violence, dating violence, sexual assault, and stalking who reside in remote rural and geographically isolated areas, including addressing the challenges posed by the lack of access to shelters and victims services, and limited law enforcement resources and training, and providing training and resources to Community Health Aides involved in the delivery of Indian Health Service programs. ; and (3) in subsection (e)(1), by striking $55,000,000 for each of the fiscal years 2007 through 2011 and inserting $50,000,000 for each of fiscal years 2014 through 2018 . 203. Training and services to end violence against women with disabilities grants Section 1402 of division B of the Victims of Trafficking and Violence Protection Act of 2000 ( 42 U.S.C. 3796gg–7 ) is amended— (1) in subsection (b)— (A) in paragraph (1), by inserting (including using evidence-based indicators to assess the risk of domestic and dating violence homicide) after risk reduction ; (B) in paragraph (4), by striking victim service organizations and inserting victim service providers ; and (C) in paragraph (5), by striking victim services organizations and inserting victim service providers ; (2) in subsection (c)(1)(D), by striking nonprofit and nongovernmental victim services organization, such as a State and inserting victim service provider, such as a State or tribal ; and (3) in subsection (e), by striking $10,000,000 for each of the fiscal years 2007 through 2011 and inserting $9,000,000 for each of fiscal years 2014 through 2018 . 204. Enhanced training and services to end abuse in later life (a) In general Subtitle H of the Violence Against Women Act of 1994 ( 42 U.S.C. 14041 et seq. ) is amended to read as follows: H Enhanced training and services to end abuse later in life 40801. Enhanced training and services to end abuse in later life (a) Definitions In this section— (1) the term exploitation has the meaning given the term in section 2011 of the Social Security Act ( 42 U.S.C. 1397j ); (2) the term later life , relating to an individual, means the individual is 50 years of age or older; and (3) the term neglect means the failure of a caregiver or fiduciary to provide the goods or services that are necessary to maintain the health or safety of an individual in later life. (b) Grant Program (1) Grants authorized The Attorney General may make grants to eligible entities to carry out the activities described in paragraph (2). (2) Mandatory and permissible activities (A) Mandatory activities An eligible entity receiving a grant under this section shall use the funds received under the grant to— (i) provide training programs to assist law enforcement agencies, prosecutors, agencies of States or units of local government, population specific organizations, victim service providers, victim advocates, and relevant officers in Federal, tribal, State, territorial, and local courts in recognizing and addressing instances of elder abuse; (ii) provide or enhance services for victims of abuse in later life, including domestic violence, dating violence, sexual assault, stalking, exploitation, and neglect; (iii) establish or support multidisciplinary collaborative community responses to victims of abuse in later life, including domestic violence, dating violence, sexual assault, stalking, exploitation, and neglect; and (iv) conduct cross-training for law enforcement agencies, prosecutors, agencies of States or units of local government, attorneys, health care providers, population specific organizations, faith-based advocates, victim service providers, and courts to better serve victims of abuse in later life, including domestic violence, dating violence, sexual assault, stalking, exploitation, and neglect. (B) Permissible activities An eligible entity receiving a grant under this section may use the funds received under the grant to— (i) provide training programs to assist attorneys, health care providers, faith-based leaders, or other community-based organizations in recognizing and addressing instances of abuse in later life, including domestic violence, dating violence, sexual assault, stalking, exploitation, and neglect; or (ii) conduct outreach activities and awareness campaigns to ensure that victims of abuse in later life, including domestic violence, dating violence, sexual assault, stalking, exploitation, and neglect receive appropriate assistance. (C) Waiver The Attorney General may waive 1 or more of the activities described in subparagraph (A) upon making a determination that the activity would duplicate services available in the community. (D) Limitation An eligible entity receiving a grant under this section may use not more than 10 percent of the total funds received under the grant for an activity described in subparagraph (B)(ii). (3) Eligible entities An entity shall be eligible to receive a grant under this section if— (A) the entity is— (i) a State; (ii) a unit of local government; (iii) a tribal government or tribal organization; (iv) a population specific organization with demonstrated experience in assisting individuals over 50 years of age; (v) a victim service provider with demonstrated experience in addressing domestic violence, dating violence, sexual assault, and stalking; or (vi) a State, tribal, or territorial domestic violence or sexual assault coalition; and (B) the entity demonstrates that it is part of a multidisciplinary partnership that includes, at a minimum— (i) a law enforcement agency; (ii) a prosecutor’s office; (iii) a victim service provider; and (iv) a nonprofit program or government agency with demonstrated experience in assisting individuals in later life. (4) Underserved populations In making grants under this section, the Attorney General shall give priority to proposals providing services to culturally specific and underserved populations. (5) Authorization of appropriations There is authorized to be appropriated to carry out this section $9,000,000 for each of fiscal years 2014 through 2018. . III Services, protection, and justice for young victims of violence 301. Rape prevention and education grant Section 393A of the Public Health Service Act ( 42 U.S.C. 280b–1b ) is amended— (1) in subsection (a)— (A) in the matter preceding paragraph (1), by inserting , territorial or tribal after crisis centers, State ; and (B) in paragraph (6), by inserting and alcohol after about drugs ; and (2) in subsection (c)— (A) in paragraph (1), by striking $80,000,000 for each of fiscal years 2007 through 2011 and inserting $50,000,000 for each of fiscal years 2014 through 2018 ; and (B) by adding at the end the following: (3) Baseline funding for States, the District of Columbia, and Puerto Rico A minimum allocation of $150,000 shall be awarded in each fiscal year for each of the States, the District of Columbia, and Puerto Rico. A minimum allocation of $35,000 shall be awarded in each fiscal year for each Territory. Any unused or remaining funds shall be allotted to each State, the District of Columbia, and Puerto Rico on the basis of population. . 302. Creating hope through outreach, options, services, and education for children and youth Subtitle L of the Violence Against Women Act of 1994 is amended by striking sections 41201 through 41204 (42 U.S.C. 14043c through 14043c–3) and inserting the following: 41201. Creating Hope through Outreach, Options, Services, and Education for Children and Youth ( CHOOSE Children & Youth ) (a) Grants authorized The Attorney General, working in collaboration with the Secretary of Health and Human Services and the Secretary of Education, shall award grants to enhance the safety of youth and children who are victims of, or exposed to, domestic violence, dating violence, sexual assault, or stalking and prevent future violence. (b) Program purposes Funds provided under this section may be used for the following program purpose areas: (1) Services to advocate for and respond to youth To develop, expand, and strengthen victim-centered interventions and services that target youth who are victims of domestic violence, dating violence, sexual assault, and stalking. Services may include victim services, counseling, advocacy, mentoring, educational support, transportation, legal assistance in civil, criminal and administrative matters, such as family law cases, housing cases, child welfare proceedings, campus administrative proceedings, and civil protection order proceedings, services to address the co-occurrence of sex trafficking, population-specific services, and other activities that support youth in finding safety, stability, and justice and in addressing the emotional, cognitive, and physical effects of trauma. Funds may be used to— (A) assess and analyze currently available services for youth victims of domestic violence, dating violence, sexual assault, and stalking, determining relevant barriers to such services in a particular locality, and developing a community protocol to address such problems collaboratively; (B) develop and implement policies, practices, and procedures to effectively respond to domestic violence, dating violence, sexual assault, or stalking against youth; or (C) provide technical assistance and training to enhance the ability of school personnel, victim service providers, child protective service workers, staff of law enforcement agencies, prosecutors, court personnel, individuals who work in after school programs, medical personnel, social workers, mental health personnel, and workers in other programs that serve children and youth to improve their ability to appropriately respond to the needs of children and youth who are victims of domestic violence, dating violence, sexual assault, and stalking, and to properly refer such children, youth, and their families to appropriate services. (2) Supporting youth through education and protection To enable middle schools, high schools, and institutions of higher education to— (A) provide training to school personnel, including healthcare providers and security personnel, on the needs of students who are victims of domestic violence, dating violence, sexual assault, or stalking; (B) develop and implement prevention and intervention policies in middle and high schools, including appropriate responses to, and identification and referral procedures for, students who are experiencing or perpetrating domestic violence, dating violence, sexual assault, or stalking, and procedures for handling the requirements of court protective orders issued to or against students; (C) provide support services for student victims of domestic violence, dating violence, sexual assault or stalking, such as a resource person who is either on-site or on-call; (D) implement developmentally appropriate educational programming for students regarding domestic violence, dating violence, sexual assault, and stalking and the impact of such violence on youth; or (E) develop strategies to increase identification, support, referrals, and prevention programming for youth who are at high risk of domestic violence, dating violence, sexual assault, or stalking. (c) Eligible applicants (1) In general To be eligible to receive a grant under this section, an entity shall be— (A) a victim service provider, tribal nonprofit, or population-specific or community-based organization with a demonstrated history of effective work addressing the needs of youth who are, including runaway or homeless youth affected by, victims of domestic violence, dating violence, sexual assault, or stalking; (B) a victim service provider that is partnered with an entity that has a demonstrated history of effective work addressing the needs of youth; or (C) a public, charter, tribal, or nationally accredited private middle or high school, a school administered by the Department of Defense under section 2164 of title 10, United States Code or section 1402 of the Defense Dependents’ Education Act of 1978, a group of schools, a school district, or an institution of higher education. (2) Partnerships (A) Education To be eligible to receive a grant for the purposes described in subsection (b)(2), an entity described in paragraph (1) shall be partnered with a public, charter, tribal, or nationally accredited private middle or high school, a school administered by the Department of Defense under section 2164 of title 10, United States Code or section 1402 of the Defense Dependents' Education Act of 1978, a group of schools, a school district, or an institution of higher education. (B) Other partnerships All applicants under this section are encouraged to work in partnership with organizations and agencies that work with the relevant population. Such entities may include— (i) a State, tribe, unit of local government, or territory; (ii) a population specific or community-based organization; (iii) batterer intervention programs or sex offender treatment programs with specialized knowledge and experience working with youth offenders; or (iv) any other agencies or nonprofit, nongovernmental organizations with the capacity to provide effective assistance to the adult, youth, and child victims served by the partnership. (d) Grantee requirements Applicants for grants under this section shall establish and implement policies, practices, and procedures that— (1) require and include appropriate referral systems for child and youth victims; (2) protect the confidentiality and privacy of child and youth victim information, particularly in the context of parental or third party involvement and consent, mandatory reporting duties, and working with other service providers all with priority on victim safety and autonomy; and (3) ensure that all individuals providing intervention or prevention programming to children or youth through a program funded under this section have completed, or will complete, sufficient training in connection with domestic violence, dating violence, sexual assault and stalking. (e) Definitions and grant conditions In this section, the definitions and grant conditions provided for in section 40002 shall apply. (f) Authorization of appropriations There is authorized to be appropriated to carry out this section, $15,000,000 for each of fiscal years 2014 through 2018. (g) Allotment (1) In general Not less than 50 percent of the total amount appropriated under this section for each fiscal year shall be used for the purposes described in subsection (b)(1). (2) Indian tribes Not less than 10 percent of the total amount appropriated under this section for each fiscal year shall be made available for grants under the program authorized by section 2015 of the Omnibus Crime Control and Safe Streets Act of 1968. The requirements of this section shall not apply to funds allocated under this paragraph. (h) Priority The Attorney General shall prioritize grant applications under this section that coordinate with prevention programs in the community. . 303. Grants to combat violent crimes on campuses Section 304 of the Violence Against Women and Department of Justice Reauthorization Act of 2005 ( 42 U.S.C. 14045b ) is amended— (1) in subsection (a)— (A) in paragraph (1)— (i) by striking stalking on campuses, and and inserting stalking on campuses, ; (ii) by striking crimes against women on and inserting crimes on ; and (iii) by inserting , and to develop and strengthen prevention education and awareness programs before the period; and (B) in paragraph (2), by striking $500,000 and inserting $300,000 ; (2) in subsection (b)— (A) in paragraph (2)— (i) by inserting , strengthen, after To develop ; and (ii) by inserting including the use of technology to commit these crimes, after sexual assault and stalking, ; (B) in paragraph (4)— (i) by inserting and population specific services after strengthen victim services programs ; (ii) by striking entities carrying out and all that follows through stalking victim services programs and inserting victim service providers ; and (iii) by inserting , regardless of whether the services are provided by the institution or in coordination with community victim service providers before the period at the end; and (C) by adding at the end the following: (9) To develop or adapt and provide developmental, culturally appropriate, and linguistically accessible print or electronic materials to address both prevention and intervention in domestic violence, dating violence, sexual violence, and stalking. (10) To develop or adapt population specific strategies and projects for victims of domestic violence, dating violence, sexual assault, and stalking from underserved populations on campus. ; (3) in subsection (c)— (A) in paragraph (2)— (i) in subparagraph (B), by striking any non-profit and all that follows through victim services programs and inserting victim service providers ; (ii) by redesignating subparagraphs (D) through (F) as subparagraphs (E) through (G), respectively; and (iii) by inserting after subparagraph (C), the following: (D) describe how underserved populations in the campus community will be adequately served, including the provision of relevant population specific services; ; and (B) in paragraph (3), by striking 2007 through 2011 and inserting 2014 through 2018 ; (4) in subsection (d)— (A) by redesignating paragraph (3) as paragraph (4); and (B) by inserting after paragraph (2), the following: (3) Grantee minimum requirements Each grantee shall comply with the following minimum requirements during the grant period: (A) The grantee shall create a coordinated community response including both organizations external to the institution and relevant divisions of the institution. (B) The grantee shall establish a mandatory prevention and education program on domestic violence, dating violence, sexual assault, and stalking for all incoming students. (C) The grantee shall train all campus law enforcement to respond effectively to domestic violence, dating violence, sexual assault, and stalking. (D) The grantee shall train all members of campus disciplinary boards to respond effectively to situations involving domestic violence, dating violence, sexual assault, or stalking. ; and (5) in subsection (e), by striking there are and all that follows through the period and inserting there is authorized to be appropriated $12,000,000 for each of fiscal years 2014 through 2018. . 304. Campus sexual violence, domestic violence, dating violence, and stalking education and prevention (a) In general Section 485(f) of the Higher Education Act of 1965 ( 20 U.S.C. 1092(f) ) is amended— (1) in paragraph (1)— (A) in subparagraph (C)(iii), by striking the period at the end and inserting , when the victim of such crime elects or is unable to make such a report. ; and (B) in subparagraph (F)— (i) in clause (i)(VIII), by striking and after the semicolon; (ii) in clause (ii)— (I) by striking sexual orientation and inserting national origin, sexual orientation, gender identity, ; and (II) by striking the period and inserting ; and ; and (iii) by adding at the end the following: (iii) of domestic violence, dating violence, and stalking incidents that were reported to campus security authorities or local police agencies. ; (2) in paragraph (3), by inserting , that withholds the names of victims as confidential, after that is timely ; (3) in paragraph (6)(A)— (A) by redesignating clauses (i), (ii), and (iii) as clauses (ii), (iii), and (iv), respectively; (B) by inserting before clause (ii), as redesignated by subparagraph (A), the following: (i) The terms dating violence , domestic violence , and stalking have the meaning given such terms in section 40002(a) of the Violence Against Women Act of 1994 ( 42 U.S.C. 13925(a) ). ; and (C) by inserting after clause (iv), as redesignated by subparagraph (A), the following: (v) The term sexual assault means an offense classified as a forcible or nonforcible sex offense under the uniform crime reporting system of the Federal Bureau of Investigation. ; (4) in paragraph (7)— (A) by striking paragraph (1)(F) and inserting clauses (i) and (ii) of paragraph (1)(F) ; and (B) by inserting after Hate Crime Statistics Act. the following: For the offenses of domestic violence, dating violence, and stalking, such statistics shall be compiled in accordance with the definitions used in section 40002(a) of the Violence Against Women Act of 1994 ( 42 U.S.C. 13925(a) ). ; (5) by striking paragraph (8) and inserting the following: (8) (A) Each institution of higher education participating in any program under this title and title IV of the Economic Opportunity Act of 1964, other than a foreign institution of higher education, shall develop and distribute as part of the report described in paragraph (1) a statement of policy regarding— (i) such institution’s programs to prevent domestic violence, dating violence, sexual assault, and stalking; and (ii) the procedures that such institution will follow once an incident of domestic violence, dating violence, sexual assault, or stalking has been reported, including a statement of the standard of evidence that will be used during any institutional conduct proceeding arising from such a report. (B) The policy described in subparagraph (A) shall address the following areas: (i) Education programs to promote the awareness of rape, acquaintance rape, domestic violence, dating violence, sexual assault, and stalking, which shall include— (I) primary prevention and awareness programs for all incoming students and new employees, which shall include— (aa) a statement that the institution of higher education prohibits the offenses of domestic violence, dating violence, sexual assault, and stalking; (bb) the definition of domestic violence, dating violence, sexual assault, and stalking in the applicable jurisdiction; (cc) the definition of consent, in reference to sexual activity, in the applicable jurisdiction; (dd) safe and positive options for bystander intervention that may be carried out by an individual to prevent harm or intervene when there is a risk of domestic violence, dating violence, sexual assault, or stalking against a person other than such individual; (ee) information on risk reduction to recognize warning signs of abusive behavior and how to avoid potential attacks; and (ff) the information described in clauses (ii) through (vii); and (II) ongoing prevention and awareness campaigns for students and faculty, including information described in items (aa) through (ff) of subclause (I) . (ii) Possible sanctions or protective measures that such institution may impose following a final determination of an institutional disciplinary procedure regarding rape, acquaintance rape, domestic violence, dating violence, sexual assault, or stalking. (iii) Procedures victims should follow if a sex offense, domestic violence, dating violence, sexual assault, or stalking has occurred, including information in writing about— (I) the importance of preserving evidence as may be necessary to the proof of criminal domestic violence, dating violence, sexual assault, or stalking, or in obtaining a protection order; (II) to whom the alleged offense should be reported; (III) options regarding law enforcement and campus authorities, including notification of the victim's option to— (aa) notify proper law enforcement authorities, including on-campus and local police; (bb) be assisted by campus authorities in notifying law enforcement authorities if the victim so chooses; and (cc) decline to notify such authorities; and (IV) where applicable, the rights of victims and the institution's responsibilities regarding orders of protection, no contact orders, restraining orders, or similar lawful orders issued by a criminal, civil, or tribal court. (iv) Procedures for institutional disciplinary action in cases of alleged domestic violence, dating violence, sexual assault, or stalking, which shall include a clear statement that— (I) such proceedings shall— (aa) provide a prompt, fair, and impartial investigation and resolution; and (bb) be conducted by officials who receive annual training on the issues related to domestic violence, dating violence, sexual assault, and stalking and how to conduct an investigation and hearing process that protects the safety of victims and promotes accountability; (II) the accuser and the accused are entitled to the same opportunities to have others present during an institutional disciplinary proceeding, including the opportunity to be accompanied to any related meeting or proceeding by an advisor of their choice; and (III) both the accuser and the accused shall be simultaneously informed, in writing, of— (aa) the outcome of any institutional disciplinary proceeding that arises from an allegation of domestic violence, dating violence, sexual assault, or stalking; (bb) the institution's procedures for the accused and the victim to appeal the results of the institutional disciplinary proceeding; (cc) of any change to the results that occurs prior to the time that such results become final; and (dd) when such results become final. (v) Information about how the institution will protect the confidentiality of victims, including how publicly available recordkeeping will be accomplished without the inclusion of identifying information about the victim, to the extent permissible by law. (vi) Written notification of students and employees about existing counseling, health, mental health, victim advocacy, legal assistance, and other services available for victims both on-campus and in the community. (vii) Written notification of victims about options for, and available assistance in, changing academic, living, transportation, and working situations, if so requested by the victim and if such accommodations are reasonably available, regardless of whether the victim chooses to report the crime to campus police or local law enforcement. (C) A student or employee who reports to an institution of higher education that the student or employee has been a victim of domestic violence, dating violence, sexual assault, or stalking, whether the offense occurred on or off campus, shall be provided with a written explanation of the student or employee's rights and options, as described in clauses (ii) through (vii) of subparagraph (B). ; (6) in paragraph (9), by striking The Secretary and inserting The Secretary, in consultation with the Attorney General of the United States, ; (7) by striking paragraph (16) and inserting the following: (16) (A) The Secretary shall seek the advice and counsel of the Attorney General of the United States concerning the development, and dissemination to institutions of higher education, of best practices information about campus safety and emergencies. (B) The Secretary shall seek the advice and counsel of the Attorney General of the United States and the Secretary of Health and Human Services concerning the development, and dissemination to institutions of higher education, of best practices information about preventing and responding to incidents of domestic violence, dating violence, sexual assault, and stalking, including elements of institutional policies that have proven successful based on evidence-based outcome measurements. ; and (8) by striking paragraph (17) and inserting the following: (17) No officer, employee, or agent of an institution participating in any program under this title shall retaliate, intimidate, threaten, coerce, or otherwise discriminate against any individual for exercising their rights or responsibilities under any provision of this subsection. . (b) Effective date The amendments made by this section shall take effect with respect to the annual security report under section 485(f)(1) of the Higher Education Act of 1965 ( 20 U.S.C. 1092(f)(1) ) prepared by an institution of higher education 1 calendar year after the date of enactment of this Act, and each subsequent calendar year. IV Violence reduction practices 401. Study conducted by the centers for disease control and prevention Section 402(c) of the Violence Against Women and Department of Justice Reauthorization Act of 2005 ( 42 U.S.C. 280b–4(c) ) is amended by striking $2,000,000 for each of the fiscal years 2007 through 2011 and inserting $1,000,000 for each of the fiscal years 2014 through 2018 . 402. Saving money and reducing tragedies through prevention grants (a) SMART prevention Section 41303 of the Violence Against Women Act of 1994 ( 42 U.S.C. 14043d–2 ) is amended to read as follows: 41303. Saving Money and Reducing Tragedies through Prevention (SMART Prevention) (a) Grants authorized The Attorney General, in consultation with the Secretary of Health and Human Services and the Secretary of Education, is authorized to award grants for the purpose of preventing domestic violence, dating violence, sexual assault, and stalking by taking a comprehensive approach that focuses on youth, children exposed to violence, and men as leaders and influencers of social norms. (b) Use of funds Funds provided under this section may be used for the following purposes: (1) Teen dating violence awareness and prevention To develop, maintain, or enhance programs that change attitudes and behaviors around the acceptability of domestic violence, dating violence, sexual assault, and stalking and provide education and skills training to young individuals and individuals who influence young individuals. The prevention program may use evidence-based, evidence-informed, or innovative strategies and practices focused on youth. Such a program should include— (A) age and developmentally appropriate education on domestic violence, dating violence, sexual assault, stalking, and sexual coercion, as well as healthy relationship skills, in school, in the community, or in health care settings; (B) community-based collaboration and training for those with influence on youth, such as parents, teachers, coaches, healthcare providers, faith-leaders, older teens, and mentors; (C) education and outreach to change environmental factors contributing to domestic violence, dating violence, sexual assault, and stalking; and (D) policy development targeted to prevention, including school-based policies and protocols. (2) Children exposed to violence and abuse To develop, maintain or enhance programs designed to prevent future incidents of domestic violence, dating violence, sexual assault, and stalking by preventing, reducing and responding to children’s exposure to violence in the home. Such programs may include— (A) providing services for children exposed to domestic violence, dating violence, sexual assault or stalking, including direct counseling or advocacy, and support for the non-abusing parent; and (B) training and coordination for educational, after-school, and childcare programs on how to safely and confidentially identify children and families experiencing domestic violence, dating violence, sexual assault, or stalking and properly refer children exposed and their families to services and violence prevention programs. (3) Engaging men as leaders and role models To develop, maintain or enhance programs that work with men to prevent domestic violence, dating violence, sexual assault, and stalking by helping men to serve as role models and social influencers of other men and youth at the individual, school, community or statewide levels. (c) Eligible entities To be eligible to receive a grant under this section, an entity shall be— (1) a victim service provider, community-based organization, tribe or tribal organization, or other non-profit, nongovernmental organization that has a history of effective work preventing domestic violence, dating violence, sexual assault, or stalking and expertise in the specific area for which they are applying for funds; or (2) a partnership between a victim service provider, community-based organization, tribe or tribal organization, or other non-profit, nongovernmental organization that has a history of effective work preventing domestic violence, dating violence, sexual assault, or stalking and at least one of the following that has expertise in serving children exposed to domestic violence, dating violence, sexual assault, or stalking, youth domestic violence, dating violence, sexual assault, or stalking prevention, or engaging men to prevent domestic violence, dating violence, sexual assault, or stalking: (A) A public, charter, tribal, or nationally accredited private middle or high school, a school administered by the Department of Defense under section 2164 of title 10, United States Code or section 1402 of the Defense Dependents' Education Act of 1978, a group of schools, or a school district. (B) A local community-based organization, population-specific organization, or faith-based organization that has established expertise in providing services to youth. (C) A community-based organization, population-specific organization, university or health care clinic, faith-based organization, or other non-profit, nongovernmental organization with a demonstrated history of effective work addressing the needs of children exposed to domestic violence, dating violence, sexual assault, or stalking. (D) A nonprofit, nongovernmental entity providing services for runaway or homeless youth affected by domestic violence, dating violence, sexual assault, or stalking. (E) Healthcare entities eligible for reimbursement under title XVIII of the Social Security Act, including providers that target the special needs of children and youth. (F) Any other agencies, population-specific organizations, or nonprofit, nongovernmental organizations with the capacity to provide necessary expertise to meet the goals of the program; or (3) a public, charter, tribal, or nationally accredited private middle or high school, a school administered by the Department of Defense under section 2164 of title 10, United States Code or section 1402 of the Defense Dependents’ Education Act of 1978, a group of schools, a school district, or an institution of higher education. (d) Grantee requirements (1) In general Applicants for grants under this section shall prepare and submit to the Director an application at such time, in such manner, and containing such information as the Director may require that demonstrates the capacity of the applicant and partnering organizations to undertake the project. (2) Policies and procedures Applicants under this section shall establish and implement policies, practices, and procedures that— (A) include appropriate referral systems to direct any victim identified during program activities to highly qualified follow-up care; (B) protect the confidentiality and privacy of adult and youth victim information, particularly in the context of parental or third party involvement and consent, mandatory reporting duties, and working with other service providers; (C) ensure that all individuals providing prevention programming through a program funded under this section have completed or will complete sufficient training in connection with domestic violence, dating violence, sexual assault or stalking; and (D) document how prevention programs are coordinated with service programs in the community. (3) Preference In selecting grant recipients under this section, the Attorney General shall give preference to applicants that— (A) include outcome-based evaluation; and (B) identify any other community, school, or State-based efforts that are working on domestic violence, dating violence, sexual assault, or stalking prevention and explain how the grantee or partnership will add value, coordinate with other programs, and not duplicate existing efforts. (e) Definitions and grant conditions In this section, the definitions and grant conditions provided for in section 40002 shall apply. (f) Authorization of appropriations There is authorized to be appropriated to carry out this section, $15,000,000 for each of fiscal years 2014 through 2018. Amounts appropriated under this section may only be used for programs and activities described under this section. (g) Allotment (1) In general Not less than 25 percent of the total amounts appropriated under this section in each fiscal year shall be used for each set of purposes described in paragraphs (1), (2), and (3) of subsection (b). (2) Indian tribes Not less than 10 percent of the total amounts appropriated under this section in each fiscal year shall be made available for grants to Indian tribes or tribal organizations. If an insufficient number of applications are received from Indian tribes or tribal organizations, such funds shall be allotted to other population-specific programs. . (b) Repeals The following provisions are repealed: (1) Sections 41304 and 41305 of the Violence Against Women Act of 1994 (42 U.S.C. 14043d–3 and 14043d–4). (2) Section 403 of the Violence Against Women and Department of Justice Reauthorization Act of 2005 ( 42 U.S.C. 14045c ). V Strengthening the healthcare system’s response to domestic violence, dating violence, sexual assault, and stalking 501. Consolidation of grants to strengthen the healthcare system’s response to domestic violence, dating violence, sexual assault, and stalking (a) Grants Section 399P of the Public Health Service Act ( 42 U.S.C. 280g–4 ) is amended to read as follows: 399P. Grants to strengthen the healthcare system’s response to domestic violence, dating violence, sexual assault, and stalking (a) In general The Secretary shall award grants for— (1) the development or enhancement and implementation of interdisciplinary training for health professionals, public health staff, and allied health professionals; (2) the development or enhancement and implementation of education programs for medical, nursing, dental, and other health profession students and residents to prevent and respond to domestic violence, dating violence, sexual assault, and stalking; and (3) the development or enhancement and implementation of comprehensive statewide strategies to improve the response of clinics, public health facilities, hospitals, and other health settings (including behavioral and mental health programs) to domestic violence, dating violence, sexual assault, and stalking. (b) Use of funds (1) Required uses Amounts provided under a grant under this section shall be used to— (A) fund interdisciplinary training and education programs under paragraphs (1) and (2) of subsection (a) that— (i) are designed to train medical, psychology, dental, social work, nursing, and other health profession students, interns, residents, fellows, or current health care providers to identify and provide health care services (including mental or behavioral health care services and referrals to appropriate community services) to individuals who are or who have been victims of domestic violence, dating violence, sexual assault, or stalking; and (ii) plan and develop culturally competent clinical training components for integration into approved internship, residency, and fellowship training or continuing medical or other health education training that address physical, mental, and behavioral health issues, including protective factors, related to domestic violence, dating violence, sexual assault, stalking, and other forms of violence and abuse, focus on reducing health disparities and preventing violence and abuse, and include the primacy of victim safety and confidentiality; (B) design and implement comprehensive strategies to improve the response of the health care system to domestic or sexual violence in clinical and public health settings, hospitals, clinics, and other health settings (including behavioral and mental health), under subsection (a)(3) through— (i) the implementation, dissemination, and evaluation of policies and procedures to guide health professionals and public health staff in identifying and responding to domestic violence, dating violence, sexual assault, and stalking, including strategies to ensure that health information is maintained in a manner that protects the patient’s privacy and safety, and safely uses health information technology to improve documentation, identification, assessment, treatment, and follow-up care; (ii) the development of on-site access to services to address the safety, medical, and mental health needs of patients by increasing the capacity of existing health care professionals and public health staff to address domestic violence, dating violence, sexual assault, and stalking, or by contracting with or hiring domestic or sexual assault advocates to provide such services or to model other services appropriate to the geographic and cultural needs of a site; (iii) the development of measures and methods for the evaluation of the practice of identification, intervention, and documentation regarding victims of domestic violence, dating violence, sexual assault, and stalking, including the development and testing of quality improvement measurements, in accordance with the multi-stakeholder and quality measurement processes established under paragraphs (7) and (8) of section 1890(b) and section 1890A of the Social Security Act ( 42 U.S.C. 1395aaa(b)(7) and (8); 42 U.S.C. 1890A ); and (iv) the provision of training and follow-up technical assistance to health care professionals, and public health staff, and allied health professionals to identify, assess, treat, and refer clients who are victims of domestic violence, dating violence, sexual assault, or stalking, including using tools and training materials already developed. (2) Permissible uses (A) Child and elder abuse To the extent consistent with the purpose of this section, a grantee may use amounts received under this section to address, as part of a comprehensive programmatic approach implemented under the grant, issues relating to child or elder abuse. (B) Rural areas Grants funded under paragraphs (1) and (2) of subsection (a) may be used to offer to rural areas community-based training opportunities, which may include the use of distance learning networks and other available technologies needed to reach isolated rural areas, for medical, nursing, and other health profession students and residents on domestic violence, dating violence, sexual assault, stalking, and, as appropriate, other forms of violence and abuse. (C) Other uses Grants funded under subsection (a)(3) may be used for— (i) the development of training modules and policies that address the overlap of child abuse, domestic violence, dating violence, sexual assault, and stalking and elder abuse, as well as childhood exposure to domestic and sexual violence; (ii) the development, expansion, and implementation of sexual assault forensic medical examination or sexual assault nurse examiner programs; (iii) the inclusion of the health effects of lifetime exposure to violence and abuse as well as related protective factors and behavioral risk factors in health professional training schools including medical, dental, nursing, social work, and mental and behavioral health curricula, and allied health service training courses; or (iv) the integration of knowledge of domestic violence, dating violence, sexual assault, and stalking into health care accreditation and professional licensing examinations, such as medical, dental, social work, and nursing boards, and where appropriate, other allied health exams. (c) Requirements for grantees (1) Confidentiality and safety (A) In general Grantees under this section shall ensure that all programs developed with grant funds address issues of confidentiality and patient safety and comply with applicable confidentiality and nondisclosure requirements under section 40002(b)(2) of the Violence Against Women Act of 1994 and the Family Violence Prevention and Services Act, and that faculty and staff associated with delivering educational components are fully trained in procedures that will protect the immediate and ongoing security and confidentiality of the patients, patient records, and staff. Such grantees shall consult entities with demonstrated expertise in the confidentiality and safety needs of victims of domestic violence, dating violence, sexual assault, and stalking on the development and adequacy of confidentially and security procedures, and provide documentation of such consultation. (B) Advance notice of information disclosure Grantees under this section shall provide to patients advance notice about any circumstances under which information may be disclosed, such as mandatory reporting laws, and shall give patients the option to receive information and referrals without affirmatively disclosing abuse. (2) Limitation on administrative expenses A grantee shall use not more than 10 percent of the amounts received under a grant under this section for administrative expenses. (3) Application (A) Preference In selecting grant recipients under this section, the Secretary shall give preference to applicants based on the strength of their evaluation strategies, with priority given to outcome based evaluations. (B) Subsection (a)(1) and (2) grantees Applications for grants under paragraphs (1) and (2) of subsection (a) shall include— (i) documentation that the applicant represents a team of entities working collaboratively to strengthen the response of the health care system to domestic violence, dating violence, sexual assault, or stalking, and which includes at least one of each of— (I) an accredited school of allopathic or osteopathic medicine, psychology, nursing, dentistry, social work, or other health field; (II) a health care facility or system; or (III) a government or nonprofit entity with a history of effective work in the fields of domestic violence, dating violence, sexual assault, or stalking; and (ii) strategies for the dissemination and sharing of curricula and other educational materials developed under the grant, if any, with other interested health professions schools and national resource repositories for materials on domestic violence, dating violence, sexual assault, and stalking. (C) Subsection (a)(3) grantees An entity desiring a grant under subsection (a)(3) shall submit an application to the Secretary at such time, in such a manner, and containing such information and assurances as the Secretary may require, including— (i) documentation that all training, education, screening, assessment, services, treatment, and any other approach to patient care will be informed by an understanding of violence and abuse victimization and trauma-specific approaches that will be integrated into prevention, intervention, and treatment activities; (ii) strategies for the development and implementation of policies to prevent and address domestic violence, dating violence, sexual assault, and stalking over the lifespan in health care settings; (iii) a plan for consulting with State and tribal domestic violence or sexual assault coalitions, national nonprofit victim advocacy organizations, State or tribal law enforcement task forces (where appropriate), and population specific organizations with demonstrated expertise in domestic violence, dating violence, sexual assault, or stalking; (iv) with respect to an application for a grant under which the grantee will have contact with patients, a plan, developed in collaboration with local victim service providers, to respond appropriately to and make correct referrals for individuals who disclose that they are victims of domestic violence, dating violence, sexual assault, stalking, or other types of violence, and documentation provided by the grantee of an ongoing collaborative relationship with a local victim service provider; and (v) with respect to an application for a grant proposing to fund a program described in subsection (b)(2)(C)(ii), a certification that any sexual assault forensic medical examination and sexual assault nurse examiner programs supported with such grant funds will adhere to the guidelines set forth by the Attorney General. (d) Eligible entities (1) In general To be eligible to receive funding under paragraph (1) or (2) of subsection (a), an entity shall be— (A) a nonprofit organization with a history of effective work in the field of training health professionals with an understanding of, and clinical skills pertinent to, domestic violence, dating violence, sexual assault, or stalking, and lifetime exposure to violence and abuse; (B) an accredited school of allopathic or osteopathic medicine, psychology, nursing, dentistry, social work, or allied health; (C) a health care provider membership or professional organization, or a health care system; or (D) a State, tribal, territorial, or local entity. (2) Subsection (a)(3) grantees To be eligible to receive funding under subsection (a)(3), an entity shall be— (A) a State department (or other division) of health, a State, tribal, or territorial domestic violence or sexual assault coalition or victim service provider, or any other nonprofit, nongovernmental organization with a history of effective work in the fields of domestic violence, dating violence, sexual assault, or stalking, and health care, including physical or mental health care; or (B) a local victim service provider, a local department (or other division) of health, a local health clinic, hospital, or health system, or any other community-based organization with a history of effective work in the field of domestic violence, dating violence, sexual assault, or stalking and health care, including physical or mental health care. (e) Technical assistance (1) In general Of the funds made available to carry out this section for any fiscal year, the Secretary may make grants or enter into contracts to provide technical assistance with respect to the planning, development, and operation of any program, activity or service carried out pursuant to this section. Not more than 8 percent of the funds appropriated under this section in each fiscal year may be used to fund technical assistance under this subsection. (2) Availability of materials The Secretary shall make publicly available materials developed by grantees under this section, including materials on training, best practices, and research and evaluation. (3) Reporting The Secretary shall publish a biennial report on— (A) the distribution of funds under this section; and (B) the programs and activities supported by such funds. (f) Research and evaluation (1) In general Of the funds made available to carry out this section for any fiscal year, the Secretary may use not more than 20 percent to make a grant or enter into a contract for research and evaluation of— (A) grants awarded under this section; and (B) other training for health professionals and effective interventions in the health care setting that prevent domestic violence, dating violence, and sexual assault across the lifespan, prevent the health effects of such violence, and improve the safety and health of individuals who are currently being victimized. (2) Research Research authorized in paragraph (1) may include— (A) research on the effects of domestic violence, dating violence, sexual assault, and childhood exposure to domestic, dating or sexual violence on health behaviors, health conditions, and health status of individuals, families, and populations, including underserved populations; (B) research to determine effective health care interventions to respond to and prevent domestic violence, dating violence, sexual assault, and stalking; (C) research on the impact of domestic, dating and sexual violence, childhood exposure to such violence, and stalking on the health care system, health care utilization, health care costs, and health status; and (D) research on the impact of adverse childhood experiences on adult experience with domestic violence, dating violence, sexual assault, stalking, and adult health outcomes, including how to reduce or prevent the impact of adverse childhood experiences through the health care setting. (g) Authorization of appropriations There is authorized to be appropriated to carry out this section, $10,000,000 for each of fiscal years 2014 through 2018. (h) Definitions Except as otherwise provided herein, the definitions provided for in section 40002 of the Violence Against Women Act of 1994 shall apply to this section. . (b) Repeals The following provisions are repealed: (1) Section 40297 of the Violence Against Women Act of 1994 ( 42 U.S.C. 13973 ). (2) Section 758 of the Public Health Service Act ( 42 U.S.C. 294h ). VI Safe homes for victims of domestic violence, dating violence, sexual assault, and stalking 601. Housing protections for victims of domestic violence, dating violence, sexual assault, and stalking (a) Amendment Subtitle N of the Violence Against Women Act of 1994 ( 42 U.S.C. 14043e et seq. ) is amended— (1) by inserting after the subtitle heading the following: 1 Grant programs ; (2) in section 41402 ( 42 U.S.C. 14043e–1 ), in the matter preceding paragraph (1), by striking subtitle and inserting chapter ; (3) in section 41403 ( 42 U.S.C. 14043e–2 ), in the matter preceding paragraph (1), by striking subtitle and inserting chapter ; and (4) by adding at the end the following: 2 Housing rights 41411. Housing protections for victims of domestic violence, dating violence, sexual assault, and stalking (a) Definitions In this chapter: (1) Affiliated individual The term affiliated individual means, with respect to an individual— (A) a spouse, parent, brother, sister, or child of that individual, or an individual to whom that individual stands in loco parentis; or (B) any individual, tenant, or lawful occupant living in the household of that individual. (2) Appropriate Agency The term appropriate agency means, with respect to a covered housing program, the Executive department (as defined in section 101 of title 5, United States Code) that carries out the covered housing program. (3) Covered housing program The term covered housing program means— (A) the program under section 202 of the Housing Act of 1959 ( 12 U.S.C. 1701q ); (B) the program under section 811 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 8013 ); (C) the program under subtitle D of title VIII of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12901 et seq. ); (D) the program under subtitle A of title IV of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11360 et seq. ); (E) the program under subtitle A of title II of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12741 et seq. ); (F) the program under paragraph (3) of section 221(d) of the National Housing Act ( 12 U.S.C. 1715l(d) ) that bears interest at a rate determined under the proviso under paragraph (5) of such section 221(d); (G) the program under section 236 of the National Housing Act ( 12 U.S.C. 1715z–1 ); (H) the programs under sections 6 and 8 of the United States Housing Act of 1937 (42 U.S.C. 1437d and 1437f); (I) rural housing assistance provided under sections 514, 515, 516, 533, and 538 of the Housing Act of 1949 ( 42 U.S.C. 1484 , 1485, 1486, 1490m, and 1490p–2); and (J) the low income housing tax credit program under section 42 of the Internal Revenue Code of 1986. (b) Prohibited basis for denial or termination of assistance or eviction (1) In general An applicant for or tenant of housing assisted under a covered housing program may not be denied admission to, denied assistance under, terminated from participation in, or evicted from the housing on the basis that the applicant or tenant is or has been a victim of domestic violence, dating violence, sexual assault, or stalking, if the applicant or tenant otherwise qualifies for admission, assistance, participation, or occupancy. (2) Construction of lease terms An incident of actual or threatened domestic violence, dating violence, sexual assault, or stalking shall not be construed as— (A) a serious or repeated violation of a lease for housing assisted under a covered housing program by the victim or threatened victim of such incident; or (B) good cause for terminating the assistance, tenancy, or occupancy rights to housing assisted under a covered housing program of the victim or threatened victim of such incident. (3) Termination on the basis of criminal activity (A) Denial of assistance, tenancy, and occupancy rights prohibited No person may deny assistance, tenancy, or occupancy rights to housing assisted under a covered housing program to a tenant solely on the basis of criminal activity directly relating to domestic violence, dating violence, sexual assault, or stalking that is engaged in by a member of the household of the tenant or any guest or other person under the control of the tenant, if the tenant or an affiliated individual of the tenant is the victim or threatened victim of such domestic violence, dating violence, sexual assault, or stalking. (B) Bifurcation (i) In general Notwithstanding subparagraph (A), a public housing agency or owner or manager of housing assisted under a covered housing program may bifurcate a lease for the housing in order to evict, remove, or terminate assistance to any individual who is a tenant or lawful occupant of the housing and who engages in criminal activity directly relating to domestic violence, dating violence, sexual assault, or stalking against an affiliated individual or other individual, without evicting, removing, terminating assistance to, or otherwise penalizing a victim of such criminal activity who is also a tenant or lawful occupant of the housing. (ii) Effect of eviction on other tenants If public housing agency or owner or manager of housing assisted under a covered housing program evicts, removes, or terminates assistance to an individual under clause (i), and the individual is the sole tenant eligible to receive assistance under a covered housing program, the public housing agency or owner or manager of housing assisted under the covered housing program shall provide any remaining tenant an opportunity to establish eligibility for the covered housing program. If a tenant described in the preceding sentence cannot establish eligibility, the public housing agency or owner or manager of the housing shall provide the tenant a reasonable time, as determined by the appropriate agency, to find new housing or to establish eligibility for housing under another covered housing program. (C) Rules of construction Nothing in subparagraph (A) shall be construed— (i) to limit the authority of a public housing agency or owner or manager of housing assisted under a covered housing program, when notified of a court order, to comply with a court order with respect to— (I) the rights of access to or control of property, including civil protection orders issued to protect a victim of domestic violence, dating violence, sexual assault, or stalking; or (II) the distribution or possession of property among members of a household in a case; (ii) to limit any otherwise available authority of a public housing agency or owner or manager of housing assisted under a covered housing program to evict or terminate assistance to a tenant for any violation of a lease not premised on the act of violence in question against the tenant or an affiliated person of the tenant, if the public housing agency or owner or manager does not subject an individual who is or has been a victim of domestic violence, dating violence, or stalking to a more demanding standard than other tenants in determining whether to evict or terminate; (iii) to limit the authority to terminate assistance to a tenant or evict a tenant from housing assisted under a covered housing program if a public housing agency or owner or manager of the housing can demonstrate that an actual and imminent threat to other tenants or individuals employed at or providing service to the property would be present if the assistance is not terminated or the tenant is not evicted; or (iv) to supersede any provision of any Federal, State, or local law that provides greater protection than this section for victims of domestic violence, dating violence, sexual assault, or stalking. (c) Documentation (1) Request for documentation If an applicant for, or tenant of, housing assisted under a covered housing program represents to a public housing agency or owner or manager of the housing that the individual is entitled to protection under subsection (b), the public housing agency or owner or manager may request, in writing, that the applicant or tenant submit to the public housing agency or owner or manager a form of documentation described in paragraph (3). (2) Failure to provide certification (A) In general If an applicant or tenant does not provide the documentation requested under paragraph (1) within 14 business days after the tenant receives a request in writing for such certification from a public housing agency or owner or manager of housing assisted under a covered housing program, nothing in this chapter may be construed to limit the authority of the public housing agency or owner or manager to— (i) deny admission by the applicant or tenant to the covered program; (ii) deny assistance under the covered program to the applicant or tenant; (iii) terminate the participation of the applicant or tenant in the covered program; or (iv) evict the applicant, the tenant, or a lawful occupant that commits violations of a lease. (B) Extension A public housing agency or owner or manager of housing may extend the 14-day deadline under subparagraph (A) at its discretion. (3) Form of documentation A form of documentation described in this paragraph is— (A) a certification form approved by the appropriate agency that— (i) states that an applicant or tenant is a victim of domestic violence, dating violence, sexual assault, or stalking; (ii) states that the incident of domestic violence, dating violence, sexual assault, or stalking that is the ground for protection under subsection (b) meets the requirements under subsection (b); and (iii) includes the name of the individual who committed the domestic violence, dating violence, sexual assault, or stalking, if the name is known and safe to provide; (B) a document that— (i) is signed by— (I) an employee, agent, or volunteer of a victim service provider, an attorney, a medical professional, or a mental health professional from whom an applicant or tenant has sought assistance relating to domestic violence, dating violence, sexual assault, or stalking, or the effects of the abuse; and (II) the applicant or tenant; and (ii) states under penalty of perjury that the individual described in clause (i)(I) believes that the incident of domestic violence, dating violence, sexual assault, or stalking that is the ground for protection under subsection (b) meets the requirements under subsection (b); (C) a record of a Federal, State, tribal, territorial, or local law enforcement agency, court, or administrative agency; or (D) at the discretion of a public housing agency or owner or manager of housing assisted under a covered housing program, a statement or other evidence provided by an applicant or tenant. (4) Confidentiality Any information submitted to a public housing agency or owner or manager under this subsection, including the fact that an individual is a victim of domestic violence, dating violence, sexual assault, or stalking shall be maintained in confidence by the public housing agency or owner or manager and may not be entered into any shared database or disclosed to any other entity or individual, except to the extent that the disclosure is— (A) requested or consented to by the individual in writing; (B) required for use in an eviction proceeding under subsection (b); or (C) otherwise required by applicable law. (5) Documentation not required Nothing in this subsection shall be construed to require a public housing agency or owner or manager of housing assisted under a covered housing program to request that an individual submit documentation of the status of the individual as a victim of domestic violence, dating violence, sexual assault, or stalking. (6) Compliance not sufficient to constitute evidence of unreasonable act Compliance with subsection (b) by a public housing agency or owner or manager of housing assisted under a covered housing program based on documentation received under this subsection, shall not be sufficient to constitute evidence of an unreasonable act or omission by the public housing agency or owner or manager or an employee or agent of the public housing agency or owner or manager. Nothing in this paragraph shall be construed to limit the liability of a public housing agency or owner or manager of housing assisted under a covered housing program for failure to comply with subsection (b). (7) Response to conflicting certification If a public housing agency or owner or manager of housing assisted under a covered housing program receives documentation under this subsection that contains conflicting information, the public housing agency or owner or manager may require an applicant or tenant to submit third-party documentation, as described in subparagraph (B), (C), or (D) of paragraph (3). (8) Preemption Nothing in this subsection shall be construed to supersede any provision of any Federal, State, or local law that provides greater protection than this subsection for victims of domestic violence, dating violence, sexual assault, or stalking. (d) Notification (1) Development The Secretary of Housing and Urban Development shall develop a notice of the rights of individuals under this section, including the right to confidentiality and the limits thereof. (2) Provision Each public housing agency or owner or manager of housing assisted under a covered housing program shall provide the notice developed under paragraph (1), together with the form described in subsection (c)(3)(A), to an applicant for or tenants of housing assisted under a covered housing program— (A) at the time the applicant is denied residency in a dwelling unit assisted under the covered housing program; (B) at the time the individual is admitted to a dwelling unit assisted under the covered housing program; (C) with any notification of eviction or notification of termination of assistance; and (D) in multiple languages, consistent with guidance issued by the Secretary of Housing and Urban Development in accordance with Executive Order 13166 ( 42 U.S.C. 2000d–1 note; relating to access to services for persons with limited English proficiency). (e) Emergency transfers Each appropriate agency shall adopt a model emergency transfer plan for use by public housing agencies and owners or managers of housing assisted under covered housing programs that— (1) allows tenants who are victims of domestic violence, dating violence, sexual assault, or stalking to transfer to another available and safe dwelling unit assisted under a covered housing program if— (A) the tenant expressly requests the transfer; and (B) (i) the tenant reasonably believes that the tenant is threatened with imminent harm from further violence if the tenant remains within the same dwelling unit assisted under a covered housing program; or (ii) in the case of a tenant who is a victim of sexual assault, the sexual assault occurred on the premises during the 90-day period preceding the request for transfer; and (2) incorporates reasonable confidentiality measures to ensure that the public housing agency or owner or manager does not disclose the location of the dwelling unit of a tenant to a person that commits an act of domestic violence, dating violence, sexual assault, or stalking against the tenant. (f) Policies and procedures for emergency transfer The Secretary of Housing and Urban Development shall establish policies and procedures under which a victim requesting an emergency transfer under subsection (e) may receive, subject to the availability of tenant protection vouchers, assistance under section 8(o) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(o) ). (g) Implementation The appropriate agency with respect to each covered housing program shall implement this section, as this section applies to the covered housing program. . (b) Conforming amendments (1) Section 6 Section 6 of the United States Housing Act of 1937 ( 42 U.S.C. 1437d ) is amended— (A) in subsection (c)— (i) by striking paragraph (3); and (ii) by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively; (B) in subsection (l)— (i) in paragraph (5), by striking , and that an incident or incidents of actual or threatened domestic violence, dating violence, or stalking will not be construed as a serious or repeated violation of the lease by the victim or threatened victim of that violence and will not be good cause for terminating the tenancy or occupancy rights of the victim of such violence ; and (ii) in paragraph (6), by striking ; except that and all that follows through stalking. ; and (C) by striking subsection (u). (2) Section 8 Section 8 of the United States Housing Act of 1937 ( 42 U.S.C. 1437f ) is amended— (A) in subsection (c), by striking paragraph (9); (B) in subsection (d)(1)— (i) in subparagraph (A), by striking and that an applicant or participant is or has been a victim of domestic violence, dating violence, or stalking is not an appropriate basis for denial of program assistance or for denial of admission if the applicant otherwise qualifies for assistance or admission ; and (ii) in subparagraph (B)— (I) in clause (ii), by striking , and that an incident or incidents of actual or threatened domestic violence, dating violence, or stalking will not be construed as a serious or repeated violation of the lease by the victim or threatened victim of that violence and will not be good cause for terminating the tenancy or occupancy rights of the victim of such violence ; and (II) in clause (iii), by striking , except that: and all that follows through stalking. ; (C) in subsection (f)— (i) in paragraph (6), by adding and at the end; (ii) in paragraph (7), by striking the semicolon at the end and inserting a period; and (iii) by striking paragraphs (8), (9), (10), and (11); (D) in subsection (o)— (i) in paragraph (6)(B), by striking the last sentence; (ii) in paragraph (7)— (I) in subparagraph (C), by striking and that an incident or incidents of actual or threatened domestic violence, dating violence, or stalking shall not be construed as a serious or repeated violation of the lease by the victim or threatened victim of that violence and shall not be good cause for terminating the tenancy or occupancy rights of the victim of such violence ; and (II) in subparagraph (D), by striking ; except that and all that follows through stalking. ; and (iii) by striking paragraph (20); and (E) by striking subsection (ee). (3) Rule of construction Nothing in this Act, or the amendments made by this Act, shall be construed— (A) to limit the rights or remedies available to any person under section 6 or 8 of the United States Housing Act of 1937 (42 U.S.C. 1437d and 1437f), as in effect on the day before the date of enactment of this Act; (B) to limit any right, remedy, or procedure otherwise available under any provision of part 5, 91, 880, 882, 883, 884, 886, 891, 903, 960, 966, 982, or 983 of title 24, Code of Federal Regulations, that— (i) was issued under the Violence Against Women and Department of Justice Reauthorization Act of 2005 ( Public Law 109–162 ; 119 Stat. 2960) or an amendment made by that Act; and (ii) provides greater protection for victims of domestic violence, dating violence, sexual assault, and stalking than this Act; or (C) to disqualify an owner, manager, or other individual from participating in or receiving the benefits of the low income housing tax credit program under section 42 of the Internal Revenue Code of 1986 because of noncompliance with the provisions of this Act. 602. Transitional housing assistance grants for victims of domestic violence, dating violence, sexual assault, and stalking Chapter 11 of subtitle B of the Violence Against Women Act of 1994 ( 42 U.S.C. 13975 et seq. ) is amended— (1) in the chapter heading, by striking child victims of domestic violence, stalking, or sexual assault and inserting victims of domestic violence, dating violence, sexual assault, or stalking ; and (2) in section 40299 ( 42 U.S.C. 13975 )— (A) in the header, by striking child victims of domestic violence, stalking, or sexual assault and inserting victims of domestic violence, dating violence, sexual assault, or stalking ; (B) in subsection (a)(1), by striking fleeing ; (C) in subsection (b)(3)— (i) in subparagraph (A), by striking and at the end; (ii) by redesignating subparagraph (B) as subparagraph (C); (iii) by inserting after subparagraph (A) the following: (B) secure employment, including obtaining employment counseling, occupational training, job retention counseling, and counseling concerning re-entry in to the workforce; and ; and (iv) in subparagraph (C), as redesignated by clause (ii), by striking employment counseling, ; and (D) in subsection (g)— (i) in paragraph (1), by striking $40,000,000 for each of fiscal years 2007 through 2011 and inserting $35,000,000 for each of fiscal years 2014 through 2018 ; and (ii) in paragraph (3)— (I) in subparagraph (A), by striking eligible and inserting qualified ; and (II) by adding at the end the following: (D) Qualified application defined In this paragraph, the term qualified application means an application that— (i) has been submitted by an eligible applicant; (ii) does not propose any activities that may compromise victim safety, including— (I) background checks of victims; or (II) clinical evaluations to determine eligibility for services; (iii) reflects an understanding of the dynamics of domestic violence, dating violence, sexual assault, or stalking; and (iv) does not propose prohibited activities, including mandatory services for victims. . 603. Addressing the housing needs of victims of domestic violence, dating violence, sexual assault, and stalking Subtitle N of the Violence Against Women Act of 1994 ( 42 U.S.C. 14043e et seq. ) is amended— (1) in section 41404(i) ( 42 U.S.C. 14043e–3(i) ), by striking $10,000,000 for each of fiscal years 2007 through 2011 and inserting $4,000,000 for each of fiscal years 2014 through 2018 ; and (2) in section 41405(g) ( 42 U.S.C. 14043e–4(g) ), by striking $10,000,000 for each of fiscal years 2007 through 2011 and inserting $4,000,000 for each of fiscal years 2014 through 2018 . VII Economic security for victims of violence 701. National Resource Center on Workplace Responses to assist victims of domestic and sexual violence Section 41501(e) of the Violence Against Women Act of 1994 ( 42 U.S.C. 14043f(e) ) is amended by striking fiscal years 2007 through 2011 and inserting fiscal years 2014 through 2018 . VIII Protection of battered immigrants 801. U nonimmigrant definition Section 101(a)(15)(U)(iii) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15)(U)(iii) ) is amended by inserting stalking; after sexual exploitation; . 802. Annual report on immigration applications made by victims of abuse Not later than December 1, 2014, and annually thereafter, the Secretary of Homeland Security shall submit to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives a report that includes the following: (1) The number of aliens who— (A) submitted an application for nonimmigrant status under paragraph (15)(T)(i), (15)(U)(i), or (51) of section 101(a) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a) ) during the preceding fiscal year; (B) were granted such nonimmigrant status during such fiscal year; or (C) were denied such nonimmigrant status during such fiscal year. (2) The mean amount of time and median amount of time to adjudicate an application for such nonimmigrant status during such fiscal year. (3) The mean amount of time and median amount of time between the receipt of an application for such nonimmigrant status and the issuance of work authorization to an eligible applicant during the preceding fiscal year. (4) The number of aliens granted continued presence in the United States under section 107(c)(3) of the Trafficking Victims Protection Act of 2000 ( 22 U.S.C. 7105(c)(3) ) during the preceding fiscal year. (5) A description of any actions being taken to reduce the adjudication and processing time, while ensuring the safe and competent processing, of an application described in paragraph (1) or a request for continued presence referred to in paragraph (4). 803. Protection for children of VAWA self-petitioners Section 204(l)(2) of the Immigration and Nationality Act ( 8 U.S.C. 1154(l)(2) ) is amended— (1) in subparagraph (E), by striking or at the end; (2) by redesignating subparagraph (F) as subparagraph (G); and (3) by inserting after subparagraph (E) the following: (F) a child of an alien who filed a pending or approved petition for classification or application for adjustment of status or other benefit specified in section 101(a)(51) as a VAWA self-petitioner; or . 804. Public charge Section 212(a)(4) of the Immigration and Nationality Act ( 8 U.S.C. 1182(a)(4) ) is amended by adding at the end the following: (E) Special rule for qualified alien victims Subparagraphs (A), (B), and (C) shall not apply to an alien who— (i) is a VAWA self-petitioner; (ii) is an applicant for, or is granted, nonimmigrant status under section 101(a)(15)(U); or (iii) is a qualified alien described in section 431(c) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 ( 8 U.S.C. 1641(c) ). . 805. Requirements applicable to U visas (a) In general Section 214(p) of the Immigration and Nationality Act ( 8 U.S.C. 1184(p) ) is amended by adding at the end the following: (7) Age determinations (A) Children An unmarried alien who seeks to accompany, or follow to join, a parent granted status under section 101(a)(15)(U)(i), and who was under 21 years of age on the date on which such parent petitioned for such status, shall continue to be classified as a child for purposes of section 101(a)(15)(U)(ii), if the alien attains 21 years of age after such parent’s petition was filed but while it was pending. (B) Principal aliens An alien described in clause (i) of section 101(a)(15)(U) shall continue to be treated as an alien described in clause (ii)(I) of such section if the alien attains 21 years of age after the alien’s application for status under such clause (i) is filed but while it is pending. . (b) Effective date The amendment made by subsection (a) shall take effect as if enacted as part of the Victims of Trafficking and Violence Protection Act of 2000 ( Public Law 106–386 ; 114 Stat. 1464). 806. Hardship waivers (a) In general Section 216(c)(4) of the Immigration and Nationality Act ( 8 U.S.C. 1186a(c)(4) ) is amended— (1) in subparagraph (A), by striking the comma at the end and inserting a semicolon; (2) in subparagraph (B), by striking (1), or and inserting (1); or ; (3) in subparagraph (C), by striking the period at the end and inserting a semicolon and or ; and (4) by inserting after subparagraph (C) the following: (D) the alien meets the requirements under section 204(a)(1)(A)(iii)(II)(aa)(BB) and following the marriage ceremony was battered by or subject to extreme cruelty perpetrated by the alien's intended spouse and was not at fault in failing to meet the requirements of paragraph (1). . (b) Technical corrections Section 216(c)(4) of the Immigration and Nationality Act ( 8 U.S.C. 1186a(c)(4) ), as amended by subsection (a), is further amended— (1) in the matter preceding subparagraph (A), by striking The Attorney General, in the Attorney General's and inserting The Secretary of Homeland Security, in the Secretary's ; and (2) in the undesignated paragraph at the end— (A) in the first sentence, by striking Attorney General and inserting Secretary of Homeland Security ; (B) in the second sentence, by striking Attorney General and inserting Secretary ; (C) in the third sentence, by striking Attorney General. and inserting Secretary. ; and (D) in the fourth sentence, by striking Attorney General and inserting Secretary . 807. Protections for a fiancée or fiancé of a citizen (a) In general Section 214 of the Immigration and Nationality Act ( 8 U.S.C. 1184 ) is amended— (1) in subsection (d)— (A) in paragraph (1), by striking crime. and inserting crime described in paragraph (3)(B) and information on any permanent protection or restraining order issued against the petitioner related to any specified crime described in paragraph (3)(B)(i). ; (B) in paragraph (2)(A), in the matter preceding clause (i)— (i) by striking a consular officer and inserting the Secretary of Homeland Security ; and (ii) by striking the officer and inserting the Secretary ; and (C) in paragraph (3)(B)(i), by striking abuse, and stalking. and inserting abuse, stalking, or an attempt to commit any such crime. ; and (2) in subsection (r)— (A) in paragraph (1), by striking crime. and inserting crime described in paragraph (5)(B) and information on any permanent protection or restraining order issued against the petitioner related to any specified crime described in subsection (5)(B)(i). ; and (B) by amending paragraph (4)(B)(ii) to read as follows: (ii) To notify the beneficiary as required by clause (i), the Secretary of Homeland Security shall provide such notice to the Secretary of State for inclusion in the mailing to the beneficiary described in section 833(a)(5)(A)(i) of the International Marriage Broker Regulation Act of 2005 ( 8 U.S.C. 1375a(a)(5)(A)(i) ). ; and (3) in paragraph (5)(B)(i), by striking abuse, and stalking. and inserting abuse, stalking, or an attempt to commit any such crime. . (b) Provision of information to K nonimmigrants Section 833 of the International Marriage Broker Regulation Act of 2005 ( 8 U.S.C. 1375a ) is amended— (1) in subsection (a)(5)(A)— (A) in clause (iii)— (i) by striking State any and inserting State, for inclusion in the mailing described in clause (i), any ; and (ii) by striking the last sentence; and (B) by adding at the end the following: (iv) The Secretary of Homeland Security shall conduct a background check of the National Crime Information Center’s Protection Order Database on each petitioner for a visa under subsection (d) or (r) of section 214 of the Immigration and Nationality Act ( 8 U.S.C. 1184 ). Any appropriate information obtained from such background check— (I) shall accompany the criminal background information provided by the Secretary of Homeland Security to the Secretary of State and shared by the Secretary of State with a beneficiary of a petition referred to in clause (iii); and (II) shall not be used or disclosed for any other purpose unless expressly authorized by law. (v) The Secretary of Homeland Security shall create a cover sheet or other mechanism to accompany the information required to be provided to an applicant for a visa under subsection (d) or (r) of section 214 of the Immigration and Nationality Act ( 8 U.S.C. 1184 ) by clauses (i) through (iv) of this paragraph or by clauses (i) and (ii) of subsection (r)(4)(B) of such section 214, that calls to the applicant’s attention— (I) whether the petitioner disclosed a protection order, a restraining order, or criminal history information on the visa petition; (II) the criminal background information and information about any protection order obtained by the Secretary of Homeland Security regarding the petitioner in the course of adjudicating the petition; and (III) whether the information the petitioner disclosed on the visa petition regarding any previous petitions filed under subsection (d) or (r) of such section 214 is consistent with the information in the multiple visa tracking database of the Department of Homeland Security, as described in subsection (r)(4)(A) of such section 214. ; and (2) in subsection (b)(1)(A), by striking or after orders and inserting and . 808. Regulation of international marriage brokers (a) Implementation of the International Marriage Broker Act of 2005 (1) Findings Congress finds the following: (A) The International Marriage Broker Act of 2005 (subtitle D of Public Law 109–162 ; 119 Stat. 3066) has not been fully implemented with regard to investigating and prosecuting violations of the law, and for other purposes. (B) Six years after Congress enacted the International Marriage Broker Act of 2005 to regulate the activities of the hundreds of for-profit international marriage brokers operating in the United States, the Attorney General has not determined which component of the Department of Justice will investigate and prosecute violations of such Act. (2) Report Not later than 90 days after the date of the enactment of this Act, the Attorney General shall submit to Congress a report that includes the following: (A) The name of the component of the Department of Justice responsible for investigating and prosecuting violations of the International Marriage Broker Act of 2005 (subtitle D of Public Law 109–162 ; 119 Stat. 3066) and the amendments made by this Act. (B) A description of the policies and procedures of the Attorney General for consultation with the Secretary of Homeland Security and the Secretary of State in investigating and prosecuting such violations. (b) Technical Correction Section 833(a)(2)(H) of the International Marriage Broker Regulation Act of 2005 ( 8 U.S.C. 1375a(a)(2)(H) ) is amended by striking Federal and State sex offender public registries and inserting the National Sex Offender Public Website . (c) Regulation of international marriage brokers Section 833(d) of the International Marriage Broker Regulation Act of 2005 ( 8 U.S.C. 1375a(d) ) is amended— (1) by amending paragraph (1) to read as follows: (1) Prohibition on marketing of or to children (A) In general An international marriage broker shall not provide any individual or entity with the personal contact information, photograph, or general information about the background or interests of any individual under the age of 18. (B) Compliance To comply with the requirements of subparagraph (A), an international marriage broker shall— (i) obtain a valid copy of each foreign national client’s birth certificate or other proof of age document issued by an appropriate government entity; (ii) indicate on such certificate or document the date it was received by the international marriage broker; (iii) retain the original of such certificate or document for 7 years after such date of receipt; and (iv) produce such certificate or document upon request to an appropriate authority charged with the enforcement of this paragraph. ; (2) in paragraph (2)— (A) in subparagraph (A)(i)— (i) in the heading, by striking registries .— and inserting website .— ; and (ii) by striking Registry or State sex offender public registry, and inserting Website, ; and (B) in subparagraph (B)(ii), by striking or stalking. and inserting stalking, or an attempt to commit any such crime. ; (3) in paragraph (3)— (A) in subparagraph (A)— (i) in clause (i), by striking Registry, or of the relevant State sex offender public registry for any State not yet participating in the National Sex Offender Public Registry, in which the United States client has resided during the previous 20 years, and inserting Website ; and (ii) in clause (iii)(II), by striking background information collected by the international marriage broker under paragraph (2)(B); and inserting signed certification and accompanying documentation or attestation regarding the background information collected under paragraph (2)(B); ; and (B) by striking subparagraph (C); (4) in paragraph (5)— (A) in subparagraph (A)(ii), by striking A penalty may be imposed under clause (i) by the Attorney General only and inserting At the discretion of the Attorney General, a penalty may be imposed under clause (i) either by a Federal judge, or by the Attorney General ; (B) by amending subparagraph (B) to read as follows: (B) Federal criminal penalties (i) Failure of international marriage brokers to comply with obligations Except as provided in clause (ii), an international marriage broker that, in circumstances in or affecting interstate or foreign commerce, or within the special maritime and territorial jurisdiction of the United States— (I) except as provided in subclause (II), violates (or attempts to violate) paragraph (1), (2), (3), or (4) shall be fined in accordance with title 18, United States Code, or imprisoned for not more than 1 year, or both; or (II) knowingly violates or attempts to violate paragraphs (1), (2), (3), or (4) shall be fined in accordance with title 18, United States Code, or imprisoned for not more than 5 years, or both. (ii) Misuse of information A person who knowingly discloses, uses, or causes to be used any information obtained by an international marriage broker as a result of a requirement under paragraph (2) or (3) for any purpose other than the disclosures required under paragraph (3) shall be fined in accordance with title 18, United States Code, or imprisoned for not more than 1 year, or both. (iii) Fraudulent failures of United States clients to make required self-disclosures A person who knowingly and with intent to defraud another person outside the United States in order to recruit, solicit, entice, or induce that other person into entering a dating or matrimonial relationship, makes false or fraudulent representations regarding the disclosures described in clause (i), (ii), (iii), or (iv) of subsection (d)(2)(B), including by failing to make any such disclosures, shall be fined in accordance with title 18, United States Code, imprisoned for not more than 1 year, or both. (iv) Relationship to other penalties The penalties provided in clauses (i), (ii), and (iii) are in addition to any other civil or criminal liability under Federal or State law to which a person may be subject for the misuse of information, including misuse to threaten, intimidate, or harass any individual. (v) Construction Nothing in this paragraph or paragraph (3) or (4) may be construed to prevent the disclosure of information to law enforcement or pursuant to a court order. ; and (C) in subparagraph (C), by striking the period at the end and inserting including equitable remedies. ; (5) by redesignating paragraphs (6) and (7) as paragraphs (7) and (8), respectively; and (6) by inserting after paragraph (5) the following: (6) Enforcement (A) Authority The Attorney General shall be responsible for the enforcement of the provisions of this section, including the prosecution of civil and criminal penalties provided for by this section. (B) Consultation The Attorney General shall consult with the Director of the Office on Violence Against Women of the Department of Justice to develop policies and public education designed to promote enforcement of this section. . (d) GAO study and report Section 833(f) of the International Marriage Broker Regulation Act of 2005 ( 8 U.S.C. 1375a(f) ) is amended— (1) in the subsection heading, by striking study and report .— and inserting studies and reports .— ; and (2) by adding at the end the following: (4) Continuing impact study and report (A) Study The Comptroller General shall conduct a study on the continuing impact of the implementation of this section and of section of 214 of the Immigration and Nationality Act ( 8 U.S.C. 1184 ) on the process for granting K nonimmigrant visas, including specifically a study of the items described in subparagraphs (A) through (E) of paragraph (1). (B) Report Not later than 2 years after the date of the enactment of the Violence Against Women Reauthorization Act of 2013 , the Comptroller General shall submit to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives a report setting forth the results of the study conducted under subparagraph (A). (C) Data collection The Attorney General, the Secretary of Homeland Security, and the Secretary of State shall collect and maintain the data necessary for the Comptroller General to conduct the study required by paragraph (1)(A). . 809. Eligibility of crime and trafficking victims in the Commonwealth of the Northern Mariana Islands to adjust status Section 705(c) of the Consolidated Natural Resources Act of 2008 ( Public Law 110–229 ; 48 U.S.C. 1806 note), is amended by striking except that, and all that follows through the end, and inserting the following: “except that— (1) for the purpose of determining whether an alien lawfully admitted for permanent residence (as defined in section 101(a)(20) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(20) )) has abandoned or lost such status by reason of absence from the United States, such alien’s presence in the Commonwealth, before, on or after November 28, 2009, shall be considered to be presence in the United States; and (2) for the purpose of determining whether an alien whose application for status under subparagraph (T) or (U) of section 101(a)(15) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15) ) was granted is subsequently eligible for adjustment under subsection (l) or (m) of section 245 of such Act ( 8 U.S.C. 1255 ), such alien’s physical presence in the Commonwealth before, on, or after November 28, 2009, and subsequent to the grant of the application, shall be considered as equivalent to presence in the United States pursuant to a nonimmigrant admission in such status. . 810. Disclosure of information for national security purposes (a) Information sharing Section 384(b) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 ( 8 U.S.C. 1367(b) ) is amended— (1) in paragraph (1)— (A) by inserting Secretary of Homeland Security or the before Attorney General may ; and (B) by inserting Secretary’s or the before Attorney General’s discretion ; (2) in paragraph (2)— (A) by inserting Secretary of Homeland Security or the before Attorney General may ; (B) by inserting Secretary or the before Attorney General for ; and (C) by inserting in a manner that protects the confidentiality of such information after law enforcement purpose ; (3) in paragraph (5), by striking Attorney General is and inserting Secretary of Homeland Security and the Attorney General are ; and (4) by adding at the end a new paragraph as follows: (8) Notwithstanding subsection (a)(2), the Secretary of Homeland Security, the Secretary of State, or the Attorney General may provide in the discretion of either such Secretary or the Attorney General for the disclosure of information to national security officials to be used solely for a national security purpose in a manner that protects the confidentiality of such information. . (b) Guidelines Section 384(d) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 ( 8 U.S.C. 1367(d) ) is amended— (1) by inserting , Secretary of State, after The Attorney General ; (2) by inserting , Department of State, after Department of Justice ; and (3) by inserting and severe forms of trafficking in persons or criminal activity listed in section 101(a)(15)(U) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15)(u) ) after domestic violence . (c) Implementation Not later than 180 days after the date of the enactment of this Act, the Attorney General, the Secretary of State, and the Secretary of Homeland Security shall provide the guidance required by section 384(d) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 ( 8 U.S.C. 1367(d) ), consistent with the amendments made by subsections (a) and (b). (d) Clerical amendment Section 384(a)(1) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1986 is amended by striking 241(a)(2) in the matter following subparagraph (F) and inserting 237(a)(2) . IX Safety for Indian women 901. Grants to Indian tribal governments Section 2015(a) of title I of the Omnibus Crime Control and Safe Streets Act of 1968 ( 42 U.S.C. 3796gg–10(a) ) is amended— (1) in paragraph (2), by inserting sex trafficking, after sexual assault, ; (2) in paragraph (4), by inserting sex trafficking, after sexual assault, ; (3) in paragraph (5), by striking and stalking and all that follows and inserting sexual assault, sex trafficking, and stalking; ; (4) in paragraph (7)— (A) by inserting sex trafficking, after sexual assault, each place it appears; and (B) by striking and at the end; (5) in paragraph (8)— (A) by inserting sex trafficking, after stalking, ; and (B) by striking the period at the end and inserting a semicolon; and (6) by adding at the end the following: (9) provide services to address the needs of youth who are victims of domestic violence, dating violence, sexual assault, sex trafficking, or stalking and the needs of youth and children exposed to domestic violence, dating violence, sexual assault, or stalking, including support for the nonabusing parent or the caretaker of the youth or child; and (10) develop and promote legislation and policies that enhance best practices for responding to violent crimes against Indian women, including the crimes of domestic violence, dating violence, sexual assault, sex trafficking, and stalking. . 902. Grants to Indian tribal coalitions Section 2001 of title I of the Omnibus Crime Control and Safe Streets Act of 1968 ( 42 U.S.C. 3796gg ) is amended by striking subsection (d) and inserting the following: (d) Tribal coalition grants (1) Purpose The Attorney General shall award a grant to tribal coalitions for purposes of— (A) increasing awareness of domestic violence and sexual assault against Indian women; (B) enhancing the response to violence against Indian women at the Federal, State, and tribal levels; (C) identifying and providing technical assistance to coalition membership and tribal communities to enhance access to essential services to Indian women victimized by domestic and sexual violence, including sex trafficking; and (D) assisting Indian tribes in developing and promoting State, local, and tribal legislation and policies that enhance best practices for responding to violent crimes against Indian women, including the crimes of domestic violence, dating violence, sexual assault, sex trafficking, and stalking. (2) Grants The Attorney General shall award grants on an annual basis under paragraph (1) to— (A) each tribal coalition that— (i) meets the criteria of a tribal coalition under section 40002(a) of the Violence Against Women Act of 1994 ( 42 U.S.C. 13925(a) ); (ii) is recognized by the Office on Violence Against Women; and (iii) provides services to Indian tribes; and (B) organizations that propose to incorporate and operate a tribal coalition in areas where Indian tribes are located but no tribal coalition exists. (3) Use of amounts For each of fiscal years 2014 through 2018, of the amounts appropriated to carry out this subsection— (A) not more than 10 percent shall be made available to organizations described in paragraph (2)(B), provided that 1 or more organizations determined by the Attorney General to be qualified apply; (B) not less than 90 percent shall be made available to tribal coalitions described in paragraph (2)(A), which amounts shall be distributed equally among each eligible tribal coalition for the applicable fiscal year. (4) Eligibility for other grants Receipt of an award under this subsection by a tribal coalition shall not preclude the tribal coalition from receiving additional grants under this title to carry out the purposes described in paragraph (1). (5) Multiple purpose applications Nothing in this subsection prohibits any tribal coalition or organization described in paragraph (2) from applying for funding to address sexual assault or domestic violence needs in the same application. . 903. Consultation Section 903 of the Violence Against Women and Department of Justice Reauthorization Act of 2005 ( 42 U.S.C. 14045d ) is amended— (1) in subsection (a)— (A) by striking and the Violence Against Women Act of 2000 and inserting , the Violence Against Women Act of 2000 ; and (B) by inserting , and the Violence Against Women Reauthorization Act of 2013 before the period at the end; (2) in subsection (b)— (A) in the matter preceding paragraph (1), by striking Secretary of the Department of Health and Human Services and inserting Secretary of Health and Human Services, the Secretary of the Interior, ; and (B) in paragraph (2), by striking and stalking and inserting stalking, and sex trafficking ; and (3) by adding at the end the following: (c) Annual report The Attorney General shall submit to Congress an annual report on the annual consultations required under subsection (a) that— (1) contains the recommendations made under subsection (b) by Indian tribes during the year covered by the report; (2) describes actions taken during the year covered by the report to respond to recommendations made under subsection (b) during the year or a previous year; and (3) describes how the Attorney General will work in coordination and collaboration with Indian tribes, the Secretary of Health and Human Services, and the Secretary of the Interior to address the recommendations made under subsection (b). (d) Notice Not later than 120 days before the date of a consultation under subsection (a), the Attorney General shall notify tribal leaders of the date, time, and location of the consultation. . 904. Tribal jurisdiction over crimes of domestic violence Title II of Public Law 90–284 ( 25 U.S.C. 1301 et seq. ) (commonly known as the Indian Civil Rights Act of 1968 ) is amended by adding at the end the following: 204. Tribal jurisdiction over crimes of domestic violence (a) Definitions In this section: (1) Dating violence The term dating violence means violence committed by a person who is or has been in a social relationship of a romantic or intimate nature with the victim, as determined by the length of the relationship, the type of relationship, and the frequency of interaction between the persons involved in the relationship. (2) Domestic violence The term domestic violence means violence committed by a current or former spouse or intimate partner of the victim, by a person with whom the victim shares a child in common, by a person who is cohabitating with or has cohabitated with the victim as a spouse or intimate partner, or by a person similarly situated to a spouse of the victim under the domestic- or family-violence laws of an Indian tribe that has jurisdiction over the Indian country where the violence occurs. (3) Indian country The term Indian country has the meaning given the term in section 1151 of title 18, United States Code. (4) Participating tribe The term participating tribe means an Indian tribe that elects to exercise special domestic violence criminal jurisdiction over the Indian country of that Indian tribe. (5) Protection order The term protection order — (A) means any injunction, restraining order, or other order issued by a civil or criminal court for the purpose of preventing violent or threatening acts or harassment against, sexual violence against, contact or communication with, or physical proximity to, another person; and (B) includes any temporary or final order issued by a civil or criminal court, whether obtained by filing an independent action or as a pendent lite order in another proceeding, if the civil or criminal order was issued in response to a complaint, petition, or motion filed by or on behalf of a person seeking protection. (6) Special domestic violence criminal jurisdiction The term special domestic violence criminal jurisdiction means the criminal jurisdiction that a participating tribe may exercise under this section but could not otherwise exercise. (7) Spouse or intimate partner The term spouse or intimate partner has the meaning given the term in section 2266 of title 18, United States Code. (b) Nature of the criminal jurisdiction (1) In general Notwithstanding any other provision of law, in addition to all powers of self-government recognized and affirmed by sections 201 and 203, the powers of self-government of a participating tribe include the inherent power of that tribe, which is hereby recognized and affirmed, to exercise special domestic violence criminal jurisdiction over all persons. (2) Concurrent jurisdiction The exercise of special domestic violence criminal jurisdiction by a participating tribe shall be concurrent with the jurisdiction of the United States, of a State, or of both. (3) Applicability Nothing in this section— (A) creates or eliminates any Federal or State criminal jurisdiction over Indian country; or (B) affects the authority of the United States or any State government that has been delegated authority by the United States to investigate and prosecute a criminal violation in Indian country. (4) Exceptions (A) Victim and defendant are both non-indians (i) In general A participating tribe may not exercise special domestic violence criminal jurisdiction over an alleged offense if neither the defendant nor the alleged victim is an Indian. (ii) Definition of victim In this subparagraph and with respect to a criminal proceeding in which a participating tribe exercises special domestic violence criminal jurisdiction based on a violation of a protection order, the term victim means a person specifically protected by a protection order that the defendant allegedly violated. (B) Defendant lacks ties to the indian tribe A participating tribe may exercise special domestic violence criminal jurisdiction over a defendant only if the defendant— (i) resides in the Indian country of the participating tribe; (ii) is employed in the Indian country of the participating tribe; or (iii) is a spouse, intimate partner, or dating partner of— (I) a member of the participating tribe; or (II) an Indian who resides in the Indian country of the participating tribe. (c) Criminal conduct A participating tribe may exercise special domestic violence criminal jurisdiction over a defendant for criminal conduct that falls into one or more of the following categories: (1) Domestic violence and dating violence An act of domestic violence or dating violence that occurs in the Indian country of the participating tribe. (2) Violations of protection orders An act that— (A) occurs in the Indian country of the participating tribe; and (B) violates the portion of a protection order that— (i) prohibits or provides protection against violent or threatening acts or harassment against, sexual violence against, contact or communication with, or physical proximity to, another person; (ii) was issued against the defendant; (iii) is enforceable by the participating tribe; and (iv) is consistent with section 2265(b) of title 18, United States Code. (d) Rights of defendants In a criminal proceeding in which a participating tribe exercises special domestic violence criminal jurisdiction, the participating tribe shall provide to the defendant— (1) all applicable rights under this Act; (2) if a term of imprisonment of any length may be imposed, all rights described in section 202(c); (3) the right to a trial by an impartial jury that is drawn from sources that— (A) reflect a fair cross section of the community; and (B) do not systematically exclude any distinctive group in the community, including non-Indians; and (4) all other rights whose protection is necessary under the Constitution of the United States in order for Congress to recognize and affirm the inherent power of the participating tribe to exercise special domestic violence criminal jurisdiction over the defendant. (e) Petitions To stay detention (1) In general A person who has filed a petition for a writ of habeas corpus in a court of the United States under section 203 may petition that court to stay further detention of that person by the participating tribe. (2) Grant of stay A court shall grant a stay described in paragraph (1) if the court— (A) finds that there is a substantial likelihood that the habeas corpus petition will be granted; and (B) after giving each alleged victim in the matter an opportunity to be heard, finds by clear and convincing evidence that under conditions imposed by the court, the petitioner is not likely to flee or pose a danger to any person or the community if released. (3) Notice An Indian tribe that has ordered the detention of any person has a duty to timely notify such person of his rights and privileges under this subsection and under section 203. (f) Grants to tribal governments The Attorney General may award grants to the governments of Indian tribes (or to authorized designees of those governments)— (1) to strengthen tribal criminal justice systems to assist Indian tribes in exercising special domestic violence criminal jurisdiction, including— (A) law enforcement (including the capacity of law enforcement or court personnel to enter information into and obtain information from national crime information databases); (B) prosecution; (C) trial and appellate courts; (D) probation systems; (E) detention and correctional facilities; (F) alternative rehabilitation centers; (G) culturally appropriate services and assistance for victims and their families; and (H) criminal codes and rules of criminal procedure, appellate procedure, and evidence; (2) to provide indigent criminal defendants with the effective assistance of licensed defense counsel, at no cost to the defendant, in criminal proceedings in which a participating tribe prosecutes a crime of domestic violence or dating violence or a criminal violation of a protection order; (3) to ensure that, in criminal proceedings in which a participating tribe exercises special domestic violence criminal jurisdiction, jurors are summoned, selected, and instructed in a manner consistent with all applicable requirements; and (4) to accord victims of domestic violence, dating violence, and violations of protection orders rights that are similar to the rights of a crime victim described in section 3771(a) of title 18, United States Code, consistent with tribal law and custom. (g) Supplement, not supplant Amounts made available under this section shall supplement and not supplant any other Federal, State, tribal, or local government amounts made available to carry out activities described in this section. (h) Authorization of appropriations There are authorized to be appropriated $5,000,000 for each of fiscal years 2014 through 2018 to carry out subsection (f) and to provide training, technical assistance, data collection, and evaluation of the criminal justice systems of participating tribes. . 905. Tribal protection orders (a) In general Section 2265 of title 18, United States Code, is amended by striking subsection (e) and inserting the following: (e) Tribal court jurisdiction For purposes of this section, a court of an Indian tribe shall have full civil jurisdiction to issue and enforce protection orders involving any person, including the authority to enforce any orders through civil contempt proceedings, to exclude violators from Indian land, and to use other appropriate mechanisms, in matters arising anywhere in the Indian country of the Indian tribe (as defined in section 1151) or otherwise within the authority of the Indian tribe. . (b) Applicability Nothing in this Act, including an amendment made by this Act, alters or modifies the jurisdiction or authority of an Indian tribe in the State of Alaska under section 2265(e) of title 18, United States Code (as in effect on the day before the date of enactment of this Act). 906. Amendments to the Federal assault statute (a) In general Section 113 of title 18, United States Code, is amended— (1) in subsection (a)— (A) by striking paragraph (1) and inserting the following: (1) Assault with intent to commit murder or a violation of section 2241 or 2242, by a fine under this title, imprisonment for not more than 20 years, or both. ; (B) in paragraph (2), by striking felony under chapter 109A and inserting violation of section 2241 or 2242 ; (C) in paragraph (3) by striking and without just cause or excuse, ; (D) in paragraph (4), by striking six months and inserting 1 year ; (E) in paragraph (7)— (i) by striking substantial bodily injury to an individual who has not attained the age of 16 years and inserting substantial bodily injury to a spouse or intimate partner, a dating partner, or an individual who has not attained the age of 16 years ; and (ii) by striking fine and inserting a fine ; and (F) by adding at the end the following: (8) Assault of a spouse, intimate partner, or dating partner by strangling, suffocating, or attempting to strangle or suffocate, by a fine under this title, imprisonment for not more than 10 years, or both. ; and (2) in subsection (b)— (A) by striking (b) As used in this subsection— and inserting the following: (b) Definitions In this section— ; (B) in paragraph (1)(B), by striking and at the end; (C) in paragraph (2), by striking the period at the end and inserting a semicolon; and (D) by adding at the end the following: (3) the terms dating partner and spouse or intimate partner have the meanings given those terms in section 2266; (4) the term strangling means intentionally, knowingly, or recklessly impeding the normal breathing or circulation of the blood of a person by applying pressure to the throat or neck, regardless of whether that conduct results in any visible injury or whether there is any intent to kill or protractedly injure the victim; and (5) the term suffocating means intentionally, knowingly, or recklessly impeding the normal breathing of a person by covering the mouth of the person, the nose of the person, or both, regardless of whether that conduct results in any visible injury or whether there is any intent to kill or protractedly injure the victim. . (b) Indian major crimes Section 1153(a) of title 18, United States Code, is amended by striking “assault with intent to commit murder, assault with a dangerous weapon, assault resulting in serious bodily injury (as defined in section 1365 of this title)” and inserting a felony assault under section 113 . (c) Repeat offenders Section 2265A(b)(1)(B) of title 18, United States Code, is amended by inserting or tribal after State . 907. Analysis and research on violence against Indian women (a) In general Section 904(a) of the Violence Against Women and Department of Justice Reauthorization Act of 2005 ( 42 U.S.C. 3796gg–10 note) is amended— (1) in paragraph (1)— (A) by striking The National and inserting Not later than 2 years after the date of enactment of the Violence Against Women Reauthorization Act of 2013 , the National ; and (B) by inserting and in Native villages (as defined in section 3 of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1602 )) before the period at the end; (2) in paragraph (2)(A)— (A) in clause (iv), by striking and at the end; (B) in clause (v), by striking the period at the end and inserting ; and ; and (C) by adding at the end the following: (vi) sex trafficking. ; (3) in paragraph (4), by striking this Act and inserting the Violence Against Women Reauthorization Act of 2013 ; and (4) in paragraph (5), by striking this section $1,000,000 for each of fiscal years 2007 and 2008 and inserting this subsection $1,000,000 for each of fiscal years 2014 and 2015 . (b) Authorization of appropriations Section 905(b)(2) of the Violence Against Women and Department of Justice Reauthorization Act of 2005 ( 28 U.S.C. 534 note) is amended by striking fiscal years 2007 through 2011 and inserting fiscal years 2014 through 2018 . 908. Effective dates; pilot project (a) General effective date Except as provided in section 4 and subsection (b) of this section, the amendments made by this title shall take effect on the date of enactment of this Act. (b) Effective date for special domestic-Violence criminal jurisdiction (1) In general Except as provided in paragraph (2), subsections (b) through (d) of section 204 of Public Law 90–284 (as added by section 904) shall take effect on the date that is 2 years after the date of enactment of this Act. (2) Pilot project (A) In general At any time during the 2-year period beginning on the date of enactment of this Act, an Indian tribe may ask the Attorney General to designate the tribe as a participating tribe under section 204(a) of Public Law 90–284 on an accelerated basis. (B) Procedure The Attorney General may grant a request under subparagraph (A) after coordinating with the Secretary of the Interior, consulting with affected Indian tribes, and concluding that the criminal justice system of the requesting tribe has adequate safeguards in place to protect defendants’ rights, consistent with section 204 of Public Law 90–284 . (C) Effective dates for pilot projects An Indian tribe designated as a participating tribe under this paragraph may commence exercising special domestic violence criminal jurisdiction pursuant to subsections (b) through (d) of section 204 of Public Law 90–284 on a date established by the Attorney General, after consultation with that Indian tribe, but in no event later than the date that is 2 years after the date of enactment of this Act. 909. Indian law and order commission; Report on the Alaska Rural Justice and Law Enforcement Commission (a) In general Section 15(f) of the Indian Law Enforcement Reform Act ( 25 U.S.C. 2812(f) ) is amended by striking 2 years and inserting 3 years . (b) Report The Attorney General, in consultation with the Attorney General of the State of Alaska, the Commissioner of Public Safety of the State of Alaska, the Alaska Federation of Natives and Federally recognized Indian tribes in the State of Alaska, shall report to Congress not later than one year after enactment of this Act with respect to whether the Alaska Rural Justice and Law Enforcement Commission established under Section 112(a)(1) of the Consolidated Appropriations Act, 2004 should be continued and appropriations authorized for the continued work of the commission. The report may contain recommendations for legislation with respect to the scope of work and composition of the commission. 910. Limitation Nothing in this Act or any amendment made by this Act limits, alters, expands, or diminishes the civil or criminal jurisdiction of the State of Alaska, any subdivision of the State of Alaska, or any Indian tribe in the State of Alaska. X SAFER Act 1001. Short title This title may be cited as the Sexual Assault Forensic Evidence Reporting Act of 2013 or the SAFER Act of 2013 . 1002. Debbie Smith grants for auditing sexual assault evidence backlogs Section 2 of the DNA Analysis Backlog Elimination Act of 2000 ( 42 U.S.C. 14135 ) is amended— (1) in subsection (a), by adding at the end the following new paragraph: (6) To conduct an audit consistent with subsection (n) of the samples of sexual assault evidence that are in the possession of the State or unit of local government and are awaiting testing. (7) To ensure that the collection and processing of DNA evidence by law enforcement agencies from crimes, including sexual assault and other violent crimes against persons, is carried out in an appropriate and timely manner and in accordance with the protocols and practices developed under subsection (o)(1). ; (2) in subsection (c), by adding at the end the following new paragraph: (4) Allocation of grant awards for audits For each of fiscal years 2014 through 2017, not less than 5 percent, but not more than 7 percent, of the grant amounts distributed under paragraph (1) shall, if sufficient applications to justify such amounts are received by the Attorney General, be awarded for purposes described in subsection (a)(6), provided that none of the funds required to be distributed under this paragraph shall decrease or otherwise limit the availability of funds required to be awarded to States or units of local government under paragraph (3). ; and (3) by adding at the end the following new subsections: (n) Use of Funds for Auditing Sexual Assault Evidence Backlogs (1) Eligibility The Attorney General may award a grant under this section to a State or unit of local government for the purpose described in subsection (a)(6) only if the State or unit of local government— (A) submits a plan for performing the audit of samples described in such subsection; and (B) includes in such plan a good-faith estimate of the number of such samples. (2) Grant conditions A State or unit of local government receiving a grant for the purpose described in subsection (a)(6)— (A) may not enter into any contract or agreement with any non-governmental vendor laboratory to conduct an audit described in subsection (a)(6); and (B) shall— (i) not later than 1 year after receiving the grant, complete the audit referred to in paragraph (1)(A) in accordance with the plan submitted under such paragraph; (ii) not later than 60 days after receiving possession of a sample of sexual assault evidence that was not in the possession of the State or unit of local government at the time of the initiation of an audit under paragraph (1)(A), subject to paragraph (4)(F), include in any required reports under clause (v), the information listed under paragraph (4)(B); (iii) for each sample of sexual assault evidence that is identified as awaiting testing as part of the audit referred to in paragraph (1)(A)— (I) assign a unique numeric or alphanumeric identifier to each sample of sexual assault evidence that is in the possession of the State or unit of local government and is awaiting testing; and (II) identify the date or dates after which the State or unit of local government would be barred by any applicable statutes of limitations from prosecuting a perpetrator of the sexual assault to which the sample relates; (iv) provide that— (I) the chief law enforcement officer of the State or unit of local government, respectively, is the individual responsible for the compliance of the State or unit of local government, respectively, with the reporting requirements described in clause (v); or (II) the designee of such officer may fulfill the responsibility described in subclause (I) so long as such designee is an employee of the State or unit of local government, respectively, and is not an employee of any governmental laboratory or non-governmental vendor laboratory; and (v) comply with all grantee reporting requirements described in paragraph (4). (3) Extension of initial deadline The Attorney General may grant an extension of the deadline under paragraph (2)(B)(i) to a State or unit of local government that demonstrates that more time is required for compliance with such paragraph. (4) Sexual assault forensic evidence reports (A) In general For not less than 12 months after the completion of an initial count of sexual assault evidence that is awaiting testing during an audit referred to in paragraph (1)(A), a State or unit of local government that receives a grant award under subsection (a)(6) shall, not less than every 60 days, submit a report to the Department of Justice, on a form prescribed by the Attorney General, which shall contain the information required under subparagraph (B). (B) Contents of reports A report under this paragraph shall contain the following information: (i) The name of the State or unit of local government filing the report. (ii) The period of dates covered by the report. (iii) The cumulative total number of samples of sexual assault evidence that, at the end of the reporting period— (I) are in the possession of the State or unit of local government at the reporting period; (II) are awaiting testing; and (III) the State or unit of local government has determined should undergo DNA or other appropriate forensic analyses. (iv) The cumulative total number of samples of sexual assault evidence in the possession of the State or unit of local government that, at the end of the reporting period, the State or unit of local government has determined should not undergo DNA or other appropriate forensic analyses, provided that the reporting form shall allow for the State or unit of local government, at its sole discretion, to explain the reasoning for this determination in some or all cases. (v) The cumulative total number of samples of sexual assault evidence in a total under clause (iii) that have been submitted to a laboratory for DNA or other appropriate forensic analyses. (vi) The cumulative total number of samples of sexual assault evidence identified by an audit referred to in paragraph (1)(A) or under paragraph (2)(B)(ii) for which DNA or other appropriate forensic analysis has been completed at the end of the reporting period. (vii) The total number of samples of sexual assault evidence identified by the State or unit of local government under paragraph (2)(B)(ii), since the previous reporting period. (viii) The cumulative total number of samples of sexual assault evidence described under clause (iii) for which the State or unit of local government will be barred within 12 months by any applicable statute of limitations from prosecuting a perpetrator of the sexual assault to which the sample relates. (C) Publication of reports Not later than 7 days after the submission of a report under this paragraph by a State or unit of local government, the Attorney General shall, subject to subparagraph (D), publish and disseminate a facsimile of the full contents of such report on an appropriate internet website. (D) Personally identifiable information The Attorney General shall ensure that any information published and disseminated as part of a report under this paragraph, which reports information under this subsection, does not include personally identifiable information or details about a sexual assault that might lead to the identification of the individuals involved. (E) Optional reporting The Attorney General shall— (i) at the discretion of a State or unit of local government required to file a report under subparagraph (A), allow such State or unit of local government, at their sole discretion, to submit such reports on a more frequent basis; and (ii) make available to all States and units of local government the reporting form created pursuant to subparagraph (A), whether or not they are required to submit such reports, and allow such States or units of local government, at their sole discretion, to submit such reports for publication. (F) Samples exempt from reporting requirement The reporting requirements described in paragraph (2) shall not apply to a sample of sexual assault evidence that— (i) is not considered criminal evidence (such as a sample collected anonymously from a victim who is unwilling to make a criminal complaint); or (ii) relates to a sexual assault for which the prosecution of each perpetrator is barred by a statute of limitations. (5) Definitions In this subsection: (A) Awaiting testing The term awaiting testing means, with respect to a sample of sexual assault evidence, that— (i) the sample has been collected and is in the possession of a State or unit of local government; (ii) DNA and other appropriate forensic analyses have not been performed on such sample; and (iii) the sample is related to a criminal case or investigation in which final disposition has not yet been reached. (B) Final disposition The term final disposition means, with respect to a criminal case or investigation to which a sample of sexual assault evidence relates— (i) the conviction or acquittal of all suspected perpetrators of the crime involved; (ii) a determination by the State or unit of local government in possession of the sample that the case is unfounded; or (iii) a declaration by the victim of the crime involved that the act constituting the basis of the crime was not committed. (C) Possession (i) In general The term possession , used with respect to possession of a sample of sexual assault evidence by a State or unit of local government, includes possession by an individual who is acting as an agent of the State or unit of local government for the collection of the sample. (ii) Rule of construction Nothing in clause (i) shall be construed to create or amend any Federal rights or privileges for non-governmental vendor laboratories described in regulations promulgated under section 210303 of the DNA Identification Act of 1994 ( 42 U.S.C. 14131 ). (o) Establishment of protocols, technical assistance, and definitions (1) Protocols and practices Not later than 18 months after the date of enactment of the SAFER Act of 2013 , the Director, in consultation with Federal, State, and local law enforcement agencies and government laboratories, shall develop and publish a description of protocols and practices the Director considers appropriate for the accurate, timely, and effective collection and processing of DNA evidence, including protocols and practices specific to sexual assault cases, which shall address appropriate steps in the investigation of cases that might involve DNA evidence, including— (A) how to determine— (i) which evidence is to be collected by law enforcement personnel and forwarded for testing; (ii) the preferred order in which evidence from the same case is to be tested; and (iii) what information to take into account when establishing the order in which evidence from different cases is to be tested; (B) the establishment of a reasonable period of time in which evidence is to be forwarded by emergency response providers, law enforcement personnel, and prosecutors to a laboratory for testing; (C) the establishment of reasonable periods of time in which each stage of analytical laboratory testing is to be completed; (D) systems to encourage communication within a State or unit of local government among emergency response providers, law enforcement personnel, prosecutors, courts, defense counsel, crime laboratory personnel, and crime victims regarding the status of crime scene evidence to be tested; and (E) standards for conducting the audit of the backlog for DNA case work in sexual assault cases required under subsection (n). (2) Technical assistance and training The Director shall make available technical assistance and training to support States and units of local government in adopting and implementing the protocols and practices developed under paragraph (1) on and after the date on which the protocols and practices are published. (3) Definitions In this subsection, the terms awaiting testing and possession have the meanings given those terms in subsection (n). . 1003. Reports to congress Not later than 90 days after the end of each fiscal year for which a grant is made for the purpose described in section 2(a)(6) of the DNA Analysis Backlog Elimination Act of 2000, as amended by section 1002, the Attorney General shall submit to Congress a report that— (1) lists the States and units of local government that have been awarded such grants and the amount of the grant received by each such State or unit of local government; (2) states the number of extensions granted by the Attorney General under section 2(n)(3) of the DNA Analysis Backlog Elimination Act of 2000, as added by section 1002; and (3) summarizes the processing status of the samples of sexual assault evidence identified in Sexual Assault Forensic Evidence Reports established under section 2(o)(4) of the DNA Analysis Backlog Act of 2000, including the number of samples that have not been tested. 1004. Reducing the rape kit backlog Section 2(c)(3) of the DNA Analysis Backlog Elimination Act of 2000 ( 42 U.S.C. 14135(c)(3) ) is amended— (a) in subparagraph (B), by striking 2014 and inserting 2018 ; and (b) by adding at the end the following: (3) For each of fiscal years 2014 through 2018, not less than 75 percent of the total grant amounts shall be awarded for a combination of purposes under paragraphs (1), (2), and (3) of subsection (a). . 1005. Oversight and accountability All grants awarded by the Department of Justice that are authorized under this title shall be subject to the following: (1) Audit requirement Beginning in fiscal year 2013, and each fiscal year thereafter, the Inspector General of the Department of Justice shall conduct audits of recipients of grants under this title to prevent waste, fraud, and abuse of funds by grantees. The Inspector General shall determine the appropriate number of grantees to be audited each year. (2) Mandatory exclusion A recipient of grant funds under this title that is found to have an unresolved audit finding shall not be eligible to receive grant funds under this title during the 2 fiscal years beginning after the 12-month period described in paragraph (5). (3) Priority In awarding grants under this title, the Attorney General shall give priority to eligible entities that, during the 3 fiscal years before submitting an application for a grant under this title, did not have an unresolved audit finding showing a violation in the terms or conditions of a Department of Justice grant program. (4) Reimbursement If an entity is awarded grant funds under this Act during the 2-fiscal-year period in which the entity is barred from receiving grants under paragraph (2), the Attorney General shall— (A) deposit an amount equal to the grant funds that were improperly awarded to the grantee into the General Fund of the Treasury; and (B) seek to recoup the costs of the repayment to the fund from the grant recipient that was erroneously awarded grant funds. (5) Defined term In this section, the term unresolved audit finding means an audit report finding in the final audit report of the Inspector General of the Department of Justice that the grantee has utilized grant funds for an unauthorized expenditure or otherwise unallowable cost that is not closed or resolved within a 12-month period beginning on the date when the final audit report is issued. (6) Nonprofit organization requirements (A) Definition For purposes of this section and the grant programs described in this title, the term nonprofit organization means an organization that is described in section 501(c)(3) of the Internal Revenue Code of 1986 and is exempt from taxation under section 501(a) of such Code. (B) Prohibition The Attorney General shall not award a grant under any grant program described in this title to a nonprofit organization that holds money in offshore accounts for the purpose of avoiding paying the tax described in section 511(a) of the Internal Revenue Code of 1986. (C) Disclosure Each nonprofit organization that is awarded a grant under a grant program described in this title and uses the procedures prescribed in regulations to create a rebuttable presumption of reasonableness for the compensation of its officers, directors, trustees and key employees, shall disclose to the Attorney General, in the application for the grant, the process for determining such compensation, including the independent persons involved in reviewing and approving such compensation, the comparability data used, and contemporaneous substantiation of the deliberation and decision. Upon request, the Attorney General shall make the information disclosed under this subsection available for public inspection. (7) Administrative expenses Unless otherwise explicitly provided in authorizing legislation, not more than 7.5 percent of the amounts authorized to be appropriated under this title may be used by the Attorney General for salaries and administrative expenses of the Department of Justice. (8) Conference expenditures (A) Limitation No amounts authorized to be appropriated to the Department of Justice under this title may be used by the Attorney General or by any individual or organization awarded discretionary funds through a cooperative agreement under this Act, to host or support any expenditure for conferences that uses more than $20,000 in Department funds, unless the Deputy Attorney General or the appropriate Assistant Attorney General, Director, or principal deputy as the Deputy Attorney General may designate, provides prior written authorization that the funds may be expended to host a conference. (B) Written approval Written approval under subparagraph (A) shall include a written estimate of all costs associated with the conference, including the cost of all food and beverages, audio/visual equipment, honoraria for speakers, and any entertainment. (C) Report The Deputy Attorney General shall submit an annual report to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives on all conference expenditures approved by operation of this paragraph. (9) Prohibition on lobbying activity (A) In general Amounts authorized to be appropriated under this title may not be utilized by any grant recipient to— (i) lobby any representative of the Department of Justice regarding the award of grant funding; or (ii) lobby any representative of a Federal, State, local, or tribal government regarding the award of grant funding. (B) Penalty If the Attorney General determines that any recipient of a grant under this title has violated subparagraph (A), the Attorney General shall— (i) require the grant recipient to repay the grant in full; and (ii) prohibit the grant recipient from receiving another grant under this title for not less than 5 years. 1006. Sunset Effective on December 31, 2018, subsections (a)(6) and (n) of section 2 of the DNA Analysis Backlog Elimination Act of 2000 ( 42 U.S.C. 14135(a)(6) and (n)) are repealed. XI Other matters 1101. Sexual abuse in custodial settings (a) Suits by prisoners Section 7(e) of the Civil Rights of Institutionalized Persons Act ( 42 U.S.C. 1997e(e) ) is amended by inserting before the period at the end the following: or the commission of a sexual act (as defined in section 2246 of title 18, United States Code) . (b) United States as defendant Section 1346(b)(2) of title 28, United States Code, is amended by inserting before the period at the end the following: or the commission of a sexual act (as defined in section 2246 of title 18) . (c) Adoption and effect of national standards Section 8 of the Prison Rape Elimination Act of 2003 ( 42 U.S.C. 15607 ) is amended— (1) by redesignating subsection (c) as subsection (e); and (2) by inserting after subsection (b) the following: (c) Applicability to detention facilities operated by the Department of Homeland Security (1) In general Not later than 180 days after the date of enactment of the Violence Against Women Reauthorization Act of 2013 , the Secretary of Homeland Security shall publish a final rule adopting national standards for the detection, prevention, reduction, and punishment of rape and sexual assault in facilities that maintain custody of aliens detained for a violation of the immigrations laws of the United States. (2) Applicability The standards adopted under paragraph (1) shall apply to detention facilities operated by the Department of Homeland Security and to detention facilities operated under contract with the Department. (3) Compliance The Secretary of Homeland Security shall— (A) assess compliance with the standards adopted under paragraph (1) on a regular basis; and (B) include the results of the assessments in performance evaluations of facilities completed by the Department of Homeland Security. (4) Considerations In adopting standards under paragraph (1), the Secretary of Homeland Security shall give due consideration to the recommended national standards provided by the Commission under section 7(e). (5) Definition As used in this section, the term detention facilities operated under contract with the Department includes, but is not limited to contract detention facilities and detention facilities operated through an intergovernmental service agreement with the Department of Homeland Security. (d) Applicability to custodial facilities operated by the Department of Health and Human Services (1) In general Not later than 180 days after the date of enactment of the Violence Against Women Reauthorization Act of 2013 , the Secretary of Health and Human Services shall publish a final rule adopting national standards for the detection, prevention, reduction, and punishment of rape and sexual assault in facilities that maintain custody of unaccompanied alien children (as defined in section 462(g) of the Homeland Security Act of 2002 ( 6 U.S.C. 279(g) )). (2) Applicability The standards adopted under paragraph (1) shall apply to facilities operated by the Department of Health and Human Services and to facilities operated under contract with the Department. (3) Compliance The Secretary of Health and Human Services shall— (A) assess compliance with the standards adopted under paragraph (1) on a regular basis; and (B) include the results of the assessments in performance evaluations of facilities completed by the Department of Health and Human Services. (4) Considerations In adopting standards under paragraph (1), the Secretary of Health and Human Services shall give due consideration to the recommended national standards provided by the Commission under section 7(e). . 1102. Anonymous online harassment Section 223(a)(1) of the Communications Act of 1934 ( 47 U.S.C. 223(a)(1) ) is amended— (1) in subparagraph (A), in the undesignated matter following clause (ii), by striking annoy, ; (2) in subparagraph (C)— (A) by striking annoy, ; and (B) by striking harass any person at the called number or who receives the communication and inserting harass any specific person ; and (3) in subparagraph (E), by striking harass any person at the called number or who receives the communication and inserting harass any specific person . 1103. Stalker database Section 40603 of the Violence Against Women Act of 1994 ( 42 U.S.C. 14032 ) is amended by striking $3,000,000 and all that follows and inserting $3,000,000 for fiscal years 2014 through 2018. . 1104. Federal victim assistants reauthorization Section 40114 of the Violence Against Women Act of 1994 ( Public Law 103–322 ; 108 Stat. 1910) is amended by striking fiscal years 2007 through 2011 and inserting fiscal years 2014 through 2018 . 1105. Child abuse training programs for judicial personnel and practitioners reauthorization Subtitle C of the Victims of Child Abuse Act of 1990 ( 42 U.S.C. 13024 ) is amended in subsection (a) by striking $2,300,000 and all that follows and inserting $2,300,000 for each of fiscal years 2014 through 2018. .

https://www.govinfo.gov/content/pkg/BILLS-113hr11ih/xml/BILLS-113hr11ih.xml

113-hr-12

I 113th CONGRESS 1st Session H. R. 12 IN THE HOUSE OF REPRESENTATIVES January 23, 2013 Mr. Lewis (for himself, Mr. Clyburn , Mr. Hoyer , Mr. Brady of Pennsylvania , Mr. Conyers , Mr. Andrews , Ms. Bass , Mrs. Beatty , Mr. Becerra , Mr. Bera of California , Mr. Bishop of Georgia , Mr. Bishop of New York , Mr. Blumenauer , Ms. Bonamici , Ms. Bordallo , Mr. Braley of Iowa , Ms. Brown of Florida , Ms. Brownley of California , Mrs. Bustos , Mr. Butterfield , Mrs. Capps , Mr. Cárdenas , Mr. Carson of Indiana , Mr. Cartwright , Ms. Castor of Florida , Mr. Castro of Texas , Mrs. Christensen , Ms. Chu , Mr. Cicilline , Ms. Clarke , Mr. Clay , Mr. Cleaver , Mr. Cohen , Mr. Connolly , Mr. Costa , Mr. Courtney , Mr. Crowley , Mr. Cummings , Mr. Danny K. Davis of Illinois , Mrs. Davis of California , Mr. DeFazio , Ms. DeGette , Mr. Delaney , Ms. DeLauro , Mr. Deutch , Mr. Dingell , Mr. Doggett , Mr. Doyle , Ms. Edwards , Mr. Ellison , Ms. Eshoo , Ms. Esty , Mr. Faleomavaega , Mr. Farr , Mr. Fattah , Mr. Foster , Ms. Frankel of Florida , Ms. Fudge , Ms. Gabbard , Mr. Garamendi , Mr. Al Green of Texas , Mr. Gene Green of Texas , Mr. Grijalva , Mr. Gutierrez , Ms. Hahn , Ms. Hanabusa , Mr. Hastings of Florida , Mr. Higgins , Mr. Himes , Mr. Hinojosa , Mr. Holt , Mr. Honda , Mr. Horsford , Mr. Huffman , Mr. Israel , Ms. Jackson Lee , Mr. Jeffries , Ms. Eddie Bernice Johnson of Texas , Mr. Johnson of Georgia , Ms. Kaptur , Mr. Keating , Mr. Kildee , Mr. Kind , Mrs. Kirkpatrick , Mr. Langevin , Mr. Larsen of Washington , Mr. Larson of Connecticut , Ms. Lee of California , Mr. Levin , Mr. Loebsack , Ms. Lofgren , Mr. Lowenthal , Mrs. Lowey , Mr. Ben Ray Luján of New Mexico , Ms. Michelle Lujan Grisham of New Mexico , Mr. Maffei , Mrs. Carolyn B. Maloney of New York , Ms. Matsui , Mrs. McCarthy of New York , Ms. McCollum , Mr. McDermott , Mr. McGovern , Mr. Meeks , Ms. Meng , Mr. Michaud , Mr. George Miller of California , Ms. Moore , Mr. Moran , Mr. Murphy of Florida , Mr. Nadler , Mrs. Napolitano , Mrs. Negrete McLeod , Mr. Nolan , Ms. Norton , Mr. O'Rourke , Mr. Pascrell , Mr. Payne , Mr. Peters of Michigan , Mr. Pierluisi , Ms. Pingree of Maine , Mr. Pocan , Mr. Polis , Mr. Price of North Carolina , Mr. Quigley , Mr. Rangel , Mr. Richmond , Mr. Ruiz , Mr. Ruppersberger , Mr. Rush , Mr. Ryan of Ohio , Mr. Sablan , Ms. Linda T. Sánchez of California , Ms. Loretta Sanchez of California , Mr. Sarbanes , Ms. Schakowsky , Mr. Schiff , Ms. Schwartz , Mr. David Scott of Georgia , Mr. Scott of Virginia , Mr. Serrano , Ms. Sewell of Alabama , Mr. Sherman , Mr. Sires , Ms. Slaughter , Mr. Smith of Washington , Mr. Swalwell of California , Mr. Takano , Mr. Thompson of Mississippi , Mr. Thompson of California , Mr. Tierney , Ms. Titus , Mr. Tonko , Ms. Tsongas , Mr. Van Hollen , Mr. Vargas , Mr. Veasey , Ms. Velázquez , Mr. Visclosky , Ms. Wasserman Schultz , Ms. Waters , Mr. Watt , Mr. Waxman , Mr. Welch , Ms. Wilson of Florida , and Mr. Yarmuth ) introduced the following bill; which was referred to the Committee on House Administration , and in addition to the Committees on the Judiciary , Science, Space, and Technology , Veterans’ Affairs , Oversight and Government Reform , and Education and the Workforce , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To modernize voter registration, promote access to voting for individuals with disabilities, protect the ability of individuals to exercise the right to vote in elections for Federal office, and for other purposes. 1. Short title; table of contents (a) Short title This Act may be cited as the Voter Empowerment Act of 2013 . (b) Table of contents The table of contents of this Act is as follows: Sec. 1. Short title; table of contents. Title I—Voter Registration Modernization Sec. 100. Short title. Subtitle A—Promoting Internet Registration Sec. 101. Requiring availability of Internet for voter registration. Sec. 102. Use of Internet to update registration information. Sec. 103. Provision of election information by electronic mail to individuals registered to vote. Sec. 104. Clarification of requirement regarding necessary information to show eligibility to vote. Sec. 105. Effective date. Subtitle B—Automated Registration of Certain Individuals Sec. 111. Automated voter registration. Sec. 112. List maintenance, privacy, and security. Sec. 113. Promoting accuracy of statewide voter registration lists. Sec. 114. Definitions. Sec. 115. Effective date. Subtitle C—Other initiatives To promote voter registration Sec. 121. Same day registration. Sec. 122. Acceptance of voter registration applications from individuals under 18 years of age. Sec. 123. Annual reports on voter registration statistics. Subtitle D—Availability of HAVA Requirements Payments Sec. 131. Availability of requirements payments under HAVA to cover costs of compliance with new requirements. Subtitle E—Prohibiting Interference With Voter Registration Sec. 141. Prohibiting hindering, interfering with, or preventing voter registration. Sec. 142. Establishment of best practices. Title II—Access to Voting for Individuals With Disabilities Sec. 201. Requirements for States to promote access to voter registration and voting for individuals with disabilities. Sec. 202. Pilot programs for enabling individuals with disabilities to register to vote and vote privately and independently at residences. Sec. 203. Expansion and reauthorization of grant program to assure voting access for individuals with disabilities. Title III—Prohibiting Voter Caging Sec. 301. Voter caging and other questionable challenges prohibited. Sec. 302. Development and adoption of best practices for preventing voter caging. Sec. 303. Severability. Title IV—Prohibiting Deceptive Practices Sec. 401. Prohibition on deceptive practices in Federal elections. Sec. 402. Modification of penalty for voter intimidation. Sec. 403. Sentencing guidelines. Sec. 404. Reporting violations; corrective action. Title V—Democracy Restoration Sec. 501. Rights of citizens. Sec. 502. Enforcement. Sec. 503. Notification of restoration of voting rights. Sec. 504. Definitions. Sec. 505. Relation to other laws. Sec. 506. Federal prison funds. Sec. 507. Effective date. Title VI—Accuracy, Integrity, and Security of Elections Sec. 600. Short title. Subtitle A—Promoting accuracy, integrity, and security through voter-Verified permanent paper ballot Sec. 601. Paper ballot and manual counting requirements. Sec. 602. Accessibility and ballot verification for individuals with disabilities. Sec. 603. Additional voting system requirements. Sec. 604. Availability of additional funding to enable States to meet costs of revised requirements. Sec. 605. Effective date for new requirements. Subtitle B—Requirement for mandatory manual audits by hand count Sec. 611. Mandatory manual audits. Sec. 612. Availability of enforcement under Help America Vote Act of 2002. Sec. 613. Guidance on best practices for alternative audit mechanisms. Sec. 614. Clerical amendment. Title VII—Provisional Ballots Sec. 701. Requirements for counting provisional ballots; establishment of uniform and nondiscriminatory standards. Title VIII—Early Voting and Voting by Mail Sec. 801. Early voting and voting by mail. Title IX—Absent Uniformed Services Voters and Overseas Voters Sec. 901. Extending guarantee of residency for voting purposes to family members of absent military personnel. Sec. 902. Pre-election reports on availability and transmission of absentee ballots. Sec. 903. Enforcement. Sec. 904. Revisions to 45-day absentee ballot transmission rule. Sec. 905. Use of single absentee ballot application for subsequent elections. Sec. 906. Effective date. Title X—Poll Worker Recruitment and Training Sec. 1001. Leave to serve as a poll worker for Federal employees. Sec. 1002. Grants to States for poll worker recruitment and training. Sec. 1003. Model poll worker training program. Sec. 1004. State defined. Title XI—Enhancement of Enforcement Sec. 1101. Enhancement of enforcement of Help America Vote Act of 2002. Title XII—Federal Election Integrity Sec. 1201. Prohibition on campaign activities by chief State election administration officials. Title XIII—Other Election Administration Improvements Sec. 1301. Treatment of universities as voter registration agencies. Sec. 1302. Minimum notification requirements for voters affected by polling place changes. Sec. 1303. Voter information response systems and hotline. Sec. 1304. Reauthorization of election assistance commission. Sec. 1305. Application of laws to Commonwealth of Northern Mariana Islands. Sec. 1306. Repeal of exemption of Election Assistance Commission from certain government contracting requirements. Sec. 1307. No effect on other laws. I Voter Registration Modernization 100. Short title This title may be cited as the Voter Registration Modernization Act of 2013 . A Promoting Internet Registration 101. Requiring availability of Internet for voter registration (a) Requiring Availability of Internet for Registration The National Voter Registration Act of 1993 ( 42 U.S.C. 1973gg et seq. ) is amended by inserting after section 6 the following new section: 6A. Internet Registration (a) Requiring Availability of Internet for Online Registration (1) Availability of online registration Each State, acting through the chief State election official, shall ensure that the following services are available to the public at any time on the official public websites of the appropriate State and local election officials in the State, in the same manner and subject to the same terms and conditions as the services provided by voter registration agencies under section 7(a): (A) Online application for voter registration. (B) Online assistance to applicants in applying to register to vote. (C) Online completion and submission by applicants of the mail voter registration application form prescribed by the Election Assistance Commission pursuant to section 9(a)(2), including assistance with providing a signature in electronic form as required under subsection (c). (D) Online receipt of completed voter registration applications. (b) Acceptance of completed applications A State shall accept an online voter registration application provided by an individual under this section, and ensure that the individual is registered to vote in the State, if— (1) the individual meets the same voter registration requirements applicable to individuals who register to vote by mail in accordance with section 6(a)(1) using the mail voter registration application form prescribed by the Election Assistance Commission pursuant to section 9(a)(2); and (2) the individual provides a signature in electronic form in accordance with subsection (c) (but only in the case of applications submitted during or after the second year in which this section is in effect in the State). (c) Signatures in electronic form For purposes of this section, an individual provides a signature in electronic form by— (1) executing a computerized mark in the signature field on an online voter registration application; or (2) submitting with the application an electronic copy of the individual’s handwritten signature through electronic means. (d) Confirmation and disposition (1) Confirmation of receipt Upon the online submission of a completed voter registration application by an individual under this section, the appropriate State or local election official shall send the individual a notice confirming the State’s receipt of the application and providing instructions on how the individual may check the status of the application. (2) Notice of disposition As soon as the appropriate State or local election official has approved or rejected an application submitted by an individual under this section, the official shall send the individual a notice of the disposition of the application. (3) Method of notification The appropriate State or local election official shall send the notices required under this subsection by regular mail, and, in the case of an individual who has requested that the State provide voter registration and voting information through electronic mail, by both electronic mail and regular mail. (e) Provision of Services in Nonpartisan Manner The services made available under subsection (a) shall be provided in a manner that ensures that, consistent with section 7(a)(5)— (1) the online application does not seek to influence an applicant’s political preference or party registration; and (2) there is no display on the website promoting any political preference or party allegiance, except that nothing in this paragraph may be construed to prohibit an applicant from registering to vote as a member of a political party. (f) Protection of Security of Information In meeting the requirements of this section, the State shall establish appropriate technological security measures to prevent to the greatest extent practicable any unauthorized access to information provided by individuals using the services made available under subsection (a). (g) Use of Additional Telephone-Based System A State shall make the services made available online under subsection (a) available through the use of an automated telephone-based system, subject to the same terms and conditions applicable under this section to the services made available online, in addition to making the services available online in accordance with the requirements of this section. (h) Nondiscrimination among registered voters using mail and online registration In carrying out this Act, the Help America Vote Act of 2002, or any other Federal, State, or local law governing the treatment of registered voters in the State or the administration of elections for public office in the State, a State shall treat a registered voter who registered to vote online in accordance with this section in the same manner as the State treats a registered voter who registered to vote by mail. . (b) Special requirements for individuals using online registration (1) Treatment as individuals registering to vote by mail for purposes of first-time voter identification requirements Section 303(b)(1)(A) of the Help America Vote Act of 2002 ( 42 U.S.C. 15483(b)(1)(A) ) is amended by striking by mail and inserting by mail or online under section 6A of the National Voter Registration Act of 1993 . (2) Requiring signature for first-time voters in jurisdiction Section 303(b) of such Act ( 42 U.S.C. 15483(b) ) is amended— (A) by redesignating paragraph (5) as paragraph (6); and (B) by inserting after paragraph (4) the following new paragraph: (5) Signature requirements for first-time voters using online registration (A) In general A State shall, in a uniform and nondiscriminatory manner, require an individual to meet the requirements of subparagraph (B) if— (i) the individual registered to vote in the State online under section 6A of the National Voter Registration Act of 1993; and (ii) the individual has not previously voted in an election for Federal office in the State. (B) Requirements An individual meets the requirements of this subparagraph if— (i) in the case of an individual who votes in person, the individual provides the appropriate State or local election official with a handwritten signature; or (ii) in the case of an individual who votes by mail, the individual submits with the ballot a handwritten signature. (C) Inapplicability Subparagraph (A) does not apply in the case of an individual who is— (i) entitled to vote by absentee ballot under the Uniformed and Overseas Citizens Absentee Voting Act ( 42 U.S.C. 1973ff–1 et seq. ); (ii) provided the right to vote otherwise than in person under section 3(b)(2)(B)(ii) of the Voting Accessibility for the Elderly and Handicapped Act ( 42 U.S.C. 1973ee–1(b)(2)(B)(ii) ); or (iii) entitled to vote otherwise than in person under any other Federal law. . (3) Conforming amendment relating to effective date Section 303(d)(2)(A) of such Act ( 42 U.S.C. 15483(d)(2)(A) ) is amended by striking Each State and inserting Except as provided in subsection (b)(5), each State . (c) Conforming Amendments (1) Timing of registration Section 8(a)(1) of the National Voter Registration Act of 1993 ( 42 U.S.C. 1973gg–6(a)(1) ) is amended— (A) by striking and at the end of subparagraph (C); (B) by redesignating subparagraph (D) as subparagraph (E); and (C) by inserting after subparagraph (C) the following new subparagraph: (D) in the case of online registration through the official public website of an election official under section 6A, if the valid voter registration application is submitted online not later than the lesser of 30 days, or the period provided by State law, before the date of the election (as determined by treating the date on which the application is sent electronically as the date on which it is submitted); and . (2) Informing applicants of eligibility requirements and penalties Section 8(a)(5) of such Act ( 42 U.S.C. 1973gg–6(a)(5) ) is amended by striking and 7 and inserting 6A, and 7 . 102. Use of Internet to update registration information (a) In General (1) Updates to information contained on computerized statewide voter registration list Section 303(a) of the Help America Vote Act of 2002 ( 42 U.S.C. 15483(a) ) is amended by adding at the end the following new paragraph: (6) Use of Internet by registered voters to update information (A) In general The appropriate State or local election official shall ensure that any registered voter on the computerized list may at any time update the voter’s registration information, including the voter’s address and electronic mail address, online through the official public website of the election official responsible for the maintenance of the list, so long as the voter attests to the contents of the update by providing a signature in electronic form in the same manner required under section 6A(c) of the National Voter Registration Act of 1993. (B) Processing of updated information by election officials If a registered voter updates registration information under subparagraph (A), the appropriate State or local election official shall— (i) revise any information on the computerized list to reflect the update made by the voter; and (ii) if the updated registration information affects the voter’s eligibility to vote in an election for Federal office, ensure that the information is processed with respect to the election if the voter updates the information not later than the lesser of 7 days, or the period provided by State law, before the date of the election. (C) Confirmation and disposition (i) Confirmation of receipt Upon the online submission of updated registration information by an individual under this paragraph, the appropriate State or local election official shall send the individual a notice confirming the State’s receipt of the updated information and providing instructions on how the individual may check the status of the update. (ii) Notice of disposition As soon as the appropriate State or local election official has accepted or rejected updated information submitted by an individual under this paragraph, the official shall send the individual a notice of the disposition of the update. (iii) Method of notification The appropriate State or local election official shall send the notices required under this subparagraph by regular mail, and, in the case of an individual who has requested that the State provide voter registration and voting information through electronic mail, by both electronic mail and regular mail. . (2) Conforming amendment relating to effective date Section 303(d)(1)(A) of such Act ( 42 U.S.C. 15483(d)(1)(A) ) is amended by striking subparagraph (B) and inserting subparagraph (B) and subsection (a)(6) . (b) Ability of registrant To use online update To provide information on residence Section 8(d)(2)(A) of the National Voter Registration Act of 1993 ( 42 U.S.C. 1973gg–6(d)(2)(A) ) is amended— (1) in the first sentence, by inserting after return the card the following: or update the registrant’s information on the computerized Statewide voter registration list using the online method provided under section 303(a)(6) of the Help America Vote Act of 2002 ; and (2) in the second sentence, by striking returned, and inserting the following: returned or if the registrant does not update the registrant’s information on the computerized Statewide voter registration list using such online method, . 103. Provision of election information by electronic mail to individuals registered to vote (a) Including Option on Voter Registration Application To Provide E-Mail Address and Receive Information (1) In general Section 9(b) of the National Voter Registration Act of 1993 ( 42 U.S.C. 1973gg–7(b) ) is amended— (A) by striking and at the end of paragraph (3); (B) by striking the period at the end of paragraph (4) and inserting ; and ; and (C) by adding at the end the following new paragraph: (5) shall include a space for the applicant to provide (at the applicant’s option) an electronic mail address, together with a statement that, if the applicant so requests, instead of using regular mail the appropriate State and local election officials shall provide to the applicant, through electronic mail sent to that address, the same voting information (as defined in section 302(b)(2) of the Help America Vote Act of 2002) which the officials would provide to the applicant through regular mail. . (2) Prohibiting use for purposes unrelated to official duties of election officials Section 9 of such Act ( 42 U.S.C. 1973gg–7 ) is amended by adding at the end the following new subsection: (c) Prohibiting use of electronic mail addresses for other than official purposes The chief State election official shall ensure that any electronic mail address provided by an applicant under subsection (b)(5) is used only for purposes of carrying out official duties of election officials and is not transmitted by any State or local election official (or any agent of such an official, including a contractor) to any person who does not require the address to carry out such official duties and who is not under the direct supervision and control of a State or local election official. . (b) Requiring Provision of Information by Election Officials Section 302(b) of the Help America Vote Act of 2002 ( 42 U.S.C. 15482(b) ) is amended by adding at the end the following new paragraph: (3) Provision of other information by electronic mail If an individual who is a registered voter has provided the State or local election official with an electronic mail address for the purpose of receiving voting information (as described in section 9(b)(5) of the National Voter Registration Act of 1993), the appropriate State or local election official, through electronic mail transmitted not later than 7 days before the date of the election involved, shall provide the individual with information on how to obtain the following information by electronic means: (A) The name and address of the polling place at which the individual is assigned to vote in the election. (B) The hours of operation for the polling place. (C) A description of any identification or other information the individual may be required to present at the polling place. . 104. Clarification of requirement regarding necessary information to show eligibility to vote Section 8 of the National Voter Registration Act of 1993 ( 42 U.S.C. 1973gg–6 ) is amended— (1) by redesignating subsection (j) as subsection (k); and (2) by inserting after subsection (i) the following new subsection: (j) Requirement for State To Register Applicants Providing Necessary Information To Show Eligibility To Vote For purposes meeting the requirement of subsection (a)(1) that an eligible applicant is registered to vote in an election for Federal office within the deadlines required under such subsection, the State shall consider an applicant to have provided a valid voter registration form if— (1) the applicant has accurately completed the application form and attested to the statement required by section 9(b)(2); and (2) in the case of an applicant who registers to vote online in accordance with section 6A, the applicant provides a signature in accordance with subsection (c) of such section. . 105. Effective date (a) In General Except as provided in subsection (b), the amendments made by this subtitle (other than the amendments made by section 104) shall take effect January 1, 2014. (b) Waiver Subject to the approval of the Election Assistance Commission, if a State certifies to the Election Assistance Commission that the State will not meet the deadline referred to in subsection (a) because of extraordinary circumstances and includes in the certification the reasons for the failure to meet the deadline, subsection (a) shall apply to the State as if the reference in such subsection to January 1, 2014 were a reference to January 1, 2016 . B Automated Registration of Certain Individuals 111. Automated voter registration (a) Collection of information by source agencies (1) Duties of source agencies Each source agency in a State (as defined in subsection (e)) shall, with each application for services or assistance by an individual, and with each recertification, renewal, or change of address relating to such services or assistance— (A) notify each such individual of the substantive qualifications of an elector in the State, using language approved by the State’s chief election official; (B) notify each such individual that there is an opportunity to be registered to vote or update voter registration, but that voter registration is voluntary, and that neither registering nor declining to register to vote will in any way affect the availability of services or benefits, nor be used for other purposes; (C) require that each such individual indicate, after considering the substantive qualification of an elector in the State, whether or not the person wishes to be registered; (D) ensure that each such individual’s transaction with the agency cannot be completed until the individual has indicated whether he or she wishes to register to vote; and (E) for each such individual who consents to using the individual’s records with the source agency to enable the individual to register to vote under this section, collect a signed affirmation of eligibility to register to vote in the State. (2) No effect on right to decline voter registration Nothing in this subtitle shall be construed to interfere with the right of any person to decline to be registered to vote for any reason. (b) Transfer of information on individuals consenting to voter registration (1) Transfer For each individual who notifies the source agency that the individual consents to voter registration under this section, the source agency shall transfer to the chief State election official of the State the following data, to the extent the data is available to the source agency: (A) The given name or names and surname or surnames. (B) Date of birth. (C) Residential address. (D) Mailing address. (E) Signature, in electronic form. (F) Date of the last change to the information. (G) The motor vehicle driver’s license number. (H) The last four digits of the Social Security number. (2) Timing of transfer The source agency shall transfer the data described in paragraph (1) to the chief State election official on a daily basis. (3) Format The data transferred under paragraph (1) shall be transferred in a format compatible with the Statewide computerized voter registration list under section 303 of the Help America Vote Act of 2002. (4) Prohibiting storage of information Any information collected by the source agency under this section with respect to an individual who consents to register to vote under this section may not be stored by the source agency in any form after the information is transferred to the chief State election official under paragraph (1). (c) Registration of Individuals by Chief State Election Official (1) Comparison with Statewide voter registration list Upon receiving information from a source agency with respect to an individual under subsection (b), the chief State election official shall determine whether the individual is included in the computerized Statewide voter registration list established and maintained under section 303 of the Help America Vote Act of 2002 ( 42 U.S.C. 15483 ). (2) Registration of individuals not on Statewide list If an individual for whom information is received from a source agency under subsection (b) is eligible to vote in elections for Federal office in the State and is not on the computerized Statewide voter registration list, the chief State election official shall— (A) ensure that the individual is registered to vote in such elections not later than 5 days after receiving the information, without regard to whether or not the information provided by the source agency includes the individual’s signature; (B) update the Statewide computerized voter registration list to include the individual; and (C) notify the individual that the individual is registered to vote in elections for Federal office in the State. (3) Treatment of information incorrectly provided If a source agency provides the chief State election official with information with respect to an individual who did not consent to be registered to vote under this section, the chief State election official shall not take any action to register the individual to vote, except that no such individual who is already included on the computerized Statewide voter registration list shall be removed from the list solely because the information was incorrectly provided under subsection (b). (4) No effect on other means of registration Nothing in this section affects a State’s obligation to register voters upon receipt of a valid voter registration application through means provided by National Voter Registration Act of 1993 ( 42 U.S.C. 1973gg et seq. ), the Internet registration procedure described in subtitle A, or other valid means. (5) Individuals in existing records No later than January 2015, each individual who is listed in a source agency’s records and for whom there exists reason to believe the individual is a citizen and not otherwise ineligible to vote shall be mailed a postage pre-paid return postcard including a box for the individual to check, together with the statement (in close proximity to the box and in prominent type), By checking this box, I affirm that I am a citizen of the United States, am eligible to vote in this State, and will be at least eighteen years old by the next general election. I understand that by checking this box, I will be registered to vote if I am eligible to vote in the State. , along with a clear description of the voting eligibility requirements in the State. The postcard shall also include, where required for voter registration, a place for the individual’s signature and designation of party affiliation. An individual who checks the box and returns the completed postcard postmarked not later than the lesser of the fifteenth day before an election for Federal office, or the period provided by State law, shall be registered to vote in that election. (d) Options for State To require special treatment of individuals registered automatically (1) Treatment as individuals registering to vote by mail for purposes of first-time voter identification requirements Section 303(b)(1)(A) of the Help America Vote Act of 2002 ( 42 U.S.C. 15483(b)(1)(A) ), as amended by section 101(b)(1), is amended by striking of 1993 and inserting of 1993 or (at the option of the State) was registered automatically under section 111 of the Voter Registration Modernization Act of 2013 . (2) Requiring signature Section 303(b) of such Act ( 42 U.S.C. 15483(b) ), as amended by section 101(b)(2), is amended— (A) by redesignating paragraph (6) as paragraph (7); and (B) by inserting after paragraph (5) the following new paragraph: (5) Option for State to require signature requirements for first-time voters registered automatically (A) In general A State may, in a uniform and nondiscriminatory manner, require an individual to meet the requirements of subparagraph (B) if— (i) the individual was registered to vote in the State automatically under section 111 of the Voter Registration Modernization Act of 2013; and (ii) the individual has not previously voted in an election for Federal office in the State. (B) Requirements An individual meets the requirements of this subparagraph if— (i) in the case of an individual who votes in person, the individual provides the appropriate State or local election official with a handwritten signature; or (ii) in the case of an individual who votes by mail, the individual submits with the ballot a handwritten signature. (C) Inapplicability Subparagraph (A) does not apply in the case of an individual who is— (i) entitled to vote by absentee ballot under the Uniformed and Overseas Citizens Absentee Voting Act ( 42 U.S.C. 1973ff–1 et seq. ); (ii) provided the right to vote otherwise than in person under section 3(b)(2)(B)(ii) of the Voting Accessibility for the Elderly and Handicapped Act ( 42 U.S.C. 1973ee–1(b)(2)(B)(ii) ); or (iii) entitled to vote otherwise than in person under any other Federal law. . (3) Conforming amendment relating to effective date Section 303(d)(2)(A) of such Act ( 42 U.S.C. 15483(d)(2)(A) ), as amended by section 101(b)(3), is amended by striking subsection (b)(5) and inserting subsections (b)(5) and (b)(6) . (e) Source agencies described (1) In general With respect to any State, a source agency is— (A) each State office which is described in paragraph (2); and (B) each Federal office which is described in paragraph (3) which is located in the State, except that such office shall be a source agency only with respect to individuals who are residents of the State in which the office is located. (2) State offices described (A) In general The State offices described in this paragraph are as follows: (i) The State motor vehicle authority. (ii) Each office in the State which is designated as a voter registration agency in a State pursuant to section 7(a) of the National Voter Registration Act of 1993 ( 42 U.S.C. 1973gg–5(a) ). (iii) Each State agency that administers a program providing assistance pursuant to pursuant to title III of the Social Security Act ( 42 U.S.C. 501 et seq. ). (iv) Each State agency primarily responsible for maintaining identifying information for students enrolled at public secondary schools in the State, including, where applicable, the State agency responsible for maintaining the education data system described in section 6401(e)(2) of the America COMPETES Act ( 20 U.S.C. 9871(e)(2) ). (v) In the case of a State in which an individual disenfranchised by a criminal conviction may become eligible to vote upon completion of criminal sentence or any part thereof, or upon formal restoration of rights, the State agency responsible for administering that sentence, or part thereof, or that restoration of rights. (vi) In the case of a State in which an individual disenfranchised by adjudication of mental incompetence or similar condition becomes eligible to register to vote upon the restoration of competence or similar condition, each State agency responsible for determining when competence or a similar condition is met. (vii) Such other office which may be designated as a source agency by the chief State election official of the State. (B) Criteria for designation of additional source agencies In designating offices of the State as source agencies for purposes of subparagraph (A)(vii), the chief State election official shall give priority on the basis of the following criteria: (i) The extent to which individuals receiving services or assistance from the office are likely to be individuals who are eligible to register to vote in elections for Federal office in the State but who are not registered to vote in such elections. (ii) The accuracy of the office’s records with respect to identifying information (including age, citizenship status, and residency) for individuals receiving services or assistance from the office. (iii) The cost-effectiveness of obtaining such identifying information and transmitting the information to the chief State election official. (iv) The extent to which the designation of the office as a voter registration agency will promote the registration of eligible individuals to vote in elections for Federal office in the State and the accuracy of the State’s Statewide computerized voter registration list under the Help America Vote Act of 2002. (3) Federal offices described The Federal offices described in this paragraph are as follows: (A) Armed Forces recruitment offices. (B) The United States Immigration and Customs Enforcement Bureau, but only with respect to individuals who complete the naturalization process. (C) The Social Security Administration. (D) The Administrative Office of the United States Courts, the Federal Bureau of Prisons, and the United States Probation Service, but only with respect to individuals completing terms of prison, sentences, probation, or parole. (E) The Department of Veterans Affairs, but only with respect to individuals applying for or using health care services or services for homeless individuals. (F) The Defense Manpower Data Center of the Department of Defense. (G) The Indian Health Services of the Department of Health and Human Services. (H) The Center for Medicare and Medicaid Services of the Department of Health and Human Services. (I) Any other Federal office which designated by a State (with the consent of the President) as a source agency with respect to the State. 112. List maintenance, privacy, and security (a) Database management standards (1) Database matching standards The chief State election official of each State shall establish standards governing the comparison of data on the Statewide computerized voter registration list under section 303 of the Help America Vote Act of 2002, the data provided by various source agencies under section 111, and relevant data from other sources, including the specific data elements and data matching rules to be used for purposes of determining— (A) whether a data record from any source agency represents the same individual as a record in another source agency or on the Statewide list; (B) whether a data record from any source agency represents an individual already registered to vote in the State; (C) whether two data records in the Statewide computerized voter registration list represent duplicate records for the same individual; (D) whether a data record supplied by any list maintenance source represents an individual already registered to vote in the State; and (E) which information will be treated as more current and reliable when data records from multiple sources present information for the same individual. (2) Standards for determining ineligibility The chief State election official of a State shall establish uniform and non-discriminatory standards describing the specific conditions under which an individual will be determined for list maintenance purposes to be ineligible to vote in an election for Federal office in the State. (b) Privacy and security standards (1) Privacy and security policy The chief State election official of a State shall publish and enforce a privacy and security policy specifying each class of users who shall have authorized access to the computerized Statewide voter registration list, specifying for each such class the permission and levels of access to be granted, and setting forth other safeguards to protect the privacy and security of the information on the list. Such policy shall include security safeguards to protect personal information in the data transfer process under section 111, the online or telephone interface, the maintenance of the voter registration database, and audit procedure to track individual access to the system. (2) No unauthorized access The chief election official of a State shall establish policies and enforcement procedures to prevent unauthorized access to or use of the computerized Statewide voter registration list, any list or other information provided by a source agency under section 111, or any maintenance source for the list. Nothing in this paragraph shall be construed to prohibit access to information required for official purposes for purposes of voter registration, election administration, and the enforcement of election laws. (3) Inter-agency transfers (A) In general The chief election official of a State shall establish policies and enforcement procedures to maintain security during inter-agency transfers of information required or permitted under this subtitle. Each State agency and third party participating in such inter-agency transfers of information shall facilitate and comply with such policies. Nothing in this subparagraph shall prevent a source agency under section 111 from establishing and enforcing additional security measures to protect the confidentiality and integrity of inter-agency data transfers. No State or local election official shall transfer or facilitate the transfer of information from the computerized Statewide voter registration list to any source agency under section 111. (B) Transmission through secure third parties permitted Nothing in this section shall be construed to prevent a source agency under section 111 from contracting with a third party to assist in the transmission of data to a chief State election official, so long as the data transmission complies with the applicable requirements of this subtitle, including the privacy and security provisions of this section. (4) Records retention The chief State election official of a State shall establish standards and procedures to maintain all election records required for purposes of this subtitle, including for the purpose of determining the eligibility of persons casting provisional ballots under section 302 of the Help America Vote Act of 2002. Records for individuals who have been retained on the computerized Statewide voter registration list under section 301 of such Act but identified as ineligible to vote in an election for Federal office within the State, or removed from the list due to ineligibility, shall be maintained and kept available until at least the date of the second general election for Federal office that occurs after the date that the individual was identified as ineligible. (c) Publication of standards The chief State election official of a State shall publish on the official’s website the standards established under this section, and shall make those standards available in written form upon public request. (d) Protection of source information The identity of the specific source agency through which an individual consented to register to vote under section 111 shall not be disclosed to the public and shall not be retained after the individual is added to the computerized Statewide voter registration list. (e) Confidentiality of information The chief State election official of a State shall establish policies and enforcement procedures to ensure that personal information provided by source agencies or otherwise transmitted under this section is kept confidential and is available only to authorized users. For purposes of these policies and procedures, the term personal information means any of the following: (1) Any portion of an individual’s Social Security number. (2) Any portion of an individual’s motor vehicle driver’s license number or State identification card number. (3) An individual’s signature. (4) An individual’s personal residence and contact information (in the case of individuals with respect to whom such information is required to be maintained as confidential under State law). (5) Sensitive information relating to persons in categories designated confidential by Federal or State law, including victims of domestic violence or stalking, prosecutors and law enforcement personnel, and participants in a witness protection program. (6) An individual’s phone number. (7) An individual’s e-mail address. (8) Any indication of an individual’s status as a citizen or noncitizen of the United States. (9) Such other information as the chief State election official may designate as confidential to the extent reasonably necessary to prevent identity theft or impersonation, except that the chief State election official may not designate as confidential under this subparagraph the name, address, or date of registration of an individual, or, where applicable, the self-identified racial or ethnic category of the individual as applicable under Revisions to OMB Directive Number 15 or successor directives. (f) Protections against liability of individuals on basis of information transferred (1) No individual liability for registration of ineligible individual If an individual who is not eligible to register to vote in elections for Federal office is registered to vote in such elections by a chief State election official under section 111, the individual shall not be subject to any penalty, including the imposition of a fine or term of imprisonment, adverse treatment in any immigration or naturalization proceeding, or the denial of any status under immigration laws, under any law prohibiting an individual who is not eligible to register to vote in elections for Federal office from registering to vote in such elections. Nothing in this paragraph shall be construed to waive the liability of any individual who knowingly provides false information to any person regarding the individual’s eligibility to register to vote or vote in elections for Federal office. (2) Prohibiting use of information by officials No person acting under color of law may use the information received by the chief State election official under section 111 to attempt to determine the citizenship status of any individual for immigration enforcement, criminal law enforcement (other than enforcement of election laws), or any purpose other than voter registration, election administration, or the enforcement of election laws. (g) Prohibition on transfer of information irrelevant to administration of elections No source agency shall transmit any information under section 111 which is irrelevant to the administration of elections. To the extent that an election official receives any information which is accidentally or inadvertently transferred by a source agency under such section, the official shall immediately delete the information from the official’s records. (h) Restriction on use of information No information relating to an individual’s absence from the Statewide voter registration list under section 303 of the Help America Vote Act of 2002 or an individual’s declination to supply information for voter registration purposes to a source agency under section 111 may be disclosed to the public for immigration enforcement, criminal law enforcement other than enforcement of laws against election crimes, or used for any purpose other than voter registration, election administration, or the enforcement of election laws. (i) Nondiscrimination No person acting under color of law may discriminate against any individual on the basis of the individual’s absence from the statewide voter registration list, the information supplied by the individual for voter registration purpose to a source agency under section 111, or the individual’s declination to supply such information, except as required for purposes of voter registration, election administration, and the enforcement of election laws. (j) Prohibition on the use of voter registration information for commercial or nongovernmental purposes Voter registration information collected under this subtitle shall not be used for commercial purposes including for comparison with any existing commercial list or database. (k) Penalty Whoever knowingly uses information or permits information to be used in violation of this section shall be imprisoned for not more than 1 year, fined under title 18, United States Code, or both. (l) Exclusion from lists of individuals declining registration The chief State election official of a State shall ensure that, with respect to any individual who declines the opportunity to register to vote under section 111, the individual’s information is not included on the computerized Statewide voter registration list under section 303 of the Help America Vote Act of 2002 and is not provided to any third party (except to the extent required under other law). Nothing in this subsection shall be construed to preclude an individual who has previously declined the opportunity to register to vote from subsequently registering to vote. 113. Promoting accuracy of statewide voter registration lists (a) Deadlines for transmittal of change of address or other identifying information (1) Information received by State motor vehicle authority Section 5(d) of the National Voter Registration Act of 1993 ( 42 U.S.C. 1973gg–3(d) ) is amended to read as follows: (d) Automatic transmittal of change of address or other identifying information Not later than 24 hours after receiving a change of address form or any other information indicating that identifying information with respect to an individual which is included in the records of the State motor vehicle authority has been changed, the State motor vehicle authority shall transmit such form or other information to the chief State election official, unless— (1) the records of the authority include information indicating that the individual is not eligible to register to vote in the State; or (2) the individual states on the form or otherwise indicates that the change of address or other information is not for voter registration purposes. . (2) Information received by other voter registration agencies Section 7 of such Act ( 42 U.S.C. 1973gg–5 ) is amended by adding at the end the following new subsection: (e) Automatic transmittal of change of address or other identifying information Not later than 24 hours after receiving a change of address form or any other information indicating that identifying information with respect to an individual which is included in the records of a voter registration agency designated under this section has been changed, the appropriate official of such agency shall transmit such form or other information to the chief State election official, unless— (1) the records of the agency include information indicating that the individual is not eligible to register to vote in the State; or (2) the individual states on the form or otherwise indicates that the change of address or other information is not for voter registration purposes. . (3) Information received from source agencies Not later than 24 hours after receiving a change of address form or any other information indicating that identifying information with respect to an individual which is included in the records of a source agency designated under section 111 has been changed, the appropriate official of such agency shall transmit such form or other information to the chief State election official, unless— (A) the records of the agency include information indicating that the individual is not eligible to register to vote in the State; or (B) the individual states on the form or otherwise indicates that the change of address or other information is not for voter registration purposes. (b) Revision of Statewide computerized list To reflect revised information Section 303(a) of the Help America Vote Act of 2002 ( 42 U.S.C. 15483(a) ), as amended by section 102(a), is amended by adding at the end the following new paragraph: (7) Revision of list to reflect information received from other State offices (A) In general If a State motor vehicle authority (pursuant to section 5(d) of the National Voter Registration Act of 1993) a voter registration agency (designated under section 7 of such Act), or a source agency (designated under section 111 of the Voter Registration Modernization Act of 2013) transmits to the chief State election official a change of address form or any other information indicating that identifying information with respect to an individual has been changed, the appropriate State or local election official shall— (i) determine whether the individual appears on the computerized list established under this section; and (ii) if the individual appears on the list, revise the information relating to the individual on the list to reflect the individual’s new address or other changed identifying information. (B) Notification to voters If an election official revises any voter registration information on the computerized list with respect to any voter (including removing the voter from the list), immediately after revising the information, the official shall send the individual a written notice of the revision which includes the following information: (i) The voter’s name, date of birth, and address, as reflected in the revised information on the computerized list. (ii) A statement that the voter’s voter registration information has been updated. (iii) Information on how to correct information on the computerized list. (iv) A statement of the eligibility requirements for registered voters in the State. (v) A statement (in larger font size than the other statements on the notice) that it is illegal for an individual who does not meet the eligibility requirements for registered voters in the State to vote in an election in the State. (vi) A statement that the voter may terminate the voter’s status as a registered voter in the State, or request a change in the voter’s voter registration information, at any time by contacting the appropriate State or local election official, together with contact information for such official (including any website through which the voter may contact the official or obtain information on voter registration in the State). (C) Use of electronic mail If an election official has an electronic mail address for any voter to whom the official is required to send a written notice under this paragraph, the official may meet the requirements of this paragraph by sending the notice to the voter in electronic form at that address, but only if prior to sending the notice, the official sends a test electronic mail to the voter at that address and receives confirmation that the address is current and valid. . (c) Effective date The amendments made by this section shall apply with respect to elections occurring during 2014 or any succeeding year. 114. Definitions (a) Chief State election official In this subtitle, the chief State election official means, with respect to a State, the individual designated by the State under section 10 of the National Voter Registration Act of 1993 ( 42 U.S.C. 1973gg–8 ) to be responsible for coordination of the State’s responsibilities under such Act. (b) State In this subtitle, a State includes the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, but does not include any State in which, under a State law in effect continuously on and after the date of the enactment of this Act, there is no voter registration requirement for individuals in the State with respect to elections for Federal office. 115. Effective date This subtitle and the amendments made by this subtitle shall apply with respect to the regularly scheduled general election for Federal office held in November 2014 and each succeeding election for Federal office. C Other initiatives To promote voter registration 121. Same day registration (a) In general Title III of the Help America Vote Act of 2002 ( 42 U.S.C. 15481 et seq. ) is amended— (1) by redesignating sections 304 and 305 as sections 305 and 306; and (2) by inserting after section 303 the following new section: 304. Same day registration (a) In general (1) Registration Notwithstanding section 8(a)(1)(D) of the National Voter Registration Act of 1993 ( 42 U.S.C. 1973gg–6 ), each State shall permit any eligible individual on the day of a Federal election and on any day when voting, including early voting, is permitted for a Federal election— (A) to register to vote in such election at the polling place using a form that meets the requirements under section 9(b) of the National Voter Registration Act of 1993 (or, if the individual is already registered to vote, to revise any of the individual’s voter registration information); and (B) to cast a vote in such election. (2) Exception The requirements under paragraph (1) shall not apply to a State in which, under a State law in effect continuously on and after the date of the enactment of this section, there is no voter registration requirement for individuals in the State with respect to elections for Federal office. (b) Eligible individual For purposes of this section, the term eligible individual means, with respect to any election for Federal office, an individual who is otherwise qualified to vote in that election. (c) Effective date Each State shall be required to comply with the requirements of subsection (a) for the regularly scheduled general election for Federal office occurring in November 2014 and for any subsequent election for Federal office. . (b) Conforming amendment relating to enforcement Section 401 of such Act ( 42 U.S.C. 15511 ) is amended by striking sections 301, 302, and 303 and inserting subtitle A of title III . (c) Clerical amendment The table of contents of such Act is amended— (1) by redesignating the items relating to sections 304 and 305 as relating to sections 305 and 306; and (2) by inserting after the item relating to section 303 the following new item: Sec. 304. Same day registration. . 122. Acceptance of voter registration applications from individuals under 18 years of age (a) Acceptance of applications Section 8 of the National Voter Registration Act of 1993 ( 42 U.S.C. 1973gg–6 ), as amended by section 104, is amended— (1) by redesignating subsection (k) as subsection (l); and (2) by inserting after subsection (j) the following new subsection: (k) Acceptance of applications from individuals under 18 years of age (1) In general A State may not refuse to accept or process an individual’s application to register to vote in elections for Federal office on the grounds that the individual is under 18 years of age at the time the individual submits the application, so long as the individual is at least 16 years of age at such time. (2) No effect on State voting age requirements Nothing in paragraph (1) may be construed to require a State to permit an individual who is under 18 years of age at the time of an election for Federal office to vote in the election. . (b) Effective date The amendment made by subsection (a) shall apply with respect to elections occurring on or after January 1, 2014. 123. Annual reports on voter registration statistics (a) Annual report Not later than 90 days after the end of each year, each State shall submit to the Election Assistance Commission and Congress a report containing the following information for the year: (1) The number of individuals who were registered under section 111. (2) The number of voter registration application forms completed by individuals that were transmitted by motor vehicle authorities in the State (pursuant to section 5(d) of the National Voter Registration Act of 1993) and voter registration agencies in the State (as designated under section 7 of such Act) to the chief State election official of the State, broken down by each such authority and agency. (3) The number of such individuals whose voter registration application forms were accepted and who were registered to vote in the State and the number of such individuals whose forms were rejected and who were not registered to vote in the State, broken down by each such authority and agency. (4) The number of change of address forms and other forms of information indicating that an individual’s identifying information has been changed that were transmitted by such motor vehicle authorities and voter registration agencies to the chief State election official of the State, broken down by each such authority and agency and the type of form transmitted. (5) The number of individuals on the Statewide computerized voter registration list (as established and maintained under section 303 of the Help America Vote Act of 2002) whose voter registration information was revised by the chief State election official as a result of the forms transmitted to the official by such motor vehicle authorities and voter registration agencies (as described in paragraph (3)), broken down by each such authority and agency and the type of form transmitted. (6) The number of individuals who requested the chief State election official to revise voter registration information on such list, and the number of individuals whose information was revised as a result of such a request. (b) Confidentiality of information In preparing and submitting a report under this section, the chief State election official shall ensure that no information regarding the identification of any individual is revealed. (c) State defined In this section, a State includes the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, but does not include any State in which, under a State law in effect continuously on and after the date of the enactment of this Act, there is no voter registration requirement for individuals in the State with respect to elections for Federal office. D Availability of HAVA Requirements Payments 131. Availability of requirements payments under HAVA to cover costs of compliance with new requirements (a) In General Section 251(b) of the Help America Vote Act of 2002 ( 42 U.S.C. 15401(b) ) is amended— (1) in paragraph (1), by striking (2) and (3) and inserting (2), (3), and (4) ; and (2) by adding at the end the following new paragraph: (4) Certain voter registration activities A State may use a requirements payment to carry out any of the requirements of the Voter Registration Modernization Act of 2013, including the requirements of the National Voter Registration Act of 1993 which are imposed pursuant to the amendments made to such Act by the Voter Registration Modernization Act of 2013. . (b) Conforming Amendment Section 254(a)(1) of such Act ( 42 U.S.C. 15404(a)(1) ) is amended by striking section 251(a)(2) and inserting section 251(b)(2) . (c) Effective Date The amendments made by this section shall apply with respect to fiscal year 2014 and each succeeding fiscal year. E Prohibiting Interference With Voter Registration 141. Prohibiting hindering, interfering with, or preventing voter registration (a) In general Chapter 29 of title 18, United States Code is amended by adding at the end the following new section: 612. Hindering, interfering with, or preventing registering to vote (a) Prohibition It shall be unlawful for any person, whether acting under color of law or otherwise, to corruptly hinder, interfere with, or prevent another person from registering to vote or aiding another person in registering to vote in any election for Federal office. (b) Attempt Any person who attempts to commit any offense described in subsection (a) shall be subject to the same penalties as those prescribed for the offense that the person attempted to commit. (c) Penalty Any person who violates subsection (a) shall be fined under this title, imprisoned not more than 5 years, or both. (d) Election for Federal Office Defined For purposes of this section, the term election for Federal office means a general, special, primary, or runoff election held to nominate or elect a candidate for the office of President or Vice President, presidential elector, or of Senator or Representative in, or Delegate or Resident Commissioner to, the Congress. . (b) Clerical amendment The table of sections for chapter 29 of title 18, United States Code is amended by adding at the end the following new item: 612. Hindering, interfering with, or preventing registering to vote. . (c) Effective Date The amendments made by this section shall apply with respect to elections held on or after the date of the enactment of this Act, except that no person may be found to have violated section 612 of title 18, United States Code (as added by subsection (a)) on the basis of any act occurring prior to the date of the enactment of this Act. 142. Establishment of best practices (a) Best practices Not later than 180 days after the date of the enactment of this Act, the Election Assistance Commission shall develop and publish recommendations for best practices for States to use to deter and prevent violations of section 612 of title 18, United States Code (as added by section 141) and section 12 of the National Voter Registration Act of 1993 ( 42 U.S.C. 1973gg–10 ) (relating to the unlawful interference with registering to vote, or voting, or attempting to register to vote or vote), including practices to provide for the posting of relevant information at polling places and voter registration agencies under such Act, the training of poll workers and election officials, and relevant educational materials. For purposes of this subsection, the term State includes the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands. (b) Inclusion in voter information requirements Section 302(b)(2) of the Help America Vote Act of 2002 ( 42 U.S.C. 15482(b)(2) ) is amended— (1) by striking and at the end of subparagraph (E); (2) by striking the period at the end of subparagraph (F) and inserting ; and ; and (3) by adding at the end the following new subparagraph: (G) information relating to the prohibitions of section 612 of title 18, United States Code, and section 12 of the National Voter Registration Act of 1993 ( 42 U.S.C. 1973gg–10 ) (relating to the unlawful interference with registering to vote, or voting, or attempting to register to vote or vote), including information on how individuals may report allegations of violations of such prohibitions. . II Access to Voting for Individuals With Disabilities 201. Requirements for States to promote access to voter registration and voting for individuals with disabilities (a) Requirements Subtitle A of title III of the Help America Vote Act of 2002 ( 42 U.S.C. 15481 et seq. ), as amended by section 114, is amended— (1) by redesignating sections 305 and 306 as sections 306 and 307; and (2) by inserting after section 304 the following new section: 305. Access to voter registration and voting for individuals with disabilities (a) Treatment of applications and ballots Each State shall— (1) permit individuals with disabilities to use absentee registration procedures and to vote by absentee ballot in elections for Federal office; (2) accept and process, with respect to any election for Federal office, any otherwise valid voter registration application and absentee ballot application from an individual with a disability if the application is received by the appropriate State election official not less than 30 days before the election; (3) in addition to any other method of registering to vote or applying for an absentee ballot in the State, establish procedures— (A) for individuals with disabilities to request by mail and electronically voter registration applications and absentee ballot applications with respect to elections for Federal office in accordance with subsection (c); (B) for States to send by mail and electronically (in accordance with the preferred method of transmission designated by the individual under subparagraph (C)) voter registration applications and absentee ballot applications requested under subparagraph (A) in accordance with subsection (c); and (C) by which such an individual can designate whether the individual prefers that such voter registration application or absentee ballot application be transmitted by mail or electronically; (4) in addition to any other method of transmitting blank absentee ballots in the State, establish procedures for transmitting by mail and electronically blank absentee ballots to individuals with disabilities with respect to elections for Federal office in accordance with subsection (d); (5) transmit a validly requested absentee ballot to an individual with a disability— (A) except as provided in subsection (e), in the case in which the request is received at least 45 days before an election for Federal office, not later than 45 days before the election; and (B) in the case in which the request is received less than 45 days before an election for Federal office— (i) in accordance with State law; and (ii) if practicable and as determined appropriate by the State, in a manner that expedites the transmission of such absentee ballot; and (6) if the State declares or otherwise holds a runoff election for Federal office, establish a written plan that provides absentee ballots are made available to individuals with disabilities in a manner that gives them sufficient time to vote in the runoff election. (b) Designation of single State office To Provide Information on Registration and Absentee Ballot Procedures for All Disabled Voters in State Each State shall designate a single office which shall be responsible for providing information regarding voter registration procedures and absentee ballot procedures to be used by individuals with disabilities with respect to elections for Federal office to all individuals with disabilities who wish to register to vote or vote in any jurisdiction in the State. (c) Designation of Means of Electronic Communication for Individuals with Disabilities To Request and for States To Send Voter Registration Applications and Absentee Ballot Applications, and for Other Purposes Related to Voting Information (1) In general Each State shall, in addition to the designation of a single State office under subsection (b), designate not less than 1 means of electronic communication— (A) for use by individuals with disabilities who wish to register to vote or vote in any jurisdiction in the State to request voter registration applications and absentee ballot applications under subsection (a)(3); (B) for use by States to send voter registration applications and absentee ballot applications requested under such subsection; and (C) for the purpose of providing related voting, balloting, and election information to individuals with disabilities. (2) Clarification regarding provision of multiple means of electronic communication A State may, in addition to the means of electronic communication so designated, provide multiple means of electronic communication to individuals with disabilities, including a means of electronic communication for the appropriate jurisdiction of the State. (3) Inclusion of designated means of electronic communication with informational and instructional materials that accompany balloting materials Each State shall include a means of electronic communication so designated with all informational and instructional materials that accompany balloting materials sent by the State to individuals with disabilities. (4) Transmission if no preference indicated In the case where an individual with a disability does not designate a preference under subsection (a)(3)(C), the State shall transmit the voter registration application or absentee ballot application by any delivery method allowable in accordance with applicable State law, or if there is no applicable State law, by mail. (d) Transmission of blank absentee ballots by mail and electronically (1) In general Each State shall establish procedures— (A) to transmit blank absentee ballots by mail and electronically (in accordance with the preferred method of transmission designated by the individual with a disability under subparagraph (B)) to individuals with disabilities for an election for Federal office; and (B) by which the individual with a disability can designate whether the individual prefers that such blank absentee ballot be transmitted by mail or electronically. (2) Transmission if no preference indicated In the case where an individual with a disability does not designate a preference under paragraph (1)(B), the State shall transmit the ballot by any delivery method allowable in accordance with applicable State law, or if there is no applicable State law, by mail. (e) Hardship Exemption (1) In general If the chief State election official determines that the State is unable to meet the requirement under subsection (a)(5)(A) with respect to an election for Federal office due to an undue hardship described in paragraph (2)(B), the chief State election official shall request that the Attorney General grant a waiver to the State of the application of such subsection. Such request shall include— (A) a recognition that the purpose of such subsection is to individuals with disabilities enough time to vote in an election for Federal office; (B) an explanation of the hardship that indicates why the State is unable to transmit such individuals an absentee ballot in accordance with such subsection; (C) the number of days prior to the election for Federal office that the State requires absentee ballots be transmitted to such individuals; and (D) a comprehensive plan to ensure that such individuals are able to receive absentee ballots which they have requested and submit marked absentee ballots to the appropriate State election official in time to have that ballot counted in the election for Federal office, which includes— (i) the steps the State will undertake to ensure that such individuals have time to receive, mark, and submit their ballots in time to have those ballots counted in the election; (ii) why the plan provides such individuals sufficient time to vote as a substitute for the requirements under such subsection; and (iii) the underlying factual information which explains how the plan provides such sufficient time to vote as a substitute for such requirements. (2) Approval of waiver request The Attorney General shall approve a waiver request under paragraph (1) if the Attorney General determines each of the following requirements are met: (A) The comprehensive plan under subparagraph (D) of such paragraph provides individuals with disabilities sufficient time to receive absentee ballots they have requested and submit marked absentee ballots to the appropriate State election official in time to have that ballot counted in the election for Federal office. (B) One or more of the following issues creates an undue hardship for the State: (i) The State's primary election date prohibits the State from complying with subsection (a)(5)(A). (ii) The State has suffered a delay in generating ballots due to a legal contest. (iii) The State Constitution prohibits the State from complying with such subsection. (3) Timing of waiver (A) In general Except as provided under subparagraph (B), a State that requests a waiver under paragraph (1) shall submit to the Attorney General the written waiver request not later than 90 days before the election for Federal office with respect to which the request is submitted. The Attorney General shall approve or deny the waiver request not later than 65 days before such election. (B) Exception If a State requests a waiver under paragraph (1) as the result of an undue hardship described in paragraph (2)(B)(ii), the State shall submit to the Attorney General the written waiver request as soon as practicable. The Attorney General shall approve or deny the waiver request not later than 5 business days after the date on which the request is received. (4) Application of waiver A waiver approved under paragraph (2) shall only apply with respect to the election for Federal office for which the request was submitted. For each subsequent election for Federal office, the Attorney General shall only approve a waiver if the State has submitted a request under paragraph (1) with respect to such election. (f) Individual with a disability defined In this section, an individual with a disability means an individual with an impairment that substantially limits any major life activities and who is otherwise qualified to vote in elections for Federal office. (g) Effective date This section shall apply with respect to elections for Federal office held on or after January 1, 2014. . (b) Conforming amendment relating to issuance of voluntary guidance by election assistance commission Section 311(b) of such Act ( 42 U.S.C. 15501(b) ) is amended— (1) by striking and at the end of paragraph (2); (2) by striking the period at the end of paragraph (3) and inserting ; and ; and (3) by adding at the end the following new paragraph: (4) in the case of the recommendations with respect to section 305, January 1, 2014. . (c) Clerical amendment The table of contents of such Act, as amended by section 114(c), is amended— (1) by redesignating the items relating to sections 305 and 306 as relating to sections 306 and 307; and (2) by inserting after the item relating to section 304 the following new item: Sec. 305. Access to voter registration and voting for individuals with disabilities. . 202. Pilot programs for enabling individuals with disabilities to register to vote and vote privately and independently at residences (a) Establishment of pilot programs The Election Assistance Commission (hereafter referred to as the Commission ) shall make grants to eligible States to conduct pilot programs under which— (1) individuals with disabilities may use electronic means (including the Internet and telephones utilizing assistive devices) to register to vote and to request and receive absentee ballots, in a manner which permits such individuals to do so privately and independently at their own residences; and (2) individuals with disabilities may use the telephone to cast ballots electronically from their own residences, but only if the telephone used is not connected to the Internet. (b) Reports (1) In general A State receiving a grant for a year under this section shall submit a report to the Commission on the pilot programs the State carried out with the grant with respect to elections for public office held in the State during the year. (2) Deadline A State shall submit a report under paragraph (1) not later than 90 days after the last election for public office held in the State during the year. (c) Eligibility A State is eligible to receive a grant under this section if the State submits to the Commission, at such time and in such form as the Commission may require, an application containing such information and assurances as the Commission may require. (d) Timing The Commission shall make the first grants under this section for pilot programs which will be in effect with respect to elections for Federal office held in 2014, or, at the option of a State, with respect to other elections for public office held in the State in 2014. (e) Authorization of appropriations There is authorized to be appropriated for grants for pilot programs under this section $30,000,000 for fiscal year 2014 and each succeeding fiscal year. (f) State defined In this section, the term State includes the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands. 203. Expansion and reauthorization of grant program to assure voting access for individuals with disabilities (a) Purposes of payments Section 261(b) of the Help America Vote Act of 2002 ( 42 U.S.C. 15421(b) ) is amended by striking paragraphs (1) and (2) and inserting the following: (1) making absentee voting and voting at home accessible to individuals with the full range of disabilities (including impairments involving vision, hearing, mobility, or dexterity) through the implementation of accessible absentee voting systems that work in conjunction with assistive technologies for which individuals have access at their homes, independent living centers, or other facilities; (2) making polling places, including the path of travel, entrances, exits, and voting areas of each polling facility, accessible to individuals with disabilities, including the blind and visually impaired, in a manner that provides the same opportunity for access and participation (including privacy and independence) as for other voters; and (3) providing solutions to problems of access to voting and elections for individuals with disabilities that are universally designed and provide the same opportunities for individuals with and without disabilities. . (b) Reauthorization Section 264(a) of such Act ( 42 U.S.C. 15424(a) ) is amended by adding at the end the following new paragraph: (4) For fiscal year 2014 and each succeeding fiscal year, such sums as may be necessary to carry out this part. . (c) Period of availability of funds Section 264 of such Act ( 42 U.S.C. 15424 ) is amended— (1) in subsection (b), by striking Any amounts and inserting Except as provided in subsection (b), any amounts ; and (2) by adding at the end the following new subsection: (c) Return and transfer of certain funds (1) Deadline for obligation and expenditure In the case of any amounts appropriated pursuant to the authority of subsection (a) for a payment to a State or unit of local government for fiscal year 2014 or any succeeding fiscal year, any portion of such amounts which have not been obligated or expended by the State or unit of local government prior to the expiration of the 4-year period which begins on the date the State or unit of local government first received the amounts shall be transferred to the Commission. (2) Reallocation of transferred amounts (A) In general The Commission shall use the amounts transferred under paragraph (1) to make payments on a pro rata basis to each covered payment recipient described in subparagraph (B), which may obligate and expend such payment for the purposes described in section 261(b) during the 1-year period which begins on the date of receipt. (B) Covered payment recipients described In subparagraph (A), a covered payment recipient is a State or unit of local government with respect to which— (i) amounts were appropriated pursuant to the authority of subsection (a); and (ii) no amounts were transferred to the Commission under paragraph (1). . III Prohibiting Voter Caging 301. Voter caging and other questionable challenges prohibited (a) In General Chapter 29 of title 18, United States Code, as amended by section 141(a), is amended by adding at the end the following: 613. Voter caging and other questionable challenges (a) Definitions In this section— (1) the term voter caging document means— (A) a nonforwardable document that is returned to the sender or a third party as undelivered or undeliverable despite an attempt to deliver such document to the address of a registered voter or applicant; or (B) any document with instructions to an addressee that the document be returned to the sender or a third party but is not so returned, despite an attempt to deliver such document to the address of a registered voter or applicant, unless at least two Federal election cycles have passed since the date of the attempted delivery; (2) the term voter caging list means a list of individuals compiled from voter caging documents; and (3) the term unverified match list means a list produced by matching the information of registered voters or applicants for voter registration to a list of individuals who are ineligible to vote in the registrar’s jurisdiction, by virtue of death, conviction, change of address, or otherwise; unless one of the pieces of information matched includes a signature, photograph, or unique identifying number ensuring that the information from each source refers to the same individual. (b) Prohibition Against Voter Caging No State or local election official shall prevent an individual from registering or voting in any election for Federal office, or permit in connection with any election for Federal office a formal challenge under State law to an individual’s registration status or eligibility to vote, if the basis for such decision is evidence consisting of— (1) a voter caging document or voter caging list; (2) an unverified match list; (3) an error or omission on any record or paper relating to any application, registration, or other act requisite to voting, if such error or omission is not material to an individual’s eligibility to vote under section 2004 of the Revised Statutes, as amended ( 42 U.S.C. 1971(a)(2)(B) ); or (4) any other evidence so designated for purposes of this section by the Election Assistance Commission, except that the election official may use such evidence if it is corroborated by independent evidence of the individual’s ineligibility to register or vote. (c) Requirements For Challenges by Persons Other Than Election Officials No person, other than a State or local election official, shall submit a formal challenge to an individual’s eligibility to register to vote in an election for Federal office or to vote in an election for Federal office unless that challenge is supported by personal knowledge regarding the grounds for ineligibility which is— (1) documented in writing; and (2) subject to an oath or attestation under penalty of perjury that the challenger has a good faith factual basis to believe that the individual who is the subject of the challenge is ineligible to register to vote or vote in that election. (d) Penalties for Knowing Misconduct Whoever knowingly challenges the eligibility of one or more individuals to register or vote or knowingly causes the eligibility of such individuals to be challenged in violation of this section with the intent that one or more eligible voters be disqualified, shall be fined under this title or imprisoned not more than 1 year, or both, for each such violation. Each violation shall be a separate offense. (e) No Effect on Related Laws Nothing in this section is intended to override the protections of the National Voter Registration Act of 1993 ( 42 U.S.C. 1973gg et seq. ) or to affect the Voting Rights Act of 1965 ( 42 U.S.C. 1973 et seq. ). . (b) Clerical Amendment The table of sections for chapter 29 of title 18, United States Code, as amended by section 141(b), is amended by adding at the end the following: 613. Voter caging and other questionable challenges. . 302. Development and adoption of best practices for preventing voter caging (a) Best practices Not later than 180 days after the date of the enactment of this Act, the Election Assistance Commission shall develop and publish for the use of States recommendations for best practices to deter and prevent violations of section 613 of title 18, United States Code, as added by section 301(a), including practices to provide for the posting of relevant information at polling places and voter registration agencies, the training of poll workers and election officials, and relevant educational measures. For purposes of this subsection, the term State includes the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands. (b) Inclusion in voting information requirements Section 302(b)(2) of the Help America Vote Act of 2002 ( 42 U.S.C. 15482(b)(2) ), as amended by section 141(b), is amended— (1) by striking and at the end of subparagraph (F); (2) by striking the period at the end of subparagraph (G) and inserting ; and ; and (3) by adding at the end the following new subparagraph: (H) information relating to the prohibition against voter caging and other questionable challenges (as set forth in section 613 of title 18, United States Code), including information on how individuals may report allegations of violations of such prohibition. . 303. Severability If any provision of this title or any amendment made by this title, or the application of a provision to any person or circumstance, is held to be unconstitutional, the remainder of this title and the amendments made by this title, and the application of the provisions to any person or circumstance, shall not be affected by the holding. IV Prohibiting Deceptive Practices 401. Prohibition on deceptive practices in Federal elections (a) In General Chapter 29 of title 18, United States Code, as amended by section 141(a) and section 301(a), is amended by adding at the end the following: 614. False election-related information in Federal elections (a) A person, including an election official, who in any election for Federal office knowingly and willfully deprives, defrauds, or attempts to deprive or defraud the residents of a State of their free and fair exercise of the right to vote by the communication of election-related information that is known by the person to be materially false, fictitious, or fraudulent shall be fined under this title or imprisoned not more than 1 year, or both. (b) As used in this section— (1) the term election for Federal office means any general, primary, runoff, or special election for the office of President, Vice President, presidential elector, Member of the Senate, Member of the House of Representatives, or Delegate or Resident Commissioner to the Congress; and (2) the term election-related information means any oral or written communication regarding— (A) the time or place of an election for Federal office; (B) criminal penalties associated with voting in such an election; (C) an individual’s voter registration status or eligibility to vote in such an election; or (D) the explicit endorsement by any person or organization of a candidate in such an election. . (b) Clerical amendment The table of sections for chapter 29 of title 18, United States Code, as amended by section 141(b) and section 301(b), is amended by adding at the end the following new item: 614. False election-related information in Federal elections. . 402. Modification of penalty for voter intimidation Section 594 of title 18, United States Code, is amended by striking one year and inserting 5 years . 403. Sentencing guidelines (a) Review and amendment Not later than 90 days after the date of enactment of this Act, the United States Sentencing Commission, pursuant to its authority under section 994 of title 28, United States Code, and in accordance with this section, shall review and, if appropriate, amend the Federal sentencing guidelines and policy statements applicable to persons convicted of any offense under any sections of title 18, United States Code, that are added or modified by this Act. (b) Authorization The United States Sentencing Commission may, for the purposes of the amendments made pursuant to this title, amend the Federal sentencing guidelines in accordance with the procedures set forth in section 21(a) of the Sentencing Act of 1987 ( 28 U.S.C. 994 note) as though the authority under that section had not expired. 404. Reporting violations; corrective action (a) Reporting Any person may submit a report to the Attorney General regarding any violation or possible violation of section 594 or section 614 of title 18, United States Code (as added by section 401(a)). (b) Corrective action (1) In general Immediately after receiving a report under subsection (a), the Attorney General shall consider and review the report, and if the Attorney General determines that there is a reasonable basis to find that a violation included in the report has occurred, the Attorney General shall— (A) undertake all effective measures necessary to provide correct information to voters affected by the false information; and (B) refer the matter to the appropriate Federal and State authorities for criminal prosecution or civil action after the election involved. (2) Regulations The Attorney General shall promulgate regulations regarding the methods and means of corrective actions to be taken under paragraph (1). Such regulations shall be developed in consultation with the Election Assistance Commission, civil rights organizations, voting rights groups, State and local election officials, voter protection groups, and other interested community organizations. (3) Study and report on methods of disseminating corrective information (A) In general The Attorney General, in consultation with the Federal Communications Commission and the Election Assistance Commission, shall conduct a study on the feasibility of providing the corrective information under paragraph (1) through public service announcements, the emergency alert system, or other forms of public broadcast. (B) Report Not later than 180 days after the date of the enactment of this Act, the Attorney General shall submit to Congress a report detailing the results of the study conducted under subparagraph (A). (4) Publicizing availability of remedies The Attorney General shall make public through the Internet, radio, television, and newspaper advertisements information on the responsibilities, contact information, and complaint procedures applicable under this section. (c) Reports to Congress (1) In general Not later than 90 days after any election with respect to which a report has been submitted under subsection (a), the Attorney General shall submit to Congress a report compiling all such reports submitted under subsection (a) with respect to that election. (2) Contents (A) In general Each report submitted under paragraph (1) shall include— (i) detailed information on specific allegations; (ii) statistical compilations of how many allegations were made and of what type; (iii) the geographic locations of and the populations affected by the alleged violations; (iv) the status of the investigations of such allegations; (v) any corrective actions taken in response to such allegations; (vi) the rationale used for any corrective actions or for any refusal to pursue an allegation; (vii) the effectiveness of any such corrective actions; (viii) whether a Voting Integrity Task Force was established with respect to such election, and, if so, how such task force was staffed and funded; (ix) any referrals of information to other Federal, State, or local agencies; and (x) any criminal prosecution instituted under title 18, United States Code, in connection with such allegations. (3) Report made public On the date that the Attorney General submits the report under paragraph (1), the Attorney General shall also make the report publicly available through the Internet and other appropriate means. (d) Delegation of duties (1) Use of voting integrity task force The Attorney General shall delegate the responsibilities under this section with respect to a particular election to a Voting Integrity Task Force established by the Attorney General for such purpose. (2) Composition A Voting Integrity Task Force established under paragraph (1) shall be under the direction of the Assistant Attorney General for the Civil Rights Division and the Assistant Attorney General for the Criminal Division, acting jointly. V Democracy Restoration 501. Rights of citizens The right of an individual who is a citizen of the United States to vote in any election for Federal office shall not be denied or abridged because that individual has been convicted of a criminal offense unless such individual is serving a felony sentence in a correctional institution or facility at the time of the election. 502. Enforcement (a) Attorney general The Attorney General may, in a civil action, obtain such declaratory or injunctive relief as is necessary to remedy a violation of this title. (b) Private right of action (1) A person who is aggrieved by a violation of this title may provide written notice of the violation to the chief election official of the State involved. (2) Except as provided in paragraph (3), if the violation is not corrected within 90 days after receipt of a notice under paragraph (1), or within 20 days after receipt of the notice if the violation occurred within 120 days before the date of an election for Federal office, the aggrieved person may, in a civil action, obtain declaratory or injunctive relief with respect to the violation. (3) If the violation occurred within 30 days before the date of an election for Federal office, the aggrieved person need not provide notice to the chief election official of the State under paragraph (1) before bringing a civil action to obtain declaratory or injunctive relief with respect to the violation. 503. Notification of restoration of voting rights (a) State notification (1) Notification On the date determined under paragraph (2), each State shall notify in writing any individual who has been convicted of a criminal offense under the law of that State that such individual has the right to vote in an election for Federal office pursuant to this title and may register to vote in any such election. (2) Date of notification (A) Felony conviction In the case of such an individual who has been convicted of a felony, the notification required under paragraph (1) shall be given on the date on which the individual— (i) is sentenced to serve only a term of probation; or (ii) is released from the custody of that State (other than to the custody of another State or the Federal Government to serve a term of imprisonment for a felony conviction). (B) Misdemeanor conviction In the case of such an individual who has been convicted of a misdemeanor, the notification required under paragraph (1) shall be given on the date on which such individual is sentenced by a State court. (b) Federal notification (1) Notification On the date determined under paragraph (2), the Director of the Bureau of Prisons shall notify in writing any individual who has been convicted of a criminal offense under Federal law that such individual has the right to vote in an election for Federal office pursuant to this title and may register to vote in any such election. (2) Date of notification (A) Felony conviction In the case of such an individual who has been convicted of a felony, the notification required under paragraph (1) shall be given on the date on which the individual— (i) is sentenced to serve only a term of probation by a court established by an Act of Congress; or (ii) is released from the custody of the Bureau of Prisons (other than to the custody of a State to serve a term of imprisonment for a felony conviction). (B) Misdemeanor conviction In the case of such an individual who has been convicted of a misdemeanor, the notification required under paragraph (1) shall be given on the date on which such individual is sentenced by a State court. 504. Definitions For purposes of this title: (1) Correctional institution or facility The term correctional institution or facility means any prison, penitentiary, jail, or other institution or facility for the confinement of individuals convicted of criminal offenses, whether publicly or privately operated, except that such term does not include any residential community treatment center (or similar public or private facility). (2) Election The term election means— (A) a general, special, primary, or runoff election; (B) a convention or caucus of a political party held to nominate a candidate; (C) a primary election held for the selection of delegates to a national nominating convention of a political party; or (D) a primary election held for the expression of a preference for the nomination of persons for election to the office of President. (3) Federal office The term Federal office means the office of President or Vice President of the United States, or of Senator or Representative in, or Delegate or Resident Commissioner to, the Congress of the United States. (4) Probation The term probation means probation, imposed by a Federal, State, or local court, with or without a condition on the individual involved concerning— (A) the individual’s freedom of movement; (B) the payment of damages by the individual; (C) periodic reporting by the individual to an officer of the court; or (D) supervision of the individual by an officer of the court. 505. Relation to other laws (a) State laws relating to voting rights Nothing in this title shall be construed to prohibit the States from enacting any State law which affords the right to vote in any election for Federal office on terms less restrictive than those established by this title. (b) Certain Federal Acts The rights and remedies established by this title are in addition to all other rights and remedies provided by law, and neither rights and remedies established by this title shall supersede, restrict, or limit the application of the Voting Rights Act of 1965 ( 42 U.S.C. 1973 et seq. ) or the National Voter Registration Act ( 42 U.S.C. 1973gg ). 506. Federal prison funds No State, unit of local government, or other person may receive or use, to construct or otherwise improve a prison, jail, or other place of incarceration, any Federal grant amounts unless that person has in effect a program under which each individual incarcerated in that person’s jurisdiction who is a citizen of the United States is notified, upon release from such incarceration, of that individual’s rights under section 501. 507. Effective date This title shall apply to citizens of the United States voting in any election for Federal office held after the date of the enactment of this Act. VI Accuracy, Integrity, and Security of Elections 600. Short title This title may be cited as the Voter Confidence and Increased Accessibility Act of 2013 . A Promoting accuracy, integrity, and security through voter-Verified permanent paper ballot 601. Paper ballot and manual counting requirements (a) In general Section 301(a)(2) of the Help America Vote Act of 2002 ( 42 U.S.C. 15481(a)(2) ) is amended to read as follows: (2) Paper ballot requirement (A) Voter-verified paper ballots (i) Paper ballot requirement (I) The voting system shall require the use of an individual, durable, voter-verified, paper ballot of the voter’s vote that shall be marked and made available for inspection and verification by the voter before the voter’s vote is cast and counted, and which shall be counted by hand or read by an optical character recognition device or other counting device. For purposes of this subclause, the term individual, durable, voter-verified, paper ballot means a paper ballot marked by the voter by hand or a paper ballot marked through the use of a nontabulating ballot marking device or system, so long as the voter shall have the option to mark his or her ballot by hand. (II) The voting system shall provide the voter with an opportunity to correct any error on the paper ballot before the permanent voter-verified paper ballot is preserved in accordance with clause (ii). (III) The voting system shall not preserve the voter-verified paper ballots in any manner that makes it possible, at any time after the ballot has been cast, to associate a voter with the record of the voter’s vote without the voter’s consent. (ii) Preservation as official record The individual, durable, voter-verified, paper ballot used in accordance with clause (i) shall constitute the official ballot and shall be preserved and used as the official ballot for purposes of any recount or audit conducted with respect to any election for Federal office in which the voting system is used. (iii) Manual counting requirements for recounts and audits (I) Each paper ballot used pursuant to clause (i) shall be suitable for a manual audit, and shall be counted by hand in any recount or audit conducted with respect to any election for Federal office. (II) In the event of any inconsistencies or irregularities between any electronic vote tallies and the vote tallies determined by counting by hand the individual, durable, voter-verified, paper ballots used pursuant to clause (i), and subject to subparagraph (B), the individual, durable, voter-verified, paper ballots shall be the true and correct record of the votes cast. (iv) Application to all ballots The requirements of this subparagraph shall apply to all ballots cast in elections for Federal office, including ballots cast by absent uniformed services voters and overseas voters under the Uniformed and Overseas Citizens Absentee Voting Act and other absentee voters. (B) Special rule for treatment of disputes when paper ballots have been shown to be compromised (i) In general In the event that— (I) there is any inconsistency between any electronic vote tallies and the vote tallies determined by counting by hand the individual, durable, voter-verified, paper ballots used pursuant to subparagraph (A)(i) with respect to any election for Federal office; and (II) it is demonstrated by clear and convincing evidence (as determined in accordance with the applicable standards in the jurisdiction involved) in any recount, audit, or contest of the result of the election that the paper ballots have been compromised (by damage or mischief or otherwise) and that a sufficient number of the ballots have been so compromised that the result of the election could be changed, the determination of the appropriate remedy with respect to the election shall be made in accordance with applicable State law, except that the electronic tally shall not be used as the exclusive basis for determining the official certified result. (ii) Rule for consideration of ballots associated with each voting machine For purposes of clause (i), only the paper ballots deemed compromised, if any, shall be considered in the calculation of whether or not the result of the election could be changed due to the compromised paper ballots. . (b) Conforming amendment clarifying applicability of alternative language accessibility Section 301(a)(4) of such Act ( 42 U.S.C. 15481(a)(4) ) is amended by inserting (including the paper ballots required to be used under paragraph (2)) after voting system . (c) Other conforming amendments Section 301(a)(1) of such Act ( 42 U.S.C. 15481(a)(1) ) is amended— (1) in subparagraph (A)(i), by striking counted and inserting counted, in accordance with paragraphs (2) and (3) ; (2) in subparagraph (A)(ii), by striking counted and inserting counted, in accordance with paragraphs (2) and (3) ; (3) in subparagraph (A)(iii), by striking counted each place it appears and inserting counted, in accordance with paragraphs (2) and (3) ; and (4) in subparagraph (B)(ii), by striking counted and inserting counted, in accordance with paragraphs (2) and (3) . 602. Accessibility and ballot verification for individuals with disabilities (a) In general Section 301(a)(3)(B) of the Help America Vote Act of 2002 ( 42 U.S.C. 15481(a)(3)(B) ) is amended to read as follows: (B) (i) satisfy the requirement of subparagraph (A) through the use of at least one voting system equipped for individuals with disabilities, including nonvisual and enhanced visual accessibility for the blind and visually impaired, and nonmanual and enhanced manual accessibility for the mobility and dexterity impaired, at each polling place; and (ii) meet the requirements of subparagraph (A) and paragraph (2)(A) by using a system that— (I) allows the voter to privately and independently verify the permanent paper ballot through the presentation, in accessible form, of the printed or marked vote selections from the same printed or marked information that would be used for any vote counting or auditing; and (II) allows the voter to privately and independently verify and cast the permanent paper ballot without requiring the voter to manually handle the paper ballot; and . (b) Specific requirement of study, testing, and development of accessible paper ballot verification mechanisms (1) Study and reporting Subtitle C of title II of such Act ( 42 U.S.C. 15381 et seq. ) is amended— (A) by redesignating section 247 as section 248; and (B) by inserting after section 246 the following new section: 247. Study and report on accessible paper ballot verification mechanisms (a) Study and Report The Director of the National Science Foundation shall make grants to not fewer than 3 eligible entities to study, test, and develop accessible paper ballot voting, verification, and casting mechanisms and devices and best practices to enhance the accessibility of paper ballot voting and verification mechanisms for individuals with disabilities, for voters whose primary language is not English, and for voters with difficulties in literacy, including best practices for the mechanisms themselves and the processes through which the mechanisms are used. (b) Eligibility An entity is eligible to receive a grant under this part if it submits to the Director (at such time and in such form as the Director may require) an application containing— (1) certifications that the entity shall specifically investigate enhanced methods or devices, including non-electronic devices, that will assist such individuals and voters in marking voter-verified paper ballots and presenting or transmitting the information printed or marked on such ballots back to such individuals and voters, and casting such ballots; (2) a certification that the entity shall complete the activities carried out with the grant not later than December 31, 2014; and (3) such other information and certifications as the Director may require. (c) Availability of Technology Any technology developed with the grants made under this section shall be treated as non-proprietary and shall be made available to the public, including to manufacturers of voting systems. (d) Coordination With Grants for Technology Improvements The Director shall carry out this section so that the activities carried out with the grants made under subsection (a) are coordinated with the research conducted under the grant program carried out by the Commission under section 271, to the extent that the Director and Commission determine necessary to provide for the advancement of accessible voting technology. (e) Authorization of Appropriations There is authorized to be appropriated to carry out subsection (a) $5,000,000, to remain available until expended. . (2) Clerical amendment The table of contents of such Act is amended— (A) by redesignating the item relating to section 247 as relating to section 248; and (B) by inserting after the item relating to section 246 the following new item: Sec. 247. Study and report on accessible paper ballot verification mechanisms. . (c) Clarification of accessibility standards under voluntary voting system guidance In adopting any voluntary guidance under subtitle B of title III of the Help America Vote Act with respect to the accessibility of the paper ballot verification requirements for individuals with disabilities, the Election Assistance Commission shall include and apply the same accessibility standards applicable under the voluntary guidance adopted for accessible voting systems under such subtitle. (d) Permitting Use of Funds for Protection and Advocacy Systems To Support Actions To Enforce Election-Related Disability Access Section 292(a) of the Help America Vote Act of 2002 ( 42 U.S.C. 15462(a) ) is amended by striking ; except that and all that follows and inserting a period. 603. Additional voting system requirements (a) Requirements described Section 301(a) of the Help America Vote Act of 2002 ( 42 U.S.C. 15481(a) ) is amended by adding at the end the following new paragraphs: (7) Prohibiting use of uncertified election-dedicated voting system technologies; disclosure requirements (A) In general A voting system used in an election for Federal office in a State may not at any time during the election contain or use any election-dedicated voting system technology— (i) which has not been certified by the State for use in the election; and (ii) which has not been deposited with an accredited laboratory described in section 231 to be held in escrow and disclosed in accordance with this section. (B) Requirement for disclosure and limitation on restricting disclosure An accredited laboratory under section 231 with whom an election-dedicated voting system technology has been deposited shall— (i) hold the technology in escrow; and (ii) disclose technology and information regarding the technology to another person if— (I) the person is a qualified person described in subparagraph (C) who has entered into a nondisclosure agreement with respect to the technology which meets the requirements of subparagraph (D); or (II) the laboratory is permitted or required to disclose the technology to the person under State law, in accordance with the terms and conditions applicable under such law. (C) Qualified persons described With respect to the disclosure of election-dedicated voting system technology by a laboratory under subparagraph (B)(ii)(I), a qualified person is any of the following: (i) A governmental entity with responsibility for the administration of voting and election-related matters for purposes of reviewing, analyzing, or reporting on the technology. (ii) A party to pre- or post-election litigation challenging the result of an election or the administration or use of the technology used in an election, including but not limited to election contests or challenges to the certification of the technology, or an expert for a party to such litigation, for purposes of reviewing or analyzing the technology to support or oppose the litigation, and all parties to the litigation shall have access to the technology for such purposes. (iii) A person not described in clause (i) or (ii) who reviews, analyzes, or reports on the technology solely for an academic, scientific, technological, or other investigation or inquiry concerning the accuracy or integrity of the technology. (D) Requirements for nondisclosure agreements A nondisclosure agreement entered into with respect to an election-dedicated voting system technology meets the requirements of this subparagraph if the agreement— (i) is limited in scope to coverage of the technology disclosed under subparagraph (B) and any trade secrets and intellectual property rights related thereto; (ii) does not prohibit a signatory from entering into other nondisclosure agreements to review other technologies under this paragraph; (iii) exempts from coverage any information the signatory lawfully obtained from another source or any information in the public domain; (iv) remains in effect for not longer than the life of any trade secret or other intellectual property right related thereto; (v) prohibits the use of injunctions barring a signatory from carrying out any activity authorized under subparagraph (C), including injunctions limited to the period prior to a trial involving the technology; (vi) is silent as to damages awarded for breach of the agreement, other than a reference to damages available under applicable law; (vii) allows disclosure of evidence of crime, including in response to a subpoena or warrant; (viii) allows the signatory to perform analyses on the technology (including by executing the technology), disclose reports and analyses that describe operational issues pertaining to the technology (including vulnerabilities to tampering, errors, risks associated with use, failures as a result of use, and other problems), and describe or explain why or how a voting system failed or otherwise did not perform as intended; and (ix) provides that the agreement shall be governed by the trade secret laws of the applicable State. (E) Election-dedicated voting system technology defined For purposes of this paragraph: (i) In general The term election-dedicated voting system technology means the following: (I) The source code used for the trusted build and its file signatures. (II) A complete disk image of the pre-build, build environment, and any file signatures to validate that it is unmodified. (III) A complete disk image of the post-build, build environment, and any file signatures to validate that it is unmodified. (IV) All executable code produced by the trusted build and any file signatures to validate that it is unmodified. (V) Installation devices and software file signatures. (ii) Exclusion Such term does not include commercial-off-the-shelf software and hardware defined under the 2005 voluntary voting system guidelines adopted by the Commission under section 222. (8) Prohibition of use of wireless communications devices in systems or devices No system or device upon which ballots are programmed or votes are cast or tabulated shall contain, use, or be accessible by any wireless, power-line, or concealed communication device, except that enclosed infrared communications devices which are certified for use in such device by the State and which cannot be used for any remote or wide area communications or used without the knowledge of poll workers shall be permitted. (9) Prohibiting connection of system to the internet (A) In general No system or device upon which ballots are programmed or votes are cast or tabulated shall be connected to the Internet at any time. (B) Rule of construction Nothing contained in this paragraph shall be deemed to prohibit the Commission from conducting the studies under section 242 or to conduct other similar studies under any other provision of law in a manner consistent with this paragraph. (10) Security standards for voting systems used in Federal elections (A) In general No voting system may be used in an election for Federal office unless the manufacturer of such system and the election officials using such system meet the applicable requirements described in subparagraph (B). (B) Requirements described The requirements described in this subparagraph are as follows: (i) The manufacturer and the election officials shall document the secure chain of custody for the handling of all software, hardware, vote storage media, blank ballots, and completed ballots used in connection with voting systems, and shall make the information available upon request to the Commission. (ii) The manufacturer shall disclose to an accredited laboratory under section 231 and to the appropriate election official any information required to be disclosed under paragraph (7). (iii) After the appropriate election official has certified the election-dedicated and other voting system software for use in an election, the manufacturer may not— (I) alter such software; or (II) insert or use in the voting system any software, software patch, or other software modification not certified by the State for use in the election. (iv) At the request of the Commission— (I) the appropriate election official shall submit information to the Commission regarding the State’s compliance with this subparagraph; and (II) the manufacturer shall submit information to the Commission regarding the manufacturer’s compliance with this subparagraph. (C) Development and publication of best practices of secure chain of custody Not later than August 1, 2016, the Commission shall develop and make publicly available best practices regarding the requirement of subparagraph (B)(i) and (B)(iii), and in the case of subparagraph (B)(iii), shall include best practices for certifying software patches and minor software modifications under short deadlines. (D) Disclosure of secure chain of custody The Commission shall make information provided to the Commission under subparagraph (B)(i) available to any person upon request. (11) Durability and readability requirements for ballots (A) Durability requirements for paper ballots (i) In general All voter-verified paper ballots required to be used under this Act shall be marked or printed on durable paper. (ii) Definition For purposes of this Act, paper is durable if it is capable of withstanding multiple counts and recounts by hand without compromising the fundamental integrity of the ballots, and capable of retaining the information marked or printed on them for the full duration of a retention and preservation period of 22 months. (B) Readability requirements for paper ballots marked by ballot marking device All voter-verified paper ballots completed by the voter through the use of a ballot marking device shall be clearly readable by the voter without assistance (other than eyeglasses or other personal vision enhancing devices) and by an optical character recognition device or other device equipped for individuals with disabilities. (12) Requirements for publication of poll tapes (A) Requirements Each State shall meet the following requirements: (i) Upon the closing of the polls at each polling place, the appropriate election official, under the observation of the certified tabulation observers admitted to the polling place under subparagraph (E) (if any), shall announce the vote orally, post a copy of the poll tape reflecting the totals from each voting machine upon which votes were cast in the election at the polling place, and prepare and post a statement of the total number of individuals who appeared at the polling place to cast ballots, determined by reference to the number of signatures in a sign-in book or other similar independent count. Such officials shall ensure that each of the certified tabulation observers admitted to the polling place has full access to observe the process by which the poll tapes and statement are produced and a reasonable period of time to review the poll tapes and statement before the polling place is closed, and (if feasible) shall provide such observers with identical duplicate copies of the poll tapes and statement. (ii) As soon as practicable, but in no event later than noon of the day following the date of the election, the appropriate election official shall display (at a prominent location accessible to the public during regular business hours and in or within reasonable proximity to the polling place) a copy of each poll tape and statement prepared under clause (i), and the information shall be displayed on the official public websites of the applicable local election official and chief State election official, together with the name of the designated voting official who entered the information and the date and time the information was entered. (iii) Each website on which information is posted under clause (ii) shall include information on the procedures by which discrepancies shall be reported to election officials. If any discrepancy exists between the posted information and the relevant poll tape or statement, the appropriate election official shall display information on the discrepancy on the website on which the information is posted under clause (ii) not later than 24 hours after the official is made aware of the discrepancy, and shall maintain the information on the discrepancy and its resolution (if applicable) on such website during the entire period for which results of the election are typically maintained on such website. (iv) The appropriate election official shall preserve archived copies of the poll tapes and statements prepared under clause (i) and reports of discrepancies filed by certified tabulation observers for the period of time during which records and papers are required to be retained and preserved pursuant to title III of the Civil Rights Act of 1960 ( 42 U.S.C. 1974 et seq. ) or for the same duration for which archived copies of other records of the election are required to be preserved under applicable State law, whichever is longer. (B) Treatment of ballots cast at early voting sites (i) Application The requirements of this subparagraph shall apply with respect to poll tapes and statements of the number of voters who voted in person at designated sites prior to the date of the election. (ii) Daily count of voters At the close of business on each day on which ballots described in clause (i) may be cast prior to the date of the election, the appropriate election official at each such site shall— (I) under the observation of certified tabulation observers admitted to the site under subparagraph (E) (if any), prepare and post a statement of the total number of individuals who appeared at the site to cast ballots, determined by reference to the number of signatures in a sign-in book or other similar independent count, and the total number of ballots cast (excluding information on the votes received by individual candidates), and shall ensure that each of the certified tabulation observers admitted to the site has full access to observe the process by which the statement is produced and a reasonable period of time to review the statement before the site is closed; and (II) display at the site during regular business hours for the duration of the early voting period a paper copy of the statement prepared under subclause (I). (iii) Application of general requirements for poll tapes and statements Upon the closing of the polls on the date of the election, the appropriate election official at each designated site described in this subparagraph shall meet the requirements of subparagraph (A) (including requirements relating to the role of certified tabulation observers) in the same manner as an election official at a polling place. (C) Treatment of absentee ballots (i) Daily count of ballots mailed and received At the close of each business day on which a State mails or accepts absentee ballots cast in an election for Federal office prior to the date of the election, the appropriate election official shall— (I) under the observation of certified tabulation observers admitted under subparagraph (E) to the site at which the ballots are mailed and received (if any), prepare and post a statement of the total number of absentee ballots mailed and received by the official during that day and a separate count of the number of absentee ballots received but rejected (separated into categories of the reasons for rejection), and ensure that each of the certified tabulation observers admitted to the site has full access to observe the process by which the statement is produced and a reasonable period of time to review the statement before the site is closed; and (II) display at the site during regular business hours for the duration of the period during which absentee ballots are processed a paper copy of the statement prepared under subclause (I). (ii) Application of general requirements for poll tapes and statements At the close of business on the last day on which absentee ballots are counted prior to the certification of the election, the appropriate election official at the site at which absentee ballots are received and counted shall meet the requirements of subparagraph (A) (including requirements relating to the role of certified tabulation observers) in the same manner as an election official at a polling place. (D) Daily count of provisional ballots At the close of business on the day on which the appropriate election official determines whether or not provisional ballots cast in an election for Federal office will be counted as votes in the election (as described in section 302(a)(4)), the official shall— (i) under the observation of certified tabulation observers admitted under subparagraph (E) to the site at which the determination is made (if any), prepare and post a statement of the number of such ballots for which a determination was made, the number of ballots counted, and the number of ballots rejected (separated into categories of the reason for the rejection), and ensure that each of the certified tabulation observers admitted to the site has full access to observe the process by which the statement is produced and a reasonable period of time to review the statement before the site is closed; and (ii) display at the site during regular business hours for the duration of the period during which provisional ballots are processed a paper copy of the statement prepared under clause (i). (E) Admission of certified tabulation observers (i) Certified tabulation observer defined In this paragraph, a certified tabulation observer is an individual who is certified by an appropriate election official as authorized to carry out the responsibilities of a certified tabulation observer under this paragraph. (ii) Selection In determining which individuals to certify as tabulation observers and admit to a polling place or other location to serve as certified tabulation observers with respect to an election for Federal office, the election official shall give preference to individuals who are affiliated with a candidate in the election, except that— (I) the number of individuals admitted who are affiliated with the same candidate for Federal office may not exceed one; and (II) the maximum number of individuals who may be admitted shall equal the number of candidates in the election plus 3, or such greater number as may be authorized under State law. (iii) No effect on admission of other observers Nothing in this subparagraph may be construed to limit or otherwise affect the authority of other individuals to enter and observe polling place operations under any other law, including international observers authorized under any treaty or observers of the Federal Government authorized under the Voting Rights Act of 1965. (F) No effect on other tabulation requirements Nothing in this Act may be construed to supersede any requirement that an election official at a polling place report vote totals to a central tabulation facility and address discrepancies the official finds in the aggregation of those totals with other vote totals. . (b) Requiring laboratories To meet standards prohibiting conflicts of interest as condition of accreditation for testing of voting system hardware and software (1) In general Section 231(b) of such Act ( 42 U.S.C. 15371(b) ) is amended by adding at the end the following new paragraphs: (3) Prohibiting conflicts of interest; ensuring availability of results (A) In general A laboratory may not be accredited by the Commission for purposes of this section unless— (i) the laboratory certifies that the only compensation it receives for the testing carried out in connection with the certification, decertification, and recertification of the manufacturer’s voting system hardware and software is the payment made from the Testing Escrow Account under paragraph (4); (ii) the laboratory meets such standards as the Commission shall establish (after notice and opportunity for public comment) to prevent the existence or appearance of any conflict of interest in the testing carried out by the laboratory under this section, including standards to ensure that the laboratory does not have a financial interest in the manufacture, sale, and distribution of voting system hardware and software, and is sufficiently independent from other persons with such an interest; (iii) the laboratory certifies that it will permit an expert designated by the Commission or by the State requiring certification of the system being tested to observe any testing the laboratory carries out under this section; and (iv) the laboratory, upon completion of any testing carried out under this section, discloses the test protocols, results, and all communication between the laboratory and the manufacturer to the Commission. (B) Availability of results Upon receipt of information under subparagraph (A), the Commission shall make the information available promptly to election officials and the public. (4) Procedures for conducting testing; payment of user fees for compensation of accredited laboratories (A) Establishment of escrow account The Commission shall establish an escrow account (to be known as the Testing Escrow Account ) for making payments to accredited laboratories for the costs of the testing carried out in connection with the certification, decertification, and recertification of voting system hardware and software. (B) Schedule of fees In consultation with the accredited laboratories, the Commission shall establish and regularly update a schedule of fees for the testing carried out in connection with the certification, decertification, and recertification of voting system hardware and software, based on the reasonable costs expected to be incurred by the accredited laboratories in carrying out the testing for various types of hardware and software. (C) Requests and payments by manufacturers A manufacturer of voting system hardware and software may not have the hardware or software tested by an accredited laboratory under this section unless— (i) the manufacturer submits a detailed request for the testing to the Commission; and (ii) the manufacturer pays to the Commission, for deposit into the Testing Escrow Account established under subparagraph (A), the applicable fee under the schedule established and in effect under subparagraph (B). (D) Selection of laboratory Upon receiving a request for testing and the payment from a manufacturer required under subparagraph (C), the Commission shall select, from all laboratories which are accredited under this section to carry out the specific testing requested by the manufacturer, an accredited laboratory to carry out the testing. (E) Payments to laboratories Upon receiving a certification from a laboratory selected to carry out testing pursuant to subparagraph (D) that the testing is completed, along with a copy of the results of the test as required under paragraph (3)(A)(iv), the Commission shall make a payment to the laboratory from the Testing Escrow Account established under subparagraph (A) in an amount equal to the applicable fee paid by the manufacturer under subparagraph (C)(ii). (5) Dissemination of additional information on accredited laboratories (A) Information on testing Upon completion of the testing of a voting system under this section, the Commission shall promptly disseminate to the public the identification of the laboratory which carried out the testing. (B) Information on status of laboratories The Commission shall promptly notify Congress, the chief State election official of each State, and the public whenever— (i) the Commission revokes, terminates, or suspends the accreditation of a laboratory under this section; (ii) the Commission restores the accreditation of a laboratory under this section which has been revoked, terminated, or suspended; or (iii) the Commission has credible evidence of significant security failure at an accredited laboratory. . (2) Conforming amendments Section 231 of such Act ( 42 U.S.C. 15371 ) is further amended— (A) in subsection (a)(1), by striking testing, certification, and all that follows and inserting the following: testing of voting system hardware and software by accredited laboratories in connection with the certification, decertification, and recertification of the hardware and software for purposes of this Act. ; (B) in subsection (a)(2), by striking testing, certification, and all that follows and inserting the following: testing of its voting system hardware and software by the laboratories accredited by the Commission under this section in connection with certifying, decertifying, and recertifying the hardware and software. ; (C) in subsection (b)(1), by striking testing, certification, decertification, and recertification and inserting testing ; and (D) in subsection (d), by striking testing, certification, decertification, and recertification each place it appears and inserting testing . (3) Deadline for establishment of standards, escrow account, and schedule of fees The Election Assistance Commission shall establish the standards described in section 231(b)(3) of the Help America Vote Act of 2002 and the Testing Escrow Account and schedule of fees described in section 231(b)(4) of such Act (as added by paragraph (1)) not later than January 1, 2016. (4) Authorization of appropriations There are authorized to be appropriated to the Election Assistance Commission such sums as may be necessary to carry out the Commission’s duties under paragraphs (3) and (4) of section 231 of the Help America Vote Act of 2002 (as added by paragraph (1)). (c) Grants for research on development of election-Dedicated voting system software (1) In general Subtitle D of title II of the Help America Vote Act of 2002 ( 42 U.S.C. 15401 et seq. ) is amended by adding at the end the following new part: 7 Grants for research on development of election-dedicated voting system software 297. Grants for research on development of election-Dedicated voting system software (a) In General The Director of the National Science Foundation (hereafter in this part referred to as the Director ) shall make grants to not fewer than 3 eligible entities to conduct research on the development of election-dedicated voting system software. (b) Eligibility An entity is eligible to receive a grant under this part if it submits to the Director (at such time and in such form as the Director may require) an application containing— (1) certifications regarding the benefits of operating voting systems on election-dedicated software which is easily understandable and which is written exclusively for the purpose of conducting elections; (2) certifications that the entity will use the funds provided under the grant to carry out research on how to develop voting systems that run on election-dedicated software and that will meet the applicable requirements for voting systems under title III; and (3) such other information and certifications as the Director may require. (c) Availability of Technology Any technology developed with the grants made under this section shall be treated as non-proprietary and shall be made available to the public, including to manufacturers of voting systems. (d) Authorization of Appropriations There is authorized to be appropriated for grants under this section $1,500,000 for each of fiscal years 2017 and 2018, to remain available until expended. . (2) Clerical amendment The table of contents of such Act is amended by adding at the end of the items relating to subtitle D of title II the following: Part 7—Grants for research on development of election-Dedicated voting system software Sec. 297. Grants for research on development of election-dedicated voting system software. . 604. Availability of additional funding to enable States to meet costs of revised requirements (a) Extension of requirements payments for meeting revised requirements Section 257(a) of the Help America Vote Act of 2002 ( 42 U.S.C. 15407(a) ) is amended by adding at the end the following new paragraph: (5) For fiscal year 2018, the sum of— (A) $1,000,000,000, except that any funds provided under the authorization made by this subparagraph shall be used by a State only to meet the requirements of title III which are first imposed on the State pursuant to the amendments made by title I of the Voter Confidence and Increased Accessibility Act of 2013, or to otherwise modify or replace its voting systems in response to such amendments; plus (B) such sums as may be necessary to enable States to carry out the activities described in subparagraph (A) with respect to requirements which first apply to elections for Federal office held after in November 2020, except that any funds provided under the authorization made by this subparagraph shall be used by a State only for carrying out these activities. . (b) Use of revised formula for allocation of funds Section 252(b) of such Act ( 42 U.S.C. 15402(b) ) is amended to read as follows: (b) State Allocation Percentage Defined (1) In general Except as provided in paragraph (2), the State allocation percentage for a State is the amount (expressed as a percentage) equal to the quotient of— (A) the voting age population of the State (as reported in the most recent decennial census); and (B) the total voting age population of all States (as reported in the most recent decennial census). (2) Special rule for payments used to meet requirements imposed under Voter Confidence and Increased Accessibility Act of 2013 (A) In general In the case of the requirements payment made to a State under the authorization made by section 257(a)(5) for fiscal year 2018 or any fiscal year thereafter, the State allocation percentage for a State is the amount (expressed as a percentage) equal to the quotient of— (i) the sum of the number of noncompliant precincts in the State and 50 percent of the number of partially noncompliant precincts in the State; and (ii) the sum of the number of noncompliant precincts in all States and 50 percent of the number of partially noncompliant precincts in all States. (B) Noncompliant precinct defined In this paragraph, a noncompliant precinct means any precinct (or equivalent location) within a State for which the voting system used to administer the regularly scheduled general election for Federal office held in November 2016 did not meet either of the requirements described in subparagraph (D). (C) Partially noncompliant precinct defined In this paragraph, a partially noncompliant precinct means any precinct (or equivalent location) within a State for which the voting system used to administer the regularly scheduled general election for Federal office held in November 2016 met only one of the requirements described in subparagraph (D). (D) Requirements described The requirements described in this subparagraph with respect to a voting system are as follows: (i) The primary voting system required the use of durable paper ballots (as described in section 301(a)(2)(A)(i)(I) and 301(a)(11)(A), as amended or added by the Voter Confidence and Increased Accessibility Act of 2013) for every vote cast. (ii) The voting system allowed the voter to privately and independently verify the permanent paper ballot through the presentation of the same printed or marked information used for vote counting and auditing and to privately and independently cast the permanent paper ballot without handling the ballot manually. . (c) Revised conditions for receipt of funds Section 253 of such Act ( 42 U.S.C. 15403 ) is amended— (1) in subsection (a), by striking A State is eligible and inserting Except as provided in subsection (f), a State is eligible ; and (2) by adding at the end the following new subsection: (f) Special Rule for Payments Used To Meet Requirements Imposed Under Voter Confidence and Increased Accessibility Act of 2013 (1) In general Notwithstanding any other provision of this part, a State is eligible to receive a requirements payment under the authorization made by section 257(a)(5) for fiscal year 2018 or any fiscal year thereafter if, not later than 90 days after the date of the enactment of the Voter Confidence and Increased Accessibility Act of 2013, the chief executive officer of the State, or designee, in consultation and coordination with the chief State election official— (A) certifies to the Commission the number of noncompliant and partially noncompliant precincts in the State (as defined in section 252(b)(2)); (B) certifies to the Commission that the State will reimburse each unit of local government in the State for any costs the unit incurs in carrying out the activities for which the payment may be used; and (C) files a statement with the Commission describing the State’s need for the payment and how the State will use the payment to meet the requirements of title III (in accordance with the limitations applicable to the use of the payment under section 257(a)(5)). (2) Certifications by States that require changes to State law In the case of a State that requires State legislation to carry out any activity covered by any certification submitted under this subsection, the State shall be permitted to make the certification notwithstanding that the legislation has not been enacted at the time the certification is submitted and such State shall submit an additional certification once such legislation is enacted. . (d) Permitting use of funds for reimbursement for costs previously incurred Section 251(c)(1) of such Act ( 42 U.S.C. 15401(c)(1) ) is amended by striking the period at the end and inserting the following: , or as a reimbursement for any costs incurred after November 2016 in meeting the requirements of title III which are imposed pursuant to the amendments made by title I of the Voter Confidence and Increased Accessibility Act of 2013 or in otherwise upgrading or replacing voting systems in a manner consistent with such amendments (so long as the voting systems meet any of the requirements that apply with respect to elections for Federal office held in 2020 and each succeeding year). . (e) Rule of construction regarding States receiving other funds for replacing punch card, lever, or other voting machines Nothing in the amendments made by this section or in any other provision of the Help America Vote Act of 2002 may be construed to prohibit a State which received or was authorized to receive a payment under title I or II of such Act for replacing punch card, lever, or other voting machines from receiving or using any funds which are made available under the amendments made by this section. (f) Rule of construction regarding use of funds received in prior years (1) In general Nothing contained in this Act or the Help America Vote Act of 2002 may be construed to prohibit a State from using funds received under title I or II of the Help America Vote Act of 2002 to purchase or acquire by other means a voting system that meets the requirements of paragraphs (2) and (3) of section 301 of the Help America Vote Act of 2002 (as amended by this Act) in order to replace voting systems purchased with funds received under the Help America Vote Act of 2002 that do not meet such requirements. (2) Waiver of notice and comment requirements The requirements of subparagraphs (A), (B), and (C) of section 254(a)(11) of the Help America Vote Act of 2002 shall not apply to any State using funds received under such Act for the purposes described in subparagraph (A) or (B) of paragraph (1). (g) Effective date The amendments made by this section shall apply with respect to fiscal years beginning with fiscal year 2018. 605. Effective date for new requirements Section 301(d) of the Help America Vote Act of 2002 ( 42 U.S.C. 15481(d) ) is amended to read as follows: (d) Effective Date (1) In general Except as provided in paragraph (2), each State and jurisdiction shall be required to comply with the requirements of this section on and after January 1, 2006. (2) Special rule for certain requirements (A) In general Except as provided in subparagraphs (B) and (C), the requirements of this section which are first imposed on a State and jurisdiction pursuant to the amendments made by title I of the Voter Confidence and Increased Accessibility Act of 2013 shall apply with respect to voting systems used for any election for Federal office held in 2018 or any succeeding year. (B) Delay for jurisdictions using certain paper record printers or certain systems using or producing voter-verifiable paper records in 2016 (i) Delay In the case of a jurisdiction described in clause (ii), subparagraph (A) shall apply to a voting system in the jurisdiction as if the reference in such subparagraph to 2018 were a reference to 2020 , but only with respect to the following requirements of this section: (I) Paragraph (2)(A)(i)(I) of subsection (a) (relating to the use of voter-marked paper ballots). (II) Paragraph (3)(B)(ii) (I) and (II) of subsection (a) (relating to access to verification from and casting of the durable paper ballot). (III) Paragraph (11) of subsection (a) (relating to durability and readability requirements for ballots). (ii) Jurisdictions described A jurisdiction described in this clause is a jurisdiction— (I) which used voter verifiable paper record printers attached to direct recording electronic voting machines, or which used other voting systems that used or produced paper records of the vote verifiable by voters but that are not in compliance with paragraphs (2)(A)(i)(I), (3)(B)(ii) (I) and (II), and (11) of subsection (a) (as amended or added by the Voter Confidence and Increased Accessibility Act of 2013), for the administration of the regularly scheduled general election for Federal office held in November 2016; and (II) which will continue to use such printers or systems for the administration of elections for Federal office held in years before 2020. (iii) Mandatory availability of paper ballots at polling places using grandfathered printers and systems (I) Requiring ballots to be offered and provided The appropriate election official at each polling place that uses a printer or system described in clause (ii)(I) for the administration of elections for Federal office shall offer each individual who is eligible to cast a vote in the election at the polling place the opportunity to cast the vote using a blank pre-printed paper ballot which the individual may mark by hand and which is not produced by the direct recording electronic voting machine or other such system. The official shall provide the individual with the ballot and the supplies necessary to mark the ballot, and shall ensure (to the greatest extent practicable) that the waiting period for the individual to cast a vote is the lesser of 30 minutes or the average waiting period for an individual who does not agree to cast the vote using such a paper ballot under this clause. (II) Treatment of ballot Any paper ballot which is cast by an individual under this clause shall be counted and otherwise treated as a regular ballot for all purposes (including by incorporating it into the final unofficial vote count (as defined by the State) for the precinct) and not as a provisional ballot, unless the individual casting the ballot would have otherwise been required to cast a provisional ballot. (III) Posting of notice The appropriate election official shall ensure there is prominently displayed at each polling place a notice that describes the obligation of the official to offer individuals the opportunity to cast votes using a pre-printed blank paper ballot. (IV) Training of election officials The chief State election official shall ensure that election officials at polling places in the State are aware of the requirements of this clause, including the requirement to display a notice under subclause (III), and are aware that it is a violation of the requirements of this title for an election official to fail to offer an individual the opportunity to cast a vote using a blank pre-printed paper ballot. (V) Period of applicability The requirements of this clause apply only during the period in which the delay is in effect under clause (i). (C) Special rule for jurisdictions using certain nontabulating ballot marking devices In the case of a jurisdiction which uses a nontabulating ballot marking device which automatically deposits the ballot into a privacy sleeve, subparagraph (A) shall apply to a voting system in the jurisdiction as if the reference in such subparagraph to any election for Federal office held in 2018 or any succeeding year were a reference to elections for Federal office occurring held in 2020 or each succeeding year , but only with respect to paragraph (3)(B)(ii)(II) of subsection (a) (relating to nonmanual casting of the durable paper ballot). . B Requirement for mandatory manual audits by hand count 611. Mandatory manual audits Title III of the Help America Vote Act of 2002 ( 42 U.S.C. 15481 et seq. ) is amended by adding at the end the following new subtitle: C Mandatory manual audits 321. Requiring audits of results of elections (a) Requiring Audits (1) In general In accordance with this subtitle, each State shall administer, without advance notice to the precincts or alternative audit units selected, audits of the results of all elections for Federal office held in the State (and, at the option of the State or jurisdiction involved, of elections for State and local office held at the same time as such election) consisting of random hand counts of the voter-verified paper ballots required to be used and preserved pursuant to section 301(a)(2). (2) Exception for certain elections A State shall not be required to administer an audit of the results of an election for Federal office under this subtitle if the winning candidate in the election— (A) had no opposition on the ballot; or (B) received 80 percent or more of the total number of votes cast in the election, as determined on the basis of the final unofficial vote count. (b) Determination of Entity Conducting Audits; Application of GAO Independence Standards The State shall administer audits under this subtitle through an entity selected for such purpose by the State in accordance with such criteria as the State considers appropriate consistent with the requirements of this subtitle, except that the entity must meet the general standards established by the Comptroller General and as set forth in the Comptroller General’s Government Auditing Standards to ensure the independence (including, except as provided under section 323(b), the organizational independence) of entities performing financial audits, attestation engagements, and performance audits. (c) References to Election Auditor In this subtitle, the term Election Auditor means, with respect to a State, the entity selected by the State under subsection (b). 322. Number of ballots counted under audit (a) In General Except as provided in subsection (b), the number of voter-verified paper ballots which will be subject to a hand count administered by the Election Auditor of a State under this subtitle with respect to an election shall be determined as follows: (1) In the event that the unofficial count as described in section 323(a)(1) reveals that the margin of victory between the two candidates receiving the largest number of votes in the election is less than 1 percent of the total votes cast in that election, the hand counts of the voter-verified paper ballots shall occur in at least 10 percent of all precincts or equivalent locations (or alternative audit units used in accordance with the method provided for under subsection (b)) in the Congressional district involved (in the case of an election for the House of Representatives) or the State (in the case of any other election for Federal office). (2) In the event that the unofficial count as described in section 323(a)(1) reveals that the margin of victory between the two candidates receiving the largest number of votes in the election is greater than or equal to 1 percent but less than 2 percent of the total votes cast in that election, the hand counts of the voter-verified paper ballots shall occur in at least 5 percent of all precincts or equivalent locations (or alternative audit units used in accordance with the method provided for under subsection (b)) in the Congressional district involved (in the case of an election for the House of Representatives) or the State (in the case of any other election for Federal office). (3) In the event that the unofficial count as described in section 323(a)(1) reveals that the margin of victory between the two candidates receiving the largest number of votes in the election is equal to or greater than 2 percent of the total votes cast in that election, the hand counts of the voter-verified paper ballots shall occur in at least 3 percent of all precincts or equivalent locations (or alternative audit units used in accordance with the method provided for under subsection (b)) in the Congressional district involved (in the case of an election for the House of Representatives) or the State (in the case of any other election for Federal office). (b) Use of Alternative Mechanism (1) Permitting use of alternative mechanism Notwithstanding subsection (a), a State may adopt and apply an alternative mechanism to determine the number of voter-verified paper ballots which will be subject to the hand counts required under this subtitle with respect to an election, so long as the alternative mechanism uses the voter-verified paper ballots to conduct the audit and the National Institute of Standards and Technology determines that the alternative mechanism is in accordance with the principles set forth in paragraph (2). (2) Principles for approval In approving an alternative mechanism under paragraph (1), the National Institute of Standards and Technology shall ensure that the audit procedure will have the property that for each election— (A) the alternative mechanism will be at least as statistically effective in ensuring the accuracy of the election results as the procedures under this subtitle; or (B) the alternative mechanism will achieve at least a 95% confidence interval (as determined in accordance with criteria set forth by the National Institute of Standards and Technology) with respect to the outcome of the election. (3) Deadline for response The Director of the National Institute of Standards and Technology shall make a determination regarding a State’s request to approve an alternative mechanism under paragraph (1) not later than 30 days after receiving the State’s request. 323. Process for administering audits (a) In General The Election Auditor of a State shall administer an audit under this section of the results of an election in accordance with the following procedures: (1) Within 24 hours after the State announces the final unofficial vote count (as defined by the State) in each precinct in the State, the Election Auditor shall— (A) determine and then announce the precincts or equivalent locations (or alternative audit units used in accordance with the method provided under section 322(b)) in the State in which it will administer the audits; and (B) with respect to votes cast at the precinct or equivalent location on or before the date of the election (other than provisional ballots described in paragraph (2)), begin to administer the hand count of the votes on the voter-verified paper ballots required to be used and preserved under section 301(a)(2)(A) and the comparison of the count of the votes on those ballots with the final unofficial count of such votes as announced by the State. (2) With respect to votes cast other than at the precinct on the date of the election (other than votes cast before the date of the election described in paragraph (2)) or votes cast by provisional ballot on the date of the election which are certified and counted by the State on or after the date of the election, including votes cast by absent uniformed services voters and overseas voters under the Uniformed and Overseas Citizens Absentee Voting Act, the Election Auditor shall administer the hand count of the votes on the applicable voter-verified paper ballots required to be produced and preserved under section 301(a)(2)(A) and the comparison of the count of the votes on those ballots with the final unofficial count of such votes as announced by the State. (b) Use of personnel In administering the audits, the Election Auditor may utilize the services of the personnel of the State or jurisdiction, including election administration personnel and poll workers, without regard to whether or not the personnel have professional auditing experience. (c) Location The Election Auditor shall administer an audit of an election— (1) at the location where the ballots cast in the election are stored and counted after the date of the election or such other appropriate and secure location agreed upon by the Election Auditor and the individual that is responsible under State law for the custody of the ballots; and (2) in the presence of the personnel who under State law are responsible for the custody of the ballots. (d) Special rule in case of delay in reporting absentee vote count In the case of a State in which the final count of absentee and provisional votes is not announced until after the date of the election, the Election Auditor shall initiate the process described in subsection (a) for administering the audit not later than 24 hours after the State announces the final unofficial vote count for the votes cast at the precinct or equivalent location on or before the date of the election, and shall initiate the administration of the audit of the absentee and provisional votes pursuant to subsection (a)(2) not later than 24 hours after the State announces the final unofficial count of such votes. (e) Additional Audits if Cause Shown (1) In general If the Election Auditor finds that any of the hand counts administered under this section do not match the final unofficial tally of the results of an election, the Election Auditor shall administer hand counts under this section of such additional precincts (or alternative audit units) as the Election Auditor considers appropriate to resolve any concerns resulting from the audit and ensure the accuracy of the election results. (2) Establishment and publication of procedures governing additional audits Not later than August 1, 2017, each State shall establish and publish procedures for carrying out the additional audits under this subsection, including the means by which the State shall resolve any concerns resulting from the audit with finality and ensure the accuracy of the election results. (f) Public Observation of Audits Each audit conducted under this section shall be conducted in a manner that allows public observation of the entire process. 324. Selection of precincts (a) In General Except as provided in subsection (c), the selection of the precincts or alternative audit units in the State in which the Election Auditor of the State shall administer the hand counts under this subtitle shall be made by the Election Auditor on a random basis, in accordance with procedures adopted by the National Institute of Standards and Technology, except that at least one precinct shall be selected at random in each county, with additional precincts selected by the Election Auditor at the Auditor’s discretion. (b) Public Selection The random selection of precincts under subsection (a) shall be conducted in public, at a time and place announced in advance. (c) Mandatory Selection of Precincts Established Specifically For Absentee Ballots If a State does not sort absentee ballots by precinct and include those ballots in the hand count with respect to that precinct, the State shall create absentee ballot precincts or audit units which are of similar size to the average precinct or audit unit in the jurisdiction being audited, and shall include those absentee precincts or audit units among the precincts in the State in which the Election Auditor shall administer the hand counts under this subtitle. (d) Deadline for Adoption of Procedures by Commission The National Institute of Standards and Technology shall adopt the procedures described in subsection (a) not later than March 31, 2017, and shall publish them in the Federal Register upon adoption. 325. Publication of results (a) Submission to Commission As soon as practicable after the completion of an audit under this subtitle, the Election Auditor of a State shall submit to the Commission the results of the audit, and shall include in the submission a comparison of the results of the election in the precinct as determined by the Election Auditor under the audit and the final unofficial vote count in the precinct as announced by the State and all undervotes, overvotes, blank ballots, and spoiled, voided, or cancelled ballots, as well as a list of any discrepancies discovered between the initial, subsequent, and final hand counts administered by the Election Auditor and such final unofficial vote count and any explanation for such discrepancies, broken down by the categories of votes described in paragraphs (1)(B) and (2) of section 323(a). (b) Publication by Commission Immediately after receiving the submission of the results of an audit from the Election Auditor of a State under subsection (a), the Commission shall publicly announce and publish the information contained in the submission. (c) Delay in certification of results by State (1) Prohibiting certification until completion of audits No State may certify the results of any election which is subject to an audit under this subtitle prior to— (A) to the completion of the audit (and, if required, any additional audit conducted under section 323(e)(1)) and the announcement and submission of the results of each such audit to the Commission for publication of the information required under this section; and (B) the completion of any procedure established by the State pursuant to section 323(e)(2) to resolve discrepancies and ensure the accuracy of results. (2) Deadline for completion of audits of Presidential elections In the case of an election for electors for President and Vice President which is subject to an audit under this subtitle, the State shall complete the audits and announce and submit the results to the Commission for publication of the information required under this section in time for the State to certify the results of the election and provide for the final determination of any controversy or contest concerning the appointment of such electors prior to the deadline described in section 6 of title 3, United States Code. 326. Payments to States (a) Payments For Costs of Conducting Audits In accordance with the requirements and procedures of this section, the Commission shall make a payment to a State to cover the costs incurred by the State in carrying out this subtitle with respect to the elections that are the subject of the audits conducted under this subtitle. (b) Certification of Compliance and Anticipated Costs (1) Certification required In order to receive a payment under this section, a State shall submit to the Commission, in such form as the Commission may require, a statement containing— (A) a certification that the State will conduct the audits required under this subtitle in accordance with all of the requirements of this subtitle; (B) a notice of the reasonable costs incurred or the reasonable costs anticipated to be incurred by the State in carrying out this subtitle with respect to the elections involved; and (C) such other information and assurances as the Commission may require. (2) Amount of payment The amount of a payment made to a State under this section shall be equal to the reasonable costs incurred or the reasonable costs anticipated to be incurred by the State in carrying out this subtitle with respect to the elections involved, as set forth in the statement submitted under paragraph (1). (3) Timing of notice The State may not submit a notice under paragraph (1) until candidates have been selected to appear on the ballot for all of the elections for Federal office which will be the subject of the audits involved. (c) Timing of Payments The Commission shall make the payment required under this section to a State not later than 30 days after receiving the notice submitted by the State under subsection (b). (d) Recoupment of Overpayments No payment may be made to a State under this section unless the State agrees to repay to the Commission the excess (if any) of— (1) the amount of the payment received by the State under this section with respect to the elections involved; over (2) the actual costs incurred by the State in carrying out this subtitle with respect to the elections involved. (e) Authorization of Appropriations There is authorized to be appropriated to the Commission for fiscal year 2018 and each succeeding fiscal year $100,000,000 for payments under this section. 327. Exception for elections subject to recount under State law prior to certification (a) Exception This subtitle does not apply to any election for which a recount under State law will commence prior to the certification of the results of the election, including but not limited to a recount required automatically because of the margin of victory between the 2 candidates receiving the largest number of votes in the election, but only if each of the following applies to the recount: (1) The recount commences prior to the determination and announcement by the Election Auditor under section 323(a)(1) of the precincts in the State in which it will administer the audits under this subtitle. (2) If the recount would apply to fewer than 100 percent of the ballots cast in the election— (A) the number of ballots counted will be at least as many as would be counted if an audit were conducted with respect to the election in accordance with this subtitle; and (B) the selection of the precincts in which the recount will be conducted will be made in accordance with the random selection procedures applicable under section 324. (3) The recount for the election meets the requirements of section 323(f) (relating to public observation). (4) The State meets the requirements of section 325 (relating to the publication of results and the delay in the certification of results) with respect to the recount. (b) Clarification of Effect on Other Requirements Nothing in this section may be construed to waive the application of any other provision of this Act to any election (including the requirement set forth in section 301(a)(2) that the voter verified paper ballots serve as the vote of record and shall be counted by hand in all audits and recounts, including audits and recounts described in this subtitle). 328. Effective date This subtitle shall apply with respect to elections for Federal office held in 2018 or any succeeding year. . 612. Availability of enforcement under Help America Vote Act of 2002 Section 401 of the Help America Vote Act of 2002 ( 42 U.S.C. 15511 ) is amended by striking the period at the end and inserting the following: , or the requirements of subtitle C of title III. . 613. Guidance on best practices for alternative audit mechanisms (a) In general Not later than May 1, 2017, the Director of the National Institute for Standards and Technology shall establish guidance for States that wish to establish alternative audit mechanisms under section 322(b) of the Help America Vote Act of 2002 (as added by section 611). Such guidance shall be based upon scientifically and statistically reasonable assumptions for the purpose of creating an alternative audit mechanism that will be consistent with the principles for approval described in section 322(b)(2) of such Act (as so added). (b) Authorization of appropriations There is authorized to be appropriated to carry out subsection (a) $100,000, to remain available until expended. 614. Clerical amendment The table of contents of the Help America Vote Act of 2002 is amended by adding at the end of the items relating to title III the following: Subtitle C—Mandatory Manual Audits Sec. 321. Requiring audits of results of elections. Sec. 322. Number of ballots counted under audit. Sec. 323. Process for administering audits. Sec. 324. Selection of precincts. Sec. 325. Publication of results. Sec. 326. Payments to States. Sec. 327. Exception for elections subject to recount under State law prior to certification. Sec. 328. Effective date. . VII Provisional Ballots 701. Requirements for counting provisional ballots; establishment of uniform and nondiscriminatory standards (a) In general Section 302 of the Help America Vote Act of 2002 ( 42 U.S.C. 15482 ) is amended— (1) by redesignating subsection (d) as subsection (f); and (2) by inserting after subsection (c) the following new subsections: (d) Statewide counting of provisional ballots (1) In general For purposes of subsection (a)(4), notwithstanding the precinct or polling place at which a provisional ballot is cast within the State, the appropriate election official shall count each vote on such ballot for each election in which the individual who cast such ballot is eligible to vote. (2) Effective date This subsection shall apply with respect to elections held on or after January 1, 2014. (e) Uniform and nondiscriminatory standards (1) In general Consistent with the requirements of this section, each State shall establish uniform and nondiscriminatory standards for the issuance, handling, and counting of provisional ballots. (2) Effective date This subsection shall apply with respect to elections held on or after January 1, 2014. . (b) Conforming amendment Section 302(f) of such Act ( 42 U.S.C. 15482(f) ), as redesignated by subsection (a), is amended by striking Each State and inserting Except as provided in subsections (d)(2) and (e)(2), each State . VIII Early Voting and Voting by Mail 801. Early voting and voting by mail (a) Requirements Subtitle A of title III of the Help America Vote Act of 2002 ( 42 U.S.C. 15481 et seq. ), as amended by section 114(a) and section 201(a), is amended— (1) by redesignating sections 306 and 307 as sections 308 and 309; and (2) by inserting after section 305 the following new sections: 306. Early voting (a) In general Each State shall allow individuals to vote in an election for Federal office not less than 15 days prior to the day scheduled for such election in the same manner as voting is allowed on such day. (b) Minimum early voting requirements Each polling place which allows voting prior to the day of a Federal election pursuant to subsection (a) shall— (1) allow such voting for no less than 4 hours on each day (other than Sunday); and (2) have uniform hours each day for which such voting occurs. (c) Location of polling places near public transportation To the greatest extent practicable, a State shall ensure that each polling place which allows voting prior to the day of a Federal election pursuant to subsection (a) is located within walking distance of a stop on a public transportation route. (d) Standards (1) In general The Commission shall issue standards for the administration of voting prior to the day scheduled for a Federal election. Such standards shall include the nondiscriminatory geographic placement of polling places at which such voting occurs. (2) Deviation The standards described in paragraph (1) shall permit States, upon providing adequate public notice, to deviate from any requirement in the case of unforeseen circumstances such as a natural disaster, terrorist attack, or a change in voter turnout. (e) Effective date This section shall apply with respect to elections held on or after January 1, 2014. 307. Promoting ability of voters to vote by mail (a) In General If an individual in a State is eligible to cast a vote in an election for Federal office, the State may not impose any additional conditions or requirements on the eligibility of the individual to cast the vote in such election by mail, except as required under subsection (b) and except to the extent that the State imposes a deadline for requesting the ballot and related voting materials from the appropriate State or local election official and for returning the ballot to the appropriate State or local election official. (b) Requiring signature verification A State may not accept and process an absentee ballot submitted by any individual with respect to an election for Federal office unless the State verifies the identification of the individual by comparing the individual’s signature on the absentee ballot with the individual’s signature on the official list of registered voters in the State, in accordance with such procedures as the State may adopt. (c) Effective date This section shall apply with respect to elections held on or after January 1, 2014. . (b) Conforming amendment relating to issuance of voluntary guidance by election assistance commission Section 311(b) of such Act ( 42 U.S.C. 15501(b) ), as amended by section 201(b), is amended— (1) by striking and at the end of paragraph (3); (2) by striking the period at the end of paragraph (4) and inserting a semicolon; and (3) by adding at the end the following new paragraphs: (5) in the case of the recommendations with respect to section 306, June 30, 2013; and (6) in the case of the recommendations with respect to section 307, June 30, 2013. . (c) Clerical amendment The table of contents of such Act is amended— (1) by redesignating the items relating to sections 306 and 307 as relating to sections 308 and 309; and (2) by inserting after the item relating to section 305 the following new items: Sec. 306. Early voting. Sec. 307. Promoting ability of voters to vote by mail. . IX Absent Uniformed Services Voters and Overseas Voters 901. Extending guarantee of residency for voting purposes to family members of absent military personnel Section 705 of the Servicemembers Civil Relief Act ( 50 U.S.C. App. 595 ) is amended— (1) in the heading, by striking spouses and inserting family members ; and (2) by amending subsection (b) to read as follows: (b) Family members For the purposes of voting for in any election for any Federal office (as defined in section 301 of the Federal Election Campaign Act of 1971 ( 2 U.S.C. 431 )) or any State or local office, a spouse, domestic partner, or dependent of a person who is absent from a State in compliance with military or naval orders shall not, solely by reason of that person’s absence and without regard to whether or not such family member is accompanying that person— (1) be deemed to have lost a residence or domicile in that State, without regard to whether or not the person intends to return to that State; (2) be deemed to have acquired a residence or domicile in any other State; or (3) be deemed to have become a resident in or a resident of any other State. . 902. Pre-election reports on availability and transmission of absentee ballots Section 102(c) of the Uniformed and Overseas Citizens Absentee Voting Act ( 42 U.S.C. 1973ff–1(c) ) is amended to read as follows: (c) Reports on Availability, transmission, and receipt of absentee ballots (1) Pre-election report on absentee ballot availability Not later than 55 days before any regularly scheduled general election for Federal office, each State shall submit a report to the Attorney General, the Election Assistance Commission (hereafter in this subsection referred to as the Commission ), and the Presidential Designee, and make that report publicly available that same day, certifying that absentee ballots for the election are or will be available for transmission to absent uniformed services voters and overseas voters by not later than 45 days before the election. The report shall be in a form prescribed jointly by the Attorney General and the Commission and shall require the State to certify specific information about ballot availability from each unit of local government which will administer the election. (2) Pre-election report on absentee ballot transmission Not later than 43 days before any regularly scheduled general election for Federal office, each State shall submit a report to the Attorney General, the Commission, and the Presidential Designee, and make that report publicly available that same day, certifying whether all absentee ballots have been transmitted by not later than 45 days before the election to all qualified absent uniformed services and overseas voters whose requests were received at least 45 days before the election. The report shall be in a form prescribed jointly by the Attorney General and the Commission, and shall require the State to certify specific information about ballot transmission, including the total numbers of ballot requests received and ballots transmitted, from each unit of local government which will administer the election. (3) Post-election report on number of absentee ballots transmitted and received Not later than 90 days after the date of each regularly scheduled general election for Federal office, each State and unit of local government which administered the election shall (through the State, in the case of a unit of local government) submit a report to the Attorney General, the Commission, and the Presidential Designee on the combined number of absentee ballots transmitted to absent uniformed services voters and overseas voters for the election and the combined number of such ballots which were returned by such voters and cast in the election, and shall make such report available to the general public that same day. . 903. Enforcement (a) Availability of civil penalties and private rights of action Section 105 of the Uniformed and Overseas Citizens Absentee Voting Act ( 42 U.S.C. 1973ff–4 ) is amended to read as follows: 105. Enforcement (a) Action by Attorney General (1) In general The Attorney General may bring civil action in an appropriate district court for such declaratory or injunctive relief as may be necessary to carry out this title. (2) Penalty In a civil action brought under paragraph (1), if the court finds that the State violated any provision of this title, it may, to vindicate the public interest, assess a civil penalty against the State— (A) in an amount not to exceed $110,000 for each such violation, in the case of a first violation; or (B) in an amount not to exceed $220,000 for each such violation, for any subsequent violation. (3) Report to Congress Not later than December 31 of each year, the Attorney General shall submit to Congress an annual report on any civil action brought under paragraph (1) during the preceding year. (b) Private right of action A person who is aggrieved by a State's violation of this title may bring a civil action in an appropriate district court for such declaratory or injunctive relief as may be necessary to carry out this title. (c) State as only necessary defendant In any action brought under this section, the only necessary party defendant is the State, and it shall not be a defense to any such action that a local election official or a unit of local government is not named as a defendant, notwithstanding that a State has exercised the authority described in section 576 of the Military and Overseas Voter Empowerment Act to delegate to another jurisdiction in the State any duty or responsibility which is the subject of an action brought under this section. . (b) Effective date The amendments made by this section shall apply with respect to violations alleged to have occurred on or after the date of the enactment of this Act. 904. Revisions to 45-day absentee ballot transmission rule (a) Repeal of waiver authority (1) In general Section 102 of the Uniformed and Overseas Citizens Absentee Voting Act ( 42 U.S.C. 1973ff–1 ) is amended by striking subsection (g). (2) Conforming amendment Section 102(a)(8)(A) of such Act ( 42 U.S.C. 1973ff–1(a)(8)(A) ) is amended by striking except as provided in subsection (g), . (b) Requiring use of express delivery in case of failure To meet requirement Section 102 of such Act ( 42 U.S.C. 1973ff–1 ), as amended by subsection (a), is amended by inserting after subsection (f) the following new subsection: (g) Requiring use of express delivery in case of failure To transmit ballots within deadlines (1) Transmission of ballot by express delivery If a State fails to meet the requirement of subsection (a)(8)(A) to transmit a validly requested absentee ballot to an absent uniformed services voter or overseas voter not later than 45 days before the election (in the case in which the request is received at least 45 days before the election)— (A) the State shall transmit the ballot to the voter by express delivery; or (B) in the case of a voter who has designated that absentee ballots be transmitted electronically in accordance with subsection (f)(1), the State shall transmit the ballot to the voter electronically. (2) Special rule for transmission fewer than 40 days before the election If, in carrying out paragraph (1), a State transmits an absentee ballot to an absent uniformed services voter or overseas voter fewer than 40 days before the election, the State shall enable the ballot to be returned by the voter by express delivery, except that in the case of an absentee ballot of an absent uniformed services voter for a regularly scheduled general election for Federal office, the State may satisfy the requirement of this paragraph by notifying the voter of the procedures for the collection and delivery of such ballots under section 103A. . (c) Clarification of treatment of weekends Section 102(a)(8)(A) of such Act ( 42 U.S.C. 1973ff–1(a)(8)(A) ) is amended by striking the election; and inserting the following: the election (or, if the 45th day preceding the election is a weekend or legal public holiday, not later than the most recent weekday which precedes such 45th day and which is not a legal public holiday, but only if the request is received by at least such most recent weekday); . 905. Use of single absentee ballot application for subsequent elections (a) In general Section 104 of the Uniformed and Overseas Citizens Absentee Voting Act ( 42 U.S.C. 1973ff–3 ) is amended to read as follows: 104. Use of single application for subsequent elections (a) In general If a State accepts and processes an official post card form (prescribed under section 101) submitted by an absent uniformed services voter or overseas voter for simultaneous voter registration and absentee ballot application (in accordance with section 102(a)(4)) and the voter requests that the application be considered an application for an absentee ballot for each subsequent election for Federal office held in the State through the next regularly scheduled general election for Federal office (including any runoff elections which may occur as a result of the outcome of such general election), the State shall provide an absentee ballot to the voter for each such subsequent election. (b) Exception for voters changing registration Subsection (a) shall not apply with respect to a voter registered to vote in a State for any election held after the voter notifies the State that the voter no longer wishes to be registered to vote in the State or after the State determines that the voter has registered to vote in another State or is otherwise no longer eligible to vote in the State. (c) Prohibition of refusal of application on grounds of early submission A State may not refuse to accept or to process, with respect to any election for Federal office, any otherwise valid voter registration application or absentee ballot application (including the postcard form prescribed under section 101) submitted by an absent uniformed services voter or overseas voter on the grounds that the voter submitted the application before the first date on which the State otherwise accepts or processes such applications for that election which are submitted by absentee voters who are not members of the uniformed services or overseas citizens. . (b) Effective date The amendment made by subsection (a) shall apply with respect to voter registration and absentee ballot applications which are submitted to a State or local election official on or after the date of the enactment of this Act. 906. Effective date The amendments made by this title shall apply with respect to elections occurring on or after January 1, 2014. X Poll Worker Recruitment and Training 1001. Leave to serve as a poll worker for Federal employees (a) In general Subchapter II of chapter 63 of title 5, United States Code, is amended by adding at the end the following: 6329. Absence in connection with serving as a poll worker (a) In general An employee in or under an Executive agency is entitled to leave, without loss of or reduction in pay, leave to which otherwise entitled, credit for time or service, or performance or efficiency rating, not to exceed 6 days in a leave year, in order— (1) to provide election administration assistance to a State or unit of local government at a polling place on the date of any election for public office; or (2) to receive any training without which such employee would be ineligible to provide such assistance. (b) Regulations The Director of the Office of Personnel Management may prescribe regulations for the administration of this section, including regulations setting forth the terms and conditions of the election administration assistance an employee may provide for purposes of subsection (a). . (b) Clerical amendment The table of sections for chapter 63 of title 5, United States Code, is amended by inserting after the item relating to section 6328 the following: 6329. Absence in connection with serving as a poll worker. . 1002. Grants to States for poll worker recruitment and training (a) Grants by Election Assistance Commission (1) In general The Election Assistance Commission (hereafter referred to as the Commission ) shall make a grant to each eligible State for recruiting and training individuals to serve as nonpartisan poll workers on dates of elections for public office. (2) Use of Commission materials In carrying out activities with a grant provided under this section, the recipient of the grant shall use the manual prepared by the Commission on successful practices for poll worker recruiting, training and retention as an interactive training tool, and shall develop training programs with the participation and input of experts in adult learning. (b) Requirements for Eligibility (1) Application Each State that desires to receive a payment under this section shall submit an application for the payment to the Commission at such time and in such manner and containing such information as the Commission shall require. (2) Contents of Application Each application submitted under paragraph (1) shall— (A) describe the activities for which assistance under this section is sought; (B) provide assurances that the funds provided under this section will be used to supplement and not supplant other funds used to carry out the activities; (C) provide assurances that the State will furnish the Commission with information on the number of individuals who served as nonpartisan poll workers after recruitment and training with the funds provided under this section; and (D) provide such additional information and certifications as the Commission determines to be essential to ensure compliance with the requirements of this section. (c) Amount of Grant (1) In general The amount of a grant made to a State under this section shall be equal to the product of— (A) the aggregate amount made available for grants to States under this section; and (B) the voting age population percentage for the State. (2) Voting age population percentage defined In paragraph (1), the voting age population percentage for a State is the quotient of— (A) the voting age population of the State (as determined on the basis of the most recent information available from the Bureau of the Census); and (B) the total voting age population of all States (as determined on the basis of the most recent information available from the Bureau of the Census). (d) Reports to Congress (1) Reports by recipients of grants Not later than 6 months after the date on which the final grant is made under this section, each recipient of a grant shall submit a report to the Commission on the activities conducted with the funds provided by the grant. (2) Reports by Commission Not later than 1 year after the date on which the final grant is made under this section, the Commission shall submit a report to Congress on the grants made under this section and the activities carried out by recipients with the grants, and shall include in the report such recommendations as the Commission considers appropriate. (e) Funding (1) Continuing availability of amount appropriated Any amount appropriated to carry out this section shall remain available without fiscal year limitation until expended. (2) Administrative expenses Of the amount appropriated for any fiscal year to carry out this section, not more than 3 percent shall be available for administrative expenses of the Commission. 1003. Model poll worker training program (a) Development of program by Election Assistance Commission Not later than 1 year after the date of the enactment of this Act, the Election Assistance Commission shall develop and provide to each State materials for a model poll worker training program which the State may use to train individuals to serve as poll workers in elections for Federal office. (b) Contents of materials The materials for the model poll worker training program developed under this section shall include materials to provide training with respect to the following: (1) The relevant provisions of the Federal laws which apply to the administration of elections for Federal office in the State, including the Voting Rights Act of 1965 and the Help America Vote Act of 2002. (2) The provision of access to voting to individuals with disabilities in a manner which preserves the dignity and privacy of such individuals. (3) The provision of access to voting to individuals with limited English language proficiency, and to individuals who are members or racial or ethnic minorities, consistent with the protections provided for such individuals under relevant law, in a manner which preserves the dignity of such individuals. (4) Practical experience in the use of the voting machines which will be used in the election involved, including the accessibility features of such machines. (5) Such other election administration subjects as the Commission considers appropriate to ensure that poll workers are able to effectively assist with the administration of elections for Federal office. 1004. State defined In this title, the term State includes the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands. XI Enhancement of Enforcement 1101. Enhancement of enforcement of Help America Vote Act of 2002 (a) Complaints; Availability of private right of action Section 401 of the Help America Vote Act of 2002 ( 42 U.S.C. 15511 ) is amended— (1) by striking The Attorney General and inserting (a) In General.— The Attorney General ; and (2) by adding at the end the following new subsections: (b) Filing of Complaints by Aggrieved Persons (1) In general A person who is aggrieved by a violation of subtitle A or subtitle C of title III which has occurred, is occurring, or is about to occur may file a written, signed, notarized complaint with the Attorney General describing the violation and requesting the Attorney General to take appropriate action under this section. The Attorney General shall immediately provide a copy of a complaint filed under the previous sentence to the entity responsible for administering the State-based administrative complaint procedures described in section 402(a) for the State involved. (2) Response by Attorney General The Attorney General shall respond to each complaint filed under paragraph (1), in accordance with procedures established by the Attorney General that require responses and determinations to be made within the same (or shorter) deadlines which apply to a State under the State-based administrative complaint procedures described in section 402(a)(2). The Attorney General shall immediately provide a copy of the response made under the previous sentence to the entity responsible for administering the State-based administrative complaint procedures described in section 402(a) for the State involved. (c) Availability of private right of action Any person who is authorized to file a complaint under subsection (b)(1) (including any individual who seeks to enforce the individual’s right to a voter-verified paper ballot, the right to have the voter-verified paper ballot counted in accordance with this Act, or any other right under subtitles A or C of title III) may file an action under section 1979 of the Revised Statutes of the United States ( 42 U.S.C. 1983 ) to enforce the uniform and nondiscriminatory election technology and administration requirements under subtitle A of title III, or the requirements of subtitle C of title III. (d) No effect on State procedures Nothing in this section may be construed to affect the availability of the State-based administrative complaint procedures required under section 402 to any person filing a complaint under this subsection. . (b) Effective date The amendments made by this section shall apply with respect to violations occurring with respect to elections for Federal office held in 2014 or any succeeding year. XII Federal Election Integrity 1201. Prohibition on campaign activities by chief State election administration officials (a) In General Title III of the Federal Election Campaign Act of 1971 ( 2 U.S.C. 431 et seq. ) is amended by inserting after section 319 the following new section: 319A. Campaign activities by chief State election administration officials (a) Prohibition It shall be unlawful for a chief State election administration official to take an active part in political management or in a political campaign with respect to any election for Federal office over which such official has supervisory authority. (b) Chief State election administration official The term chief State election administration official means the highest State official with responsibility for the administration of Federal elections under State law. (c) Active part in political management or in a political campaign The term active part in political management or in a political campaign means— (1) serving as a member of an authorized committee of a candidate for Federal office; (2) the use of official authority or influence for the purpose of interfering with or affecting the result of an election for Federal office; (3) the solicitation, acceptance, or receipt of a contribution from any person on behalf of a candidate for Federal office; and (4) any other act which would be prohibited under paragraph (2) or (3) of section 7323(b) of title 5, United States Code, if taken by an individual to whom such paragraph applies (other than any prohibition on running for public office). (d) Exception for Campaigns of Official or Immediate Family Members (1) In general This section does not apply to a chief State election administration official with respect to an election for Federal office in which the official or an immediate family member of the official is a candidate. (2) Immediate family member defined In paragraph (1), the term immediate family member means, with respect to a candidate, a father, mother, son, daughter, brother, sister, husband, wife, father-in-law, or mother-in-law. . (b) Effective Date The amendments made by subsection (a) shall apply with respect to elections for Federal office held after December 2013. XIII Other Election Administration Improvements 1301. Treatment of universities as voter registration agencies (a) In general Section 7(a) of the National Voter Registration Act of 1993 ( 42 U.S.C. 1973gg–5(a) ) is amended— (1) in paragraph (2)— (A) by striking and at the end of subparagraph (A); (B) by striking the period at the end of subparagraph (B) and inserting ; and ; and (C) by adding at the end the following new subparagraph: (C) each institution of higher education (as defined in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 )) in the State that receives Federal funds. ; and (2) in paragraph (6)(A), by inserting or, in the case of an institution of higher education, with each registration of a student for enrollment in a course of study after assistance, . (b) Amendment to Higher Education Act of 1965 Section 487(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1094(a) ) is amended by striking paragraph (23). (c) Effective date The amendments made by this section shall apply with respect to elections held on or after January 1, 2014. 1302. Minimum notification requirements for voters affected by polling place changes (a) Requirements Section 302 of the Help America Vote Act of 2002 ( 42 U.S.C. 15482 ), as amended by section 701(a), is amended— (1) by redesignating subsection (f) as subsection (g); and (2) by inserting after subsection (e) the following new subsection: (f) Minimum notification requirements for voters affected by polling place changes (1) In general If a State assigns an individual who is a registered voter in a State to a polling place with respect to an election for Federal office which is not the same polling place to which the individual was previously assigned with respect to the most recent election for Federal office in the State in which the individual was eligible to vote— (A) the State shall notify the individual of the location of the polling place not later than 7 days before the date of the election; or (B) if the State makes such an assignment fewer than 7 days before the date of the election and the individual appears on the date of the election at the polling place to which the individual was previously assigned, the State shall make every reasonable effort to enable the individual to vote on the date of the election. (2) Effective date This subsection shall apply with respect to elections held on or after January 1, 2014. . (b) Conforming amendment Section 302(f) of such Act ( 42 U.S.C. 15482(f) ), as redesignated by subsection (a) and as amended by section 701(b), is amended by striking (d)(2) and (e)(2) and inserting (d)(2), (e)(2), and (f)(2) . 1303. Voter information response systems and hotline (a) Establishment and operation of systems and services (1) State-based response systems The Attorney General shall coordinate the establishment of a State-based response system for responding to questions and complaints from individuals voting or seeking to vote, or registering to vote or seeking to register to vote, in elections for Federal office. Such system shall provide— (A) State-specific, same-day, and immediate assistance to such individuals, including information on how to register to vote, the location and hours of operation of polling places, and how to obtain absentee ballots; and (B) State-specific, same-day, and immediate assistance to individuals encountering problems with registering to vote or voting, including individuals encountering intimidation or deceptive practices. (2) Hotline The Attorney General, in consultation with State election officials, shall establish and operate a toll-free telephone service, using a telephone number that is accessible throughout the United States and that uses easily identifiable numerals, through which individuals throughout the United States— (A) may connect directly to the State-based response system described in paragraph (1) with respect to the State involved; (B) may obtain information on voting in elections for Federal office, including information on how to register to vote in such elections, the locations and hours of operation of polling places, and how to obtain absentee ballots; and (C) may report information to the Attorney General on problems encountered in registering to vote or voting, including incidences of voter intimidation or suppression. (3) Collaboration with State and local election officials (A) Collection of information from states The Attorney General shall coordinate the collection of information on State and local election laws and policies, including information on the Statewide computerized voter registration lists maintained under title III of the Help America Vote Act of 2002, so that individuals who contact the free telephone service established under paragraph (2) on the date of an election for Federal office may receive an immediate response on that day. (B) Forwarding questions and complaints to States If an individual contacts the free telephone service established under paragraph (2) on the date of an election for Federal office with a question or complaint with respect to a particular State or jurisdiction within a State, the Attorney General shall forward the question or complaint immediately to the appropriate election official of the State or jurisdiction so that the official may answer the question or remedy the complaint on that date. (b) Use of service by individuals with disabilities and individuals with limited English language proficiency The Attorney General shall design and operate the telephone service established under this section in a manner that ensures that individuals with disabilities and individuals with limited proficiency in the English language are fully able to use the service. (c) Voter Hotline Task Force (1) Appointment by attorney general The Attorney General shall appoint individuals (in such number as the Attorney General considers appropriate but in no event fewer than 3) to serve on a Voter Hotline Task Force to provide ongoing analysis and assessment of the operation of the telephone service established under this section, and shall give special consideration in making appointments to the Task Force to individuals who represent civil rights organizations. At least one member of the Task Force shall be a representative of an organization promoting voting rights or civil rights which has experience in the operation of similar telephone services or in protecting the rights of individuals to vote, especially individuals who are members or racial minorities or of communities who have been adversely affected by efforts to suppress voting rights. (2) Eligibility An individual shall be eligible to serve on the Task Force under this subsection if the individual meets such criteria as the Attorney General may establish, except that an individual may not serve on the task force if the individual has been convicted of any criminal offense relating to voter intimidation or voter suppression. (3) Term of service An individual appointed to the Task Force shall serve a single term of 2 years, except that the initial terms of the members first appointed to the Task Force shall be staggered so that there are at least 3 individuals serving on the Task Force during each year. A vacancy in the membership of the Task Force shall be filled in the same manner as the original appointment. (4) No compensation for service Members of the Task Force shall serve without pay, but shall receive travel expenses, including per diem in lieu of subsistence, in accordance with applicable provisions under subchapter I of chapter 57 of title 5, United States Code. (d) Biannual report to Congress Not later than March 1 of each odd-numbered year, the Attorney General shall submit a report to Congress on the operation of the telephone service established under this section during the previous 2 years, and shall include in the report— (1) an enumeration of the number and type of calls that were received by the service; (2) a compilation and description of the reports made to the service by individuals citing instances of voter intimidation or suppression; (3) an assessment of the effectiveness of the service in making information available to all households in the United States with telephone service; (4) any recommendations developed by the Task Force established under subsection (c) with respect to how voting systems may be maintained or upgraded to better accommodate voters and better ensure the integrity of elections, including but not limited to identifying how to eliminate coordinated voter suppression efforts and how to establish effective mechanisms for distributing updates on changes to voting requirements; and (5) any recommendations on best practices for the State-based response systems established under subsection (a)(1). (e) Authorization of appropriations (1) Authorization There are authorized to be appropriated to the Attorney General for fiscal year 2013 and each succeeding fiscal year such sums as may be necessary to carry out this section. (2) Set-aside for outreach Of the amounts appropriated to carry out this Act for a fiscal year pursuant to the authorization under paragraph (1), not less than 15% shall be used for outreach activities to make the public aware of the availability of the telephone service established under this section, with an emphasis on outreach to individuals with disabilities and individuals with limited proficiency in the English language. 1304. Reauthorization of election assistance commission Section 210 of the Help America Vote Act of 2002 ( 42 U.S.C. 15330 ) is amended by striking for each of the fiscal years 2003 through 2005 and inserting for each of the fiscal years 2013 through 2017 . 1305. Application of laws to Commonwealth of Northern Mariana Islands (a) National Voter Registration Act of 1993 Section 3(4) of the National Voter Registration Act of 1993 ( 42 U.S.C. 1973gg–1 ) is amended by striking States and the District of Columbia and inserting States, the District of Columbia, and the Commonwealth of the Northern Mariana Islands . (b) Help America Vote Act of 2002 (1) In general Section 901 of the Help America Vote Act of 2002 ( 42 U.S.C. 15541 ) is amended by striking and the United States Virgin Islands and inserting the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands . (2) Conforming amendment relating to minimum amount of requirements payment to territories Section 252(c)(2) of such Act ( 42 U.S.C. 15402(c)(2) ) is amended by striking or the United States Virgin Islands and inserting the United States Virgin Islands, or the Commonwealth of the Northern Mariana Islands . 1306. Repeal of exemption of Election Assistance Commission from certain government contracting requirements (a) In general Section 205 of the Help America Vote Act of 2002 ( 42 U.S.C. 15325 ) is amended by striking subsection (e). (b) Effective date The amendment made by subsection (a) shall apply with respect to contracts entered into by the Election Assistance Commission on or after the date of the enactment of this Act. 1307. No effect on other laws (a) In general Except as specifically provided, nothing in this Act may be construed to authorize or require conduct prohibited under any of the following laws, or to supersede, restrict, or limit the application of such laws: (1) The Voting Rights Act of 1965 ( 42 U.S.C. 1973 et seq. ). (2) The Voting Accessibility for the Elderly and Handicapped Act ( 42 U.S.C. 1973ee et seq. ). (3) The Uniformed and Overseas Citizens Absentee Voting Act ( 42 U.S.C. 1973ff et seq. ). (4) The National Voter Registration Act of 1993 ( 42 U.S.C. 1973gg et seq. ). (5) The Americans with Disabilities Act of 1990 ( 42 U.S.C. 12101 et seq. ). (6) The Rehabilitation Act of 1973 ( 29 U.S.C. 701 et seq. ). (b) No effect on preclearance or other requirements under Voting Rights Act The approval by any person of a payment or grant application under this Act, or any other action taken by any person under this Act, shall not be considered to have any effect on requirements for preclearance under section 5 of the Voting Rights Act of 1965 ( 42 U.S.C. 1973c ) or any other requirements of such Act.

https://www.govinfo.gov/content/pkg/BILLS-113hr12ih/xml/BILLS-113hr12ih.xml

113-hr-15

I 113th CONGRESS 1st Session H. R. 15 IN THE HOUSE OF REPRESENTATIVES October 2, 2013 Mr. Garcia (for himself, Ms. Chu , Mr. Horsford , Mr. Polis , Ms. DelBene , Ms. Pelosi , Mr. Hoyer , Mr. Clyburn , Mr. Becerra , Mr. Crowley , Mr. Van Hollen , Mr. Israel , Ms. Duckworth , Mr. Gene Green of Texas , Ms. Speier , Ms. Titus , Ms. Linda T. Sánchez of California , Mr. David Scott of Georgia , Mr. Delaney , Mr. Larsen of Washington , Mr. O’Rourke , Ms. Jackson Lee , Mr. Peters of California , Mr. Gallego , Ms. Michelle Lujan Grisham of New Mexico , Mr. Hinojosa , Mr. Connolly , Mr. Himes , Ms. Brownley of California , Mr. Engel , Mr. Perlmutter , Mr. Sherman , Ms. Wasserman Schultz , Mr. Vargas , Mr. Cárdenas , Mr. Kildee , Mrs. Napolitano , Mr. Swalwell of California , Mr. Ruiz , Mr. Lowenthal , Mr. Takano , Mr. Doggett , Mr. Quigley , Mr. Barber , Mr. Castro of Texas , Mr. Ben Ray Luján of New Mexico , Mr. Foster , Ms. Roybal-Allard , Ms. Kuster , Ms. Wilson of Florida , Mr. Sablan , Mr. Sires , Mrs. McCarthy of New York , Ms. Loretta Sanchez of California , Ms. Schwartz , Mr. Deutch , Mr. Maffei , Mr. Huffman , Mr. Schrader , Mr. Moran , Mr. Schiff , Mr. Murphy of Florida , Mrs. Negrete McLeod , Mr. Heck of Washington , Mr. Pocan , Mr. Smith of Washington , Ms. Kelly of Illinois , Ms. Hanabusa , Mr. Serrano , Mr. Owens , Ms. Esty , Ms. Frankel of Florida , Mr. Kind , Mr. Sean Patrick Maloney of New York , Mr. Pierluisi , Mr. Kilmer , Mr. Honda , Mr. Thompson of California , Ms. Eshoo , Mr. Schneider , Mr. Cuellar , Mr. Faleomavaega , Ms. McCollum , Ms. Meng , Mr. Rangel , Ms. Matsui , Mrs. Carolyn B. Maloney of New York , Ms. Hahn , Ms. Castor of Florida , Mr. Nadler , Mr. Veasey , Mrs. Kirkpatrick , Ms. Moore , Mr. Cicilline , Mr. Cartwright , Mr. Meeks , Ms. DeGette , Mr. Hastings of Florida , Mr. Cohen , Mr. Clay , Mr. Conyers , Ms. Schakowsky , Mr. McDermott , Mr. Andrews , Mr. Blumenauer , Mr. Dingell , Mr. Garamendi , Mr. Langevin , Mr. Tonko , Mr. Pastor of Arizona , Ms. Velázquez , Mr. Farr , Mr. Costa , Mr. Price of North Carolina , Ms. Bonamici , Mr. Larson of Connecticut , Ms. Sinema , Mr. Courtney , Mr. Pallone , Mr. Lewis , and Mr. Grayson ) introduced the following bill; which was referred to the Committee on the Judiciary , and in addition to the Committees on Foreign Affairs , Homeland Security , Ways and Means , Armed Services , Natural Resources , Agriculture , Education and the Workforce , Energy and Commerce , Oversight and Government Reform , the Budget , Science, Space, and Technology , Financial Services , and Transportation and Infrastructure , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To provide for comprehensive immigration reform and for other purposes. 1. Short title; table of contents (a) Short title This Act may be cited as the Border Security, Economic Opportunity, and Immigration Modernization Act . (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Statement of congressional findings. Sec. 3. Reports on current border security status. Sec. 4. Border security metrics and goals. Sec. 5. Southern Border Security Commission. Sec. 6. Border Security Results Strategy. Sec. 7. US–VISIT Implementation. Sec. 8. Alternate model for border security strategy development. Sec. 9. Comprehensive Immigration Reform Funds. Sec. 10. Reference to the Immigration and Nationality Act . Sec. 11. Definitions. Sec. 12. Grant accountability. Title I—Border Security Sec. 1101. Definitions. Sec. 1102. Additional U.S. Customs and Border Protection officers. Sec. 1103. National Guard support to secure the Southern border. Sec. 1104. Enhancement of existing border security operations. Sec. 1105. Border security on certain Federal land. Sec. 1106. Equipment and technology. Sec. 1107. Access to emergency personnel. Sec. 1108. Southwest Border Region Prosecution Initiative. Sec. 1109. Interagency collaboration. Sec. 1110. State Criminal Alien Assistance Program. Sec. 1111. Use of force. Sec. 1112. Training for border security and immigration enforcement officers. Sec. 1113. Department of Homeland Security Border Oversight Task Force. Sec. 1114. Ombudsman for Immigration Related Concerns of the Department of Homeland Security. Sec. 1115. Protection of family values in apprehension programs. Sec. 1116. Reports. Sec. 1117. Severability and delegation. Sec. 1118. Prohibition on land border crossing fees. Sec. 1119. Human Trafficking Reporting. Sec. 1120. Rule of construction. Sec. 1121. Limitations on dangerous deportation practices. Sec. 1122. Maximum allowable costs of salaries of contractor employees. Title II—Immigrant visas Subtitle A—Registration and adjustment of registered provisional immigrants Sec. 2101. Registered provisional immigrant status. Sec. 2102. Adjustment of status of registered provisional immigrants. Sec. 2103. The DREAM Act. Sec. 2104. Additional requirements. Sec. 2105. Criminal penalty. Sec. 2106. Grant program to assist eligible applicants. Sec. 2107. Conforming amendments to the Social Security Act. Sec. 2108. Government contracting and acquisition of real property interest. Sec. 2109. Long-term legal residents of the Commonwealth of the Northern Mariana Islands. Sec. 2110. Rulemaking. Sec. 2111. Statutory construction. Subtitle B—Agricultural Worker Program Sec. 2201. Short title. Sec. 2202. Definitions. Chapter 1—Program for earned status adjustment of agricultural workers Subchapter A—Blue card status Sec. 2211. Requirements for blue card status. Sec. 2212. Adjustment to permanent resident status. Sec. 2213. Use of information. Sec. 2214. Reports on blue cards. Sec. 2215. Authorization of appropriations. Subchapter B—Correction of social security records Sec. 2221. Correction of social security records. Chapter 2—Nonimmigrant agricultural visa program Sec. 2231. Nonimmigrant classification for nonimmigrant agricultural workers. Sec. 2232. Establishment of nonimmigrant agricultural worker program. Sec. 2233. Transition of H–2A Worker Program. Sec. 2234. Reports to Congress on nonimmigrant agricultural workers. Chapter 3—Other provisions Sec. 2241. Rulemaking. Sec. 2242. Reports to Congress. Sec. 2243. Benefits integrity programs. Sec. 2244. Effective date. Subtitle C—Future immigration Sec. 2301. Merit-based points track one. Sec. 2302. Merit-based track two. Sec. 2303. Repeal of the diversity visa program. Sec. 2304. Worldwide levels and recapture of unused immigrant visas. Sec. 2305. Reclassification of spouses and minor children of lawful permanent residents as immediate relatives. Sec. 2306. Numerical limitations on individual foreign states. Sec. 2307. Allocation of immigrant visas. Sec. 2308. Inclusion of communities adversely affected by a recommendation of the Defense Base Closure and Realignment Commission as targeted employment areas. Sec. 2309. V nonimmigrant visas. Sec. 2310. Fiancée and fiancé child status protection. Sec. 2311. Equal treatment for all stepchildren. Sec. 2312. Modification of adoption age requirements. Sec. 2313. Relief for orphans, widows, and widowers. Sec. 2314. Discretionary authority with respect to removal, deportation, or inadmissibility of citizen and resident immediate family members. Sec. 2315. Waivers of inadmissibility. Sec. 2316. Continuous presence. Sec. 2317. Global health care cooperation. Sec. 2318. Extension and improvement of the Iraqi special immigrant visa program. Sec. 2319. Extension and improvement of the Afghan special immigrant visa program. Sec. 2320. Special Immigrant Nonminister Religious Worker Program. Sec. 2321. Special immigrant status for certain surviving spouses and children. Sec. 2322. Reunification of certain families of Filipino veterans of World War II. Subtitle D—Conrad State 30 and physician access Sec. 2401. Conrad State 30 Program. Sec. 2402. Retaining physicians who have practiced in medically underserved communities. Sec. 2403. Employment protections for physicians. Sec. 2404. Allotment of Conrad 30 waivers. Sec. 2405. Amendments to the procedures, definitions, and other provisions related to physician immigration. Subtitle E—Integration Sec. 2501. Definitions. Chapter 1—Citizenship and New Americans Subchapter A—Office of Citizenship and New Americans Sec. 2511. Office of Citizenship and New Americans. Subchapter B—Task Force on New Americans Sec. 2521. Establishment. Sec. 2522. Purpose. Sec. 2523. Membership. Sec. 2524. Functions. Chapter 2—Public-Private partnership Sec. 2531. Establishment of United States Citizenship Foundation. Sec. 2532. Funding. Sec. 2533. Purposes. Sec. 2534. Authorized activities. Sec. 2535. Council of directors. Sec. 2536. Powers. Sec. 2537. Initial Entry, Adjustment, and Citizenship Assistance Grant Program. Sec. 2538. Pilot program to promote immigrant integration at State and local levels. Sec. 2539. Naturalization ceremonies. Chapter 3—Funding Sec. 2541. Authorization of appropriations. Chapter 4—Reduce barriers to naturalization Sec. 2551. Waiver of English requirement for senior new Americans. Sec. 2552. Filing of applications not requiring regular Internet access. Sec. 2553. Permissible use of assisted housing by battered immigrants. Sec. 2554. United States citizenship for internationally adopted individuals. Title III—Interior enforcement Subtitle A—Employment Verification System Sec. 3101. Unlawful employment of unauthorized aliens. Sec. 3102. Increasing security and integrity of social security cards. Sec. 3103. Increasing security and integrity of immigration documents. Sec. 3104. Responsibilities of the Social Security Administration. Sec. 3105. Improved prohibition on discrimination based on national origin or citizenship status. Sec. 3106. Rulemaking. Sec. 3107. Office of the Small Business and Employee Advocate. Subtitle B—Protecting United States workers Sec. 3201. Protections for victims of serious violations of labor and employment law or crime. Sec. 3202. Employment Verification System Education Funding. Sec. 3203. Directive to the United States Sentencing Commission. Subtitle C—Other provisions Sec. 3301. Funding. Sec. 3302. Effective date. Sec. 3303. Mandatory exit system. Sec. 3304. Identity-theft resistant manifest information for passengers, crew, and non-crew onboard departing aircraft and vessels. Sec. 3305. Profiling. Sec. 3306. Enhanced penalties for certain drug offenses on Federal lands. Subtitle D—Asylum and refugee provisions Sec. 3401. Time limits and efficient adjudication of genuine asylum claims. Sec. 3402. Refugee family protections. Sec. 3403. Clarification on designation of certain refugees. Sec. 3404. Asylum determination efficiency. Sec. 3405. Stateless persons in the United States. Sec. 3406. U visa accessibility. Sec. 3407. Work authorization while applications for U and T visas are pending. Sec. 3408. Representation at overseas refugee interviews. Sec. 3409. Law enforcement and national security checks. Sec. 3410. Tibetan refugee assistance. Sec. 3411. Termination of asylum or refugee status. Sec. 3412. Asylum clock. Subtitle E—Shortage of immigration court resources for removal proceedings Sec. 3501. Shortage of immigration court personnel for removal proceedings. Sec. 3502. Improving immigration court efficiency and reducing costs by increasing access to legal information. Sec. 3503. Office of Legal Access Programs. Sec. 3504. Codifying Board of Immigration Appeals. Sec. 3505. Improved training for immigration judges and Board Members. Sec. 3506. Improved resources and technology for immigration courts and Board of Immigration Appeals. Sec. 3507. Transfer of responsibility for trafficking protections. Subtitle F—Prevention of trafficking in persons and abuses involving workers recruited abroad Sec. 3601. Definitions. Sec. 3602. Disclosure. Sec. 3603. Prohibition on discrimination. Sec. 3604. Recruitment fees. Sec. 3605. Registration. Sec. 3606. Bonding requirement. Sec. 3607. Maintenance of lists. Sec. 3608. Amendment to the Immigration and Nationality Act. Sec. 3609. Responsibilities of Secretary of State. Sec. 3610. Enforcement provisions. Sec. 3611. Detecting and preventing child trafficking. Sec. 3612. Protecting child trafficking victims. Sec. 3613. Rule of construction. Sec. 3614. Regulations. Subtitle G—Interior enforcement Sec. 3701. Criminal street gangs. Sec. 3702. Banning habitual drunk drivers from the United States. Sec. 3703. Sexual abuse of a minor. Sec. 3704. Illegal entry. Sec. 3705. Reentry of removed alien. Sec. 3706. Penalties relating to vessels and aircraft. Sec. 3707. Reform of passport, visa, and immigration fraud offenses. Sec. 3708. Combating schemes to defraud aliens. Sec. 3709. Inadmissibility and removal for passport and immigration fraud offenses. Sec. 3710. Directives related to passport and document fraud. Sec. 3711. Inadmissible aliens. Sec. 3712. Organized and abusive human smuggling activities. Sec. 3713. Preventing criminals from renouncing citizenship during wartime. Sec. 3714. Diplomatic security service. Sec. 3715. Secure alternatives programs. Sec. 3716. Oversight of detention facilities. Sec. 3717. Procedures for bond hearings and filing of notices to appear. Sec. 3718. Sanctions for countries that delay or prevent repatriation of their nationals. Sec. 3719. Gross violations of human rights. Sec. 3720. Reporting and recordkeeping requirements relating to the detention of aliens. Sec. 3721. Powers of immigration officers and employees at sensitive locations. Subtitle H—Protection of Children Affected by Immigration Enforcement Sec. 3801. Short title. Sec. 3802. Definitions. Sec. 3803. Apprehension procedures for immigration enforcement-related activities. Sec. 3804. Access to children, State and local courts, child welfare agencies, and consular officials. Sec. 3805. Mandatory training. Sec. 3806. Rulemaking. Sec. 3807. Severability. Title IV—Reforms to nonimmigrant visa programs Subtitle A—Employment-Based nonimmigrant visas Sec. 4101. Market-based H–1B visa limits. Sec. 4102. Employment authorization for dependents of employment-based nonimmigrants. Sec. 4103. Eliminating impediments to worker mobility. Sec. 4104. STEM education and training. Sec. 4105. H–1B and L visa fees. Subtitle B—H–1B visa fraud and abuse protections Chapter 1—H–1B Employer Application Requirements Sec. 4211. Modification of application requirements. Sec. 4212. Requirements for admission of nonimmigrant nurses in health professional shortage areas. Sec. 4213. New application requirements. Sec. 4214. Application review requirements. Chapter 2—Investigation and Disposition of Complaints Against H–1B Employers Sec. 4221. General modification of procedures for investigation and disposition. Sec. 4222. Investigation, working conditions, and penalties. Sec. 4223. Initiation of investigations. Sec. 4224. Information sharing. Sec. 4225. Transparency of high-skilled immigration programs. Chapter 3—Other protections Sec. 4231. Posting available positions through the Department of Labor. Sec. 4232. Requirements for information for H–1B and L nonimmigrants. Sec. 4233. Filing fee for H–1B-dependent employers. Sec. 4234. Providing premium processing of employment-based visa petitions. Sec. 4235. Technical correction. Sec. 4236. Application. Sec. 4237. Portability for beneficiaries of immigrant petitions. Subtitle C—L visa fraud and abuse protections Sec. 4301. Prohibition on outplacement of L nonimmigrants. Sec. 4302. L employer petition requirements for employment at new offices. Sec. 4303. Cooperation with Secretary of State. Sec. 4304. Limitation on employment of L nonimmigrants. Sec. 4305. Filing fee for L nonimmigrants. Sec. 4306. Investigation and disposition of complaints against L nonimmigrant employers. Sec. 4307. Penalties. Sec. 4308. Prohibition on retaliation against L nonimmigrants. Sec. 4309. Reports on L nonimmigrants. Sec. 4310. Application. Sec. 4311. Report on L blanket petition process. Subtitle D—Other nonimmigrant visas Sec. 4401. Nonimmigrant visas for students. Sec. 4402. Classification for specialty occupation workers from free trade countries. Sec. 4403. E-visa reform. Sec. 4404. Other changes to nonimmigrant visas. Sec. 4405. Treatment of nonimmigrants during adjudication of application. Sec. 4406. Nonimmigrant elementary and secondary school students. Sec. 4407. J–1 Summer Work Travel Visa Exchange Visitor Program fee. Sec. 4408. J visa eligibility for speakers of certain foreign languages. Sec. 4409. F–1 visa fee. Sec. 4410. Pilot program for remote B nonimmigrant visa interviews. Sec. 4411. Providing consular officers with access to all terrorist databases and requiring heightened scrutiny of applications for admission from persons listed on terrorist databases. Sec. 4412. Visa revocation information. Sec. 4413. Status for certain battered spouses and children. Sec. 4414. Nonimmigrant crewmen landing temporarily in Hawaii. Sec. 4415. Treatment of compact of free association migrants. Subtitle E—JOLT Act Sec. 4501. Short titles. Sec. 4502. Premium processing. Sec. 4503. Encouraging Canadian tourism to the United States. Sec. 4504. Retiree visa. Sec. 4505. Incentives for foreign visitors visiting the United States during low peak seasons. Sec. 4506. Visa waiver program enhanced security and reform. Sec. 4507. Expediting entry for priority visitors. Sec. 4508. Visa processing. Sec. 4509. B visa fee. Subtitle F—Reforms to the H–2B Visa Program Sec. 4601. Extension of returning worker exemption to H–2B numerical limitation. Sec. 4602. Other requirements for H–2B employers. Sec. 4603. Executives and managers. Sec. 4604. Honoraria. Sec. 4605. Nonimmigrants participating in relief operations. Sec. 4606. Nonimmigrants performing maintenance on common carriers. Sec. 4607. American jobs in American forests. Subtitle G—W nonimmigrant visas Sec. 4701. Bureau of Immigration and Labor Market Research. Sec. 4702. Nonimmigrant classification for W nonimmigrants. Sec. 4703. Admission of W nonimmigrant workers. Subtitle H—Investing in new venture, entrepreneurial startups, and technologies Sec. 4801. Nonimmigrant INVEST visas. Sec. 4802. INVEST immigrant visa. Sec. 4803. Administration and oversight. Sec. 4804. Permanent authorization of EB–5 Regional Center Program. Sec. 4805. Conditional permanent resident status for certain employment-based immigrants, spouses, and children. Sec. 4806. EB–5 visa reforms. Sec. 4807. Authorization of appropriations. Subtitle I—Student and Exchange Visitor Programs Sec. 4901. Short title. Sec. 4902. SEVIS and SEVP defined. Sec. 4903. Increased criminal penalties. Sec. 4904. Accreditation requirement. Sec. 4905. Other academic institutions. Sec. 4906. Penalties for failure to comply with SEVIS reporting requirements. Sec. 4907. Visa fraud. Sec. 4908. Background checks. Sec. 4909. Revocation of authority to issue Form I–20 of flight schools not certified by the Federal Aviation Administration. Sec. 4910. Revocation of accreditation. Sec. 4911. Report on risk assessment. Sec. 4912. Implementation of GAO recommendations. Sec. 4913. Implementation of SEVIS II. 2. Statement of congressional findings Congress makes the following findings: (1) The passage of this Act recognizes that the primary tenets of its success depend on securing the sovereignty of the United States of America and establishing a coherent and just system for integrating those who seek to join American society. (2) We have a right, and duty, to maintain and secure our borders, and to keep our country safe and prosperous. As a Nation founded, built and sustained by immigrants we also have a responsibility to harness the power of that tradition in a balanced way that secures a more prosperous future for America. (3) We have always welcomed newcomers to the United States and will continue to do so. But in order to qualify for the honor and privilege of eventual citizenship, our laws must be followed. The world depends on America to be strong—economically, militarily and ethically. The establishment of a stable, just, and efficient immigration system only supports those goals. As a Nation, we have the right and responsibility to make our borders safe, to establish clear and just rules for seeking citizenship, to control the flow of legal immigration, and to eliminate illegal immigration, which in some cases has become a threat to our national security. (4) All parts of this Act are premised on the right and need of the United States to achieve these goals, and to protect its borders and maintain its sovereignty. 3. Reports on current border security status (a) In general Not later than 90 days after the date of the enactment of this Act, every 180 days thereafter until the Comptroller General of the United States reports on the results of the review described in section 4(c)(7)(B)(ii), and every 365 days after the date of such report, the Secretary of Homeland Security shall submit to the appropriate congressional committees and the Government Accountability Office a report that assesses and describes the state of situational awareness and operational control. Such reports shall include an identification of the high traffic areas and the illegal border crossing effectiveness rate for each sector along the northern and southern borders of the United States that are within the responsibility of the Border Patrol. (b) GAO Report Not later than 90 days after receiving the initial report required under subsection (a), the Comptroller General of the United States shall report to the appropriate congressional committees regarding the verification of the data and methodology used to determine high traffic areas and the illegal border crossing effectiveness rate. 4. Border security metrics and goals (a) Definitions In this section: (1) Appropriate congressional committees The term appropriate congressional committees means the Committee on Homeland Security of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate. (2) Border Security Results Strategy The term Border Security Results Strategy means the strategy established by the Secretary pursuant to section 6. (3) Cocaine removal effectiveness rate The term cocaine removal effectiveness rate means the percentage that results from dividing the amount of cocaine removed by the Department of Homeland Security’s maritime security components inside or outside a transit zone, as the case may be, by the total documented cocaine flow rate as contained in Federal drug databases. (4) Consequence Delivery System The term Consequence Delivery System means the series of consequences applied to persons illegally entering the United States by the Border Patrol to prevent illegal border crossing recidivism. (5) Got away The term got away means an illegal border crosser who, after making an illegal entry into the United States, is not turned back or apprehended. (6) High traffic areas The term high traffic areas means sectors along the northern and southern borders of the United States that are within the responsibility of the Border Patrol that have the most illicit cross-border activity, informed through situational awareness. (7) Illegal border crossing effectiveness rate The term illegal border crossing effectiveness rate means the percentage that results from dividing the number of apprehensions and turn backs by the number of apprehensions, turn backs, and got aways. The data used by the Secretary of Homeland Security to determine such rate shall be collected and reported in a consistent and standardized manner across all Border Patrol sectors. (8) Major violator The term major violator means a person or entity that has engaged in serious criminal activities at any land, air, or sea port of entry, including possession of illicit drugs, smuggling of prohibited products, human smuggling, weapons possession, use of fraudulent United States documents, or other offenses serious enough to result in arrest. (9) Operational control The term operational control means a condition in which there is a not lower than 90 percent illegal border crossing effectiveness rate, informed by situational awareness, and a significant reduction in the movement of illicit drugs and other contraband through such areas is being achieved. (10) Situational awareness The term situational awareness means knowledge and an understanding of current illicit cross-border activity, including cross-border threats and trends concerning illicit trafficking and unlawful crossings along the international borders of the United States and in the maritime environment, and the ability to forecast future shifts in such threats and trends. (11) Transit zone The term transit zone means the sea corridors of the western Atlantic Ocean, the Gulf of Mexico, the Caribbean Sea, and the eastern Pacific Ocean through which undocumented migrants and illicit drugs transit, either directly or indirectly, to the United States. (12) Turn back The term turn back means an illegal border crosser who, after making an illegal entry into the United States, returns to the country from which such crosser entered. (b) Border security goal The Department’s border security goal is to gain and maintain situational awareness, and operational control of high traffic areas and operational control along the southwest border of the United States. (c) Metrics (1) Metrics For Securing The Border Between Ports Of Entry Not later than 120 days after the date of the enactment of this Act, the Secretary of Homeland Security shall implement metrics, informed by situational awareness, to measure the effectiveness of security between ports of entry, which shall include, at a minimum, the following: (A) An illegal border crossing effectiveness rate, informed by situational awareness. (B) An illicit drugs seizure rate which measures the amount and type of illicit drugs seized by the Border Patrol in any fiscal year compared to an average of the amount and type of illicit drugs seized by the Border Patrol for the immediately preceding five fiscal years. (C) A cocaine seizure effectiveness rate measured as a percentage that results from dividing the amount of cocaine seized by the Border Patrol by the total documented cocaine flow rate as contained in Federal drug databases. (D) Estimates, using alternative methodologies, including recidivism data, survey data, known-flow data, and technologically measured data, of total attempted illegal border crossings, total deaths and injuries resulting from such attempted illegal border crossings, the rate of apprehension of attempted illegal border crossers, and the inflow into the United States of illegal border crossers who evade apprehension. (E) Estimates of the impact of the Border Patrol’s Consequence Delivery System on the rate of recidivism of illegal border crossers. (2) Metrics For Securing The Border At Ports Of Entry (A) In general Not later than 120 days after the date of the enactment of this Act, the Secretary of Homeland Security shall implement metrics, informed by situational awareness, to measure the effectiveness of security at ports of entry, which shall include, at a minimum, the following: (i) An inadmissible border crossing rate which measures the number of known inadmissible border crossers who are apprehended, excluding those border crossers who voluntarily withdraw their applications for admission, against the total estimated number of inadmissible border crossers U.S. Customs and Border Protection fails to apprehend. (ii) An illicit drugs seizure rate which measures the amount and type of illicit drugs seized by U.S. Customs and Border Protection in any fiscal year compared to an average of the amount and type of illicit drugs seized by U.S. Customs and Border Protection for the immediately preceding five fiscal years. (iii) A cocaine seizure effectiveness rate measured as a percentage that results from dividing the amount of cocaine seized by U.S. Customs and Border Protection by the total documented cocaine flow rate as contained in Federal drug databases. (iv) Estimates, using alternative methodologies, including survey data and randomized secondary screening data, of total attempted inadmissible border crossers, the rate of apprehension of attempted inadmissible border crossers, and the inflow into the United States of inadmissible border crossers who evade apprehension. (v) The number of infractions related to personnel and cargo committed by major violators who are apprehended by U.S. Customs and Border Protection at ports of entry, and the estimated number of such infractions committed by major violators who are not so apprehended. (vi) A measurement of how border security operations affect crossing times. (B) Covert testing The Inspector General of the Department of Homeland Security shall carry out covert testing at ports of entry and submit to the Secretary of Homeland Security and the appropriate congressional committees a report that contains the results of such testing. The Secretary shall use such results to inform activities under this subsection. (3) Metrics For Securing The Maritime Border Not later than 120 days after the date of the enactment of this Act, the Secretary of Homeland Security shall implement metrics, informed by situational awareness, to measure the effectiveness of security in the maritime environment, which shall include, at a minimum, the following: (A) An estimate of the total number of undocumented migrants the Department of Homeland Security’s maritime security components fail to interdict. (B) An undocumented migrant interdiction rate which measures the number of undocumented migrants interdicted against the total estimated number of undocumented migrants the Department of Homeland Security’s maritime security components fail to interdict. (C) An illicit drugs removal rate which measures the amount and type of illicit drugs removed by the Department of Homeland Security’s maritime security components inside a transit zone in any fiscal year compared to an average of the amount and type of illicit drugs removed by the Department of Homeland Security’s maritime security components inside a transit zone for the immediately preceding five fiscal years. (D) An illicit drugs removal rate which measures the amount of illicit drugs removed by the Department of Homeland Security’s maritime security components outside a transit zone in any fiscal year compared to an average of the amount of illicit drugs removed by the Department of Homeland Security’s maritime security components outside a transit zone for the immediately preceding five fiscal years. (E) A cocaine removal effectiveness rate inside a transit zone. (F) A cocaine removal effectiveness rate outside a transit zone. (G) A response rate which measures the Department of Homeland Security’s ability to respond to and resolve known maritime threats, both inside and outside a transit zone, by placing assets on-scene, compared to the total number of events with respect to which the Department has known threat information. (4) Collaboration The Secretary of Homeland Security shall collaborate with the head of a national laboratory within the Department of Homeland Security laboratory network with prior expertise in border security and the head of a border security university-based center within the Department of Homeland Security centers of excellence network to develop the metrics required under paragraphs (1), (2), and (3) to ensure the suitability and statistical validity of each such metric. Such collaboration shall also include consultation by the Secretary with the Governors of every border State and representatives of the Border Patrol and U.S. Customs and Border Protection. (5) Recommendations Relating To Certain Other Metrics In carrying out paragraph (4), the head of the national laboratory and the head of a border security university-based center referred to in such subsection shall make recommendations to the Secretary of Homeland Security for other suitable metrics that may be used to measure the effectiveness of border security. (6) Evaluation By The Government Accountability Office (A) In general The Secretary of Homeland Security shall make available to the Government Accountability Office the data and methodology used to develop the metrics implemented under paragraphs (1), (2), and (3). (B) Report Not later than 270 days after receiving the data and methodology referred to in subparagraph (A), the Comptroller General of the United States shall submit to the appropriate congressional committees a report on the suitability and statistical validity of such data and methodology. (7) Certifications And Reports Relating To Operational Control (A) By the Secretary of Homeland Security (i) Two years If the Secretary of Homeland Security determines that situational awareness and operational control of high traffic areas have been achieved by the date that is not later than two years after the date of the submission of the implementation plan required under section 6(c), the Secretary shall submit to the appropriate congressional committees and the Comptroller General of the United States a certification that so attests. (ii) Five years If the Secretary of Homeland Security determines that operational control along the southwest border of the United States has been achieved by the date that is not later than five years after the date of the submission of the implementation plan required under section 6(c), the Secretary shall submit to the appropriate congressional committees and the Comptroller General of the United States a certification that so attests. (iii) Annual updates Every year beginning with the year after the Secretary of Homeland Security submits the certification under clause (ii), if the Secretary determines that operational control along the southwest border of the United States is being maintained, the Secretary shall submit to the appropriate congressional committees and the Comptroller General of the United States a certification that so attests. (B) By the Comptroller General (i) Reviews The Comptroller General of the United States shall review the certifications of the Secretary of Homeland Security under clauses (i), (ii), and (iii) of subparagraph (A) to assess the certifications of the Secretary relating to the achievement of situational awareness, operational control, or both, as the case may be, in accordance with such clauses. (ii) Reports Not later than 120 days after conducting the reviews described in clause (i), the Comptroller General of the United States shall submit to the appropriate congressional committees a report on the results of each such review. (8) Failure To Achieve Situational Awareness Or Operational Control If the Secretary of Homeland Security determines that situational awareness, operational control, or both, as the case may be, has not been achieved by the dates referred to in clauses (i) and (ii) of paragraph (7)(A), as the case may be, or if the Secretary determines that operational control is not being annually maintained pursuant to clause (iii) of such paragraph, the Secretary shall, not later than 60 days after such dates, submit to the appropriate congressional committees a report that describes why situational awareness or operational control, or both, as the case may be, was not achieved. Such report shall include, at a minimum, impediments incurred, potential remedies, and recommendations to achieve situational awareness, operational control, or both, as the case may be. (9) Government Accountability Office Report On Border Security Duplication And Cost Effectiveness Not later than one year after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the appropriate congressional committees a report addressing areas of overlap in responsibilities within the border security functions of the Department of Homeland Security and the relative cost effectiveness of border security strategies, including deployment of additional personnel and technology, and construction of virtual and physical barriers. 5. Southern Border Security Commission (a) Establishment If the Secretary certifies that the Department has not achieved the border security goal described in section 4(b) during any fiscal year beginning before the date that is 5 years after the date of the enactment of this Act, not later than 60 days after such certification, there shall be established a commission to be known as the ‘‘Southern Border Security Commission’’ (referred to in this section as the ‘‘Commission’’). (b) Composition (1) In general The Commission shall be composed of— (A) 2 members who shall be appointed by the President; (B) 2 members who shall be appointed by the President pro tempore of the Senate, of which— (i) 1 shall be appointed upon the recommendation of the leader in the Senate of the political party that is not the political party of the President; and (ii) 1 shall be appointed upon the recommendation of the leader in the Senate of the other political party; (C) 2 members who shall be appointed by the Speaker of the House of Representatives, of which— (i) 1 shall be appointed upon the recommendation of the leader in the House of Representatives of the political party that is not the political party of the President; and (ii) 1 shall be appointed upon the recommendation of the leader in the House of Representatives of the other political party; and (D) 4 members, consisting of 1 member from each of the States along the Southern border, who shall be— (i) the Governor of such State; or (ii) appointed by the Governor of each such State. (2) Qualification for appointment Appointed members of the Commission shall be distinguished individuals noted for their knowledge and experience in the field of border security at the Federal, State, or local level. (3) Time of appointment The appointments required by paragraph (1) shall be made not later than 60 days after the Secretary makes a certification described in subsection (a). (4) Chair At the first meeting of the Commission, a majority of the members of the Commission present and voting shall elect the Chair of the Commission. (5) Vacancies Any vacancy of the Commission shall not affect its powers, but shall be filled in the manner in which the original appointment was made. (6) Rules The Commission shall establish the rules and procedures of the Commission which shall require the approval of at least 6 members of the Commission. (c) Duties The Commission’s primary responsibility shall be to make recommendations to the President, the Secretary, and Congress on policies to achieve and maintain the border security goal specified in section 3(b) by achieving and maintaining— (1) the capability to engage in, and engaging in, persistent surveillance in border sectors along the Southern border; and (2) an effectiveness rate of 90 percent or higher in all border sectors along the Southern border. (d) Report Not later than 180 days after the end of the 5-year period described in subsection (a), the Commission shall submit to the President, the Secretary, and Congress a report setting forth specific recommendations for policies for achieving and maintaining the border security goals specified in subsection (c). The report shall include, at a minimum, recommendations for the personnel, infrastructure, technology, and other resources required to achieve and maintain an effectiveness rate of 90 percent or higher in all border sectors. (e) Travel expenses Members of the Commission shall be allowed travel expenses, including per diem in lieu of subsistence rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while away from their homes or regular places of business in the performance of services for the Commission. (f) Administrative support The Secretary shall provide the Commission such staff and administrative services as may be necessary and appropriate for the Commission to perform its functions. Any employee of the executive branch of Government may be detailed to the Commission without reimbursement to the agency of that employee and such detail shall be without interruption or loss of civil service or status or privilege. (g) Comptroller General review The Comptroller General of the United States shall review the recommendations in the report submitted under subsection (d) in order to determine— (1) whether any of the recommendations are likely to achieve effective control in all border sectors; (2) which recommendations are most likely to achieve effective control; and (3) whether such recommendations are feasible within existing budget constraints. (h) Termination The Commission shall terminate 30 days after the date on which the report is submitted under subsection (d). 6. Border Security Results Strategy (a) Strategy To Secure the Border Not later than 180 days after the date of the enactment of this Act, the Secretary of Homeland Security shall submit to the appropriate congressional committees a comprehensive strategy for gaining and maintaining situational awareness, and operational control of high traffic areas, by the date that is not later than two years after the date of the submission of the implementation plan required under subsection (c), and operational control along the southwest border of the United States by the date that is not later than five years after such date of submission. (b) Contents of Strategy The strategy required under subsection (a) shall include, at a minimum, a consideration of the following: (1) An assessment of principal border security threats, including threats relating to the smuggling and trafficking of humans, weapons, and illicit drugs. (2) Efforts to analyze and disseminate border security and border threat information between Department of Homeland Security border security components and with other appropriate Federal departments and agencies with missions associated with the border. (3) Efforts to increase situational awareness, in accordance with privacy, civil liberties, and civil rights protections, including— (A) surveillance capabilities developed or utilized by the Department of Defense, including any technology determined to be excess by the Department of Defense; and (B) use of manned aircraft and unmanned aerial systems, including camera and sensor technology deployed on such assets. (4) Efforts to detect and prevent terrorists and instruments of terrorism from entering the United States. (5) Efforts to ensure that any new border security technology can be operationally integrated with existing technologies in use by the Department of Homeland Security. (6) An assessment of existing efforts and technologies used for border security and the effect of the use of such efforts and technologies on civil rights, private property rights, privacy rights, and civil liberties. (7) Technology required to maintain, support, and enhance security and facilitate trade at ports of entry, including nonintrusive detection equipment, radiation detection equipment, biometric technology, surveillance systems, and other sensors and technology that the Secretary of Homeland Security determines necessary. (8) Operational coordination of Department of Homeland Security border security components. (9) Lessons learned from Operation Jumpstart and Operation Phalanx. (10) Cooperative agreements and information sharing with State, local, tribal, territorial, and other Federal law enforcement agencies that have jurisdiction on the northern or southern borders, or in the maritime environment. (11) Border security information received from consultation with State, local, tribal, and Federal law enforcement agencies that have jurisdiction on the northern or southern border, or in the maritime environment, and from border community stakeholders (including through public meetings with such stakeholders), including representatives from border agricultural and ranching organizations and representatives from business and civic organizations along the northern or southern border. (12) Agreements with foreign governments that support the border security efforts of the United States, including coordinated installation of standardized land border inspection technology, such as license plate readers and RFID readers. (13) Staffing requirements for all border security functions. (14) A prioritized list of research and development objectives to enhance the security of the international land and maritime borders of the United States. (15) An assessment of training programs, including training programs regarding— (A) identifying and detecting fraudulent documents; (B) protecting the civil, constitutional, human, and privacy rights of individuals; (C) understanding the scope of enforcement authorities and the use of force policies; (D) screening, identifying, and addressing vulnerable populations, such as children and victims of human trafficking; and (E) social and cultural sensitivity toward border communities. (16) Local crime indices of municipalities and counties along the Southern border. (17) An assessment of how border security operations affect crossing times. (18) Metrics required under paragraphs (1), (2), and (3) of section 4(c). (c) Implementation plan (1) In general Not later than 90 days after the submission of the strategy required under subsection (a), the Secretary of Homeland Security shall submit to the appropriate congressional committees and the Government Accountability Office an implementation plan for each of the Department of Homeland Security border security components to carry out such strategy. Such implementation plan shall, at a minimum— (A) specify what protections will be put in place to ensure that staffing and resources necessary for the maintenance of operations at ports of entry are not diverted to the detriment of such operations in favor of operations between ports of entry; (B) include— (i) an integrated master schedule and cost estimate, including lifecycle costs, for the activities contained in such implementation plan; and (ii) a comprehensive border security technology plan to improve surveillance capabilities that includes— (I) a documented justification and rationale for technology choices; (II) deployment locations; (III) fixed versus mobile assets; (IV) a timetable for procurement and deployment; (V) estimates of operation and maintenance costs; (VI) an identification of any impediments to the deployment of such technologies; and (VII) estimates of the relative cost effectiveness of various border security strategies and operations, including deployment of personnel and technology, and construction of new physical and virtual barriers; and (C) require consultation with the Secretary of the Interior, the Secretary of Agriculture, States, local governments, and property owners in the United States to minimize the impact on the environment, culture, commerce, and quality of life for the communities and residents located near implementation sites. (2) Government Accountability Office Review Not later than 90 days after receiving the implementation plan in accordance with paragraph (1), the Comptroller General of the United States shall submit to the appropriate congressional committees a report on such plan. (3) Savings provision Nothing in paragraph (1) may be construed to— (A) create or negate any right of action for a State or local government or other person or entity affected by that paragraph; or (B) affect the eminent domain laws of the United States or of any State. (4) Limitation on requirements Notwithstanding paragraph (1)(B)(ii)(VII) of this subsection, nothing in this subsection shall require the Secretary to install fencing, or infrastructure that directly results from the installation of such fencing, in a particular location along the Southern border, if the Secretary determines that the use or placement of such resources is not the most appropriate means to achieve and maintain effective control over the Southern border at such location. (d) Periodic Updates Not later than 180 days after the submission of each Quadrennial Homeland Security Review required under section 707 of the Homeland Security Act of 2002 ( 6 U.S.C. 347 ) beginning with the first such Review that is due after the implementation plan is submitted under subsection (c), the Secretary of Homeland Security shall submit to the appropriate congressional committees an updated— (1) strategy under subsection (a); and (2) implementation plan under subsection (c). (e) Reports Not later than 60 days after the date of the enactment of this Act and annually thereafter, the Secretary of Homeland Security shall submit to the appropriate congressional committees a report on the following: (1) A resource allocation model for current and future year staffing requirements that includes optimal staffing levels at all land, air, and sea ports of entry, and an explanation of U.S. Customs and Border Protection methodology for aligning staffing levels and workload to threats and vulnerabilities and their effects on cross border trade and passenger travel across all mission areas. (2) Detailed information on the level of manpower available at all land, air, and sea ports of entry and between ports of entry, including the number of canine and agricultural specialists assigned to each such port of entry. (3) Detailed information that describes the difference between the staffing the model suggests and the actual staffing at each port of entry and between the ports of entry. (4) Detailed information that examines both the security impacts and competitive impacts of entering into a reimbursement agreement with foreign governments for U.S. Customs and Border Protection preclearance facilities. (f) Definitions The terms in this section have the meanings given those terms in section 4. 7. US–VISIT Implementation Not later than 180 days after the date of the enactment of this Act, the Secretary of Homeland Security shall submit to the appropriate congressional committees a plan to implement immediately a biometric exit capability at ports of entry under the US–VISIT program, in accordance with the Enhanced Security and Visa Entry Reform Act of 2002 ( Public Law 107–173 ). If the Secretary determines that development of such a system is not feasible, the Secretary shall, not later than 180 days after the date of the enactment of this Act, submit to the appropriate congressional committees a plan to implement, not later than two years after such date of enactment, an alternative program to provide the same level of security. 8. Alternate model for border security strategy development (a) Effective date triggers (1) Definitions In this section: (A) Commission The term Commission means the Southern Border Security Commission established pursuant to section 5. (B) Comprehensive Southern Border Security Strategy The term Comprehensive Southern Border Security Strategy means the strategy established by the Secretary pursuant to subsection (b)(1) to achieve and maintain an effectiveness rate of 90 percent or higher in all border sectors. (C) Effective Control The term effective control means the ability to achieve and maintain, in a Border Patrol sector— (i) persistent surveillance; and (ii) an effectiveness rate of 90 percent or higher. (D) Effectiveness rate The term effectiveness rate , in the case of a border sector, is the percentage calculated by dividing the number of apprehensions and turn backs in the sector during a fiscal year by the total number of illegal entries in the sector during such fiscal year. (E) Southern border The term Southern border means the international border between the United States and Mexico. (F) Southern Border Fencing Strategy The term Southern Border Fencing Strategy means the strategy established by the Secretary pursuant to subsection (b)(2) that identifies where fencing (including double-layer fencing), infrastructure, and technology, including at ports of entry, should be deployed along the Southern border. (2) Border Security Goal The Department’s border security goal is to achieve and maintain effective control in all border sectors along the Southern border. (3) Triggers (A) Processing of applications for registered provisional immigrant status Not earlier than the date upon which the Secretary has submitted to Congress the Notice of Commencement of implementation of the Comprehensive Southern Border Security Strategy and the Southern Border Fencing Strategy under section 5 of this Act, the Secretary may commence processing applications for registered provisional immigrant status pursuant to section 245B of the Immigration and Nationality Act, as added by section 2101 of this Act. (B) Adjustment of status of registered provisional immigrants (i) In general Except as provided in clause (ii), the Secretary may not adjust the status of aliens who have been granted registered provisional immigrant status, except for aliens granted blue card status under section 2201 of this Act or described in section 245D(b) of the Immigration and Nationality Act, until the Secretary, after consultation with the Comptroller General of the United States, submits to the President and Congress a written certification that— (I) the Comprehensive Southern Border Security Strategy has been submitted to Congress and is substantially deployed and substantially operational; (II) the Southern Border Fencing Strategy has been submitted to Congress, implemented, and is substantially completed; (III) the Secretary has implemented the mandatory employment verification system required by section 274A of the Immigration and Nationality Act (8 U.S.C.1324a), as amended by section 3101, for use by all employers to prevent unauthorized workers from obtaining employment in the United States; and (IV) the Secretary is using an electronic exit system at air and sea ports of entry that operates by collecting machine readable visa or passport information from air and vessel carriers. (ii) Exception The Secretary shall permit registered provisional immigrants to apply for an adjustment to lawful permanent resident status if— (I) (aa) litigation or a force majeure has prevented 1 or more of the conditions described in subclauses (I) through (IV) of clause (i) from being implemented; or (bb) the implementation of clause (i) has been held unconstitutional by the Supreme Court of the United States or the Supreme Court has granted certiorari to the litigation on the constitutionality of implementation of clause (i); and (II) 10 years have elapsed since the date of the enactment of this Act. (4) Waiver of legal requirements necessary for improvement at borders Notwithstanding any other provision of law, the Secretary is authorized to waive all legal requirements that the Secretary determines to be necessary to ensure expeditious construction of the barriers, roads, or other physical tactical infrastructure needed to fulfill the requirements under this section. Any determination by the Secretary under this section shall be effective upon publication in the Federal Register of a notice that specifies each law that is being waived and the Secretary’s explanation for the determination to waive that law. The waiver shall expire on the later of the date on which the Secretary submits the written certification that the Southern Border Fencing Strategy is substantially completed as specified in paragraph (3)(B)(i)(II) or the date that the Secretary submits the written certification that the Comprehensive Southern Border Security Strategy is substantially deployed and substantially operational as specified in paragraph (3)(B)(i)(I). (5) Federal court review (A) In general The district courts of the United States shall have exclusive jurisdiction to hear all causes or claims arising from any action undertaken, or any decision made, by the Secretary under paragraph (4). A cause of action or claim may only be brought alleging a violation of the Constitution of the United States. The court does not have jurisdiction to hear any claim not specified in this subparagraph. (B) Time for filing complaint If a cause or claim under subparagraph (A) is not filed within 60 days after the date of the contested action or decision by the Secretary, the claim shall be barred. (C) Appellate review An interlocutory or final judgment, decree, or order of the district court may be reviewed only upon petition for a writ of certiorari to the Supreme Court of the United States. (b) Comprehensive Southern Border Security Strategy and Southern Border Fencing Strategy (1) Comprehensive Southern Border Security Strategy (A) In general Not later than 180 days after the date of the enactment of this Act, the Secretary shall submit a strategy, to be known as the Comprehensive Southern Border Security Strategy , for achieving and maintaining effective control between the ports of entry in all border sectors along the Southern border, to— (i) the Committee on Homeland Security and Governmental Affairs of the Senate; (ii) the Committee on Homeland Security of the House of Representatives; (iii) the Committee on Appropriations of the Senate; (iv) the Committee on Appropriations of the House of Representatives; (v) the Committee on the Judiciary of the Senate; (vi) the Committee on the Judiciary of the House of Representatives; and (vii) the Comptroller General of the United States. (B) Elements The Comprehensive Southern Border Security Strategy shall specify— (i) the priorities that must be met for the strategy to be successfully executed; (ii) the capabilities that must be obtained to meet each of the priorities referred to in clause (i), including— (I) surveillance and detection capabilities developed or used by the Department of Defense to increase situational awareness; and (II) the requirement for stationing sufficient Border Patrol agents and Customs and Border Protection officers between and at ports of entry along the Southern border; and (iii) the resources, including personnel, infrastructure, and technology that must be procured and successfully deployed to obtain the capabilities referred to in clause (ii), including— (I) fixed, mobile, and agent portable surveillance systems; and (II) unarmed, unmanned aerial systems and unarmed, fixed-wing aircraft and necessary and qualified staff and equipment to fully utilize such systems. (C) Additional elements regarding execution The Comprehensive Southern Border Security Strategy shall describe— (i) how the resources referred to in subparagraph (B)(iii) will be properly aligned with the priorities referred to in subparagraph (B)(i) to ensure that the strategy will be successfully executed; (ii) the interim goals that must be accomplished to successfully implement the strategy; and (iii) the schedule and supporting milestones under which the Department will accomplish the interim goals referred to in clause (ii). (D) Implementation (i) In general The Secretary shall commence the implementation of the Comprehensive Southern Border Security Strategy immediately after submitting the strategy under subparagraph (A). (ii) Notice of commencement Upon commencing the implementation of the strategy, the Secretary shall submit a notice of commencement of such implementation to— (I) Congress; and (II) the Comptroller General of the United States. (E) Semiannual reports (i) In general Not later than 180 days after the Comprehensive Southern Border Security Strategy is submitted under subparagraph (A), and every 180 days thereafter, the Secretary shall submit a report on the status of the Department’s implementation of the strategy to— (I) the Committee on Homeland Security and Governmental Affairs of the Senate; (II) the Committee on Homeland Security of the House of Representatives; (III) the Committee on Appropriations of the Senate; (IV) the Committee on Appropriations of the House of Representatives; (V) the Committee on the Judiciary of the Senate; (VI) the Committee on the Judiciary of the House of Representatives; and (VII) the Comptroller General of the United States. (ii) Elements Each report submitted under clause (i) shall include— (I) a detailed description of the steps the Department has taken, or plans to take, to execute the strategy submitted under subparagraph (A), including the progress made toward achieving the interim goals and milestone schedule established pursuant to clauses (ii) and (iii) of subparagraph (C); (II) a detailed description of— (aa) any impediments identified in the Department’s efforts to execute the strategy; (bb) the actions the Department has taken, or plans to take, to address such impediments; and (cc) any additional measures developed by the Department to measure the state of security along the Southern border; and (III) for each Border Patrol sector along the Southern border— (aa) the effectiveness rate for each individual Border Patrol sector and the aggregated effectiveness rate; (bb) the number of recidivist apprehensions, sorted by Border Patrol sector; and (cc) the recidivism rate for all unique subjects that received. (iii) Annual review The Comptroller General of the United States shall conduct an annual review of the information contained in the semiannual reports submitted by the Secretary under this paragraph and submit an assessment of the status and progress of the Southern Border Security Strategy to the committees set forth in clause (i). (2) Southern Border Fencing Strategy (A) Establishment Not later than 180 days after the date of the enactment of this Act, the Secretary shall establish a strategy, to be known as the Southern Border Fencing Strategy , to identify where fencing (including double-layer fencing), infrastructure, and technology, including at ports of entry, should be deployed along the Southern border. (B) Submission The Secretary shall submit the Southern Border Fencing Strategy to Congress and the Comptroller General of the United States for review. (C) Notice of commencement Upon commencing the implementation of the Southern Border Fencing Strategy, the Secretary shall submit a notice of commencement of the implementation of the Strategy to Congress and the Comptroller General of the United States. (D) Consultation (i) In general In implementing the Southern Border Fencing Strategy required by this paragraph, the Secretary shall consult with the Secretary of the Interior, the Secretary of Agriculture, States, local governments, Indian tribes, and property owners in the United States to minimize the impact on the environment, culture, commerce, and quality of life for the communities and residents located near the sites at which such fencing is to be constructed. (ii) Savings provision Nothing in this subparagraph may be construed to— (I) create or negate any right of action for a State or local government or other person or entity affected by this subsection; or (II) affect the eminent domain laws of the United States or of any State. (E) Limitation on requirements Notwithstanding subparagraph (A), nothing in this subsection shall require the Secretary to install fencing, or infrastructure that directly results from the installation of such fencing, in a particular location along the Southern border, if the Secretary determines that the use or placement of such resources is not the most appropriate means to achieve and maintain effective control over the Southern border at such location. 9. Comprehensive Immigration Reform Funds (a) Comprehensive Immigration Reform Trust Fund (1) Establishment There is established in the Treasury a separate account, to be known as the Comprehensive Immigration Reform Trust Fund (referred to in this section as the Trust Fund ), consisting of— (A) amounts transferred from the general fund of the Treasury under paragraph (2)(A); and (B) proceeds from the fees described in paragraph (2)(B). (2) Deposits (A) Initial funding On the later of the date of the enactment of this Act or October 1, 2013, $8,300,000,000 shall be transferred from the general fund of the Treasury to the Trust Fund. (B) Ongoing funding Notwithstanding section 3302 of title 31, United States Code, in addition to the funding described in subparagraph (A), and subject to paragraphs (3)(B) and (4), the following amounts shall be deposited in the Trust Fund: (i) Electronic travel authorization system fees Fees collected under section 217(h)(3)(B)(i)(II) of the Immigration and Nationality Act, as added by section 1102(c). (ii) Registered provisional immigrant penalties Penalties collected under section 245B(c)(10)(C) of the Immigration and Nationality Act, as added by section 2101. (iii) Blue card penalty Penalties collected under section 2211(b)(9)(C). (iv) Fine for adjustment from blue card status Fines collected under section 245F(a)(5) of the Immigration and Nationality Act, as added by section 2212(a). (v) Penalties for false statements in applications Fines collected under section 245F(f) of the Immigration and Nationality Act, as added by section 2212(a). (vi) Merit system green card fees Fees collected under section 203(c)(6) of the Immigration and Nationality Act, as amended by section 2301(a)(2). (vii) H–1B and L visa fees Fees collected under section 281(d) of the Immigration and Nationality Act, as added by section 4105. (viii) H–1B outplacement fee Fees collected under section 212(n)(1)(F)(ii) of the Immigration and Nationality Act, as amended by section 4211(d). (ix) H–1B nonimmigrant dependent employer fees Fees collected under section 4233(a)(2). (x) L nonimmigrant dependent employer fees Fees collected under section 4305(a)(2). (xi) J–1 visa mitigation fees Fees collected under section 281(e) of the Immigration and Nationality Act, as added by section 4407. (xii) F–1 visa fees Fees collected under section 281(f) of the Immigration and Nationality Act, as added by section 4408. (xiii) Retiree visa fees Fees collected under section 214(w)(1)(B) of the Immigration and Nationality Act, as added by section 4504(b). (xiv) Visitor visa fees Fees collected under section 281(g) of the Immigration and Nationality Act, as added by section 4509. (xv) H–2B visa fees Fees collected under section 214(x)(5)(A) of the Immigration and Nationality Act, as added by section 4602(a). (xvi) Nonimmigrants performing maintenance on common carriers Fees collected under section 214(z) of the Immigration and Nationality Act, as added by section 4604. (xvii) X–1 visa fees Fees collected under section 214(s)(6) of the Immigration and Nationality Act, as added by section 4801. (xviii) Penalty for adjustment from registered provisional immigrant status Penalties collected under section 245C(c)(5)(B) of the Immigration and Nationality Act, as added by section 2102. (C) Authority to adjust fees As necessary to carry out the purposes of this Act, the Secretary may adjust the amounts of the fees and penalties set out under subparagraph (B), except for the fines and penalties referred to in clauses (ii), (iii), (iv), or (xviii) of such subparagraph. (3) Use of funds (A) Initial funding Of the amounts transferred to the Trust Fund pursuant to paragraph (2)(A)— (i) $3,000,000,000 shall remain available for the 5-year period beginning on the date specified in paragraph (2)(A) for use by the Secretary to carry out the Border Security Results Strategy; (ii) $2,000,000,000 shall remain available for the 10-year period beginning on the date specified in paragraph (2)(A) for use by the Secretary to carry out programs, projects, and activities recommended by the Commission pursuant to section 5(d) to achieve and maintain the border security goal specified in section 4(b); (iii) $1,500,000,000 shall be made available to the Secretary, during the 5-year period beginning on the date of the enactment of this Act, to procure and deploy fencing, infrastructure, personnel, and technology in accordance with the Border Security Results Strategy established pursuant to section 6, not less than $1,000,000,000 of which shall be used for fencing, infrastructure, personnel, and technology at ports of entry in accordance with section 6(c)(1)(A); (iv) $750,000,000 shall remain available for the 6-year period beginning on the date specified in paragraph (2)(A) for use by the Secretary to expand and implement the mandatory employment verification system, which shall be used as required by section 274A of the Immigration and Nationality Act ( 8 U.S.C. 1324a ), as amended by section 3101; (v) $900,000,000 shall remain available for the 8-year period beginning on the date specified in paragraph (2)(A) for use by the Secretary of State to pay for one-time and startup costs necessary to implement this Act; and (vi) $150,000,000 shall remain available for the 2-year period beginning on the date specified in paragraph (2)(A) for use by the Secretary for transfer to the Secretary of Labor, the Secretary of Agriculture, or the Attorney General, for initial costs of implementing this Act. (B) Repayment of Trust Fund expenses The first $8,300,000,000 collected pursuant to the fees, penalties, and fines referred to in clauses (ii), (iii), (iv), (vi), (xiii), (xvii), and (xviii) of paragraph (2)(B) shall be collected, deposited in the general fund of the Treasury, and used for Federal budget deficit reduction. Collections in excess of $8,300,000,000 shall be deposited into the Trust Fund, as specified in paragraph (2)(B). (C) Program implementation Amounts deposited into the Trust Fund pursuant to paragraph (2)(B) shall be available during each of fiscal years 2014 through 2018 as follows: (i) $50,000,000 to carry out the activities referenced in section 1104(a)(1). (ii) $50,000,000 to carry out the activities referenced in section 1104(b). (D) Ongoing funding Subject to the availability of appropriations, amounts deposited in the Trust Fund pursuant to paragraph (2)(B) are authorized to be appropriated as follows: (i) Such sums as may be necessary to carry out the authorizations included in this Act. (ii) Such sums as may be necessary to carry out the operations and maintenance of border security and immigration enforcement investments referenced in subparagraph (A). (E) Expenditure plan The Secretary, in consultation with the Attorney General and the Secretary of Defense, shall submit to the Committee on Appropriations of the Senate , the Committee on the Judiciary of the Senate , the Committee on Appropriations of the House of Representatives , and the Committee on the Judiciary of the House of Representatives , in conjunction with the Border Security Results Strategy, a plan for expenditure that describes— (i) the types and planned deployment of fixed, mobile, video, and agent and officer portable surveillance and detection equipment, including those recommended or provided by the Department of Defense; (ii) the number of Border Patrol agents and Customs and Border Protection officers to be hired, including a detailed description of which Border Patrol sectors and which land border ports of entry they will be stationed; (iii) the numbers and type of unarmed, unmanned aerial systems and unarmed, fixed-wing and rotary aircraft, including pilots, air interdiction agents, and support staff to fly or otherwise operate and maintain the equipment; (iv) the numbers, types, and planned deployment of marine and riverine vessels, if any, including marine interdiction agents and support staff to operate and maintain the vessels; (v) the locations, amount, and planned deployment of fencing, including double layer fencing, tactical and other infrastructure, and technology, including but not limited to fixed towers, sensors, cameras, and other detection technology; (vi) the numbers, types, and planned deployment of ground-based mobile surveillance systems; (vii) the numbers, types, and planned deployment of tactical and other interoperable law enforcement communications systems and equipment; (viii) required construction, including repairs, expansion, and maintenance, and location of additional checkpoints, Border Patrol stations, and forward operating bases; (ix) the number of additional attorneys and support staff for the Office of the United States Attorney for Tucson; (x) the number of additional support staff and interpreters in the Office of the Clerk of the Court for Tucson; (xi) the number of additional personnel, including Marshals and Deputy Marshals for the United States Marshals Office for Tucson; (xii) the number of additional magistrate judges for the southern border United States District Courts; (xiii) activities to be funded by the Homeland Security Border Oversight Task Force; (xiv) amounts and types of grants to States and other entities; (xv) amounts and activities necessary to hire additional personnel and for start-up costs related to upgrading software and information technology necessary to transition from a voluntary E-Verify system to mandatory employment verification system under section 274A of the Immigration and Nationality Act ( 8 U.S.C. 1324a ) within 5 years; (xvi) the number of additional personnel and other costs associated with implementing the immigration courts and removal proceedings mandated in subtitle E of title III; (xvii) the steps the Commissioner of Social Security plans to take to create a fraud-resistant, tamper-resistant, wear-resistant, and identity-theft resistant Social Security card, including— (I) the types of equipment needed to create the card; (II) the total estimated costs for completion that clearly delineates costs associated with the acquisition of equipment and transition to operation, subdivided by fiscal year and including a description of the purpose by fiscal year for design, pre-acquisition activities, production, and transition to operation; (III) the number and type of personnel, including contract personnel, required to research, design, test, and produce the card; and (IV) a detailed schedule for production of the card, including an estimated completion date at the projected funding level provided in this Act; and (xviii) the operations and maintenance costs associated with the implementation of clauses (i) through (xvii). (F) Annual revision The expenditure plan required in (E) shall be revised and submitted with the President’s budget proposals for fiscal year 2016, 2017, 2018, and 2019 pursuant to the requirements of section 1105(a) of title 31, United States Code. (G) Commission expenditure plan (i) Requirement for plan Southern Border Security Commission referenced in section 5 is established, the Secretary shall submit to the appropriate committees of Congress, not later than 60 days after the submission of the review required by section 5(g), a plan for expenditure that achieves the recommendations in the report required by section 5(d) and the review required by section 5(g). (ii) Appropriate committees of Congress defined clause (i), the term ‘‘appropriate committees of Congress’’ means— (I) the Committee on Appropriations, the Committee on the Judiciary, and the Committee on Finance of the Senate; and (II) the Committee on Appropriations, the Committee on the Judiciary, and the Committee on Ways and Means of the House of Representatives. (4) Limitation on collection (A) In general No fee deposited in the Trust Fund may be collected except to the extent that the expenditure of the fee is provided for in advance in an appropriations Act only to pay the costs of activities and services for which appropriations are authorized to be funded from the Trust Fund. (B) Receipts collected as offsetting receipts Until the date of the enactment of an Act making appropriations for the activities authorized under this Act through September 30, 2014, the fees authorized by paragraph (2)(B) that are not deposited into the general fund pursuant to paragraph (3)(B) may be collected and shall be credited as to the Trust Fund to remain available until expended only to pay the costs of activities and services for which appropriations are authorized to be funded from the Trust Fund. (b) Comprehensive Immigration Reform Startup Account (1) Establishment There is established in the Treasury a separate account, to be known as the Comprehensive Immigration Reform Startup Account, (referred to in this section as the Startup Account ), consisting of amounts transferred from the general fund of the Treasury under paragraph (2). (2) Deposits There is appropriated to the Startup Account, out of any funds in the Treasury not otherwise appropriated, $3,000,000,000, to remain available until expended on the later of the date that is— (A) the date of the enactment of this Act; or (B) October 1, 2013. (3) Repayment of startup costs (A) In general Notwithstanding section 286(m) of the Immigration and Nationality Act ( 8 U.S.C. 1356(m) ), 50 percent of fees collected under section 245B(c)(10)(A) of the Immigration and Nationality Act, as added by section 2101 of this Act, shall be deposited monthly in the general fund of the Treasury and used for Federal budget deficit reduction until the funding provided by paragraph (2) has been repaid. (B) Deposit in the Immigration Examinations Fee Account Fees collected in excess of the amount referenced in subparagraph (A) shall be deposited in the Immigration Examinations Fee Account, pursuant to section 286(m) of the Immigration and Nationality Act ( 8 U.S.C. 1356(m) ), and shall remain available until expended pursuant to section 286(n) of the Immigration and Nationality Act ( 8 U.S.C. 1356(n) ). (4) Use of funds The Secretary shall use the amounts transferred to the Startup Account to pay for one-time and startup costs necessary to implement this Act, including— (A) equipment, information technology systems, infrastructure, and human resources; (B) outreach to the public, including development and promulgation of any regulations, rules, or other public notice; (C) grants to community and faith-based organizations; and (D) anti-fraud programs and actions related to implementation of this Act. (5) Expenditure plan Not later than 90 days after the date of the enactment of this Act, the Secretary, in consultation with the Attorney General and the Secretary of Defense, shall submit to the Committee on Appropriations and the Committee on the Judiciary of the Senate and the Committee on Appropriations and the Committee on the Judiciary of the House of Representatives, a plan for expenditure of the one-time and startup funds in the Startup Account that provides details on— (A) the types of equipment, information technology systems, infrastructure, and human resources; (B) the plans for outreach to the public, including development and promulgation of any regulations, rules, or other public notice; (C) the types and amounts of grants to community and faith-based organizations; and (D) the anti-fraud programs and actions related to implementation of this Act. (c) Annual audits (1) Audits required Not later than October 1 each year beginning on or after the date of the enactment of this Act, the Chief Financial Officer of the Department of Homeland Security shall, in conjunction with the Inspector General of the Department of Homeland Security, conduct an audit of the Trust Fund. (2) Reports Upon completion of each audit of the Trust Fund under paragraph (1), the Chief Financial Officer shall, in conjunction with the Inspector General, submit to Congress, and make available to the public on an Internet website of the Department available to the public, a jointly audited financial statement concerning the Trust Fund. (3) Elements Each audited financial statement under paragraph (2) shall include the following: (A) The report of an independent certified public accountant. (B) A balance sheet reporting admitted assets, liabilities, capital and surplus. (C) A statement of cash flow. (D) Such other information on the Trust Fund as the Chief Financial Officer, the Inspector General, or the independent certified public accountant considers appropriate to facilitate a comprehensive understanding of the Trust Fund during the year covered by the financial statement. (d) Determination of budgetary effects (1) Emergency designation for congressional enforcement In the Senate, amounts appropriated by or deposited in the general fund of the Treasury pursuant to this section are designated as an emergency requirement pursuant to section 403(a) of S. Con. Res. 13 (111th Congress), the concurrent resolution on the budget for fiscal year 2010. (2) Emergency designation for statutory PAYGO Amounts appropriated by or deposited in the general fund of the Treasury pursuant to this section are designated as an emergency requirement under section 4(g) of the Statutory Pay-As-You-Go Act of 2010 ( Public Law 111–139 ; 2 U.S.C. 933(g) ). 10. Reference to the Immigration and Nationality Act Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Immigration and Nationality Act ( 8 U.S.C. 1101 et seq. ). 11. Definitions In this Act: (1) Department Except as otherwise provided, the term Department means the Department of Homeland Security. (2) Secretary Except as otherwise provided, the term Secretary means the Secretary of Homeland Security. 12. Grant accountability (a) Definitions In this section: (1) Awarding entities The term awarding entities means the Secretary of Homeland Security, the Director of the Federal Emergency Management Agency (FEMA), the Chief of the Office of Citizenship and New Americans, as designated by this Act, and the Director of the National Science Foundation. (2) Nonprofit organization The term nonprofit organization means an organization that is described in section 501(c)(3) of the Internal Revenue Code of 1986 and is exempt from taxation under section 501(a) of such Code. (3) Unresolved audit finding The term unresolved audit finding means a finding in a final audit report conducted by the Inspector General of the Department of Homeland Security, or the Inspector General for the National Science Foundation for grants awarded by the Director of the National Science Foundation, that the audited grantee has utilized grant funds for an unauthorized expenditure or otherwise unallowable cost that is not closed or resolved within 1 year from the date when the final audit report is issued. (b) Accountability All grants awarded by awarding entities pursuant to this Act shall be subject to the following accountability provisions: (1) Audit requirement (A) Audits Beginning in the first fiscal year beginning after the date of the enactment of this section, and in each fiscal year thereafter, the Inspector General of the Department of Homeland Security, or the Inspector General for the National Science Foundation for grants awarded by the Director of the National Science Foundation, shall conduct audits of recipients of grants under this Act to prevent waste, fraud, and abuse of funds by grantees. The Inspector Generals shall determine the appropriate number of grantees to be audited each year. (B) Mandatory exclusion A recipient of grant funds under this Act that is found to have an unresolved audit finding shall not be eligible to receive grant funds under this Act during the first 2 fiscal years beginning after the end of the 1-year period described in subsection (a)(3). (C) Priority In awarding grants under this Act, the awarding entities shall give priority to eligible applicants that did not have an unresolved audit finding during the 3 fiscal years before submitting an application for a grant under this Act. (D) Reimbursement If an entity is awarded grant funds under this Act during the 2-fiscal-year period during which the entity is barred from receiving grants under subparagraph (B), the awarding entity shall— (i) deposit an amount equal to the amount of the grant funds that were improperly awarded to the grantee into the General Fund of the Treasury; and (ii) seek to recoup the costs of the repayment to the fund from the grant recipient that was erroneously awarded grant funds. (2) Nonprofit organization requirements (A) Prohibition An awarding entity may not award a grant under this Act to a nonprofit organization that holds money in offshore accounts for the purpose of avoiding paying the tax described in section 511(a) of the Internal Revenue Code of 1986. (B) Disclosure Each nonprofit organization that is awarded a grant under this Act and uses the procedures prescribed in regulations to create a rebuttable presumption of reasonableness for the compensation of its officers, directors, trustees, and key employees, shall disclose to the awarding entity, in the application for the grant, the process for determining such compensation, including the independent persons involved in reviewing and approving such compensation, the comparability data used, and contemporaneous substantiation of the deliberation and decision. Upon request, the awarding entity shall make the information disclosed under this subparagraph available for public inspection. (3) Conference expenditures (A) Limitation No amounts authorized to be appropriated to the Department of Homeland Security or the National Science Foundation for grant programs under this Act may be used by an awarding entity or by any individual or entity awarded discretionary funds through a cooperative agreement under this Act to host or support any expenditure for conferences that uses more than $20,000 in funds made available by the Department of Homeland Security or the National Science Foundation unless the Deputy Secretary for Homeland Security, or the Deputy Director of the National Science Foundation, or their designee, provides prior written authorization that the funds may be expended to host the conference. (B) Written approval Written approval under subparagraph (A) shall include a written estimate of all costs associated with the conference, including the cost of all food, beverages, audio-visual equipment, honoraria for speakers, and entertainment. (C) Report The Deputy Secretary of Homeland Security and the Deputy Director of the National Science Foundation shall submit an annual report to Congress on all conference expenditures approved under this paragraph. (4) Annual certification Beginning in the first fiscal year beginning after the date of the enactment of this subsection, each awarding entity shall submit to Congress a report— (A) indicating whether— (i) all audits issued by the Offices of the Inspector General under paragraph (1) have been completed and reviewed by the appropriate individuals; (ii) all mandatory exclusions required under paragraph (1)(B) have been issued; and (iii) all reimbursements required under paragraph (1)(D) have been made; and (B) including a list of any grant recipients excluded under paragraph (1) from the previous year. I Border Security 1101. Definitions In this title: (1) Northern border The term Northern border means the international border between the United States and Canada. (2) Rural, high-trafficked areas The term rural, high-trafficked areas means rural areas through which drugs and undocumented aliens are routinely smuggled, as designated by the Commissioner of U.S. Customs and Border Protection. (3) Southern border The term Southern border means the international border between the United States and Mexico. (4) Southwest border region The term Southwest border region means the area in the United States that is within 100 miles of the Southern border. 1102. Additional U.S. Customs and Border Protection officers (a) In general Not later than September 30, 2017, the Secretary shall increase the number of trained U.S. Customs and Border Protection officers by 3,500, compared to the number of such officers as of the date of the enactment of this Act. The Secretary shall make progress in increasing such number of officers during each of the fiscal years 2014 through 2017. (b) Construction Nothing in subsection (a) may be construed to preclude the Secretary from reassigning or stationing U.S. Customs and Border Protection Officers and U.S. Border Patrol Agents from the Northern border to the Southern border. (c) Funding Section 217(h)(3)(B) ( 8 U.S.C. 1187(h)(3)(B) ) is amended— (1) in clause (i)— (A) by striking No later than 6 months after the date of enactment of the Travel Promotion Act of 2009, the and inserting The ; (B) in subclause (I), by striking and at the end; (C) by redesignating subclause (II) as subclause (III); and (D) by inserting after subclause (I) the following: (II) $16 for border processing; and ; (2) in clause (ii), by striking Amounts collected under clause (i)(II) and inserting Amounts collected under clause (i)(II) shall be deposited into the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1) of the Border Security, Economic Opportunity, and Immigration Modernization Act . Amounts collected under clause (i)(III) ; and (3) by striking clause (iii). (d) Corporation for Travel Promotion Section 9(d)(2)(B) of the Travel Promotion Act of 2009 ( 22 U.S.C. 2131(d)(2)(B) ) is amended by striking For each of fiscal years 2012 through 2015, and inserting For each fiscal year after 2012, . (e) Recruitment of former members of the armed forces and members of reserve components of the armed forces (1) Requirement for program The Secretary, in conjunction with the Secretary of Defense, shall establish a program to actively recruit members of the reserve components of the Armed Forces and former members of the Armed Forces, including the reserve components, to serve in United States Customs and Border Protection and United States Immigration and Customs Enforcement. (2) Recruitment incentives (A) Student loan repayments for United States border patrol agents with a three-year commitment Section 5379(b) of title 5, United States Code, is amended by adding at the end the following new paragraph: (4) In the case of an employee who is otherwise eligible for benefits under this section and who is serving as a full-time active-duty United States border patrol agent within the Department of Homeland Security— (A) paragraph (2)(A) shall be applied by substituting $20,000 for $10,000 ; and (B) paragraph (2)(B) shall be applied by substituting $80,000 for $60,000 . . (B) Recruitment and relocation bonuses and retention allowances for personnel of the department of homeland security The Secretary of Homeland Security shall ensure that the authority to pay recruitment and relocation bonuses under section 5753 of title 5, United States Code, the authority to pay retention bonuses under section 5754 of such title, and any other similar authorities available under any other provision of law, rule, or regulation, are exercised to the fullest extent allowable in order to encourage service in the Department of Homeland Security. (3) Report on recruitment incentives (A) In general Not later than 90 days after the date of the enactment of this Act, the Secretary and the Secretary of Defense shall jointly submit to the appropriate committees of Congress a report including an assessment of the desirability and feasibility of offering incentives to members of the reserve components of the Armed Forces and former members of the Armed Forces, including the reserve components, for the purpose of encouraging such members to serve in United States Customs and Border Protection and Immigration and Customs Enforcement. (B) Content The report required by subparagraph (A) shall include— (i) a description of various monetary and non-monetary incentives considered for purposes of the report; and (ii) an assessment of the desirability and feasibility of utilizing any such incentive. (4) Appropriate Committees of Congress Defined The term appropriate committees of Congress means— (A) the Committee on Appropriations, the Committee on Armed Services, and the Committee on Homeland Security and Governmental Affairs of the Senate; and (B) the Committee on Appropriations, the Committee on Armed Services, and the Committee on Homeland Security of the House of Representatives. 1103. National Guard support to secure the Southern border (a) In general With the approval of the Secretary of Defense, the Governor of a State may order any unit or personnel of the National Guard of such State to perform operations and missions under section 502(f) of title 32, United States Code, in the Southwest Border region for the purposes of assisting U.S. Customs and Border Protection in securing the Southern border. (b) Assignment of operations and missions (1) In general National Guard units and personnel deployed under subsection (a) may be assigned such operations and missions specified in subsection (c) as may be necessary to secure the Southern border. (2) Nature of duty The duty of National Guard personnel performing operations and missions described in paragraph (1) shall be full-time duty under title 32, United States Code. (c) Range of operations and missions The operations and missions assigned under subsection (b) shall include the temporary authority— (1) to construct fencing, including double-layer and triple-layer fencing; (2) to increase ground-based mobile surveillance systems; (3) to deploy additional unmanned aerial systems and manned aircraft sufficient to maintain continuous surveillance of the Southern border; (4) to deploy and provide capability for radio communications interoperability between U.S. Customs and Border Protection and State, local, and tribal law enforcement agencies; (5) to construct checkpoints along the Southern border to bridge the gap to long-term permanent checkpoints; and (6) to provide assistance to U.S. Customs and Border Protection, particularly in rural, high-trafficked areas, as designated by the Commissioner of U.S. Customs and Border Protection. (d) Materiel and logistical support The Secretary of Defense shall deploy such materiel and equipment and logistical support as may be necessary to ensure success of the operations and missions conducted by the National Guard under this section. (e) Exclusion from National Guard personnel strength limitations National Guard personnel deployed under subsection (a) shall not be included in— (1) the calculation to determine compliance with limits on end strength for National Guard personnel; or (2) limits on the number of National Guard personnel that may be placed on active duty for operational support under section 115 of title 10, United States Code. 1104. Enhancement of existing border security operations (a) Border crossing prosecutions (1) In general From the amounts made available pursuant to the appropriations in paragraph (3), funds shall be made available— (A) to increase the number of border crossing prosecutions in the Tucson Sector of the Southwest border region to up to 210 prosecutions per day through increasing funding available for— (i) attorneys and administrative support staff in the Office of the United States Attorney for Tucson; (ii) support staff and interpreters in the Office of the Clerk of the Court for Tucson; (iii) pre-trial services; (iv) activities of the Federal Public Defender Office for Tucson; and (v) additional personnel, including Deputy United States Marshals in the United States Marshals Office for Tucson to perform intake, coordination, transportation, and court security; and (B) reimburse Federal, State, local, and tribal law enforcement agencies for any detention costs related to the border crossing prosecutions carried out pursuant to subparagraph (A). (2) Additional magistrate judges to assist with increased caseload The chief judge of the United States District Court for the District of Arizona is authorized to appoint additional full-time magistrate judges, who, consistent with the Constitution and laws of the United States, shall have the authority to hear cases and controversies in the judicial district in which the respective judges are appointed. (3) Funding There are authorized to be appropriated, from the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1), such sums as may be necessary to carry out this subsection. (b) Operation Stonegarden (1) In general The Federal Emergency Management Agency shall enhance law enforcement preparedness and operational readiness along the borders of the United States through Operation Stonegarden. The amounts available under this paragraph are in addition to any other amounts otherwise made available for Operation Stonegarden. Not less than 90 percent of the amounts made available under section 9(a)(3)(C)(ii) shall be allocated for grants and reimbursements to law enforcement agencies in the States in the Southwest border region for personnel, overtime, travel, and other costs related to combating illegal immigration and drug smuggling in the Southwest border region. Allocations for grants and reimbursements to law enforcement agencies under this paragraph shall be made by the Federal Emergency Management Agency through a competitive process. (2) Funding There are authorized to be appropriated, from the amounts made available under section 9(a)(3)(A)(i), such sums as may be necessary to carry out this subsection. (c) Infrastructure improvements (1) Border patrol stations The Secretary shall— (A) construct additional Border Patrol stations in the Southwest border region that U.S. Border Patrol determines are needed to provide full operational support in rural, high-trafficked areas; and (B) analyze the feasibility of creating additional Border Patrol sectors along the Southern border to interrupt drug trafficking operations. (2) Forward operating bases The Secretary shall enhance the security of the Southwest border region by— (A) establishing additional permanent forward operating bases for the U.S. Border Patrol, as needed; (B) upgrading the existing forward operating bases to include modular buildings, electricity, and potable water; and (C) ensuring that forward operating bases surveil and interdict individuals entering the United States unlawfully immediately after such individuals cross the Southern border. (3) Safe and secure border infrastructure The Secretary and the Secretary of Transportation, in consultation with the governors of the States in the Southwest border region and the Northern border region, shall establish a grant program, which shall be administered by the Secretary of Transportation and the General Services Administration, to construct transportation and supporting infrastructure improvements at existing and new international border crossings necessary to facilitate safe, secure, and efficient cross border movement of people, motor vehicles, and cargo. (4) Authorization of appropriations There is authorized to be appropriated for each of fiscal years 2014 through 2018 such sums as may be necessary to carry out this subsection. (d) Additional permanent district court judgeships in southwest border States (1) In general The President shall appoint, by and with the advice and consent of the Senate— (A) 2 additional district judges for the district of Arizona; (B) 3 additional district judges for the eastern district of California; (C) 2 additional district judges for the western district of Texas; and (D) 1 additional district judge for the southern district of Texas. (2) Conversions of temporary district court judgeships The existing judgeships for the district of Arizona and the central district of California authorized by section 312(c) of the 21st Century Department of Justice Appropriations Authorization Act ( 28 U.S.C. 133 note; Public Law 107–273 ; 116 Stat. 1788), as of the effective date of this Act, shall be authorized under section 133 of title 28, United States Code, and the incumbents in those offices shall hold the office under section 133 of title 28, United States Code, as amended by this Act. (3) Technical and conforming amendments The table contained in section 133(a) of title 28, United States Code, is amended— (A) by striking the item relating to the district of Arizona and inserting the following: Arizona 15 ; (B) by striking the item relating to California and inserting the following: California: Northern 14 Eastern 9 Central 28 Southern 13 ; and (C) by striking the item relating to Texas and inserting the following: Texas: Northern 12 Southern 20 Eastern 7 Western 15 . (4) Increase in filing fees (A) In general Section 1914(a) of title 28, United States Code, is amended by striking $350 and inserting $360 . (B) Expenditure limitation Incremental amounts collected by reason of the enactment of this paragraph shall be deposited as offsetting receipts in the Judiciary Filing Fee special fund of the Treasury established under section 1931 of title 28, United States Code. Such amounts shall be available solely for the purpose of facilitating the processing of civil cases, but only to the extent specifically appropriated by an Act of Congress enacted after the date of the enactment of this Act. (5) Whistleblower protection (A) In general No officer, employee, agent, contractor, or subcontractor of the judicial branch may discharge, demote, threaten, suspend, harass, or in any other manner discriminate against an employee in the terms and conditions of employment because of any lawful act done by the employee to provide information, cause information to be provided, or otherwise assist in an investigation regarding any possible violation of Federal law or regulation, or misconduct, by a judge, justice, or any other employee in the judicial branch, which may assist in the investigation of the possible violation or misconduct. (B) Civil action An employee injured by a violation of subparagraph (A) may, in a civil action, obtain appropriate relief. 1105. Border security on certain Federal land (a) Definitions In this section: (1) Federal lands The term Federal lands includes all land under the control of the Secretary concerned that is located within the Southwest border region in the State of Arizona along the international border between the United States and Mexico. (2) Secretary concerned The term Secretary concerned means— (A) with respect to land under the jurisdiction of the Secretary of Agriculture, the Secretary of Agriculture; and (B) with respect to land under the jurisdiction of the Secretary of the Interior, the Secretary of the Interior. (b) Support for border security needs To achieve effective control of Federal lands— (1) the Secretary concerned, notwithstanding any other provision of law, shall authorize and provide U.S. Customs and Border Protection personnel with immediate access to Federal lands for security activities, including— (A) routine motorized patrols; and (B) the deployment of communications, surveillance, and detection equipment; (2) the security activities described in paragraph (1) shall be conducted, to the maximum extent practicable, in a manner that the Secretary determines will best protect the natural and cultural resources on Federal lands; and (3) the Secretary concerned may provide education and training to U.S. Customs and Border Protection personnel on the natural and cultural resources present on individual Federal land units. (c) Programmatic environmental impact statement (1) In general After implementing subsection (b), the Secretary, in consultation with the Secretaries concerned, shall prepare and publish in the Federal Register a notice of intent to prepare a programmatic environmental impact statement in accordance with the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) to analyze the impacts of the activities described in subsection (b). (2) Effect on processing application and special use permits The pending completion of a programmatic environmental impact statement under this section shall not result in any delay in the processing or approving of applications or special use permits by the Secretaries concerned for the activities described in subsection (b). (3) Amendment of land use plans The Secretaries concerned shall amend any land use plans, as appropriate, upon completion of the programmatic environmental impact statement described in subsection (b). (4) Scope of programmatic environmental impact statement The programmatic environmental impact statement described in paragraph (1)— (A) may be used to advise the Secretary on the impact on natural and cultural resources on Federal lands; and (B) shall not control, delay, or restrict actions by the Secretary to achieve effective control on Federal lands. (d) Intermingled State and private land This section shall not apply to any private or State-owned land within the boundaries of Federal lands. 1106. Equipment and technology (a) Enhancements The Commissioner of U.S. Customs and Border Protection, working through U.S. Border Patrol, shall— (1) deploy additional mobile, video, and agent-portable surveillance systems, and unarmed, unmanned aerial vehicles in the Southwest border region as necessary to provide 24-hour operation and surveillance; (2) operate unarmed unmanned aerial vehicles along the Southern border for 24 hours per day and for 7 days per week; (3) deploy unarmed additional fixed-wing aircraft and helicopters along the Southern border; (4) acquire new rotorcraft and make upgrades to the existing helicopter fleet; (5) increase horse patrols in the Southwest border region; and (6) acquire and deploy watercraft and other equipment to provide support for border-related maritime anti-crime activities. (b) Limitation (1) In general Notwithstanding paragraphs (1) and (2) of subsection (a), and except as provided in paragraph (2), U.S. Border Patrol may not operate unarmed, unmanned aerial vehicles in the San Diego and El Centro Sectors, except within 3 miles of the Southern border. (2) Exception The limitation under this subsection shall not restrict the maritime operations of U.S. Customs and Border Protection. (c) Authorization of appropriations In addition to amounts otherwise authorized to be appropriated, there is authorized to be appropriated to U.S. Customs and Border Protection such sums as may be necessary to carry out subsection (a) during fiscal years 2014 through 2018. 1107. Access to emergency personnel (a) Southwest border region emergency communications grants (1) In general The Secretary, in consultation with the governors of the States in the Southwest border region, shall establish a 2-year grant program, to be administered by the Secretary, to improve emergency communications in the Southwest border region. (2) Eligibility for grants An individual is eligible to receive a grant under this subsection if the individual demonstrates that he or she— (A) regularly resides or works in the Southwest border region; (B) is at greater risk of border violence due to the lack of cellular service at his or her residence or business and his or her proximity to the Southern border. (3) Use of grants Grants awarded under this subsection may be used to purchase satellite telephone communications systems and service that— (A) can provide access to 9–1–1 service; and (B) are equipped with global positioning systems. (4) Authorization of appropriations There is authorized to be appropriated such sums as may be necessary to carry out the grant program established under this subsection. (b) Interoperable communications for law enforcement (1) Federal law enforcement There are authorized to be appropriated, to the Department, the Department of Justice, and the Department of the Interior, during the 5-year period beginning on the date of the enactment of this Act, such sums as may be necessary— (A) to purchase, through a competitive procurement process, P25-compliant radios, which may include a multi-band option, for Federal law enforcement agents working in the Southwest border region in support of the activities of U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement, including law enforcement agents of the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Department of the Interior, and the Forest Service; and (B) to upgrade, through a competitive procurement process, the communications network of the Department of Justice to ensure coverage and capacity, particularly when immediate access is needed in times of crisis, in the Southwest Border region for appropriate law enforcement personnel of the Department of Justice (including the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives), the Department (including U.S. Immigration and Customs Enforcement and U.S. Customs and Border Protection), the United States Marshals Service, other Federal agencies, the State of Arizona, tribes, and local governments. (2) State and local law enforcement (A) Authorization of appropriations There is authorized to be appropriated to the Department of Justice, during the 5-year period beginning on the date of the enactment of this Act, such sums as may be necessary to purchase, through a competitive procurement process, P25-compliant radios, which may include a multi-band option, for State and local law enforcement agents working in the Southwest border region. (B) Access to Federal spectrum If a State, tribal, or local law enforcement agency in the Southwest border region experiences an emergency situation that necessitates immediate communication with the Department of Justice, the Department, the Department of the Interior, or any of their respective subagencies, such law enforcement agency shall have access to the spectrum assigned to such Federal agency for the duration of such emergency situation. 1108. Southwest Border Region Prosecution Initiative (a) Reimbursement to State and local prosecutors for federally initiated criminal cases The Attorney General shall reimburse State, county, tribal, and municipal governments for costs associated with the prosecution, pretrial services and detention, clerical support, and public defenders’ services associated with the prosecution of federally initiated immigration-related criminal cases declined by local offices of the United States Attorneys. (b) Exception Reimbursement under subsection (a) shall not be available, at the discretion of the Attorney General, if the Attorney General determines that there is reason to believe that the jurisdiction seeking reimbursement has engaged in unlawful conduct in connection with immigration-related apprehensions. (c) Authorization of appropriations There is authorized to be appropriated such sums as may be necessary to carry out subsection (a) during fiscal years 2014 through 2018. 1109. Interagency collaboration The Assistant Secretary of Defense for Research and Engineering shall collaborate with the Under Secretary of Homeland Security for Science and Technology to identify equipment and technology used by the Department of Defense that could be used by U.S. Customs and Border Protection to improve the security of the Southern border by— (1) detecting border tunnels; (2) detecting the use of ultralight aircraft; (3) enhancing wide aerial surveillance; and (4) otherwise improving the enforcement of such border. 1110. State Criminal Alien Assistance Program (a) SCAAP Reauthorization Section 241(i)(5)(C) ( 8 U.S.C. 1231(i)(5) ) is amended by striking 2011. and inserting 2015. . (b) SCAAP assistance for States (1) Assistance for States incarcerating undocumented aliens charged with certain crimes Section 241(i)(3)(A) ( 8 U.S.C. 1231(i)(3)(A) ) is amended by inserting charged with or before convicted . (2) Assistance for States incarcerating unverified aliens Section 241(i) ( 8 U.S.C. 1231(i) ), as amended by subsection (a), is further amended— (A) by redesignating paragraphs (4), (5), and (6), as paragraphs (5), (6), and (7), respectively; (B) in paragraph (7), as so redesignated, by striking (5) and inserting (6) ; and (C) by adding after paragraph (3) the following: (4) In the case of an alien whose immigration status is unable to be verified by the Secretary of Homeland Security, and who would otherwise be an undocumented criminal alien if the alien is unlawfully present in the United States, the Attorney General shall compensate the State or political subdivision of the State for incarceration of the alien, consistent with subsection (i)(2). . 1111. Use of force Not later than 180 days after the date of the enactment of this Act, the Secretary, in consultation with the Assistant Attorney General for the Civil Rights Division of the Department of Justice, shall issue policies governing the use of force by all Department personnel that— (1) require all Department personnel to report each use of force; and (2) establish procedures for— (A) accepting and investigating complaints regarding the use of force by Department personnel; (B) disciplining Department personnel who violate any law or Department policy relating to the use of force; and (C) reviewing all uses of force by Department personnel to determine whether the use of force— (i) complied with Department policy; or (ii) demonstrates the need for changes in policy, training, or equipment. 1112. Training for border security and immigration enforcement officers (a) In general The Secretary shall ensure that U.S. Customs and Border Protection officers, U.S. Border Patrol agents, U.S. Immigration and Customs Enforcement officers and agents, United States Air and Marine Division agents, and agriculture specialists stationed within 100 miles of any land or marine border of the United States or at any United States port of entry receive appropriate training, which shall be prepared in collaboration with the Assistant Attorney General for the Civil Rights Division of the Department of Justice, in— (1) identifying and detecting fraudulent travel documents; (2) civil, constitutional, human, and privacy rights of individuals; (3) the scope of enforcement authorities, including interrogations, stops, searches, seizures, arrests, and detentions; (4) the use of force policies issued by the Secretary pursuant to section 1111; (5) immigration laws, including screening, identifying, and addressing vulnerable populations, such as children, victims of crime and human trafficking, and individuals fleeing persecution or torture; (6) social and cultural sensitivity toward border communities; (7) the impact of border operations on communities; and (8) any particular environmental concerns in a particular area. (b) Training for border community liaison officers The Secretary shall ensure that border communities liaison officers in Border Patrol sectors along the international borders between the United States and Mexico and between the United States and Canada receive training to better— (1) act as a liaison between border communities and the Office for Civil Rights and Civil Liberties of the Department and the Civil Rights Division of the Department of Justice; (2) foster and institutionalize consultation with border communities; (3) consult with border communities on Department programs, policies, strategies, and directives; and (4) receive Department performance assessments from border communities. (c) Humane conditions of confinement for children in U.S. Customs and Border Protection custody Not later than 90 days after the date of the enactment of this Act, the Secretary shall establish standards to ensure that children in the custody of U.S. Customs and Border Protection— (1) are afforded adequate medical and mental health care, including emergency medical and mental health care, when necessary; (2) receive adequate nutrition; (3) are provided with climate-appropriate clothing, footwear, and bedding; (4) have basic personal hygiene and sanitary products; and (5) are permitted to make supervised phone calls to family members. 1113. Department of Homeland Security Border Oversight Task Force (a) Establishment (1) In general There is established an independent task force, which shall be known as the Department of Homeland Security Border Oversight Task Force (referred to in this section as the DHS Task Force ). (2) Duties The DHS Task Force shall— (A) review and make recommendations regarding immigration and border enforcement policies, strategies, and programs that take into consideration their impact on border and tribal communities; (B) recommend ways in which the Border Communities Liaison Offices can strengthen relations and collaboration between communities in the border regions and the Department, the Department of Justice, and other Federal agencies that carry out such policies, strategies, and programs; (C) evaluate how the policies, strategies, and programs of Federal agencies operating along the international borders between the United States and Mexico and between the United States and Canada protect the due process, civil, and human rights of border residents, visitors, and migrants at and near such borders; and (D) evaluate and make recommendations regarding the training of border enforcement personnel described in section 1112. (3) Membership (A) In general The DHS Task Force shall be composed of 33 members, appointed by the President, who have expertise in migration, local crime indices, civil and human rights, community relations, cross-border trade and commerce, quality of life indicators, or other pertinent experience, of whom— (i) 14 members shall be from the Northern border region and shall include— (I) 2 local government elected officials; (II) 2 local law enforcement officials; (III) 2 tribal government officials; (IV) 2 civil rights advocates; (V) 1 business representative; (VI) 1 higher education representative; (VII) 1 private land owner representative; (VIII) 1 representative of a faith community; and (IX) 2 representatives of U.S. Border Patrol; and (ii) 19 members shall be from the Southern border region and include— (I) 3 local government elected officials; (II) 3 local law enforcement officials; (III) 2 tribal government officials; (IV) 3 civil rights advocates; (V) 2 business representatives; (VI) 1 higher education representative; (VII) 2 private land owner representatives; (VIII) 1 representative of a faith community; and (IX) 2 representatives of U.S. Border Patrol. (B) Term of service Members of the Task Force shall be appointed for the shorter of— (i) 3 years; or (ii) the life of the DHS Task Force. (C) Chair, vice chair The members of the DHS Task Force shall elect a Chair and a Vice Chair from among its members, who shall serve in such capacities for the life of the DHS Task Force or until removed by the majority vote of at least 16 members. (b) Operations (1) Hearings The DHS Task Force may, for the purpose of carrying out its duties, hold hearings, sit and act, take testimony, receive evidence, and administer oaths. (2) Recommendations The DHS Task Force may make findings or recommendations to the Secretary related to the duties described in subsection (a)(2). (3) Response Not later than 180 days after receiving the findings and recommendations from the DHS Task Force under paragraph (2), the Secretary shall issue a response that describes how the Department has addressed, or will address, such findings and recommendations. If the Secretary disagrees with any finding of the DHS Task Force, the Secretary shall provide an explanation for the disagreement. (4) Information from federal agencies The Chair, or 16 members of the DHS Task Force, may request statistics relating to the duties described in subsection (a)(2) directly from any Federal agency, which shall, to the extent authorized by law, furnish such information, suggestions, estimates, and statistics directly to the DHS Task Force. (5) Compensation Members of the DHS Task Force shall serve without pay, but shall be reimbursed for reasonable travel and subsistence expenses incurred in the performance of their duties. (c) Report Not later than 2 years after its first meeting, the DHS Task Force shall submit a final report to the President, Congress, and the Secretary that contains— (1) findings with respect to the duties of the DHS Task Force; and (2) recommendations regarding border and immigration enforcement policies, strategies, and programs, including— (A) a recommendation as to whether the DHS Task Force should continue to operate; and (B) a description of any duties for which the DHS Task Force should be responsible after the termination date described in subsection (e). (d) Authorization of appropriations There are authorized to be appropriated such sums as may be necessary to carry out this section for each of the fiscal years 2014 through 2017. (e) Sunset The DHS Task Force shall terminate operations 60 days after the date on which the DHS Task Force submits the report described in subsection (c). 1114. Ombudsman for Immigration Related Concerns of the Department of Homeland Security (a) Establishment Title I of the Homeland Security Act of 2002 ( 6 U.S.C. 111 et seq. ) is amended by adding at the end the following new section: 104. Ombudsman for Immigration Related Concerns (a) In general There shall be within the Department an Ombudsman for Immigration Related Concerns (in this section referred to as the Ombudsman ). The individual appointed as Ombudsman shall have a background in immigration law as well as civil and human rights law. The Ombudsman shall report directly to the Deputy Secretary. (b) Functions The functions of the Ombudsman shall be as follows: (1) To receive and resolve complaints from individuals and employers and assist in resolving problems with the immigration components of the Department. (2) To conduct inspections of the facilities or contract facilities of the immigration components of the Department. (3) To assist individuals and families who have been the victims of crimes committed by aliens or violence near the United States border. (4) To identify areas in which individuals and employers have problems in dealing with the immigration components of the Department. (5) To the extent practicable, to propose changes in the administrative practices of the immigration components of the Department to mitigate problems identified under paragraph (4). (6) To review, examine, and make recommendations regarding the immigration and enforcement policies, strategies, and programs of U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement, and U.S. Citizenship and Immigration Services. (c) Other responsibilities In addition to the functions specified in subsection (b), the Ombudsman shall— (1) monitor the coverage and geographic allocation of local offices of the Ombudsman, including appointing a local ombudsman for immigration related concerns; and (2) evaluate and take personnel actions (including dismissal) with respect to any employee of the Ombudsman. (d) Request for investigations The Ombudsman shall have the authority to request the Inspector General of the Department of Homeland Security to conduct inspections, investigations, and audits. (e) Coordination with Department components The Director of U.S. Citizenship and Immigration Services, the Assistant Secretary of Immigration and Customs Enforcement, and the Commissioner of Customs and Border Protection shall each establish procedures to provide formal responses to recommendations submitted to such official by the Ombudsman. (f) Annual reports Not later than June 30 of each year, the Ombudsman shall submit a report to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives on the objectives of the Ombudsman for the fiscal year beginning in such calendar year. Each report shall contain full and substantive analysis, in addition to statistical information, and shall set forth any recommendations the Ombudsman has made on improving the services and responsiveness of U.S. Citizenship and Immigration Services, U.S. Immigration and Customs Enforcement, and U.S. Customs and Border Protection and any responses received from the Department regarding such recommendations. . (b) Repeal of superseded authority Section 452 of the Homeland Security Act of 2002 ( 6 U.S.C. 272 ) is repealed. (c) Clerical amendments The table of contents for the Homeland Security Act of 2002 is amended— (1) by inserting after the item relating to section 103 the following new item: Sec. 104. Ombudsman for Immigration Related Concerns. ; and (2) by striking the item relating to section 452. 1115. Protection of family values in apprehension programs (a) Definitions In this section: (1) Apprehended individual The term apprehended individual means an individual apprehended by personnel of the Department of Homeland Security or of a cooperating entity pursuant to a migration deterrence program carried out at a border. (2) Border The term border means an international border of the United States. (3) Child Except as otherwise specifically provided, the term child has the meaning given to the term in section 101(b)(1) of the Immigration and Nationality Act ( 8 U.S.C. 1101(b)(1) ). (4) Cooperating entity The term cooperating entity means a State or local entity acting pursuant to an agreement with the Secretary. (5) Migration deterrence program The term migration deterrence program means an action related to the repatriation or referral for prosecution of 1 or more apprehended individuals for a suspected or confirmed violation of the Immigration and Nationality Act ( 8 U.S.C. 1001 et seq. ) by the Secretary or a cooperating entity. (b) Procedures for migration deterrence programs at the border (1) Procedures In any migration deterrence program carried out at a border, the Secretary and cooperating entities shall for each apprehended individual— (A) as soon as practicable after such individual is apprehended— (i) inquire as to whether the apprehended individual is— (I) a parent, legal guardian, or primary caregiver of a child; or (II) traveling with a spouse or child; and (ii) ascertain whether repatriation of the apprehended individual presents any humanitarian concern or concern related to such individual’s physical safety; and (B) ensure that, with respect to a decision related to the repatriation or referral for prosecution of the apprehended individual, due consideration is given— (i) to the best interests of such individual’s child, if any; (ii) to family unity whenever possible; and (iii) to other public interest factors, including humanitarian concerns and concerns related to the apprehended individual's physical safety. (c) Mandatory training The Secretary, in consultation with the Secretary of Health and Human Services, the Attorney General, the Secretary of State, and independent immigration, child welfare, family law, and human rights law experts, shall— (1) develop and provide specialized training for all personnel of U.S. Customs and Border Protection and cooperating entities who come into contact with apprehended individuals in all legal authorities, policies, and procedures relevant to the preservation of a child’s best interest, family unity, and other public interest factors, including those described in this Act; and (2) require border enforcement personnel to undertake periodic and continuing training on best practices and changes in relevant legal authorities, policies, and procedures pertaining to the preservation of a child’s best interest, family unity, and other public interest factors, including those described in this Act. (d) Annual report on the impact of migration deterrence programs at the border (1) Requirement for annual report Not later than 1 year after the date of the enactment of this Act, and annually thereafter, the Secretary shall submit to Congress a report that describes the impact of migration deterrence programs on parents, legal guardians, primary caregivers of a child, individuals traveling with a spouse or child, and individuals who present humanitarian considerations or concerns related to the individual's physical safety. (2) Contents Each report submitted under paragraph (1) shall include for the previous 1-year period an assessment of— (A) the number of apprehended individuals removed, repatriated, or referred for prosecution who are the parent, legal guardian, or primary caregiver of a child who is a citizen of the United States; (B) the number of occasions in which both parents, or the primary caretaker of such a child was removed, repatriated, or referred for prosecution as part of a migration deterrence program; (C) the number of apprehended individuals traveling with close family members who are removed, repatriated, or referred for prosecution. (D) the impact of migration deterrence programs on public interest factors, including humanitarian concerns and physical safety. (e) Regulations Not later than 120 days after the date of the enactment of this Act, the Secretary shall promulgate regulations to implement this section. 1116. Reports (a) Report on certain border matters The Secretary shall submit a report to the Committee on Homeland Security and Governmental Affairs of the Senate , the Committee on Homeland Security of the House of Representatives , the Committee on the Judiciary of the Senate , and the Committee on the Judiciary of the House of Representatives that sets forth— (1) the effectiveness rate (as defined in section 2(a)(4)) for each Border Patrol sector along the Northern border and the Southern border; (2) the number of miles along the Southern border that are under persistent surveillance; (3) the monthly wait times per passenger, including data on averages and peaks, for crossing the Northern border and the Southern border, and the staffing of such border crossings; and (4) the allocations at each port of entry along the Northern border and the Southern border. (b) Report on interagency collaboration The Under Secretary of Defense for Acquisition, Technology, and Logistics and the Under Secretary of Homeland Security for Science and Technology shall jointly submit a report on the results of the interagency collaboration under section 1109 to— (1) the Committee on Armed Services of the Senate ; (2) the Committee on Homeland Security and Governmental Affairs of the Senate ; (3) the Committee on the Judiciary of the Senate; (4) the Committee on Armed Services of the House of Representatives ; (5) the Committee on Homeland Security of the House of Representatives ; and (6) the Committee on the Judiciary of the House of Representatives . 1117. Severability and delegation (a) Severability If any provision of this Act or any amendment made by this Act, or any application of such provision or amendment to any person or circumstance, is held to be unconstitutional, the remainder of the provisions of this Act and the amendments made by this Act and the application of the provision or amendment to any other person or circumstance shall not be affected. (b) Delegation The Secretary may delegate any authority provided to the Secretary under this Act or an amendment made by this Act to the Secretary of Agriculture, the Attorney General, the Secretary of Defense, the Secretary of Health and Human Services, the Secretary of State, or the Commissioner of Social Security. 1118. Prohibition on land border crossing fees The Secretary shall not establish, collect, or otherwise impose a border crossing fee for pedestrians or passenger vehicles at land ports of entry along the Southern border or the Northern border, nor conduct any study relating to the imposition of such a fee. 1119. Human Trafficking Reporting (a) Short title This section may be cited as the Human Trafficking Reporting Act of 2013 . (b) Findings Congress finds the following: (1) Human trafficking is a form of modern-day slavery. (2) According to the Trafficking Victims Protection Act of 2000 severe forms of trafficking in persons means— (A) sex trafficking in which a commercial sex act is induced by force, fraud, or coercion, or in which the person induced to perform such act has not attained 18 years of age; or (B) the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery. (3) There is an acute need for better data collection of incidents of human trafficking across the United States in order to effectively combat severe forms of trafficking in persons. (4) The State Department’s 2012 Trafficking in Persons report found that— (A) the United States is a source, transit and destination country for men, women, and children, subjected to forced labor, debt bondage, domestic servitude and sex trafficking, ; and (B) the United States needs to improve data collection on human trafficking cases at the federal, state and local levels . (5) The International Organization for Migration has reported that in order to effectively combat human trafficking there must be reliable and standardized data, however, the following barriers for data collection exist: (A) The illicit and underground nature of human trafficking. (B) The reluctance of victims to share information with authorities. (C) Insufficient human trafficking data collection and research efforts by governments worldwide. (6) A 2009 report to the Department of Health and Human Services entitled Human Trafficking Into and Within the United States: A Review of the Literature found that the data and methodologies for estimating the prevalence of human trafficking globally and nationally are not well developed, and therefore estimates have varied widely and changed significantly over time . (7) The Federal Bureau of Investigation compiles national crime statistics through the Uniform Crime Reporting Program. (8) Under current law, State and local governments receiving Edward Byrne Memorial Justice Assistance grants are required to share data on part 1 violent crimes with the Federal Bureau of Investigation for inclusion in the Uniform Crime Reporting Program. (9) The addition of severe forms of trafficking in persons to the definition of part 1 violent crimes will ensure that statistics on this heinous crime will be compiled and available through the Federal Bureau of Investigation’s Uniform Crime Report. (c) Human trafficking To be included in part 1 violent crimes for purposes of Byrne grants Section 505 of the Omnibus Crime Control and Safe Streets Act of 1968 ( 42 U.S.C. 3755 ) is amended by adding at the end the following new subsection: (i) Part 1 violent crimes To include human trafficking For purposes of this section, the term part 1 violent crimes shall include severe forms of trafficking in persons, as defined in section 103(8) of the Trafficking Victims Protection Act of 2000 ( 22 U.S.C. 7102(8) ). . 1120. Rule of construction Nothing in this Act may be construed to authorize the deployment, procurement, or construction of fencing along the Northern border. 1121. Limitations on dangerous deportation practices (a) Certification required (1) In general Not later than 1 year after the date of the enactment of this Act, and every 180 days thereafter, the Secretary, except as provided in paragraph (2), shall submit written certification to Congress that the Department has only deported or otherwise removed a migrant from the United States through an entry or exit point on the Southern border during daylight hours. (2) Exception The certification required under paragraph (1) shall not apply to the deportation or removal of a migrant otherwise described in that paragraph if— (A) the manner of the deportation or removal is justified by a compelling governmental interest; (B) the manner of the deportation or removal is in accordance with an applicable Local Arrangement for the Repatriation of Mexican Nationals entered into by the appropriate Mexican Consulate; or (C) the migrant is not an unaccompanied minor and the migrant— (i) is deported or removed through an entry or exit point in the same sector as the place where the migrant was apprehended; or (ii) agrees to be deported or removed in such manner after being notified of the intended manner of deportation or removal. (b) Additional information required Not later than 1 year after the date of the enactment of this Act, the Secretary shall submit to Congress a study of the Alien Transfer Exit Program, which shall include— (1) the specific locations on the Southern border where lateral repatriations have occurred during the 1-year period preceding the submission of the study; (2) the performance measures developed by U.S. Customs and Border Protection to determine if the Alien Transfer Exit Program is deterring migrants from repeatedly crossing the border or otherwise reducing recidivism; and (3) the consideration given, if any, to the rates of violent crime and the availability of infrastructure and social services in Mexico near such locations. (c) Prohibition on confiscation of property Notwithstanding any other provision of law, lawful, nonperishable belongings of a migrant that are confiscated by personnel operating under Federal authority shall be returned to the migrant before repatriation, to the extent practicable. 1122. Maximum allowable costs of salaries of contractor employees Section 4304(a)(16) of title 41, United States Code, is amended by inserting before the period at the end the following: , except that in the case of contracts with the Department of Homeland Security or the National Guard while operating in Federal status that relate to border security, the limit on the costs of compensation of all executives and employees of contractors is the annual amount payable under the aggregate limitation on pay as established by the Office of Management and Budget (currently $230,700) . II Immigrant visas A Registration and adjustment of registered provisional immigrants 2101. Registered provisional immigrant status (a) Authorization Chapter 5 of title II ( 8 U.S.C. 1255 et seq. ) is amended by inserting after section 245A the following: 245B. Adjustment of status of eligible entrants before December 31, 2011, to that of registered provisional immigrant (a) In general Notwithstanding any other provision of law, the Secretary of Homeland Security (referred to in this section and in sections 245C through 245F as the Secretary ), after conducting the national security and law enforcement clearances required under subsection (c)(8), may grant registered provisional immigrant status to an alien who— (1) meets the eligibility requirements set forth in subsection (b); (2) submits a completed application before the end of the period set forth in subsection (c)(3); and (3) has paid the fee required under subsection (c)(10)(A) and the penalty required under subsection (c)(10)(C), if applicable. (b) Eligibility requirements (1) In general An alien is not eligible for registered provisional immigrant status unless the alien establishes, by a preponderance of the evidence, that the alien meets the requirements set forth in this subsection. (2) Physical presence (A) In general The alien— (i) shall be physically present in the United States on the date on which the alien submits an application for registered provisional immigrant status; (ii) shall have been physically present in the United States on or before December 31, 2011; and (iii) shall have maintained continuous physical presence in the United States from December 31, 2011, until the date on which the alien is granted status as a registered provisional immigrant under this section. (B) Break in physical presence (i) In general Except as provided in clause (ii), an alien who is absent from the United States without authorization after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act does not meet the continuous physical presence requirement set forth in subparagraph (A)(iii). (ii) Exception An alien who departed from the United States after December 31, 2011, will not be considered to have failed to maintain continuous presence in the United States if the alien's absences from the United States are brief, casual, and innocent whether or not such absences were authorized by the Secretary. (3) Grounds for ineligibility (A) In general Except as provided in subparagraph (B), an alien is ineligible for registered provisional immigrant status if the Secretary determines that the alien— (i) has a conviction for— (I) an offense classified as a felony in the convicting jurisdiction (other than a State or local offense for which an essential element was the alien's immigration status, or a violation of this Act); (II) an aggravated felony (as defined in section 101(a)(43) at the time of the conviction); (III) 3 or more misdemeanor offenses (other than minor traffic offenses or State or local offenses for which an essential element was the alien's immigration status, or violations of this Act) if the alien was convicted on different dates for each of the 3 offenses; (IV) any offense under foreign law, except for a purely political offense, which, if the offense had been committed in the United States, would render the alien inadmissible under section 212(a) (excluding the paragraphs set forth in clause (ii)) or removable under section 237(a), except as provided in paragraph (3) of section 237(a); (V) unlawful voting (as defined in section 237(a)(6)); (ii) is inadmissible under section 212(a), except that in determining an alien’s inadmissibility— (I) paragraphs (4), (5), (7), and (9)(B) of section 212(a) shall not apply; (II) subparagraphs (A), (C), (D), (F), and (G) of section 212(a)(6) and paragraphs (9)(C) and (10)(B) of section 212(a) shall not apply unless based on the act of unlawfully entering the United States after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act ; and (III) paragraphs (6)(B) and (9)(A) of section 212(a) shall not apply unless the relevant conduct began on or after the date on which the alien files an application for registered provisional immigrant status under this section; (iii) is an alien who the Secretary knows or has reasonable grounds to believe, is engaged in or is likely to engage after entry in any terrorist activity (as defined in section 212(a)(3)(B)(iv)); or (iv) was, on April 16, 2013— (I) an alien lawfully admitted for permanent residence; (II) an alien admitted as a refugee under section 207 or granted asylum under section 208; or (III) an alien who, according to the records of the Secretary or the Secretary of State, is lawfully present in the United States in any nonimmigrant status (other than an alien considered to be a nonimmigrant solely due to the application of section 244(f)(4) or the amendment made by section 702 of the Consolidated Natural Resources Act of 2008 ( Public Law 110–229 )), notwithstanding any unauthorized employment or other violation of nonimmigrant status. (B) Waiver (i) In general The Secretary may waive the application of subparagraph (A)(i)(III) or any provision of section 212(a) that is not listed in clause (ii) on behalf of an alien for humanitarian purposes, to ensure family unity, or if such a waiver is otherwise in the public interest. Any discretionary authority to waive grounds of inadmissibility under section 212(a) conferred under any other provision of this Act shall apply equally to aliens seeking registered provisional status under this section. (ii) Exceptions The discretionary authority under clause (i) may not be used to waive— (I) subparagraph (B), (C), (D)(ii), (E), (G), (H), or (I) of section 212(a)(2); (II) section 212(a)(3); (III) subparagraph (A), (C), (D), or (E) of section 212(a)(10); or (IV) with respect to misrepresentations relating to the application for registered provisional immigrant status, section 212(a)(6)(C)(i). (C) Conviction explained For purposes of this paragraph, the term conviction does not include a judgment that has been expunged, set aside, or the equivalent. (D) Rule of construction Nothing in this paragraph may be construed to require the Secretary to commence removal proceedings against an alien. (4) Applicability of other provisions Sections 208(d)(6) and 240B(d) shall not apply to any alien filing an application for registered provisional immigrant status under this section. (5) Dependent spouse and children (A) In general Notwithstanding any other provision of law, the Secretary may classify the spouse or child of a registered provisional immigrant as a registered provisional immigrant dependent if the spouse or child— (i) was physically present in the United States on or before December 31, 2012, and has maintained continuous presence in the United States from that date until the date on which the registered provisional immigrant is granted such status, with the exception of absences from the United States that are brief, casual, and innocent, whether or not such absences were authorized by the Secretary; and (ii) meets all of the eligibility requirements set forth in this subsection, other than the requirements of clause (ii) or (iii) of paragraph (2)(A). (B) Effect of termination of legal relationship or domestic violence If the spousal or parental relationship between an alien who is granted registered provisional immigrant status under this section and the alien’s spouse or child is terminated due to death or divorce or the spouse or child has been battered or subjected to extreme cruelty by the alien (regardless of whether the legal relationship terminates), the spouse or child may apply for classification as a registered provisional immigrant. (C) Effect of disqualification of parent Notwithstanding subsection (c)(3), if the application of a spouse or parent for registered provisional immigrant status is terminated or revoked, the husband, wife, or child of that spouse or parent shall be eligible to apply for registered provisional immigrant status independent of the parent or spouse. (c) Application procedures (1) In general An alien, or the dependent spouse or child of such alien, who meets the eligibility requirements set forth in subsection (b) may apply for status as a registered provisional immigrant or a registered provisional immigrant dependent, as applicable, by submitting a completed application form to the Secretary during the application period set forth in paragraph (3), in accordance with the final rule promulgated by the Secretary under the Border Security, Economic Opportunity, and Immigration Modernization Act . An applicant for registered provisional immigrant status shall be treated as an applicant for admission. (2) Payment of taxes (A) In general An alien may not file an application for registered provisional immigrant status under paragraph (1) unless the applicant has satisfied any applicable Federal tax liability. (B) Definition of applicable federal tax liability In this paragraph, the term applicable Federal tax liability means all Federal income taxes assessed in accordance with section 6203 of the Internal Revenue Code of 1986. (C) Demonstration of compliance An applicant may demonstrate compliance with this paragraph by submitting appropriate documentation, in accordance with regulations promulgated by the Secretary, in consultation with the Secretary of the Treasury. (3) Application period (A) Initial period Except as provided in subparagraph (B), the Secretary may only accept applications for registered provisional immigrant status from aliens in the United States during the 1-year period beginning on the date on which the final rule is published in the Federal Register pursuant to paragraph (1). (B) Extension If the Secretary determines, during the initial period described in subparagraph (A), that additional time is required to process applications for registered provisional immigrant status or for other good cause, the Secretary may extend the period for accepting applications for such status for an additional 18 months. (4) Application form (A) Required information (i) In general The application form referred to in paragraph (1) shall collect such information as the Secretary determines to be necessary and appropriate, including, for the purpose of understanding immigration trends— (I) an explanation of how, when, and where the alien entered the United States; (II) the country in which the alien resided before entering the United States; and (III) other demographic information specified by the Secretary. (ii) Privacy protections Information described in subclauses (I) through (III) of clause (i), which shall be provided anonymously by the applicant on the application form referred to in paragraph (1), shall be subject to the same confidentiality provisions as those set forth in section 9 of title 13, United States Code. (iii) Report The Secretary shall submit a report to Congress that contains a summary of the statistical data about immigration trends collected pursuant to clause (i). (B) Family application The Secretary shall establish a process through which an alien may submit a single application under this section on behalf of the alien, his or her spouse, and his or her children who are residing in the United States. (C) Interview The Secretary may interview applicants for registered provisional immigrant status under this section to determine whether they meet the eligibility requirements set forth in subsection (b). (5) Aliens apprehended before or during the application period If an alien who is apprehended during the period beginning on the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act and the end of the application period described in paragraph (3) appears prima facie eligible for registered provisional immigrant status, to the satisfaction of the Secretary, the Secretary— (A) shall provide the alien with a reasonable opportunity to file an application under this section during such application period; and (B) may not remove the individual until a final administrative determination is made on the application. (6) Eligibility after departure (A) In general An alien who departed from the United States while subject to an order of exclusion, deportation, or removal, or pursuant to an order of voluntary departure and who is outside of the United States, or who has reentered the United States illegally after December 31, 2011 without receiving the Secretary's consent to reapply for admission under section 212(a)(9), shall not be eligible to file an application for registered provisional immigrant status. (B) Waiver The Secretary, in the Secretary's sole and unreviewable discretion, subject to subparagraph (D), may waive the application of subparagraph (A) on behalf of an alien if the alien— (i) is the spouse or child of a United States citizen or lawful permanent resident; (ii) is the parent of a child who is a United States citizen or lawful permanent resident; (iii) meets the requirements set forth in clauses (ii) and (iii) of section 245D(b)(1)(A); or (iv) meets the requirements set forth in section 245D(b)(1)(A)(ii), is 16 years or older on the date on which the alien applies for registered provisional immigrant status, and was physically present in the United States for an aggregate period of not less than 3 years during the 6-year period immediately preceding the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act . (C) Eligibility Subject to subparagraph (D) and notwithstanding subsection (b)(2), section 241(a)(5), or a prior order of exclusion, deportation, or removal, an alien described in subparagraph (B) who is otherwise eligible for registered provisional immigrant status may file an application for such status. (D) Crime victims' rights to notice and consultation Prior to applying, or exercising, any authority under this paragraph, or ruling upon an application allowed under subparagraph (C) the Secretary shall— (i) determine whether or not an alien described under subparagraph (B) or (C) has a conviction for any criminal offense; (ii) in consultation with the agency that prosecuted the criminal offense under clause (i), if the agency, in the sole discretion of the agency, is willing to cooperate with the Secretary, make all reasonable efforts to identify each victim of a crime for which an alien determined to be a criminal under clause (i) has a conviction; (iii) in consultation with the agency that prosecuted the criminal offense under clause (i), if the agency, in the sole discretion of the agency, is willing to cooperate with the Secretary, make all reasonable efforts to provide each victim identified under clause (ii) with written notice that the alien is being considered for a waiver under this paragraph, specifying in such notice that the victim may— (I) take no further action; (II) request written notification by the Secretary of any subsequent application for waiver filed by the criminal alien under this paragraph and of the final determination of the Secretary regarding such application; or (III) not later than 60 days after the date on which the victim receives written notice under this clause, request a consultation with the Secretary relating to whether the application of the offender should be granted and if the victim cannot be located or if no response is received from the victim within the designated time period, the Secretary shall proceed with adjudication of the application; and (iv) at the request of a victim under clause (iii), consult with the victim to determine whether or not the Secretary should, in the case of an alien who is determined under clause (i) to have a conviction for any criminal offense, exercise waiver authority for an alien described under subparagraph (B), or grant the application of an alien described under subparagraph (C). (E) Crime victims' right to intervention In addition to the victim notification and consultation provided for in subparagraph (D), the Secretary shall allow the victim of a criminal alien described under subparagraph (B) or (C) to request consultation regarding, or notice of, any application for waiver filed by the criminal alien under this paragraph, including the final determination of the Secretary regarding such application. (F) Confidentiality protections for crime victims The Secretary and the Attorney General may not make an adverse determination of admissibility or deportability of any alien who is a victim and not lawfully present in the United States based solely on information supplied or derived in the process of identification, notification, or consultation under this paragraph. (G) Reports required Not later than September 30 of each fiscal year in which the Secretary exercises authority under this paragraph to rule upon the application of a criminal offender allowed under subparagraph (C), the Secretary shall submit to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives a report detailing the execution of the victim identification and notification process required under subparagraph (D), which shall include— (i) the total number of criminal offenders who have filed an application under subparagraph (C) and the crimes committed by such offenders; (ii) the total number of criminal offenders whose application under subparagraph (C) has been granted and the crimes committed by such offenders; and (iii) the total number of victims of criminal offenders under clause (ii) who were not provided with written notice of the offender’s application and the crimes committed against the victims. (H) Definition In this paragraph, the term victim has the meaning given the term in section 503(e) of the Victims' Rights and Restitution Act of 1990 ( 42 U.S.C. 10607(e) ). (7) Suspension of removal during application period (A) Protection from detention or removal A registered provisional immigrant may not be detained by the Secretary or removed from the United States, unless— (i) the Secretary determines that— (I) such alien is, or has become, ineligible for registered provisional immigrant status under subsection (b)(3); or (II) the alien's registered provisional immigrant status has been revoked under subsection (d)(2). (B) Aliens in removal proceedings Notwithstanding any other provision of this Act— (i) if the Secretary determines that an alien, during the period beginning on the date of the enactment of this section and ending on the last day of the application period described in paragraph (3), is in removal, deportation, or exclusion proceedings before the Executive Office for Immigration Review and is prima facie eligible for registered provisional immigrant status under this section— (I) the Secretary shall provide the alien with the opportunity to file an application for such status; and (II) upon motion by the Secretary and with the consent of the alien or upon motion by the alien, the Executive Office for Immigration Review shall— (aa) terminate such proceedings without prejudice to future proceedings on any basis; and (bb) provide the alien a reasonable opportunity to apply for such status; and (ii) if the Executive Office for Immigration Review determines that an alien, during the period beginning on the date of the enactment of this section and ending on the last day of the application period described in paragraph (3), is in removal, deportation, or exclusion proceedings before the Executive Office for Immigration Review and is prima facie eligible for registered provisional immigrant status under this section— (I) the Executive Office of Immigration Review shall notify the Secretary of such determination; and (II) if the Secretary does not dispute the determination of prima facie eligibility within 7 days after such notification, the Executive Office for Immigration Review, upon consent of the alien, shall— (aa) terminate such proceedings without prejudice to future proceedings on any basis; and (bb) permit the alien a reasonable opportunity to apply for such status. (C) Treatment of certain aliens (i) In general If an alien who meets the eligibility requirements set forth in subsection (b) is present in the United States and has been ordered excluded, deported, or removed, or ordered to depart voluntarily from the United States under any provision of this Act— (I) notwithstanding such order or section 241(a)(5), the alien may apply for registered provisional immigrant status under this section; and (II) if the alien is granted such status, the alien shall file a motion to reopen the exclusion, deportation, removal, or voluntary departure order, which motion shall be granted unless 1 or more of the grounds of ineligibility is established by clear and convincing evidence. (ii) Limitations on motions to reopen The limitations on motions to reopen set forth in section 240(c)(7) shall not apply to motions filed under clause (i)(II). (D) Period pending adjudication of application (i) In general During the period beginning on the date on which an alien applies for registered provisional immigrant status under paragraph (1) and the date on which the Secretary makes a final decision regarding such application, the alien— (I) may receive advance parole to reenter the United States if urgent humanitarian circumstances compel such travel; (II) may not be detained by the Secretary or removed from the United States unless the Secretary makes a prima facie determination that such alien is, or has become, ineligible for registered provisional immigrant status under subsection (b)(3); (III) shall not be considered unlawfully present for purposes of section 212(a)(9)(B); and (IV) shall not be considered an unauthorized alien (as defined in section 274A(h)(3)). (ii) Evidence of application filing As soon as practicable after receiving each application for registered provisional immigrant status, the Secretary shall provide the applicant with a document acknowledging the receipt of such application. (iii) Continuing employment An employer who knows that an alien employee is an applicant for registered provisional immigrant status or will apply for such status once the application period commences is not in violation of section 274A(a)(2) if the employer continues to employ the alien pending the adjudication of the alien employee's application. (iv) Effect of departure Section 101(g) shall not apply to an alien granted— (I) advance parole under clause (i)(I) to reenter the United States; or (II) registered provisional immigrant status. (8) Security and law enforcement clearances (A) Biometric and biographic data The Secretary may not grant registered provisional immigrant status to an alien or an alien dependent spouse or child under this section unless such alien submits biometric and biographic data in accordance with procedures established by the Secretary. (B) Alternative procedures The Secretary shall provide an alternative procedure for applicants who cannot provide the biometric data required under subparagraph (A) because of a physical impairment. (C) Clearances (i) Data collection The Secretary shall collect, from each alien applying for status under this section, biometric, biographic, and other data that the Secretary determines to be appropriate— (I) to conduct national security and law enforcement clearances; and (II) to determine whether there are any national security or law enforcement factors that would render an alien ineligible for such status. (ii) Additional security screening The Secretary, in consultation with the Secretary of State and other interagency partners, shall conduct an additional security screening upon determining, in the Secretary’s opinion based upon information related to national security, that an alien or alien dependent spouse or child is or was a citizen or long-term resident of a region or country known to pose a threat, or that contains groups or organizations that pose a threat, to the national security of the United States. (iii) Prerequisite The required clearances and screenings described in clauses (i)(I) and (ii) shall be completed before the alien may be granted registered provisional immigrant status. (9) Duration of status and extension (A) In general The initial period of authorized admission for a registered provisional immigrant— (i) shall remain valid for 6 years unless revoked pursuant to subsection (d)(2); and (ii) may be extended for additional 6-year terms if— (I) the alien remains eligible for registered provisional immigrant status; (II) the alien meets the employment requirements set forth in subparagraph (B); (III) the alien has successfully passed background checks that are equivalent to the background checks described in section 245D(b)(1)(E); and (IV) such status was not revoked by the Secretary for any reason. (B) Employment or education requirement Except as provided in subparagraphs (D) and (E) of section 245C(b)(3), an alien may not be granted an extension of registered provisional immigrant status under this paragraph unless the alien establishes that, during the alien's period of status as a registered provisional immigrant, the alien— (i) (I) was regularly employed throughout the period of admission as a registered provisional immigrant, allowing for brief periods lasting not more than 60 days; and (II) is not likely to become a public charge (as determined under section 212(a)(4)); or (ii) is able to demonstrate average income or resources that are not less than 100 percent of the Federal poverty level throughout the period of admission as a registered provisional immigrant. (C) Payment of taxes An applicant may not be granted an extension of registered provisional immigrant status under subparagraph (A)(ii) unless the applicant has satisfied any applicable Federal tax liability in accordance with paragraph (2). (10) Fees and penalties (A) Standard processing fee (i) In general Aliens who are 16 years of age or older and are applying for registered provisional immigrant status under paragraph (1), or for an extension of such status under paragraph (9)(A)(ii), shall pay a processing fee to the Department of Homeland Security in an amount determined by the Secretary. (ii) Recovery of costs The processing fee authorized under clause (i) shall be set at a level that is sufficient to recover the full costs of processing the application, including any costs incurred— (I) to adjudicate the application; (II) to take and process biometrics; (III) to perform national security and criminal checks, including adjudication; (IV) to prevent and investigate fraud; and (V) to administer the collection of such fee. (iii) Authority to limit fees The Secretary, by regulation, may— (I) limit the maximum processing fee payable under this subparagraph by a family, including spouses and unmarried children younger than 21 years of age; and (II) exempt defined classes of individuals, including individuals described in section 245B(c)(13), from the payment of the fee authorized under clause (i). (B) Deposit and use of processing fees Fees collected under subparagraph (A)(i)— (i) shall be deposited into the Immigration Examinations Fee Account pursuant to section 286(m); and (ii) shall remain available until expended pursuant to section 286(n). (C) Penalty (i) Payment In addition to the processing fee required under subparagraph (A), aliens not described in section 245D(b)(A)(ii) who are 21 years of age or older and are filing an application under this subsection shall pay a $1,000 penalty to the Department of Homeland Security. (ii) Installments The Secretary shall establish a process for collecting payments required under clause (i) that permits the penalty under that clause to be paid in periodic installments that shall be completed before the alien may be granted an extension of status under paragraph (9)(A)(ii). (iii) Deposit Penalties collected pursuant to this subparagraph shall be deposited into the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1) of the Border Security, Economic Opportunity, and Immigration Modernization Act . (11) Adjudication (A) Failure to submit sufficient evidence The Secretary shall deny an application submitted by an alien who fails to submit— (i) requested initial evidence, including requested biometric data; or (ii) any requested additional evidence by the date required by the Secretary. (B) Amended application An alien whose application for registered provisional immigrant status is denied under subparagraph (A) may file an amended application for such status to the Secretary if the amended application— (i) is filed within the application period described in paragraph (3); and (ii) contains all the required information and fees that were missing from the initial application. (12) Evidence of registered provisional immigrant status (A) In general The Secretary shall issue documentary evidence of registered provisional immigrant status to each alien whose application for such status has been approved. (B) Documentation features Documentary evidence provided under subparagraph (A)— (i) shall be machine-readable and tamper-resistant, and shall contain a digitized photograph; (ii) shall, during the alien’s authorized period of admission, and any extension of such authorized admission, serve as a valid travel and entry document for the purpose of applying for admission to the United States; (iii) may be accepted during the period of its validity by an employer as evidence of employment authorization and identity under section 274A(b)(1)(B); (iv) shall indicate that the alien is authorized to work in the United States for up to 3 years; and (v) shall include such other features and information as may be prescribed by the Secretary. (13) DACA recipients Unless the Secretary determines that an alien who was granted Deferred Action for Childhood Arrivals (referred to in this paragraph as DACA ) pursuant to the Secretary’s memorandum of June 15, 2012, has engaged in conduct since the alien was granted DACA that would make the alien ineligible for registered provisional immigrant status, the Secretary may grant such status to the alien if renewed national security and law enforcement clearances have been completed on behalf of the alien. (d) Terms and conditions of registered provisional immigrant status (1) Conditions of registered provisional immigrant status (A) Employment Notwithstanding any other provision of law, including section 241(a)(7), a registered provisional immigrant shall be authorized to be employed in the United States while in such status. (B) Travel outside the united states A registered provisional immigrant may travel outside of the United States and may be admitted, if otherwise admissible, upon returning to the United States without having to obtain a visa if— (i) the alien is in possession of— (I) valid, unexpired documentary evidence of registered provisional immigrant status that complies with subsection (c)(12); or (II) a travel document, duly approved by the Secretary, that was issued to the alien after the alien's original documentary evidence was lost, stolen, or destroyed; (ii) the alien's absence from the United States did not exceed 180 days, unless the alien's failure to timely return was due to extenuating circumstances beyond the alien's control; (iii) the alien meets the requirements for an extension as described in subclauses (I) and (III) of paragraph (9)(A); and (iv) the alien establishes that the alien is not inadmissible under subparagraph (A)(i), (A)(iii), (B), or (C) of section 212(a)(3). (C) Admission An alien granted registered provisional immigrant status under this section shall be considered to have been admitted and lawfully present in the United States in such status as of the date on which the alien’s application was filed. (D) Clarification of status An alien granted registered provisional immigrant status— (i) is lawfully admitted to the United States; and (ii) may not be classified as a nonimmigrant or as an alien who has been lawfully admitted for permanent residence. (2) Revocation (A) In general The Secretary may revoke the status of a registered provisional immigrant at any time after providing appropriate notice to the alien, and after the exhaustion or waiver of all applicable administrative review procedures under section 245E(c), if the alien— (i) no longer meets the eligibility requirements set forth in subsection (b); (ii) knowingly used documentation issued under this section for an unlawful or fraudulent purpose; (iii) is convicted of fraudulently claiming or receiving a Federal means-tested benefit (as defined and implemented in section 403 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 ( 8 U.S.C. 1613 )) after being granted registered provisional immigrant status; or (iv) was absent from the United States— (I) for any single period longer than 180 days in violation of the requirements set forth in paragraph (1)(B)(ii); or (II) for more than 180 days in the aggregate during any calendar year, unless the alien's failure to timely return was due to extenuating circumstances beyond the alien's control. (B) Additional evidence In determining whether to revoke an alien's status under subparagraph (A), the Secretary may require the alien— (i) to submit additional evidence; or (ii) to appear for an interview. (C) Invalidation of documentation If an alien’s registered provisional immigrant status is revoked under subparagraph (A), any documentation issued by the Secretary to such alien under subsection (c)(12) shall automatically be rendered invalid for any purpose except for departure from the United States. (3) Ineligibility for public benefits (A) In general An alien who has been granted registered provisional immigrant status under this section is not eligible for any Federal means-tested public benefit (as defined and implemented in section 403 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 ( 8 U.S.C. 1613 )). (B) Audits The Secretary of Health and Human Services shall conduct regular audits to ensure that registered provisional immigrants are not fraudulently receiving any of the benefits described in subparagraph (A). (4) Treatment of registered provisional immigrants A noncitizen granted registered provisional immigrant status under this section shall be considered lawfully present in the United States for all purposes while such noncitizen remains in such status, except that the noncitizen— (A) is not entitled to the premium assistance tax credit authorized under section 36B of the Internal Revenue Code of 1986 for his or her coverage; (B) shall be subject to the rules applicable to individuals not lawfully present that are set forth in subsection (e) of such section; (C) shall be subject to the rules applicable to individuals not lawfully present that are set forth in section 1402(e) of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18071 ); and (D) shall be subject to the rules applicable to individuals not lawfully present set forth in section 5000A(d)(3) of the Internal Revenue Code of 1986. (5) Assignment of social security number (A) In general The Commissioner of Social Security, in coordination with the Secretary, shall implement a system to allow for the assignment of a Social Security number and the issuance of a Social Security card to each alien who has been granted registered provisional immigrant status under this section. (B) Use of information The Secretary shall provide the Commissioner of Social Security with information from the applications filed by aliens granted registered provisional immigrant status under this section and such other information as the Commissioner determines to be necessary to assign a Social Security account number to such aliens. The Commissioner may use information received from the Secretary under this subparagraph to assign Social Security account numbers to such aliens and to administer the programs of the Social Security Administration. The Commissioner may maintain, use, and disclose such information only as permitted under section 552a of title 5, United States Code (commonly known as the Privacy Act of 1974) and other applicable Federal laws. (e) Dissemination of information on registered provisional immigrant program As soon as practicable after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act , the Secretary, in cooperation with entities approved by the Secretary, and in accordance with a plan adopted by the Secretary, shall broadly disseminate, in the most common languages spoken by aliens who would qualify for registered provisional immigrant status under this section, to television, radio, print, and social media to which such aliens would likely have access— (1) the procedures for applying for such status; (2) the terms and conditions of such status; and (3) the eligibility requirements for such status. . (b) Enlistment in the armed forces Section 504(b)(1) of title 10, United States Code, is amended by adding at the end the following: (D) An alien who has been granted registered provisional immigrant status under section 245B of the Immigration and Nationality Act. . 2102. Adjustment of status of registered provisional immigrants (a) In general Chapter 5 of title II ( 8 U.S.C. 1255 et seq. ) is amended by inserting after section 245B, as added by section 2101 of this title, the following: 245C. Adjustment of status of registered provisional immigrants (a) In general Subject to section 245E(d) and section 2302(c)(3) of the Border Security, Economic Opportunity, and Immigration Modernization Act , the Secretary may adjust the status of a registered provisional immigrant to that of an alien lawfully admitted for permanent residence if the registered provisional immigrant satisfies the eligibility requirements set forth in subsection (b). (b) Eligibility requirements (1) Registered provisional immigrant status (A) In general The alien was granted registered provisional immigrant status under section 245B and remains eligible for such status. (B) Continuous physical presence The alien establishes, to the satisfaction of the Secretary, that the alien was not continuously absent from the United States for more than 180 days in any calendar year during the period of admission as a registered provisional immigrant, unless the alien's absence was due to extenuating circumstances beyond the alien's control. (C) Maintenance of waivers of inadmissibility The grounds of inadmissibility set forth in section 212(a) that were previously waived for the alien or made inapplicable under section 245B(b) shall not apply for purposes of the alien’s adjustment of status under this section. (D) Pending revocation proceedings If the Secretary has notified the applicant that the Secretary intends to revoke the applicant’s registered provisional immigrant status under section 245B(d)(2)(A), the Secretary may not approve an application for adjustment of status under this section unless the Secretary makes a final determination not to revoke the applicant’s status. (2) Payment of taxes (A) In general An applicant may not file an application for adjustment of status under this section unless the applicant has satisfied any applicable Federal tax liability. (B) Definition of applicable federal tax liability In subparagraph (A), the term applicable Federal tax liability means all Federal income taxes assessed in accordance with section 6203 of the Internal Revenue Code of 1986 since the date on which the applicant was authorized to work in the United States as a registered provisional immigrant under section 245B(a). (C) Compliance The applicant may demonstrate compliance with subparagraph (A) by submitting such documentation as the Secretary, in consultation with the Secretary of the Treasury, may require by regulation. (3) Employment requirement (A) In general Except as provided in subparagraphs (D) and (E), an alien applying for adjustment of status under this section shall establish that, during his or her period of status as a registered provisional immigrant, he or she— (i) (I) was regularly employed throughout the period of admission as a registered provisional immigrant, allowing for brief periods lasting not more than 60 days; and (II) is not likely to become a public charge (as determined under section 212(a)(4)); or (ii) can demonstrate average income or resources that are not less than 125 percent of the Federal poverty level throughout the period of admission as a registered provisional immigrant. (B) Evidence of employment (i) Documents An alien may satisfy the employment requirement under subparagraph (A)(i) by submitting, to the Secretary, records that— (I) establish, by the preponderance of the evidence, compliance with such employment requirement; and (II) have been maintained by the Social Security Administration, the Internal Revenue Service, or any other Federal, State, or local government agency. (ii) Other documents An alien who is unable to submit the records described in clause (i) may satisfy the employment or education requirement under subparagraph (A) by submitting to the Secretary at least 2 types of reliable documents not described in clause (i) that provide evidence of employment or education, including— (I) bank records; (II) business records; (III) employer records; (IV) records of a labor union, day labor center, or organization that assists workers in employment; (V) sworn affidavits from nonrelatives who have direct knowledge of the alien's work or education, that contain— (aa) the name, address, and telephone number of the affiant; (bb) the nature and duration of the relationship between the affiant and the alien; and (cc) other verification or information; (VI) remittance records; and (VII) school records from institutions described in subparagraph (D). (iii) Additional documents and restrictions The Secretary may— (I) designate additional documents that may be used to establish compliance with the requirement under subparagraph (A); and (II) set such terms and conditions on the use of affidavits as may be necessary to verify and confirm the identity of any affiant or to otherwise prevent fraudulent submissions. (C) Satisfaction of employment requirement An alien may not be required to satisfy the employment requirements under this section with a single employer. (D) Education permitted An alien may satisfy the requirement under subparagraph (A), in whole or in part, by providing evidence of full-time attendance at— (i) an institution of higher education (as defined in section 102(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1002(a) )); (ii) a secondary school, including a public secondary school (as defined in section 9101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 )); (iii) an education, literacy, or career and technical training program (including vocational training) that is designed to lead to placement in postsecondary education, job training, or employment through which the alien is working toward such placement; or (iv) an education program assisting students either in obtaining a high school equivalency diploma, certificate, or its recognized equivalent under State law (including a certificate of completion, certificate of attendance, or alternate award), or in passing a General Educational Development exam or other equivalent State-authorized exam or completed other applicable State requirements for high school equivalency. (E) Authorization of exceptions and waivers (i) Exceptions based on age or disability The employment and education requirements under this paragraph shall not apply to any alien who— (I) is younger than 21 years of age on the date on which the alien files an application for the first extension of the initial period of authorized admission as a registered provisional immigrant; (II) is at least 60 years of age on the date on which the alien files an application for an extension of registered provisional immigrant status or at least 65 years of age on the date on which the alien's application for adjustment of status is filed under this section; or (III) has a physical or mental disability (as defined in section 3(2) of the Americans with Disabilities Act of 1990 ( 42 U.S.C. 12102(2) )) or as a result of pregnancy if such condition is evidenced by the submission of documentation prescribed by the Secretary. (ii) Family exceptions The employment and education requirements under this paragraph shall not apply to any alien who is a dependent registered provisional immigrant under subsection (b)(5). (iii) Temporary exceptions The employment and education requirements under this paragraph shall not apply during any period during which the alien— (I) was on medical leave, maternity leave, or other employment leave authorized by Federal law, State law, or the policy of the employer; (II) is or was the primary caretaker of a child or another person who requires supervision or is unable to care for himself or herself; or (III) was unable to work due to circumstances outside the control of the alien. (iv) Waiver The Secretary may waive the employment or education requirements under this paragraph with respect to any individual alien who demonstrates extreme hardship to himself or herself or to a spouse, parent, or child who is a United States citizen or lawful permanent resident. (4) English skills (A) In general Except as provided under subparagraph (C), a registered provisional immigrant who is 16 years of age or older shall establish that he or she— (i) meets the requirements set forth in section 312; or (ii) is satisfactorily pursuing a course of study, pursuant to standards established by the Secretary of Education, in consultation with the Secretary, to achieve an understanding of English and knowledge and understanding of the history and Government of the United States, as described in section 312(a). (B) Relation to naturalization examination A registered provisional immigrant who demonstrates that he or she meets the requirements set forth in section 312 may be considered to have satisfied such requirements for purposes of becoming naturalized as a citizen of the United States. (C) Exceptions (i) Mandatory Subparagraph (A) shall not apply to any person who is unable to comply with the requirements under that subparagraph because of a physical or developmental disability or mental impairment. (ii) Discretionary The Secretary may waive all or part of subparagraph (A) for a registered provisional immigrant who is 70 years of age or older on the date on which an application is filed for adjustment of status under this section. (5) Military selective service The alien shall provide proof of registration under the Military Selective Service Act (50 U.S.C. App. 451 et seq.), if the alien is subject to such registration on or after the date on which the alien's application for registered provisional immigrant status is granted. (c) Application procedures (1) In general Beginning on the date described in paragraph (2), a registered provisional immigrant, or a registered provisional immigrant dependent, who meets the eligibility requirements set forth in subsection (b) may apply for adjustment of status to that of an alien lawfully admitted for permanent residence by submitting an application to the Secretary that includes the evidence required, by regulation, to demonstrate the applicant's eligibility for such adjustment. (2) Back of the line The status of a registered provisional immigrant may not be adjusted to that of an alien lawfully admitted for permanent residence under this section until after the Secretary of State certifies that immigrant visas have become available for all approved petitions for immigrant visas that were filed under sections 201 and 203 before the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act . (3) Interview The Secretary may interview applicants for adjustment of status under this section to determine whether they meet the eligibility requirements set forth in subsection (b). (4) Security and law enforcement clearances The Secretary may not adjust the status of a registered provisional immigrant under this section until renewed national security and law enforcement clearances have been completed with respect to the registered provisional immigrant, to the satisfaction of the Secretary. (5) Fees and penalties (A) Processing fees (i) In general The Secretary shall impose a processing fee on applicants for adjustment of status under this section at a level sufficient to recover the full cost of processing such applications, including costs associated with— (I) adjudicating the applications; (II) taking and processing biometrics; (III) performing national security and criminal checks, including adjudication; (IV) preventing and investigating fraud; and (V) the administration of the fees collected. (ii) Authority to limit fees The Secretary, by regulation, may— (I) limit the maximum processing fee payable under this subparagraph by a family, including spouses and children; and (II) exempt other defined classes of individuals from the payment of the fee authorized under clause (i). (iii) Deposit and use of fees Fees collected under this subparagraph— (I) shall be deposited into the Immigration Examinations Fee Account pursuant to section 286(m); and (II) shall remain available until expended pursuant to section 286(n). (B) Penalties (i) In general In addition to the processing fee required under subparagraph (A) and the penalty required under section 245B(c)(6)(D), an alien who was 21 years of age or older on the date on which the Border Security, Economic Opportunity, and Immigration Modernization Act was originally introduced in the Senate and is filing an application for adjustment of status under this section shall pay a $1,000 penalty to the Secretary unless the alien meets the requirements under section 245D(b). (ii) Installments The Secretary shall establish a process for collecting payments required under clause (i) through periodic installments. (iii) Deposit, allocation, and spending of penalties Penalties collected under this subparagraph— (I) shall be deposited into the Comprehensive Immigration Trust Fund established under section 9(a)(1) of the Border Security, Economic Opportunity, and Immigration Modernization Act ; and (II) may be used for the purposes set forth in section 9(a)(3)(B) of such Act. . (b) Limitation on registered provisional immigrants An alien admitted as a registered provisional immigrant under section 245B of the Immigration and Nationality Act, as added by subsection (a), may only adjust status to an alien lawfully admitted for permanent resident status under section 245C or 245D of such Act or section 2302. (c) Naturalization Section 319 ( 8 U.S.C. 1430 ) is amended— (1) in the section heading, by striking and employees of certain nonprofit organizations and inserting , employees of certain nonprofit organizations, and other long-term lawful residents ; and (2) by adding at the end the following: (f) Any lawful permanent resident who was lawfully present in the United States and eligible for work authorization for not less than 10 years before becoming a lawful permanent resident may be naturalized upon compliance with all the requirements under this title except the provisions of section 316(a)(1) if such person, immediately preceding the date on which the person filed an application for naturalization— (1) has resided continuously within the United States, after being lawfully admitted for permanent residence, for at least 3 years; (2) during the 3-year period immediately preceding such filing date, has been physically present in the United States for periods totaling at least 50 percent of such period; and (3) has resided within the State or in the jurisdiction of the U.S. Citizenship and Immigration Services field office in the United States in which the applicant filed such application for at least 3 months. . 2103. The DREAM Act (a) Short title This section may be cited as the Development, Relief, and Education for Alien Minors Act of 2013 or the DREAM Act 2013 . (b) Adjustment of status for certain aliens who entered the United States as children Chapter 5 of title II ( 8 U.S.C. 1255 et seq. ) is amended by inserting after section 245C, as added by section 2102 of this title, the following: 245D. Adjustment of status for certain aliens who entered the United States as children (a) Definitions In this section: (1) Institution of higher education The term institution of higher education has the meaning given such term in section 102 of the Higher Education Act of 1965 ( 20 U.S.C. 1002 ), except that the term does not include institutions described in subsection (a)(1)(C) of such section. (2) Secretary The term Secretary means the Secretary of Homeland Security. (3) Uniformed services The term Uniformed Services has the meaning given the term uniformed services in section 101(a)(5) of title 10, United States Code. (b) Adjustment of status for certain aliens who entered the united states as children (1) Requirements (A) In general The Secretary may adjust the status of a registered provisional immigrant to the status of a lawful permanent resident if the immigrant demonstrates that he or she— (i) has been a registered provisional immigrant for at least 5 years; (ii) was younger than 16 years of age on the date on which the alien initially entered the United States; (iii) has earned a high school diploma, a commensurate alternative award from a public or private high school or secondary school, or has obtained a general education development certificate recognized under State law, or a high school equivalency diploma in the United States; (iv) (I) has acquired a degree from an institution of higher education or has completed at least 2 years, in good standing, in a program for a bachelor's degree or higher degree in the United States; or (II) has served in the Uniformed Services for at least 4 years and, if discharged, received an honorable discharge; and (v) has provided a list of each secondary school (as that term is defined in section 9101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 )) that the alien attended in the United States. (B) Hardship exception (i) In general The Secretary may adjust the status of a registered provisional immigrant to the status of a lawful permanent resident if the alien— (I) satisfies the requirements under clauses (i), (ii), (iii), and (v) of subparagraph (A); and (II) demonstrates compelling circumstances for the inability to satisfy the requirement under subparagraph (A)(iv). (C) Citizenship requirement (i) In general Except as provided in clause (ii), the Secretary may not adjust the status of an alien to lawful permanent resident status under this section unless the alien demonstrates that the alien satisfies the requirements under section 312(a). (ii) Exception Clause (i) shall not apply to an alien whose physical or developmental disability or mental impairment prevents the alien from meeting the requirements such section. (D) Submission of biometric and biographic data The Secretary may not adjust the status of an alien to lawful permanent resident status unless the alien— (i) submits biometric and biographic data, in accordance with procedures established by the Secretary; or (ii) complies with an alternative procedure prescribed by the Secretary, if the alien is unable to provide such biometric data because of a physical impairment. (E) Background checks (i) Requirement for background checks The Secretary shall utilize biometric, biographic, and other data that the Secretary determines appropriate— (I) to conduct national security and law enforcement background checks of an alien applying for lawful permanent resident status under this section; and (II) to determine whether there is any criminal, national security, or other factor that would render the alien ineligible for such status. (ii) Completion of background checks The Secretary may not adjust an alien's status to the status of a lawful permanent resident under this subsection until the national security and law enforcement background checks required under clause (i) have been completed with respect to the alien, to the satisfaction of the Secretary. (2) Application for lawful permanent resident status (A) In general A registered provisional immigrant seeking lawful permanent resident status shall file an application for such status in such manner as the Secretary may require. (B) Adjudication (i) In general The Secretary shall evaluate each application filed by a registered provisional immigrant under this paragraph to determine whether the alien meets the requirements under paragraph (1). (ii) Adjustment of status if favorable determination If the Secretary determines that the alien meets the requirements under paragraph (1), the Secretary shall notify the alien of such determination and adjust the status of the alien to lawful permanent resident status, effective as of the date of such determination. (iii) Adverse determination If the Secretary determines that the alien does not meet the requirements under paragraph (1), the Secretary shall notify the alien of such determination. (C) DACA recipients The Secretary may adopt streamlined procedures for applicants for adjustment to lawful permanent resident status under this section who were granted Deferred Action for Childhood Arrivals pursuant to the Secretary’s memorandum of June 15, 2012. (3) Treatment for purposes of naturalization (A) In general An alien granted lawful permanent resident status under this section shall be considered, for purposes of title III— (i) to have been lawfully admitted for permanent residence; and (ii) to have been in the United States as an alien lawfully admitted to the United States for permanent residence during the period the alien was a registered provisional immigrant. (B) Limitation on application for naturalization An alien may not apply for naturalization while the alien is in registered provisional immigrant status, except for an alien described in paragraph (1)(A)(ii) pursuant to section 328 or 329. . (c) Exemption from numerical limitations Section 201(b)(1) ( 8 U.S.C. 1151(b)(1) ) is amended— (1) by redesignating subparagraph (E) as subparagraph (F); and (2) by inserting after subparagraph (D) the following: (E) Aliens whose status is adjusted to permanent resident status under section 245C or 245D. . (d) Restoration of State option To determine residency for purposes of higher education (1) Repeal Section 505 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 ( 8 U.S.C. 1623 ) is repealed. (2) Effective date The repeal under paragraph (1) shall take effect as if included in the original enactment of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (division C of Public Law 104–208 ). (e) Naturalization Section 328(a) ( 8 U.S.C. 1439(a) ) is amended by inserting , without having been lawfully admitted to the United States for permanent resident, and after naturalized . (f) Limitation on Federal student assistance Notwithstanding any other provision of law, aliens granted registered provisional immigrant status and who initially entered the United States before reaching 16 years of age and aliens granted blue card status shall be eligible only for the following assistance under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq. ): (1) Student loans under parts D and E of such title IV ( 20 U.S.C. 1087a et seq. and 1087aa et seq.), subject to the requirements of such parts. (2) Federal work-study programs under part C of such title IV ( 42 U.S.C. 2751 et seq. ), subject to the requirements of such part. (3) Services under such title IV ( 20 U.S.C. 1070 et seq. ), subject to the requirements for such services. 2104. Additional requirements (a) In general Chapter 5 of title II ( 8 U.S.C. 1255 et seq. ) is amended by inserting after section 245C, as added by section 2102 of this title, the following: 245E. Additional requirements relating to registered provisional immigrants and others (a) Disclosures (1) Prohibited disclosures Except as otherwise provided in this subsection, no officer or employee of any Federal agency may— (A) use the information furnished in an application for lawful status under section 245B, 245C, or 245D for any purpose other than to make a determination on any application by the alien for any immigration benefit or protection; (B) make any publication through which information furnished by any particular applicant can be identified; or (C) permit anyone other than the sworn officers, employees, and contractors of such agency or of another entity approved by the Secretary to examine any individual application for lawful status under section 245B, 245C, or 245D. (2) Required disclosures The Secretary shall provide the information furnished in an application filed under section 245B, 245C, or 245D and any other information derived from such furnished information to— (A) a law enforcement agency, intelligence agency, national security agency, a component of the Department of Homeland Security, court, or grand jury, consistent with law, in connection with— (i) a criminal investigation or prosecution of any felony not related to the applicant’s immigration status; or (ii) a national security investigation or prosecution; and (B) an official coroner for purposes of affirmatively identifying a deceased individual, whether or not the death of such individual resulted from a crime. (3) Auditing and evaluation of information The Secretary may— (A) audit and evaluate information furnished as part of any application filed under section 245B, 245C, or 245D for purposes of identifying immigration fraud or fraud schemes; and (B) use any evidence detected by means of audits and evaluations for purposes of investigating, prosecuting, referring for prosecution, or denying or terminating immigration benefits. (b) Employer protections (1) Use of employment records Copies of employment records or other evidence of employment provided by an alien or by an alien's employer in support of an alien's application for registered provisional immigrant status under section 245B may not be used in a civil or criminal prosecution or investigation of that employer under section 274A or the Internal Revenue Code of 1986 for the prior unlawful employment of that alien regardless of the adjudication of such application or reconsideration by the Secretary of such alien's prima facie eligibility determination. Employers that provide unauthorized aliens with copies of employment records or other evidence of employment pursuant to an application for registered provisional immigrant status shall not be subject to civil and criminal liability pursuant to section 274A for employing such unauthorized aliens. (2) Limit on applicability The protections for employers and aliens under paragraph (1) shall not apply if the aliens or employers submit employment records that are deemed to be fraudulent. (c) Administrative review (1) Exclusive administrative review Administrative review of a determination respecting an application for status under section 245B, 245C, 245D, or 245F or section 2211 of the Agricultural Worker Program Act of 2013 shall be conducted solely in accordance with this subsection. (2) Administrative appellate review (A) Establishment of administrative appellate authority The Secretary shall establish or designate an appellate authority to provide for a single level of administrative appellate review of a determination with respect to applications for, or revocation of, status under sections 245B, 245C, and 245D. (B) Single appeal for each administrative decision (i) In general An alien in the United States whose application for status under section 245B, 245C, or 245D has been denied or revoked may file with the Secretary not more than 1 appeal of each decision to deny or revoke such status. (ii) Notice of appeal A notice of appeal filed under this subparagraph shall be filed not later than 90 days after the date of service of the decision of denial or revocation, unless the delay was reasonably justifiable. (C) Review by Secretary Nothing in this paragraph may be construed to limit the authority of the Secretary to certify appeals for review and final administrative decision. (D) Denial of petitions for dependents Appeals of a decision to deny or revoke a petition filed by a registered provisional immigrant pursuant to regulations promulgated under section 245B to classify a spouse or child of such alien as a registered provisional immigrant shall be subject to the administrative appellate authority described in subparagraph (A). (E) Stay of removal Aliens seeking administrative review shall not be removed from the United States until a final decision is rendered establishing ineligibility for status under section 245B, 245C, or 245D. (3) Record for review Administrative appellate review under paragraph (2) shall be de novo and based solely upon— (A) the administrative record established at the time of the determination on the application; and (B) any additional newly discovered or previously unavailable evidence. (4) Unlawful presence During the period in which an alien may request administrative review under this subsection, and during the period that any such review is pending, the alien shall not be considered unlawfully present in the United States for purposes of section 212(a)(9)(B). (d) Privacy and civil liberties (1) In general The Secretary, in accordance with subsection (a)(1), shall require appropriate administrative and physical safeguards to protect the security, confidentiality, and integrity of personally identifiable information collected, maintained, and disseminated pursuant to sections 245B, 245C, and 245D. (2) Assessments Notwithstanding the privacy requirements set forth in section 222 of the Homeland Security Act ( 6 U.S.C. 142 ) and the E–Government Act of 2002 ( Public Law 107–347 ), the Secretary shall conduct a privacy impact assessment and a civil liberties impact assessment of the legalization program established under sections 245B, 245C, and 245D during the pendency of the interim final regulations required to be issued under section 2110 of the Border Security, Economic Opportunity, and Immigration Modernization Act . . (b) Judicial review Section 242 ( 8 U.S.C. 1252 ) is amended— (1) in subsection (a)(2)— (A) in subparagraph (B), by inserting the exercise of discretion arising under after no court shall have jurisdiction to review ; (B) in subparagraph (D), by striking raised upon a petition for review filed with an appropriate court of appeals in accordance with this section ; (2) in subsection (b)(2), by inserting or, in the case of a decision rendered under section 245E(c), in the judicial circuit in which the petitioner resides after proceedings ; and (3) by adding at the end the following: (h) Judicial review of eligibility determinations relating to status under chapter 5 (1) Direct review If an alien's application under section 245B, 245C, 245D, or 245F or section 2211 of the Agricultural Worker Program Act of 2013 is denied, or is revoked after the exhaustion of administrative appellate review under section 245E(c), the alien may seek review of such decision, in accordance with chapter 7 of title 5, United States Code, before the United States district court for the district in which the person resides. (2) Status during review While a review described in paragraph (1) is pending— (A) the alien shall not be deemed to accrue unlawful presence for purposes of section 212(a)(9); (B) any unexpired grant of voluntary departure under section 240B shall be tolled; and (C) the court shall have the discretion to stay the execution of any order of exclusion, deportation, or removal. (3) Review after removal proceedings An alien may seek judicial review of a denial or revocation of approval of the alien's application under section 245B, 245C, or 245D in the appropriate United States court of appeal in conjunction with the judicial review of an order of removal, deportation, or exclusion if the validity of the denial has not been upheld in a prior judicial proceeding under paragraph (1). (4) Standard for judicial review (A) Basis Judicial review of a denial, or revocation of an approval, of an application under section 245B, 245C, or 245D shall be based upon the administrative record established at the time of the review. (B) Authority to remand The reviewing court may remand a case under this subsection to the Secretary for consideration of additional evidence if the court finds that— (i) the additional evidence is material; and (ii) there were reasonable grounds for failure to adduce the additional evidence before the Secretary. (C) Scope of review Notwithstanding any other provision of law, judicial review of all questions arising from a denial, or revocation of an approval, of an application under section 245B, 245C, or 245D shall be governed by the standard of review set forth in section 706 of title 5, United States Code. (5) Remedial powers (A) Jurisdiction Notwithstanding any other provision of law, the United States district courts shall have jurisdiction over any cause or claim arising from a pattern or practice of the Secretary in the operation or implementation of the Border Security, Economic Opportunity, and Immigration Modernization Act , or the amendments made by such Act, that is arbitrary, capricious, or otherwise contrary to law. (B) Scope of relief The United States district courts may order any appropriate relief in a clause or claim described in subparagraph (A) without regard to exhaustion, ripeness, or other standing requirements (other than constitutionally mandated requirements), if the court determines that— (i) the resolution of such cause or claim will serve judicial and administrative efficiency; or (ii) a remedy would otherwise not be reasonably available or practicable. (6) Challenges to the validity of the system (A) In general Except as provided in paragraph (5), any claim that section 245B, 245C, 245D, or 245E or any regulation, written policy, or written directive, issued or unwritten policy or practice initiated by or under the authority of the Secretary to implement such sections, violates the Constitution of the United States or is otherwise in violation of law is available exclusively in an action instituted in United States District Court in accordance with the procedures prescribed in this paragraph. (B) Savings provision Except as provided in subparagraph (C), nothing in subparagraph (A) may be construed to preclude an applicant under 245B, 245C, or 245D from asserting that an action taken or a decision made by the Secretary with respect to the applicant's status was contrary to law. (C) Class actions Any claim described in subparagraph (A) that is brought as a class action shall be brought in conformity with— (i) the Class Action Fairness Act of 2005 ( Public Law 109–2 ); and (ii) the Federal Rules of Civil Procedure. (D) Preclusive effect The final disposition of any claim brought under subparagraph (A) shall be preclusive of any such claim asserted by the same individual in a subsequent proceeding under this subsection. (E) Exhaustion and stay of proceedings (i) In general No claim brought under this paragraph shall require the plaintiff to exhaust administrative remedies under section 245E(c). (ii) Stay authorized Nothing in this paragraph may be construed to prevent the court from staying proceedings under this paragraph to permit the Secretary to evaluate an allegation of an unwritten policy or practice or to take corrective action. In determining whether to issue such a stay, the court shall take into account any harm the stay may cause to the claimant. . (c) Rule of construction Section 244(h) of the Immigration and Nationality Act ( 8 U.S.C. 1254a(h) ) shall not limit the authority of the Secretary to adjust the status of an alien under section 245C or 245D of the Immigration and Nationality Act, as added by this subtitle. (d) Effect of failure To register on eligibility for immigration benefits Failure to comply with section 264.1(f) of title 8, Code of Federal Regulations or with removal orders or voluntary departure agreements based on such section for acts committed before the date of the enactment of this Act shall not affect the eligibility of an alien to apply for a benefit under the Immigration and Nationality Act ( 8 U.S.C. 1101 et seq. ). (e) Clerical amendment The table of contents is amended by inserting after the item relating to section 245A the following: Sec. 245E. Additional requirements relating to registered provisional immigrants and others. . 2105. Criminal penalty (a) In general Chapter 69 of title 18, United States Code, is amended by adding at the end the following: 1430. Improper use of information relating to registered provisional immigrant applications Any person who knowingly uses, publishes, or permits information described in section 245E(a) of the Immigration and Nationality Act to be examined in violation of such section shall be fined not more than $10,000. . (b) Deposit of fines All criminal penalties collected under section 1430 of title 18, United States Code, as added by subsection (a), shall be deposited into the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1). (c) Clerical amendment The table of sections in chapter 69 of title 18, United States Code, is amended by adding at the end the following: 1430. Improper use of information relating to registered provisional immigrant applications. . 2106. Grant program to assist eligible applicants (a) Establishment The Secretary may establish, within U.S. Citizenship and Immigration Services, a program to award grants, on a competitive basis, to eligible nonprofit organizations that will use the funding to assist eligible applicants under section 245B, 245C, 245D, or 245F of the Immigration and Nationality Act or section 2211 of this Act by providing them with the services described in subsection (c). (b) Eligible nonprofit organization The term eligible nonprofit organization means a nonprofit, tax-exempt organization, including a community, faith-based or other immigrant-serving organization, whose staff has demonstrated qualifications, experience, and expertise in providing quality services to immigrants, refugees, persons granted asylum, or persons applying for such statuses. (c) Use of funds Grant funds awarded under this section may be used for the design and implementation of programs that provide— (1) information to the public regarding the eligibility and benefits of registered provisional immigrant status authorized under section 245B of the Immigration and Nationality Act and blue card status authorized under section 2211, particularly to individuals potentially eligible for such status; (2) assistance, within the scope of authorized practice of immigration law, to individuals submitting applications for registered provisional immigrant status or blue card status, including— (A) screening prospective applicants to assess their eligibility for such status; (B) completing applications and petitions, including providing assistance in obtaining the requisite documents and supporting evidence; (C) applying for any waivers for which applicants and qualifying family members may be eligible; and (D) providing any other assistance that the Secretary or grantees consider useful or necessary to apply for registered provisional immigrant status or blue card status; (3) assistance, within the scope of authorized practice of immigration law, to individuals seeking to adjust their status to that of an alien admitted for permanent residence under section 245C or 245F of the Immigration and Nationality Act; and (4) assistance, within the scope of authorized practice of immigration law, and instruction, to individuals— (A) on the rights and responsibilities of United States citizenship; (B) in civics and civics-based English as a second language; and (C) in applying for United States citizenship. (d) Source of grant funds (1) Application fees The Secretary may use up to $50,000,000 from the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1) to carry out this section. (2) Authorization of appropriations (A) Amounts authorized In addition to the amounts made available under paragraph (1), there are authorized to be appropriated such sums as may be necessary for each of the fiscal years 2014 through 2018 to carry out this section. (B) Availability Any amounts appropriated pursuant to subparagraph (A) shall remain available until expended. 2107. Conforming amendments to the Social Security Act (a) Correction of Social Security records (1) In general Section 208(e)(1) of the Social Security Act ( 42 U.S.C. 408(e)(1) ) is amended— (A) in subparagraph (B)(ii), by striking or at the end; (B) in subparagraph (C), by striking the comma at the end and inserting a semicolon; (C) by inserting after subparagraph (C) the following: (D) who is granted status as a registered provisional immigrant under section 245B or 245D of the Immigration and Nationality Act; or (E) whose status is adjusted to that of lawful permanent resident under section 245C of the Immigration and Nationality Act, ; and (D) in the undesignated matter at the end, by inserting , or in the case of an alien described in subparagraph (D) or (E), if such conduct is alleged to have occurred before the date on which the alien submitted an application under section 245B of such Act for classification as a registered provisional immigrant before the period at the end. (2) Effective date The amendments made by paragraph (1) shall take effect on the first day of the tenth month that begins after the date of the enactment of this Act. (b) State discretion regarding termination of parental rights (1) In general A compelling reason for a State not to file (or to join in the filing of) a petition to terminate parental rights under section 475(5)(E) of the Social Security Act ( 42 U.S.C. 675(5)(E) ) shall include— (A) the removal of the parent from the United States, unless the parent is unfit or unwilling to be a parent of the child; or (B) the involvement of the parent in (including detention pursuant to) an immigration proceeding, unless the parent is unfit or unwilling to be a parent of the child. (2) Conditions Before a State may file to terminate the parental rights under such section 475(5)(E), the State (or the county or other political subdivision of the State, as applicable) shall make reasonable efforts— (A) to identify, locate, and contact (including, if appropriate, through the diplomatic or consular offices of the country to which the parent was removed or in which a parent or relative resides)— (i) any parent of the child who is in immigration detention; (ii) any parent of the child who has been removed from the United States; and (iii) if possible, any potential adult relative of the child (as described in section 471(a)(29)); (B) to notify such parent or relative of the intent of the State (or the county or other political subdivision of the State, as applicable) to file (or to join in the filing of) a petition referred to in paragraph (1); or (C) to reunify the child with any such parent or relative; and (D) to provide and document appropriate services to the parent or relative. (3) Conforming amendment Section 475(5)(E)(ii) of the Social Security Act ( 42 U.S.C. 675(5)(E) ) is amended by inserting , including the reason set forth in section 2107(b)(1) of the Border Security, Economic Opportunity, and Immigration Modernization Act after child . (c) Children separated from parents and caregivers (1) State plan for foster care and adoption assistance Section 471(a) of the Social Security Act ( 42 U.S.C. 671(a) ) is amended— (A) by amending paragraph (19) to read as follows: (19) provides that the State shall give preference to an adult relative over a nonrelated caregiver when determining a placement for a child if— (A) the relative caregiver meets all relevant State child protection standards; and (B) the standards referred to in subparagraph (A) ensure that the immigration status alone of a parent, legal guardian, or relative shall not disqualify the parent, legal guardian, or relative from being a placement for a child; ; and (B) in paragraph (32), by striking and at the end; (C) in paragraph (33), by striking the period at the end and inserting ; and ; and (D) by adding at the end the following: (34) provides that the State shall— (A) ensure that the case manager for a separated child is capable of communicating in the native language of such child and of the family of such child, or an interpreter who is so capable is provided to communicate with such child and the family of such child at no cost to the child or to the family of such child; (B) coordinate with the Department of Homeland Security to ensure that parents who wish for their child to accompany them to their country of origin are given adequate time and assistance to obtain a passport and visa, and to collect all relevant vital documents, such as birth certificate, health, and educational records and other information; (C) coordinate with State agencies regarding alternate documentation requirements for a criminal records check or a fingerprint-based check for a caregiver that does not have Federal or State-issued identification; (D) preserve, to the greatest extent practicable, the privacy and confidentiality of all information gathered in the course of administering the care, custody, and placement of, and follow up services provided to, a separated child, consistent with the best interest of such child, by not disclosing such information to other government agencies or persons (other than a parent, legal guardian, or relative caregiver or such child), except that the head of the State agency (or the county or other political subdivision of the State, as applicable) may disclose such information, after placing a written record of the disclosure in the file of the child— (i) to a consular official for the purpose of reunification of a child with a parent, legal guardian, or relative caregiver who has been removed or is involved in an immigration proceeding, unless the child has refused contact with, or the sharing of personal or identifying information with, the government of his or her country of origin; (ii) when authorized to do so by the child (if the child has attained 18 years of age) if the disclosure is consistent with the best interest of the child; or (iii) to a law enforcement agency if the disclosure would prevent imminent and serious harm to another individual; and (E) not less frequently than annually, compile, update, and publish a list of entities in the State that are qualified to provide legal representation services for a separated child, in a language such that a child can read and understand. . (2) Additional information to be included in case plan Section 475 of such Act ( 42 U.S.C. 675 ) is amended— (A) in paragraph (1), by adding at the end the following: (H) In the case of a separated child with respect to whom the State plan requires the State to provide services under section 471(a)(34)— (i) the location of the parent or legal guardian described in paragraph (9)(A) from whom the child has been separated; and (ii) a written record of each disclosure to a government agency or person (other than such a parent, legal guardian, or relative) of information gathered in the course of tracking the care, custody, and placement of, and follow-up services provided to, the child. ; and (B) by adding at the end the following: (9) The term separated child means an individual who— (A) has a parent or legal guardian who has been— (i) detained by a Federal, State, or local law enforcement agency in the enforcement of an immigration law; or (ii) removed from the United States as a result of a violation of such a law; and (B) is in foster care under the responsibility of a State. . (3) Effective date The amendments made by this subsection shall take effect on the 1st day of the 1st calendar quarter that begins after the 1-year period that begins on the date of the enactment of this Act. 2108. Government contracting and acquisition of real property interest (a) Exemption from government contracting and hiring rules (1) In general A determination by a Federal agency to use a procurement competition exemption under section 253(c) of title 41, United States Code, or to use the authority granted in paragraph (2), for the purpose of implementing this title and the amendments made by this title is not subject to challenge by protest to the Government Accountability Office under sections 3551 and 3556 of title 31, United States Code, or to the Court of Federal Claims, under section 1491 of title 28, United States Code. An agency shall immediately advise the Congress of the exercise of the authority granted under this paragraph. (2) Government contracting exemption The competition requirement under section 253(a) of title 41, United States Code, may be waived or modified by a Federal agency for any procurement conducted to implement this title or the amendments made by this title if the senior procurement executive for the agency conducting the procurement— (A) determines that the waiver or modification is necessary; and (B) submits an explanation for such determination to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Homeland Security of the House of Representatives . (3) Hiring rules exemption Notwithstanding any other provision of law, the Secretary is authorized to make term, temporary limited, and part-time appointments of employees who will implement this title and the amendments made by this title without regard to the number of such employees, their ratio to permanent full-time employees, and the duration of their employment. Nothing in chapter 71 of title 5, United States Code, shall affect the authority of any Department management official to hire term, temporary limited or part-time employees under this paragraph. (b) Authority To waive annuity limitations Section 824(g)(2)(B) of the Foreign Service Act of 1980 ( 22 U.S.C. 4064(g)(2)(B) ) is amended by striking 2009 and inserting 2017 . (c) Authority To acquire leaseholds Notwithstanding any other provision of law, the Secretary may acquire a leasehold interest in real property, and may provide in a lease entered into under this subsection for the construction or modification of any facility on the leased property, if the Secretary determines that the acquisition of such interest, and such construction or modification, are necessary in order to facilitate the implementation of this title and the amendments made by this title. 2109. Long-term legal residents of the Commonwealth of the Northern Mariana Islands Section (6)(e) of the Joint Resolution entitled A Joint Resolution to approve the Covenant to Establish a Commonwealth of the Northern Mariana Islands in Political Union with the United States of America , and for other purposes , approved March 24, 1976 ( 48 U.S.C. 1806(e) ), as added by section 702 of the Consolidated Natural Resources Act of 2008 ( Public Law 110–229 ; 122 Stat. 854), is amended by adding at the end the following: (6) Special provision regarding long-term residents of the commonwealth (A) CNMI-only resident status Notwithstanding paragraph (1), an alien described in subparagraph (B) may, upon the application of the alien, be admitted as an immigrant to the Commonwealth subject to the following rules: (i) The alien shall be treated as an immigrant lawfully admitted for permanent residence in the Commonwealth only, including permitting entry to and exit from the Commonwealth, until the earlier of the date on which— (I) the alien ceases to permanently reside in the Commonwealth; or (II) the alien’s status is adjusted under this paragraph or section 245 of the Immigration and Nationality Act ( 8 U.S.C. 1255 ) to that of an alien lawfully admitted for permanent residence in accordance with all applicable eligibility requirements. (ii) The Secretary of Homeland Security shall establish a process for such aliens to apply for CNMI-only permanent resident status during the 90-day period beginning on the first day of the sixth month after the date of the enactment of this paragraph. (iii) Nothing in this subparagraph may be construed to provide any alien granted status under this subparagraph with public assistance to which the alien is not otherwise entitled. (B) Aliens described An alien is described in this subparagraph if the alien— (i) is lawfully present in the Commonwealth under the immigration laws of the United States; (ii) is otherwise admissible to the United States under the Immigration and Nationality Act ( 8 U.S.C. 1101 et seq. ); (iii) resided continuously and lawfully in the Commonwealth from November 28, 2009, through the date of the enactment of this paragraph; (iv) is not a citizen of the Republic of the Marshall Islands, the Federated States of Micronesia, or the Republic of Palau; and (v) (I) was born in the Northern Mariana Islands between January 1, 1974 and January 9, 1978; (II) was, on May 8, 2008, and continues to be as of the date of the enactment of this paragraph, a permanent resident (as defined in section 4303 of title 3 of the Northern Mariana Islands Commonwealth Code, in effect on May 8, 2008); (III) is the spouse or child (as defined in section 101(b)(1) of the Immigration and Nationality Act ( 8 U.S.C. 1101(b)(1) )), of an alien described in subclauses (I) or (II); (IV) was, on May 8, 2008, an immediate relative (as defined in section 4303 of title 3 of the Northern Mariana Islands Commonwealth Code, in effect on May 8, 2008, of a United States citizen, notwithstanding the age of the United States citizen, and continues to be such an immediate relative on the date of the application described in subparagraph (A); (V) resided in the Northern Mariana Islands as a guest worker under Commonwealth immigration law for at least 5 years before May 8, 2008 and is presently resident under CW–1 status; or (VI) is the spouse or child (as defined in section 101(b)(1) of the Immigration and Nationality Act ( 8 U.S.C. 1101(b)(1) )), of the alien guest worker described in subclause (V) and is presently resident under CW–2 status. (C) Adjustment for long term and permanent residents Beginning on the date that is 5 years after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act , an alien described in subparagraph (B) may apply to receive an immigrant visa or to adjust his or her status to that of an alien lawfully admitted for permanent residence. . 2110. Rulemaking (a) In general Not later than 1 year after the date of the enactment of this Act, the Secretary, the Attorney General, and the Secretary of State separately shall issue interim final regulations to implement this subtitle and the amendments made by this subtitle, which shall take effect immediately upon publication in the Federal Register. (b) Application procedures; processing fees; documentation The interim final regulations issued under subsection (a) shall include— (1) the procedures by which an alien, and the dependent spouse and children of such alien may apply for status under section 245B of the Immigration and Nationality Act, as added by section 2101 of this Act, as a registered provisional immigrant or a registered provisional immigrant dependent, as applicable, including the evidence required to demonstrate eligibility for such status or to be included in each application for such status; (2) the criteria to be used by the Secretary to determine— (A) the maximum processing fee payable under sections 245B(c)(10)(B) and 245C(c)(5)(A) of such Act by a family, including spouses and unmarried children younger than 21 years of age; and (B) which individuals will be exempt from such fees; (3) the documentation required to be submitted by the applicant to demonstrate compliance with section 245C(b)(3) of such Act; and (4) the procedures for a registered provisional immigrant to apply for adjustment of status under section 245C or 245D of such Act, including the evidence required to be submitted with such application to demonstrate the applicant's eligibility for such adjustment. (c) Exemption from National Environmental Policy Act Any decision by the Secretary concerning any rulemaking action, plan, or program described in this section shall not be considered to be a major Federal action subject to review under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ). 2111. Statutory construction Except as specifically provided, nothing in this subtitle, or any amendment made by this subtitle, may be construed to create any substantive or procedural right or benefit that is legally enforceable by any party against the United States or its agencies or officers or any other person. B Agricultural Worker Program 2201. Short title This subtitle may be cited as the Agricultural Worker Program Act of 2013 . 2202. Definitions In this subtitle: (1) Blue card status The term blue card status means the status of an alien who has been lawfully admitted into the United States for temporary residence under section 2211. (2) Agricultural employment The term agricultural employment has the meaning given such term in section 3 of the Migrant and Seasonal Agricultural Worker Protection Act ( 29 U.S.C. 1802 ), without regard to whether the specific service or activity is temporary or seasonal. (3) Child The term child has the meaning given the term in section 101(b)(1) of the Immigration and Nationality Act ( 8 U.S.C. 1101(b)(1) ). (4) Employer The term employer means any person or entity, including any farm labor contractor and any agricultural association, that employs workers in agricultural employment. (5) Qualified designated entity The term qualified designated entity means— (A) a qualified farm labor organization or an association of employers designated by the Secretary; or (B) any other entity that the Secretary designates as having substantial experience, demonstrated competence, and a history of long-term involvement in the preparation and submission of application for adjustment of status under title II of the Immigration and Nationality Act ( 8 U.S.C. 1151 et seq. ). (6) Work day The term work day means any day in which the individual is employed 5.75 or more hours in agricultural employment. 1 Program for earned status adjustment of agricultural workers A Blue card status 2211. Requirements for blue card status (a) Requirements for blue card status Notwithstanding any other provision of law, the Secretary, after conducting the national security and law enforcement clearances required under section 245B(c)(4), may grant blue card status to an alien who— (1) (A) performed agricultural employment in the United States for not fewer than 575 hours or 100 work days during the 2-year period ending on December 31, 2012; or (B) is the spouse or child of an alien described in subparagraph (A) and was physically present in the United States on or before December 31, 2012, and has maintained continuous presence in the United States from that date until the date on which the alien is granted blue card status, with the exception of absences from the United States that are brief, casual, and innocent, whether or not such absences were authorized by the Secretary; (2) submits a completed application before the end of the period set forth in subsection (b)(2); and (3) is not ineligible under paragraph (3) or (4) of section 245B(b) of the Immigration and Nationality Act (other than a nonimmigrant alien admitted to the United States for agricultural employment described in section 101(a)(15)(H)(ii)(a) of such Act. (b) Application (1) In general An alien who meets the eligibility requirements set forth in subsection (a)(1), may apply for blue card status and that alien’s spouse or child may apply for blue card status as a dependent, by submitting a completed application form to the Secretary during the application period set forth in paragraph (2) in accordance with the final rule promulgated by the Secretary pursuant to subsection (e). (2) Submission The Secretary shall provide that the alien shall be able to submit an application under paragraph (1)— (A) if the applicant is represented by an attorney or a nonprofit religious, charitable, social service, or similar organization recognized by the Board of Immigration Appeals under section 292.2 of title 8, Code of Federal Regulations; or (B) to a qualified entity if the applicant consents to the forwarding of the application to the Secretary. (3) Application period (A) Initial period Except as provided in subparagraph (B), the Secretary may only accept applications for blue card status for a 1-year period from aliens in the United States beginning on the date on which the final rule is published in the Federal Register pursuant to subsection (f), except that qualified nonimmigrants who have participated in the H–2A Program may apply from outside of the United States. (B) Extension If the Secretary determines, during the initial period described in subparagraph (A), that additional time is required to process applications for blue card status or for other good cause, the Secretary may extend the period for accepting applications for an additional 18 months. (4) Application form (A) Required information The application form referred to in paragraph (1) shall collect such information as the Secretary determines necessary and appropriate. (B) Family application The Secretary shall establish a process through which an alien may submit a single application under this section on behalf of the alien, his or her spouse, and his or her children, who are residing in the United States. (C) Interview The Secretary may interview applicants for blue card status to determine whether they meet the eligibility requirements set forth in subsection (a)(1). (5) Aliens apprehended before or during the application period If an alien, who is apprehended during the period beginning on the date of the enactment of this Act and ending on the application period described in paragraph (3), appears prima facie eligible for blue card status, the Secretary— (A) shall provide the alien with a reasonable opportunity to file an application under this section during such application period; and (B) may not remove the individual until a final administrative determination is made on the application. (6) Suspension of removal during application period (A) Protection from detention or removal An alien granted blue card status may not be detained by the Secretary or removed from the United States unless— (i) such alien is, or has become, ineligible for blue card status; or (ii) the alien’s blue card status has been revoked. (B) Aliens in removal proceedings Notwithstanding any other provision of the Immigration and Nationality Act ( 8 U.S.C. 1101 et seq. )— (i) if the Secretary determines that an alien, during the period beginning on the date of the enactment of this section and ending on the last day of the application period described in paragraph (2), is in removal, deportation, or exclusion proceedings before the Executive Office for Immigration Review and is prima facie eligible for blue card status under this section— (I) the Secretary shall provide the alien with the opportunity to file an application for such status; and (II) upon motion by the Secretary and with the consent of the alien or upon motion by the alien, the Executive Office for Immigration Review shall— (aa) terminate such proceedings without prejudice to future proceedings on any basis; and (bb) provide the alien a reasonable opportunity to apply for such status; and (ii) if the Executive Office for Immigration Review determines that an alien, during the application period described in paragraph (2), is in removal, deportation, or exclusion proceedings before the Executive Office for Immigration Review and is prima facie eligible for blue card status under this section— (I) the Executive Office of Immigration Review shall notify the Secretary of such determination; and (II) if the Secretary does not dispute the determination of prima facie eligibility within 7 days after such notification, the Executive Office for Immigration Review, upon consent of the alien, shall— (aa) terminate such proceedings without prejudice to future proceedings on any basis; and (bb) permit the alien a reasonable opportunity to apply for such status. (C) Treatment of certain aliens (i) In general If an alien who meets the eligibility requirements set forth in subsection (a) is present in the United States and has been ordered excluded, deported, or removed, or ordered to depart voluntarily from the United States under any provision of this Act— (I) notwithstanding such order or section 241(a)(5) of the Immigration and Nationality Act ( 8 U.S.C. 1231(a)(5) ), the alien may apply for blue card status under this section; and (II) if the alien is granted such status, the alien shall file a motion to reopen the exclusion, deportation, removal, or voluntary departure order, which motion shall be granted unless 1 or more of the grounds of ineligibility is established by clear and convincing evidence. (ii) Limitations on motions to reopen The limitations on motions to reopen set forth in section 240(c)(7) of the Immigration and Nationality Act ( 8 U.S.C. 1229a(c)(7) ) shall not apply to motions filed under clause (i)(II). (D) Period pending adjudication of application (i) In general During the period beginning on the date on which an alien applies for blue card status under this subsection and the date on which the Secretary makes a final decision regarding such application, the alien— (I) may receive advance parole to reenter the United States if urgent humanitarian circumstances compel such travel; (II) may not be detained by the Secretary or removed from the United States unless the Secretary makes a prima facie determination that such alien is, or has become, ineligible for blue card status; (III) shall not be considered unlawfully present for purposes of section 212(a)(9)(B) of the Immigration and Nationality Act ( 8 U.S.C. 1182(a)(9)(B) ); and (IV) shall not be considered an unauthorized alien (as defined in section 274A(h)(3) of the Immigration and Nationality Act ( 8 U.S.C. 1324a(h)(3) )). (ii) Evidence of application filing As soon as practicable after receiving each application for blue card status, the Secretary shall provide the applicant with a document acknowledging the receipt of such application. (iii) Continuing employment An employer who knows an alien employee is an applicant for blue card status or will apply for such status once the application period commences is not in violation of section 274A(a)(2) of the Immigration and Nationality Act ( 8 U.S.C. 1324a(a)(2) ) if the employer continues to employ the alien pending the adjudication of the alien employee's application. (iv) Effect of departure Section 101(g) of the Immigration and Nationality Act ( 8 U.S.C. 1101(g) ) shall not apply to an alien granted— (I) advance parole under clause (i)(I) to reenter the United States; or (II) blue card status. (7) Security and law enforcement clearances (A) Biometric and biographic data The Secretary may not grant blue card status to an alien or an alien dependent spouse or child under this section unless such alien submits biometric and biographic data in accordance with procedures established by the Secretary. (B) Alternative procedures The Secretary shall provide an alternative procedure for applicants who cannot provide the standard biometric data required under subparagraph (A) because of a physical impairment. (C) Clearances (i) Data collection The Secretary shall collect, from each alien applying for status under this section, biometric, biographic, and other data that the Secretary determines to be appropriate— (I) to conduct national security and law enforcement clearances; and (II) to determine whether there are any national security or law enforcement factors that would render an alien ineligible for such status. (ii) Prerequisite The required clearances described in clause (i)(I) shall be completed before the alien may be granted blue card status. (8) Duration of status After the date that is 8 years after the date regulations are published under this section, no alien may remain in blue card status. (9) Fees and penalties (A) Standard processing fee (i) In general Aliens who are 16 years of age or older and are applying for blue card status under paragraph (2), or for an extension of such status, shall pay a processing fee to the Department in an amount determined by the Secretary. (ii) Recovery of costs The processing fee authorized under clause (i) shall be set at a level that is sufficient to recover the full costs of processing the application, including any costs incurred— (I) to adjudicate the application; (II) to take and process biometrics; (III) to perform national security and criminal checks, including adjudication; (IV) to prevent and investigate fraud; and (V) to administer the collection of such fee. (iii) Authority to limit fees The Secretary, by regulation, may— (I) limit the maximum processing fee payable under this subparagraph by a family, including spouses and unmarried children younger than 21 years of age; and (II) exempt defined classes of individuals from the payment of the fee authorized under clause (i). (B) Deposit and use of processing fees Fees collected pursuant to subparagraph (A)(i)— (i) shall be deposited into the Immigration Examinations Fee Account pursuant to section 286(m); and (ii) shall remain available until expended pursuant to section 286(n). (C) Penalty (i) Payment In addition to the processing fee required under subparagraph (A), aliens who are 21 years of age or older and are applying for blue card status under paragraph (2) shall pay a $100 penalty to the Department. (ii) Deposit Penalties collected pursuant to clause (i) shall be deposited into the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1). (10) Adjudication (A) Failure to submit sufficient evidence The Secretary shall deny an application submitted by an alien who fails to submit— (i) requested initial evidence, including requested biometric data; or (ii) any requested additional evidence by the date required by the Secretary. (B) Amended application An alien whose application for blue card status is denied under subparagraph (A) may file an amended application for such status to the Secretary if the amended application— (i) is filed within the application period described in paragraph (3); and (ii) contains all the required information and fees that were missing from the initial application. (11) Evidence of blue card status (A) In general The Secretary shall issue documentary evidence of blue card status to each alien whose application for such status has been approved. (B) Documentation features Documentary evidence provided under subparagraph (A)— (i) shall be machine-readable and tamper-resistant, and shall contain a digitized photograph; (ii) shall, during the alien’s authorized period of admission, and any extension of such authorized admission, serve as a valid travel and entry document for the purpose of applying for admission to the United States; (iii) may be accepted during the period of its validity by an employer as evidence of employment authorization and identity under section 274A(b)(1)(B) of the Immigration and Nationality Act ( 8 U.S.C. 1324a(b)(1)(B) ); and (iv) shall include such other features and information as the Secretary may prescribe. (c) Terms and conditions of blue card status (1) Conditions of blue card status (A) Employment Notwithstanding any other provision of law, including section 241(a)(7) of the Immigration and Nationality Act ( 8 U.S.C. 1231(a)(7) ), an alien with blue card status shall be authorized to be employed in the United States while in such status. (B) Travel outside the united states An alien with blue card status may travel outside of the United States and may be admitted, if otherwise admissible, upon returning to the United States without having to obtain a visa if— (i) the alien is in possession of— (I) valid, unexpired documentary evidence of blue card status that complies with subsection (b)(11); or (II) a travel document that has been approved by the Secretary and was issued to the alien after the alien’s original documentary evidence was lost, stolen, or destroyed; (ii) the alien’s absence from the United States did not exceed 180 days, unless the alien’s failure to timely return was due to extenuating circumstances beyond the alien’s control; and (iii) the alien establishes that the alien is not inadmissible under subparagraph (A)(i), (A)(iii), (B), or (C) of section 212(a)(3) of the Immigration and Nationality Act ( 8 U.S.C. 1182(a)(3) ). (C) Admission An alien granted blue card status shall be considered to have been admitted in such status as of the date on which the alien’s application was filed. (D) Clarification of status An alien granted blue card status— (i) is lawfully admitted to the United States; and (ii) may not be classified as a nonimmigrant or as an alien who has been lawfully admitted for permanent residence. (2) Revocation (A) In general The Secretary may revoke blue card status at any time after providing appropriate notice to the alien, and after the exhaustion or waiver of all applicable administrative review procedures under section 245E(c) of the Immigration and Nationality Act, as added by section 2104(a) of this Act, if the alien— (i) no longer meets the eligibility requirements for blue card status; (ii) knowingly used documentation issued under this section for an unlawful or fraudulent purpose; or (iii) was absent from the United States for— (I) any single period longer than 180 days in violation of the requirement under paragraph (1)(B)(ii); or (II) for more than 180 days in the aggregate during any calendar year, unless the alien’s failure to timely return was due to extenuating circumstances beyond the alien’s control. (B) Additional evidence (i) In general In determining whether to revoke an alien’s status under subparagraph (A), the Secretary may require the alien— (I) to submit additional evidence; or (II) to appear for an interview. (ii) Effect of noncompliance The status of an alien who fails to comply with any requirement imposed by the Secretary under clause (i) shall be revoked unless the alien demonstrates to the Secretary’s satisfaction that such failure was reasonably excusable. (C) Invalidation of documentation If an alien’s blue card status is revoked under subparagraph (A), any documentation issued by the Secretary to such alien under subsection (b)(11) shall automatically be rendered invalid for any purpose except for departure from the United States. (3) Ineligibility for public benefits An alien who has been granted blue card status is not eligible for any Federal means-tested public benefit (as such term is defined and implemented in section 403 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 ( 8 U.S.C. 1613 )). (4) Treatment of blue card status A noncitizen granted blue card status shall be considered lawfully present in the United States for all purposes while such noncitizen remains in such status, except that the noncitizen— (A) is not entitled to the premium assistance tax credit authorized under section 36B of the Internal Revenue Code of 1986 for his or her coverage; (B) shall be subject to the rules applicable to individuals who are not lawfully present set forth in subsection (e) of such section; (C) shall be subject to the rules applicable to individuals who are not lawfully present set forth in section 1402(e) of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18071(e) ); and (D) shall be subject to the rules applicable to individuals not lawfully present set forth in section 5000A(d)(3) of the Internal Revenue Code of 1986. (5) Adjustment to registered provisional immigrant status The Secretary may adjust the status of an alien who has been granted blue card status to the status of a registered provisional immigrant under section 245B of the Immigration and Nationality Act if the Secretary determines that the alien is unable to fulfill the agricultural service requirement set forth in section 245F(a)(1) of such Act. (d) Record of employment (1) In general Each employer of an alien granted blue card status shall annually provide— (A) a written record of employment to the alien; and (B) a copy of such record to the Secretary of Agriculture. (2) Civil penalties (A) In general If the Secretary finds, after notice and an opportunity for a hearing, that an employer of an alien granted blue card status has knowingly failed to provide the record of employment required under paragraph (1) or has provided a false statement of material fact in such a record, the employer shall be subject to a civil penalty in an amount not to exceed $500 per violation. (B) Limitation The penalty under subparagraph (A) for failure to provide employment records shall not apply unless the alien has provided the employer with evidence of employment authorization provided under subsection (c). (C) Deposit of civil penalties Civil penalties collected under this paragraph shall be deposited in the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1). (3) Termination of obligation The obligation under paragraph (1) shall terminate on the date that is 8 years after the date of the enactment of this Act. (4) Employer protections (A) Use of employment records Copies of employment records or other evidence of employment provided by an alien or by an alien's employer in support of an alien's application for blue card status may not be used in a civil or criminal prosecution or investigation of that employer under section 274A of the Immigration and Nationality Act ( 8 U.S.C. 1324a ) or the Internal Revenue Code of 1986 for the prior unlawful employment of that alien regardless of the adjudication of such application or reconsideration by the Secretary of such alien's prima facie eligibility determination. Employers that provide unauthorized aliens with copies of employment records or other evidence of employment pursuant to an application for blue card status shall not be subject to civil and criminal liability pursuant to such section 274A for employing such unauthorized aliens. (B) Limit on applicability The protections for employers and aliens under subparagraph (A) shall not apply if the aliens or employers submit employment records that are deemed to be fraudulent. (e) Rulemaking Not later than 1 year after the date of the enactment of this Act, the Secretary, in consultation with the Secretary of Agriculture, shall issue final regulations to implement this chapter. 2212. Adjustment to permanent resident status (a) In general Chapter 5 of title II ( 8 U.S.C. 1255 et seq. ) is amended by inserting after section 245E, as added by section 2104 of this Act, the following: 245F. Adjustment to permanent resident status for agricultural workers (a) In general Except as provided in subsection (b), and not earlier than 5 years after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act , the Secretary shall adjust the status of an alien granted blue card status to that of an alien lawfully admitted for permanent residence if the Secretary determines that the following requirements are satisfied: (1) Qualifying employment Except as provided in paragraph (3), the alien— (A) during the 8-year period beginning on the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act , performed not less than 100 work days of agricultural employment during each of 5 years; or (B) during the 5-year period beginning on such date of enactment, performed not less than 150 work days of agricultural employment during each of 3 years. (2) Evidence An alien may demonstrate compliance with the requirement under paragraph (1) by submitting— (A) the record of employment described in section 2211(d) of the Border Security, Economic Opportunity, and Immigration Modernization Act ; (B) documentation that may be submitted under subsection (e)(4); or (C) any other documentation designated by the Secretary for such purpose. (3) Extraordinary circumstances (A) In general In determining whether an alien has met the requirement under paragraph (1), the Secretary may credit the alien with not more than 12 additional months of agricultural employment in the United States to meet such requirement if the alien was unable to work in agricultural employment due to— (i) pregnancy, disabling injury, or disease that the alien can establish through medical records; (ii) illness, disease, or other special needs of a child that the alien can establish through medical records; (iii) severe weather conditions that prevented the alien from engaging in agricultural employment for a significant period of time; or (iv) termination from agricultural employment, if the Secretary determines that— (I) the termination was without just cause; and (II) the alien was unable to find alternative agricultural employment after a reasonable job search. (B) Effect of determination A determination under subparagraph (A)(iv), with respect to an alien, shall not be conclusive, binding, or admissible in a separate or subsequent judicial or administrative action or proceeding between the alien and a current or prior employer of the alien or any other party. (4) Application period The alien applies for adjustment of status before the alien's blue card status expires. (5) Fine The alien pays a fine of $400 to the Secretary, which shall be deposited into the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1) of the Border Security, Economic Opportunity, and Immigration Modernization Act . (b) Grounds for denial of adjustment of status (1) In general The Secretary may not adjust the status of an alien granted blue card status if the alien— (A) is no longer eligible for blue card status; or (B) failed to perform the qualifying employment requirement under subsection (a)(1), considering any amount credited by the Secretary under subsection (a)(3). (2) Maintenance of waivers of inadmissibility The grounds of inadmissibility set forth in section 212(a) that were previously waived for the alien or made inapplicable shall not apply for purposes of the alien’s adjustment of status under this section. (3) Pending revocation proceedings If the Secretary has notified the applicant that the Secretary intends to revoke the applicant’s blue card status, the Secretary may not approve an application for adjustment of status under this section unless the Secretary makes a final determination not to revoke the applicant’s status. (4) Payment of taxes (A) In general An applicant may not file an application for adjustment of status under this section unless the applicant has satisfied any applicable Federal tax liability. (B) Definition of applicable federal tax liability In this paragraph, the term applicable federal tax liability means all Federal income taxes assessed in accordance with section 6203 of the Internal Revenue Code of 1986 since the date on which the applicant was authorized to work in the United States in blue card status. (C) Compliance The applicant may demonstrate compliance with subparagraph (A) by submitting such documentation as the Secretary, in consultation with the Secretary of the Treasury, may require by regulation. (c) Spouses and children Notwithstanding any other provision of law, the Secretary shall grant permanent resident status to the spouse or child of an alien whose status was adjusted under subsection (a) if— (1) the spouse or child (including any individual who was a child on the date such alien was granted blue card status) applies for such status; (2) the principal alien includes the spouse and children in an application for adjustment of status to that of a lawful permanent resident; and (3) the spouse or child is not ineligible for such status under section 245B. (d) Numerical limitations do not apply The numerical limitations under sections 201 and 202 shall not apply to the adjustment of aliens to lawful permanent resident status under this section. (e) Submission of applications (1) Interview The Secretary may interview applicants for adjustment of status under this section to determine whether they meet the eligibility requirements set forth in this section. (2) Fees (A) In general Applicants for adjustment of status under this section shall pay a processing fee to the Secretary in an amount that will ensure the recovery of the full costs of adjudicating such applications, including— (i) the cost of taking and processing biometrics; (ii) expenses relating to prevention and investigation of fraud; and (iii) costs relating to the administration of the fees collected. (B) Authority to limit fees The Secretary, by regulation— (i) may limit the maximum processing fee payable under this paragraph by a family, including spouses and unmarried children younger than 21 years of age; and (ii) may exempt individuals described in section 245B(c)(10) and other defined classes of individuals from the payment of the fee under subparagraph (A). (3) Disposition of fees All fees collected under paragraph (2)(A)— (A) shall be deposited into the Immigration Examinations Fee Account pursuant to section 286(m); and (B) shall remain available until expended pursuant to section 286(n). (4) Documentation of work history (A) Burden of proof An alien applying for blue card status under section 2211 of the Border Security, Economic Opportunity, and Immigration Modernization Act or for adjustment of status under subsection (a) shall provide evidence that the alien has worked the requisite number of hours or days required under subsection (a)(1) of such section 2211 or subsection (a)(3) of this section, as applicable. (B) Timely production of records If an employer or farm labor contractor employing such an alien has kept proper and adequate records respecting such employment, the alien’s burden of proof under subparagraph (A) may be met by securing timely production of those records under regulations to be promulgated by the Secretary. (C) Sufficient evidence An alien may meet the burden of proof under subparagraph (A) to establish that the alien has performed the days or hours of work referred to in subparagraph (A) by producing sufficient evidence to show the extent of that employment as a matter of just and reasonable inference. (f) Penalties for false statements in applications (1) Criminal penalty Any person who— (A) files an application for blue card status under section 2211 of the Border Security, Economic Opportunity, and Immigration Modernization Act or an adjustment of status under this section and knowingly and willfully falsifies, conceals, or covers up a material fact or makes any false, fictitious, or fraudulent statements or representations, or makes or uses any false writing or document knowing the same to contain any false, fictitious, or fraudulent statement or entry; or (B) creates or supplies a false writing or document for use in making such an application, shall be fined in accordance with title 18, United States Code, imprisoned not more than 5 years, or both. (2) Inadmissibility An alien who is convicted of a crime under paragraph (1) shall be deemed inadmissible to the United States on the ground described in section 212(a)(6)(C)(i). (3) Deposit Fines collected under paragraph (1) shall be deposited into the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1) of the Border Security, Economic Opportunity, and Immigration Modernization Act . (g) Eligibility for legal services Section 504(a)(11) of the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1996 ( Public Law 104–134 ; 110 Stat. 1321–55) may not be construed to prevent a recipient of funds under the Legal Services Corporation Act ( 42 U.S.C. 2996 et seq. ) from providing legal assistance directly related to an application for blue card status under section 2211 of the Border Security, Economic Opportunity, and Immigration Modernization Act , to an individual who has been granted blue card status, or for an application for an adjustment of status under this section. (h) Administrative and judicial review Aliens applying for blue card status under section 2211 of the Border Security, Economic Opportunity, and Immigration Modernization Act or adjustment to permanent resident status under this section shall be entitled to the rights and subject to the conditions applicable to other classes of aliens under sections 242(h) and 245E. (i) Applicability of other provisions The provisions set forth in section 245E which are applicable to aliens described in section 245B, 245C, and 245D shall apply to aliens applying for blue card status under section 2211 of the Border Security, Economic Opportunity, and Immigration Modernization Act or adjustment to permanent resident status under this section. (j) Limitation on blue card status An alien granted blue card status under section 2211 of the Border Security, Economic Opportunity, and Immigration Modernization Act may only adjust status to an alien lawfully admitted for permanent residence under this section, section 245C of this Act, or section 2302 of the Border Security, Economic Opportunity, and Immigration Modernization Act . (k) Definitions In this section: (1) Blue card status The term blue card status means the status of an alien who has been lawfully admitted into the United States for temporary residence under section 2211 of the Border Security, Economic Opportunity, and Immigration Modernization Act . (2) Agricultural employment The term agricultural employment has the meaning given such term in section 3 of the Migrant and Seasonal Agricultural Worker Protection Act ( 29 U.S.C. 1802 ), without regard to whether the specific service or activity is temporary or seasonal. (3) Employer The term employer means any person or entity, including any farm labor contractor and any agricultural association, that employs workers in agricultural employment. (4) Work day The term work day means any day in which the individual is employed 5.75 or more hours in agricultural employment. . (b) Conforming amendment Section 201(b)(1) ( 8 U.S.C. 1151(b)(1) , as amended by section 2103(c), is further amended by adding at the end the following: (G) Aliens granted lawful permanent resident status under section 245F. . (c) Clerical amendment The table of contents, as amended by section 2104(e), is further amended by inserting after the item relating to section 245E the following: Sec. 245F. Adjustment to permanent resident status for agricultural workers. . 2213. Use of information Beginning not later than the first day of the application period described in section 2211(b)(3), the Secretary, in cooperation with qualified designated entities, shall broadly disseminate information respecting the benefits that aliens may receive under this subchapter and the requirements that an alien is required to meet to receive such benefits. 2214. Reports on blue cards Not later than September 30, 2013, and annually thereafter for the next 8 years, the Secretary shall submit a report to Congress that identifies, for the previous fiscal year— (1) the number of aliens who applied for blue card status; (2) the number of aliens who were granted blue card status; (3) the number of aliens who applied for an adjustment of status pursuant to section 245F(a) of the Immigration and Nationality Act, as added by section 2212; and (4) the number of aliens who received an adjustment of status pursuant such section 245F(a). 2215. Authorization of appropriations There are authorized to be appropriated to the Secretary such sums as may be necessary to implement this subchapter, including any sums needed for costs associated with the initiation of such implementation, for fiscal years 2013 and 2014. B Correction of social security records 2221. Correction of social security records (a) In general Section 208(e)(1) of the Social Security Act ( 42 U.S.C. 408(e)(1) ) is amended— (1) in subparagraph (B)(ii), by striking or at the end; (2) in subparagraph (C), by inserting or at the end; (3) by inserting after subparagraph (C) the following: (D) who is granted blue card status under the Agricultural Worker Program Act of 2013 , ; and (4) by striking 1990. and inserting 1990, or in the case of an alien described in subparagraph (D), if such conduct is alleged to have occurred before the date on which the alien was granted blue card status under section 2211(a) of the Agricultural Worker Program Act of 2013 . . (b) Effective date The amendments made by subsection (a) shall take effect on the first day of the seventh month that begins after the date of the enactment of this Act. 2 Nonimmigrant agricultural visa program 2231. Nonimmigrant classification for nonimmigrant agricultural workers Section 101(a)(15) ( 8 U.S.C. 1101(a)(15) ) is amended by adding at the end the following: (W) an alien having a residence in a foreign country who is coming to the United States for a temporary period— (iii) (I) to perform services or labor in agricultural employment and who has a written contract that specifies the wages, benefits, and working conditions of such full-time employment in an agricultural occupation with a designated agricultural employer for a specified period of time; and (II) who meets the requirements under section 218A for a nonimmigrant visa described in this clause; or (iv) (I) to perform services or labor in agricultural employment and who has an offer of full-time employment in an agricultural occupation from a designated agricultural employer for such employment and is not described in clause (i); and (II) who meets the requirements under section 218A for a nonimmigrant visa described in this clause. . 2232. Establishment of nonimmigrant agricultural worker program (a) In general Chapter 2 of title II ( 8 U.S.C. 1181 et seq. ) is amended by inserting after section 218 the following: 218A. Nonimmigrant agricultural worker program (a) Definitions In this section and in clauses (iii) and (iv) of section 101(a)(15)(W): (1) Agricultural employment The term agricultural employment has the meaning given such term in section 3 of the Migrant and Seasonal Agricultural Worker Protection Act ( 29 U.S.C. 1802 ), without regard to whether the specific service or activity is temporary or seasonal. (2) At-will agricultural worker The term at-will agricultural worker means an alien present in the United States pursuant to section 101(a)(15)(W)(iv). (3) Blue card The term blue card means an employment authorization and travel document issued to an alien granted blue card status under section 2211(a) of the Agricultural Worker Program Act of 2013 . (4) Contract agricultural worker The term contract agricultural worker means an alien present in the United States pursuant to section 101(a)(15)(W)(iii). (5) Designated agricultural employer The term designated agricultural employer means an employer who is registered with the Secretary of Agriculture pursuant to subsection (e)(1). (6) Electronic job registry The term Electronic Job Registry means the Electronic Job Registry of a State workforce agency (or similar successor registry). (7) Employer Except as otherwise provided, the term employer means any person or entity, including any farm labor contractor and any agricultural association, that employs workers in agricultural employment. (8) Nonimmigrant agricultural worker The term nonimmigrant agricultural worker mean a nonimmigrant described in clause (iii) or (iv) of section 101(a)(15)(W). (9) Program The term Program means the Nonimmigrant Agricultural Worker Program established under subsection (b). (10) Secretary Except as otherwise specifically provided, the term Secretary means the Secretary of Agriculture. (11) United States worker The term United States worker means an individual who— (A) is a national of the United States; or (B) is an alien who— (i) is lawfully admitted for permanent residence; (ii) is admitted as a refugee under section 207; (iii) is granted asylum under section 208; (iv) holds a blue card; or (v) is an immigrant otherwise authorized by this Act or by the Secretary of Homeland Security to be employed in the United States. (b) Requirements (1) Employer An employer may not employ an alien for agricultural employment under the Program unless such employer is a designated agricultural employer and complies with the terms of this section. (2) Worker An alien may not be employed for agricultural employment under the Program unless such alien is a nonimmigrant agricultural worker and complies with the terms of this section. (c) Numerical limitation (1) First 5 years of program (A) In general Subject to paragraph (2), the worldwide level of visas for nonimmigrant agricultural workers for the fiscal year during which the first visa is issued to a nonimmigrant agricultural worker and for each of the following 4 fiscal years shall be equal to— (i) 112,333; and (ii) the numerical adjustment made by the Secretary for such fiscal year in accordance with paragraph (2). (B) Quarterly allocation The annual allocation of visas described in subparagraph (A) shall be evenly allocated between the 4 quarters of the fiscal year unless the Secretary determines that an alternative allocation would better accommodate the seasonal demand for visas. Any unused visas in a quarter shall be added to the allocation for the subsequent quarter of the same fiscal year. (C) Effect of 2nd or subsequent designated agricultural employer A nonimmigrant agricultural worker who has a valid visa issued under this section that counted against the allocation described in subparagraph (A) shall not be recounted against the allocation if the worker is petitioned for by a subsequent designated agricultural employer. (2) Annual adjustments for first 5 years of program (A) In general The Secretary, in consultation with the Secretary of Labor, and after reviewing relevant evidence submitted by agricultural producers and organizations representing agricultural workers, may increase or decrease, as appropriate, the worldwide level of visas under paragraph (1) for each of the 5 fiscal years referred to in paragraph (1) after considering appropriate factors, including— (i) a demonstrated shortage of agricultural workers; (ii) the level of unemployment and underemployment of agricultural workers during the preceding fiscal year; (iii) the number of applications for blue card status; (iv) the number of blue card visa applications approved; (v) the number of nonimmigrant agricultural workers sought by employers during the preceding fiscal year; (vi) the estimated number of United States workers, including blue card workers, who worked in agriculture during the preceding fiscal year; (vii) the number of nonimmigrant agricultural workers issued a visa in the most recent fiscal year who remain in the United States in compliance with the terms of such visa; (viii) the number of United States workers who accepted jobs offered by employers using the Electronic Job Registry during the preceding fiscal year; (ix) any growth or contraction of the United States agricultural industry that has increased or decreased the demand for agricultural workers; and (x) any changes in the real wages paid to agricultural workers in the United States as an indication of a shortage or surplus of agricultural labor. (B) Notification; implementation The Secretary shall notify the Secretary of Homeland Security of any change to the worldwide level of visas for nonimmigrant agricultural workers. The Secretary of Homeland Security shall implement such changes. (C) Emergency procedures The Secretary shall establish, by regulation, procedures for immediately adjusting an annual allocation under paragraph (1) for labor shortages, as determined by the Secretary. The Secretary shall make a decision on a petition for an adjustment of status not later than 30 days after receiving such petition. (3) Sixth and subsequent years of program The Secretary, in consultation with the Secretary of Labor, shall establish the worldwide level of visas for nonimmigrant agricultural workers for each fiscal year following the fiscal years referred to in paragraph (1) after considering appropriate factors, including— (A) a demonstrated shortage of agricultural workers; (B) the level of unemployment and underemployment of agricultural workers during the preceding fiscal year; (C) the number of applications for blue card status; (D) the number of blue card visa applications approved; (E) the number of nonimmigrant agricultural workers sought by employers during the preceding fiscal year; (F) the estimated number of United States workers, including blue card workers, who worked in agriculture during the preceding fiscal year; (G) the number of nonimmigrant agricultural workers issued a visa in the most recent fiscal year who remain in the United States in compliance with the terms of such visa; (H) the number of United States workers who accepted jobs offered by employers using the Electronic Job Registry during the preceding fiscal year; (I) any growth or contraction of the United States agricultural industry that has increased or decreased the demand for agricultural workers; and (J) any changes in the real wages paid to agricultural workers in the United States as an indication of a shortage or surplus of agricultural labor. (4) Emergency procedures The Secretary shall establish, by regulation, procedures for immediately adjusting an annual allocation under paragraph (3) for labor shortages, as determined by the Secretary. The Secretary shall make a decision on a petition for an adjustment of status not later than 30 days after receiving such petition (d) Requirements for nonimmigrant agricultural workers (1) Eligibility for nonimmigrant agricultural worker status (A) In general An alien is not eligible to be admitted to the United States as a nonimmigrant agricultural worker if the alien— (i) violated a material term or condition of a previous admission as a nonimmigrant agricultural worker during the most recent 3-year period (other than a contract agricultural worker who voluntarily abandons his or her employment before the end of the contract period or whose employment is terminated by the employer for cause); (ii) has not obtained successful clearance of any security and criminal background checks required by the Secretary of Homeland Security or any other examination required under this Act; or (iii) (I) departed from the United States while subject to an order of exclusion, deportation, or removal, or pursuant to an order of voluntary departure; and (II) (aa) is outside of the United States; or (bb) has reentered the United States illegally after December 31, 2012, without receiving consent to the alien's reapplication for admission under section 212(a)(9). (B) Waiver The Secretary of Homeland Security may waive the application of subparagraph (A)(iii) on behalf of an alien if the alien— (i) is the spouse or child of a United States citizen or lawful permanent resident; (ii) is the parent of a child who is a United States citizen or lawful permanent resident; (iii) meets the requirements set forth in clause (ii) or (iii) of section 245D(b)(1)(A); or (iv) (I) meets the requirements set forth in section 245D(b)(1)(A)(ii); (II) is 16 years or older on the date on which the alien applies for nonimmigrant agricultural status; and (III) was physically present in the United States for an aggregate period of not less than 3 years during the 6-year period immediately preceding the date of the enactment of this section. (2) Term of stay for nonimmigrant agricultural workers (A) In general (i) Initial admission A nonimmigrant agricultural worker may be admitted into the United States in such status for an initial period of 3 years. (ii) Renewal A nonimmigrant agricultural worker may renew such worker's period of admission in the United States for 1 additional 3-year period. (B) Break in presence A nonimmigrant agricultural worker who has been admitted to the United States for 2 consecutive periods under subparagraph (A) is ineligible to renew the alien's nonimmigrant agricultural worker status until such alien— (i) returns to a residence outside the United States for a period of not less than 3 months; and (ii) seeks to reenter the United States under the terms of the Program as a nonimmigrant agricultural worker. (3) Loss of status (A) In general An alien admitted as a nonimmigrant agricultural worker shall be ineligible for such status and shall be required to depart the United States if such alien— (i) after the completion of his or her contract with a designated agricultural employer, is not employed in agricultural employment by a designated agricultural employer; or (ii) is an at-will agricultural worker and is not continuously employed by a designated agricultural employer in agricultural employment as an at-will agricultural worker. (B) Exception Subject to subparagraph (C), a nonimmigrant agricultural worker has not violated subparagraph (A) if the nonimmigrant agricultural worker is not employed in agricultural employment for a period not to exceed 60 days. (C) Waiver Notwithstanding subparagraph (B), the Secretary of Homeland Security may waive the application of clause (i) or (ii) of subparagraph (A) for a nonimmigrant agricultural worker who was not employed in agricultural employment for a period of more than 60 days if such period of unemployment was due to— (i) the injury of such worker; or (ii) a natural disaster declared by the Secretary. (D) Tolling of employment requirement A nonimmigrant agricultural worker may leave the United States for up to 60 days in any fiscal year while in such status. During the period in which the worker is outside of the United States, the 60-day limit specified in subparagraph (B) shall be tolled. (4) Portability of status (A) Contract agricultural workers (i) In general Except as provided in clause (ii), an alien who entered the United States as a contract agricultural worker may— (I) seek employment as a nonimmigrant agricultural worker with a designated agricultural employer other than the designated agricultural employer with whom the employee had a contract described in section 101(a)(15)(W)(iii)(I); and (II) accept employment with such new employer after the date the contract agricultural worker completes such contract. (ii) Voluntary abandonment; termination for cause A contract agricultural worker who voluntarily abandons his or her employment before the end of the contract period or whose employment is terminated for cause by the employer— (I) may not accept subsequent employment with another designated agricultural employer without first departing the United States and reentering pursuant to a new offer of employment; and (II) is not entitled to the 75 percent payment guarantee described in subsection (e)(4)(B). (iii) Termination by mutual agreement The termination of an employment contract by mutual agreement of the designated agricultural employer and the contract agricultural worker shall not be considered voluntary abandonment for purposes of clause (ii). (B) At-will agricultural workers An alien who entered the United States as an at-will agricultural worker may seek employment as an at-will agricultural worker with any other designated agricultural employer referred to in section 101(a)(15)(W)(iv)(I). (5) Prohibition on geographic limitation A nonimmigrant visa issued to a nonimmigrant agricultural worker— (A) shall not limit the geographical area within which such worker may be employed; (B) shall not limit the type of agricultural employment such worker may perform; and (C) shall restrict such worker to employment with designated agricultural employers. (6) Treatment of spouses and children A spouse or child of a nonimmigrant agricultural worker— (A) shall not be entitled to a visa or any immigration status by virtue of the relationship of such spouse or child to such worker; and (B) may be provided status as a nonimmigrant agricultural worker if the spouse or child is independently qualified for such status. (e) Employer requirements (1) Designated agricultural employer status (A) Registration requirement Each employer seeking to employ nonimmigrant agricultural workers shall register for designated agricultural employer status by submitting to the Secretary, through the Farm Service Agency in the geographic area of the employer or electronically to the Secretary, a registration that includes— (i) the employer's employer identification number; and (ii) a registration fee, in an amount determined by the Secretary, which shall be used for the costs of administering the program. (B) Criteria The Secretary shall grant designated agricultural employer status to an employer who submits a registration for such status that includes— (i) documentation that the employer is engaged in agriculture; (ii) the estimated number of nonimmigrant agricultural workers the employer will need each year; (iii) the anticipated periods during which the employer will need such workers; and (iv) documentation establishing need for a specified agricultural occupation or occupations. (C) Designation (i) Registration number The Secretary shall assign each employer that meets the criteria established pursuant to subparagraph (B) with a designated agricultural employer registration number. (ii) Term of designation Each employer granted designated agricultural employer status under this paragraph shall retain such status for a term of 3 years. At the end of such 3-year term, the employer may renew the registration for another 3-year term if the employer meets the requirements set forth in subparagraphs (A) and (B). (D) Assistance In carrying out the functions described in this subsection, the Secretary may work through the Farm Service Agency, or any other agency in the Department of Agriculture— (i) to assist agricultural employers with the registration process under this paragraph by providing such employers with— (I) technical assistance and expertise; (II) Internet access for submitting such applications; and (III) a nonelectronic means for submitting such registrations; and (ii) to provide resources about the Program, including best practices and compliance related assistance and resources or training to assist in retention of such workers to agricultural employers. (E) Deposit of registration fee Fees collected pursuant to subparagraph (A)(ii)— (i) shall be deposited into the Immigration Examinations Fee Account pursuant to section 286(m); and (ii) shall remain available until expended pursuant to section 286(n). (2) Nonimmigrant agricultural worker petition process (A) In general Not later than 45 days before the date on which nonimmigrant agricultural workers are needed, a designated agricultural employer seeking to employ such workers shall submit a petition to the Secretary of Homeland Security that includes the employer’s designated agricultural employer registration number. (B) Attestation An petition submitted under subparagraph (A) shall include an attestation of the following: (i) The number of named or unnamed nonimmigrant agricultural workers the designated agricultural employer is seeking to employ during the applicable period of employment. (ii) The total number of contract agricultural workers and of at-will agricultural workers the employer will require for each occupational category. (iii) The anticipated period, including expected beginning and ending dates, during which such employees will be needed. (iv) Evidence of contracts or written disclosures of employment terms and conditions in accordance with the Migrant and Seasonal Agricultural Worker Protection Act ( 29 U.S.C. 1801 et seq. ), which have been disclosed or provided to the nonimmigrant agricultural workers, or a sample of such contract or disclosure for unnamed workers. (v) The information submitted to the State workforce agency pursuant to paragraph (3)(A)(i). (vi) The record of United States workers described in paragraph (3)(A)(iii) on the date of the request. (vii) Evidence of offers of employment made to United States workers as required under paragraph (3)(B). (viii) The employer will comply with the additional program requirements for designated agricultural employers described in paragraph (4). (C) Employment authorization when changing employers Nonimmigrant agricultural workers in the United States who are identified in a petition submitted pursuant to subparagraph (A) and are in lawful status may commence employment with their designated agricultural employer after such employer has submitted such petition to the Secretary of Homeland Security. (D) Review The Secretary of Homeland Security shall review each petition submitted by designated agricultural employers under this paragraph for completeness or obvious inaccuracies. Unless the Secretary of Homeland Security determines that the petition is incomplete or obviously inaccurate, the Secretary shall accept the petition. The Secretary shall establish a procedure for the processing of petitions filed under this subsection. Not later than 7 working days after the date of the filing, the Secretary, by electronic or other means assuring expedited delivery, shall submit a copy of notice of approval or denial of the petition to the petitioner and, in the case of approved petitions, to the appropriate immigration officer at the port of entry or United States consulate, as appropriate, if the petitioner has indicated that the alien beneficiary or beneficiaries will apply for a visa or admission to the United States. (3) Employment of united states workers (A) Recruitment (i) Filing a job opportunity with local office of state workforce agency Not later than 60 days before the date on which the employer desires to employ a nonimmigrant agricultural worker, the employer shall submit the job opportunity for such worker to the local office of the State workforce agency where the job site is located and authorize the posting of the job opportunity on the appropriate Department of Labor Electronic Job Registry for a period of 45 days. (ii) Construction Nothing in clause (i) may be construed to cause a posting referred to in clause (i) to be treated as an interstate job order under section 653.500 of title 20, Code of Federal Regulations (or similar successor regulation). (iii) Record of united states workers An employer shall keep a record of all eligible, able, willing, and qualified United States workers who apply for agricultural employment with the employer for the agricultural employment for which the nonimmigrant agricultural nonimmigrant workers are sought. (B) Requirement to hire (i) United states workers An employer may not seek a nonimmigrant agricultural worker for agricultural employment unless the employer offers such employment to any equally or better qualified United States worker who will be available at the time and place of need and who applies for such employment during the 45-day recruitment period referred to in subparagraph (A)(i). (ii) Exception Notwithstanding clause (i), the employer may offer the job to a nonimmigrant agricultural worker instead of an alien in blue card status if— (I) such worker was previously employed by the employer as an H–2A worker; (II) such worker worked for the employer for 3 years during the most recent 4-year period; and (III) the employer pays such worker the adverse effect wage rate calculated under subsection (f)(5)(B). (4) Additional program requirements for designated agricultural employers Each designated agricultural employer shall comply with the following requirements: (A) No displacement of united states workers (i) In general The employer shall not displace a United States worker employed by the employer, other than for good cause, during the period of employment of the nonimmigrant agricultural worker and for a period of 30 days preceding such period in the occupation and at the location of employment for which the employer seeks to employ nonimmigrant agricultural workers. (ii) Labor dispute The employer shall not employ a nonimmigrant agricultural worker for a specific job for which the employer is requesting a nonimmigrant agricultural worker because the former occupant of the job is on strike or being locked out in the course of a labor dispute. (B) Guarantee of employment for contract agricultural workers (i) Offer to contract worker The employer shall guarantee to offer contract agricultural workers employment for the hourly equivalent of at least 75 percent of the work days of the total period of employment, beginning with the first work day after the arrival of the worker at the place of employment and ending on the expiration date specified in the job offer. In this clause, the term hourly equivalent means the number of hours in the work days as stated in the job offer and shall exclude the worker’s Sabbath and Federal holidays. If the employer affords the contract agricultural worker less employment than the number of hours required under this subparagraph, the employer shall pay such worker the amount the worker would have earned had the worker worked the guaranteed number of hours. (ii) Failure to work Any hours which the worker fails to work, up to a maximum of the number of hours specified in the job offer for a work day, when the worker has been offered an opportunity to do so, and all hours of work actually performed (including voluntary work in excess of the number of hours specified in the job offer in a work day, on the worker’s Sabbath, or on Federal holidays) may be counted by the employer in calculating whether the period of guaranteed employment has been met. (iii) Contract impossibility If, before the expiration of the period of employment specified in the job offer, the services of a contract agricultural worker are no longer required for reasons beyond the control of the employer due to any form of natural disaster, including a flood, hurricane, freeze, earthquake, fire, drought, plant or animal disease or pest infestation, or regulatory drought, before the guarantee in clause (i) is fulfilled, the employer— (I) may terminate the worker’s employment; (II) shall fulfill the employment guarantee described in clause (i) for the work days that have elapsed from the first work day after the arrival of the worker to the termination of employment; (III) shall make efforts to transfer the worker to other comparable employment acceptable to the worker; and (IV) if such a transfer does not take place, shall provide the return transportation required under subparagraph (J). (C) Workers’ compensation (i) Requirement to provide If a job referred to in paragraph (3) is not covered by the State workers’ compensation law, the employer shall provide, at no cost to the nonimmigrant agricultural worker, insurance covering injury and disease arising out of, and in the course of, such job. (ii) Benefits The insurance required to be provided under clause (i) shall provide benefits at least equal to those provided under and pursuant to the State workers’ compensation law for comparable employment. (D) Prohibition for use for nonagricultural services The employer may not employ a nonimmigrant agricultural worker for employment other than agricultural employment. (E) Wages The employer shall pay not less than the wage required under subsection (f). (F) Deduction of wages The employer shall make only deductions from a nonimmigrant agricultural worker’s wages that are authorized by law and are reasonable and customary in the occupation and area of employment of such worker. (G) Requirement to provide housing or a housing allowance (i) In general Except as provided in clauses (iv) and (v), a designated agricultural employer shall offer to provide a nonimmigrant agricultural worker with housing at no cost in accordance with clause (ii) or (iii). (ii) Housing An employer may provide housing to a nonimmigrant agricultural worker that meets— (I) applicable Federal standards for temporary labor camps; or (II) applicable local standards (or, in the absence of applicable local standards, State standards) for rental or public accommodation housing or other substantially similar class of habitation. (iii) Housing payments (I) Public housing If the employer arranges public housing for nonimmigrant agricultural workers through a State, county, or local government program and such public housing units normally require payments from tenants, such payments shall be made by the employer directly to the landlord. (II) Deposits Deposits for bedding or other similar incidentals related to housing shall not be collected from workers by employers who provide housing for such workers. (III) Damages The employer may require any worker who is responsible for damage to housing that did not result from normal wear and tear related to habitation to reimburse the employer for the reasonable cost of repairing such damage. (iv) Housing allowance alternative (I) In general The employer may provide a reasonable housing allowance instead of providing housing under clause (i). Upon the request of a worker seeking assistance in locating housing, the employer shall make a good faith effort to assist the worker in identifying and locating housing in the area of intended employment. An employer who offers a housing allowance to a worker or assists a worker in locating housing, which the worker occupies, shall not be deemed a housing provider under section 203 of the Migrant and Seasonal Agricultural Worker Protection Act ( 29 U.S.C. 1823 ) solely by virtue of providing such housing allowance. No housing allowance may be used for housing that is owned or controlled by the employer. (II) Certification requirement Contract agricultural workers may only be provided a housing allowance if the Governor of the State in which the place of employment is located certifies to the Secretary that there is adequate housing available in the area of intended employment for migrant farm workers and contract agricultural workers who are seeking temporary housing while employed in agricultural work. Such certification shall expire after 3 years unless renewed by the Governor of the State. (III) Amount of allowance (aa) Nonmetropolitan counties If the place of employment of the workers provided an allowance under this clause is a nonmetropolitan county, the amount of the housing allowance under this clause shall be equal to the average fair market rental for existing housing in nonmetropolitan counties in the State in which the place of employment is located, as established by the Secretary of Housing and Urban Development pursuant to section 8(c) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(c) ), based on a 2-bedroom dwelling unit and an assumption of 2 persons per bedroom. (bb) Metropolitan counties If the place of employment of the workers provided an allowance under this clause is a metropolitan county, the amount of the housing allowance under this clause shall be equal to the average fair market rental for existing housing in metropolitan counties in the State in which the place of employment is located, as established by the Secretary of Housing and Urban Development pursuant to section 8(c) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(c) ), based on a 2-bedroom dwelling unit and an assumption of 2 persons per bedroom. (v) Exception for commuting workers Nothing in this subparagraph may be construed to require an employer to provide housing or a housing allowance to workers who reside outside of the United States if their place of residence is within normal commuting distance and the job site is within 50 miles of an international land border of the United States. (H) Worksite transportation for contract workers During the period a designated agricultural employer employs a contract agricultural worker, such employer shall, at the employer's option, provide or reimburse the contract agricultural worker for the cost of daily transportation from the contract worker's living quarters to the contract agricultural worker's place of employment. (I) Reimbursement of transportation to the place of employment (i) In general A nonimmigrant agricultural worker shall be reimbursed by the first employer for the cost of the worker’s transportation and subsistence from the place from which the worker came from to the place of first employment. (ii) Limitation The amount of reimbursement provided under clause (i) to a worker shall not exceed the lesser of— (I) the actual cost to the worker of the transportation and subsistence involved; or (II) the most economical and reasonable common carrier transportation charges and subsistence costs for the distance involved. (J) Reimbursement of transportation from place of employment (i) In general A contract agricultural worker who completes at least 27 months under his or her contract with the same designated agricultural employer shall be reimbursed by that employer for the cost of the worker's transportation and subsistence from the place of employment to the place from which the worker came from abroad to work for the employer. (ii) Limitation The amount of reimbursement required under clause (i) shall not exceed the lesser of— (I) the actual cost to the worker of the transportation and subsistence involved; or (II) the most economical and reasonable common carrier transportation charges and subsistence costs for the distance involved. (f) Wages (1) Wage rate requirement (A) In general A nonimmigrant agricultural worker employed by a designated agricultural employer shall be paid not less than the wage rate for such employment set forth in paragraph (3). (B) Workers paid on a piece rate or other incentive basis If an employer pays by the piece rate or other incentive method and requires 1 or more minimum productivity standards as a condition of job retention, such standards shall be specified in the job offer and be no more than those which have been normally required (at the time of the employee’s first application for designated employer status) by other employers for the activity in the geographic area of the job, unless the Secretary approves a higher standard. (2) Job categories (A) In general For purposes of paragraph (1), each nonimmigrant agricultural worker employed by such employer shall be assigned to 1 of the following standard occupational classifications, as defined by the Bureau of Labor Statistics: (i) First-Line Supervisors of Farming, Fishing, and Forestry Workers (45–1011). (ii) Animal Breeders (45–2021). (iii) Graders and Sorters, Agricultural Products (45–2041). (iv) Agricultural equipment operator (45–2091). (v) Farmworkers and Laborers, Crop, Nursery, and Greenhouse (45–2092). (vi) Farmworkers, Farm, Ranch and Aquacultural Animals (45–2093). (B) Determination of classification A nonimmigrant agricultural worker is employed in a standard occupational classification described in clause (i), (ii), (iii), (iv), (v), or (vi) of subparagraph (A) if the worker performs activities associated with that occupational classification, as specified on the employer's petition, for at least 75 percent of the time in a semiannual employment period. (3) Determination of wage rate (A) Calendar years 2014 through 2016 The wage rate under this subparagraph for calendar years 2014 through 2016 shall be the higher of— (i) the applicable Federal, State, or local minimum wage; or (ii) (I) for the category described in paragraph (2)(A)(iii)— (aa) $9.37 for calendar year 2014; (bb) $9.60 for calendar year 2015; and (cc) $9.84 for calendar year 2016; (II) for the category described in paragraph (2)(A)(iv)— (aa) $11.30 for calendar year 2014; (bb) $11.58 for calendar year 2015; and (cc) $11.87 for calendar year 2016; (III) for the category described in paragraph (2)(A)(v)— (aa) $9.17 for calendar year 2014; (bb) $9.40 for calendar year 2015; and (cc) $9.64 for calendar year 2016; and (IV) for the category described in paragraph (2)(A)(vi)— (aa) $10.82 for calendar year 2014; (bb) $11.09 for calendar year 2015; and (cc) $11.37 for calendar year 2016. (B) Subsequent years The Secretary shall increase the hourly wage rates set forth in clauses (i) through (iv) of subparagraph (A), for each calendar year after the calendar years described in subparagraph (A) by an amount equal to— (i) 1.5 percent, if the percentage increase in the Employment Cost Index for wages and salaries during the previous calendar year, as calculated by the Bureau of Labor Statistics, is less than 1.5 percent; (ii) the percentage increase in such Employment Cost Index, if such percentage increase is between 1.5 percent and 2.5 percent, inclusive; or (iii) 2.5 percent, if such percentage increase is greater than 2.5 percent. (C) Agricultural supervisors and animal breeders Not later than September 1, 2015, and annually thereafter, the Secretary, in consultation with the Secretary of Labor, shall establish the required wage for the next calendar year for each of the job categories set out in clauses (i) and (ii) of paragraph (2)(A). (D) Survey by bureau of labor statistics Not later than April 15, 2015, the Bureau of Labor Statistics shall consult with the Secretary to expand the Occupational Employment Statistics Survey to survey agricultural producers and contractors and produce improved wage data by State and the job categories set out in clauses (i) through (vi) of subparagraph (A). (4) Consideration In determining the wage rate under paragraph (3)(C), the Secretary may consider appropriate factors, including— (A) whether the employment of additional alien workers at the required wage will adversely affect the wages and working conditions of workers in the United States similarly employed; (B) whether the employment in the United States of an alien admitted under section 101(a)(15)(H)(ii)(a) or unauthorized aliens in the agricultural workforce has depressed wages of United States workers engaged in agricultural employment below the levels that would otherwise have prevailed if such aliens had not been employed in the United States; (C) whether wages of agricultural workers are sufficient to support such workers and their families at a level above the poverty thresholds determined by the Bureau of Census; (D) the wages paid workers in the United States who are not employed in agricultural employment but who are employed in comparable employment; (E) the continued exclusion of employers of nonimmigrant alien workers in agriculture from the payment of taxes under chapter 21 of the Internal Revenue Code of 1986 ( 26 U.S.C. 3101 et seq. ) and chapter 23 of such Code ( 26 U.S.C. 3301 et seq. ); (F) the impact of farm labor costs in the United States on the movement of agricultural production to foreign countries; (G) a comparison of the expenses and cost structure of foreign agricultural producers to the expenses incurred by agricultural producers based in the United States; and (H) the accuracy and reliability of the Occupational Employment Statistics Survey. (5) Adverse effect wage rate (A) Prohibition of modification The adverse effect wage rates in effect on April 15, 2013, for nonimmigrants admitted under 101(a)(15)(H)(ii)(a)— (i) shall remain in effect until the date described in section 2233 of the Agricultural Worker Program Act of 2013 ; and (ii) may not be modified except as provided in subparagraph (B). (B) Exception Until the Secretary establishes the wage rates required under paragraph (3)(C), the adverse effect wage rates in effect on the date of the enactment of the Agricultural Worker Program Act of 2013 shall be— (i) deemed to be such wage rates; and (ii) after September 1, 2015, adjusted annually in accordance with paragraph (3)(B). (C) Nonpayment of fica and futa taxes An employer employing nonimmigrant agricultural workers shall not be required to pay and withhold from such workers— (i) the tax required under section 3101 of the Internal Revenue Code of 1986; or (ii) the tax required under section 3301 of the Internal Revenue Code of 1986. (6) Preferential treatment of aliens prohibited (A) In general Except as provided in subparagraph (B), employers seeking to hire United States workers shall offer the United States workers not less than the same benefits, wages, and working conditions that the employer is offering, intends to offer, or will provide to nonimmigrant agricultural workers. No job offer may impose on United States workers any restrictions or obligations that will not be imposed on the employer’s nonimmigrant agricultural workers. (B) Exception Notwithstanding subparagraph (A), a designated agricultural employer is not required to provide housing or a housing allowance to United States workers. (g) Worker protections and dispute resolution (1) Equality of treatment Nonimmigrant agricultural workers shall not be denied any right or remedy under any Federal, State, or local labor or employment law applicable to United States workers engaged in agricultural employment. (2) Applicability of the migrant and seasonal agricultural worker protection act (A) Migrant and seasonal agricultural worker protection act Nonimmigrant agricultural workers shall be considered migrant agricultural workers for purposes of the Migrant and Seasonal Agricultural Worker Protection Act ( 29 U.S.C. 1801 et seq. ). (B) Eligibility of nonimmigrant agricultural workers for certain legal assistance A nonimmigrant agricultural worker shall be considered to be lawfully admitted for permanent residence for purposes of establishing eligibility for legal services under the Legal Services Corporation Act ( 42 U.S.C. 2996 et seq. ) on matters relating to wages, housing, transportation, and other employment rights. (C) Mediation (i) Free mediation services The Federal Mediation and Conciliation Service shall be available to assist in resolving disputes arising under this section between nonimmigrant agricultural workers and designated agricultural employers without charge to the parties. (ii) Complaint If a nonimmigrant agricultural worker files a complaint under section 504 of the Migrant and Seasonal Agricultural Worker Protection Act ( 29 U.S.C. 1854 ), not later than 60 days after the filing of proof of service of the complaint, a party to the action may file a request with the Federal Mediation and Conciliation Service to assist the parties in reaching a satisfactory resolution of all issues involving all parties to the dispute. (iii) Notice Upon filing a request under clause (ii) and giving of notice to the parties, the parties shall attempt mediation within the period specified in clause (iv). (iv) 90-day limit The Federal Mediation and Conciliation Service may conduct mediation or other nonbinding dispute resolution activities for a period not to exceed 90 days beginning on the date on which the Federal Mediation and Conciliation Service receives a request for assistance under clause (ii) unless the parties agree to an extension of such period. (v) Authorization of appropriations (I) In general Subject to clause (II), there are authorized to be appropriated to the Federal Mediation and Conciliation Service $500,000 for each fiscal year to carry out this subparagraph. (II) Mediation Notwithstanding any other provision of law, the Director of the Federal Mediation and Conciliation Service is authorized— (aa) to conduct the mediation or other dispute resolution activities from any other account containing amounts available to the Director; and (bb) to reimburse such account with amounts appropriated pursuant to subclause (I). (vi) Private mediation If all parties agree, a private mediator may be employed as an alternative to the Federal Mediation and Conciliation Service. (3) Other rights Nonimmigrant agricultural workers shall be entitled to the rights granted to other classes of aliens under sections 242(h) and 245E. (4) Waiver of rights Agreements by nonimmigrant agricultural workers to waive or modify any rights or protections under this section shall be considered void or contrary to public policy except as provided in a collective bargaining agreement with a bona fide labor organization. (h) Enforcement authority (1) Investigation of complaints (A) Aggrieved person or third-party complaints (i) Process The Secretary of Labor shall establish a process for the receipt, investigation, and disposition of complaints respecting a designated agricultural employer's failure to meet a condition specified in subsection (e), or an employer's misrepresentation of material facts in a petition under subsection (e)(2). (ii) Filing Any aggrieved person or organization, including bargaining representatives, may file a complaint referred to in clause (i) not later than 1 year after the date of the failure or misrepresentation, respectively. (iii) Investigation or hearing The Secretary of Labor shall conduct an investigation if there is reasonable cause to believe that such failure or misrepresentation has occurred. (B) Determination on complaint Under such process, the Secretary of Labor shall provide, not later than 30 days after the date on which such a complaint is filed, for a determination as to whether or not a reasonable basis exists to make a finding described in subparagraph (C), (D), (E), or (F). If the Secretary of Labor determines that such a reasonable basis exists, the Secretary of Labor shall provide for notice of such determination to the interested parties and an opportunity for a hearing on the complaint, in accordance with section 556 of title 5, United States Code, within 60 days after the date of the determination. If such a hearing is requested, the Secretary of Labor shall make a finding concerning the matter not later than 60 days after the date of the hearing. In the case of similar complaints respecting the same applicant, the Secretary of Labor may consolidate the hearings under this subparagraph on such complaints. (C) Failure to meet conditions If the Secretary of Labor finds, after notice and opportunity for a hearing, a failure to meet a condition under subsection (e) or (f), or a material misrepresentation of fact in a petition under subsection (e)(2)— (i) the Secretary of Labor shall notify the Secretary of such finding and may, in addition, impose such other administrative remedies (including civil money penalties in an amount not to exceed $1,000 per violation) as the Secretary of Labor determines to be appropriate; and (ii) the Secretary may disqualify the designated agricultural employer from the employment of nonimmigrant agricultural workers for a period of 1 year. (D) Willful failures and willful misrepresentations If the Secretary of Labor finds, after notice and opportunity for hearing, a willful failure to meet a condition under subsection (e) or (f) or a willful misrepresentation of a material fact in an registration or petition under paragraph (1) or (2) of subsection (e)— (i) the Secretary of Labor shall notify the Secretary of such finding and may, in addition, impose such other administrative remedies (including civil money penalties in an amount not to exceed $5,000 per violation) as the Secretary of Labor determines to be appropriate; (ii) the Secretary of Labor may seek appropriate legal or equitable relief; and (iii) the Secretary may disqualify the designated agricultural employer from the employment of nonimmigrant agricultural workers for a period of 2 years. (E) Displacement of united states workers If the Secretary of Labor finds, after notice and opportunity for hearing, a willful failure to meet a condition under subsection (e) or (f) or a willful misrepresentation of a material fact in an registration or petition under paragraph (1) or (2) of subsection (e), in the course of which failure or misrepresentation the employer displaced a United States worker employed by the employer during the period of employment on the employer's petition under subsection (e)(2) or during the period of 30 days preceding such period of employment— (i) the Secretary of Labor shall notify the Secretary of such finding and may, in addition, impose such other administrative remedies (including civil money penalties in an amount not to exceed $15,000 per violation) as the Secretary of Labor determines to be appropriate; and (ii) the Secretary may disqualify the employer from the employment of nonimmigrant agricultural workers for a period of 3 years. (F) Failures to pay wages or required benefits If the Secretary of Labor finds, after notice and opportunity for a hearing, that the employer has failed to pay the wages, or provide the housing allowance, transportation, subsistence reimbursement, or guarantee of employment required under subsections (e)(4) and (f), the Secretary of Labor shall assess payment of back wages, or other required benefits, due any United States worker or nonimmigrant agricultural worker employed by the employer in the specific employment in question. The back wages or other required benefits required under subsections (e) and (f) shall be equal to the difference between the amount that should have been paid and the amount that actually was paid to such worker. (G) Disposition of penalties Civil penalties collected under this paragraph shall be deposited into the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1) of the Border Security, Economic Opportunity, and Immigration Modernization Act . (2) Limitations on civil money penalties The Secretary of Labor shall not impose total civil money penalties with respect to a petition under subsection (e)(2) in excess of $90,000. (3) Election A nonimmigrant agricultural worker who has filed an administrative complaint with the Secretary of Labor may not maintain a civil action unless a complaint based on the same violation filed with the Secretary of Labor under paragraph (1) is withdrawn before the filing of such action, in which case the rights and remedies available under this subsection shall be exclusive. (4) Preclusive effect Any settlement by a nonimmigrant agricultural worker, a designated agricultural employer, or any person reached through the mediation process required under subsection (g)(2)(C) shall preclude any right of action arising out of the same facts between the parties in any Federal or State court or administrative proceeding, unless specifically provided otherwise in the settlement agreement. (5) Settlements Any settlement by the Secretary of Labor with a designated agricultural worker on behalf of a nonimmigrant agricultural worker of a complaint filed with the Secretary of Labor under this section or any finding by the Secretary of Labor under this subsection shall preclude any right of action arising out of the same facts between the parties under any Federal or State court or administrative proceeding, unless specifically provided otherwise in the settlement agreement. (6) Statutory construction Nothing in this subsection may be construed as limiting the authority of the Secretary of Labor to conduct any compliance investigation under any other labor law, including any law affecting migrant and seasonal agricultural workers, or, in the absence of a complaint under this section. (7) Discrimination prohibited It is a violation of this subsection for any person who has filed a petition under subsection (e) or (f) to intimidate, threaten, restrain, coerce, blacklist, discharge, or in any other manner discriminate against an employee, including a former employee or an applicant for employment, because the employee— (A) has disclosed information to the employer, or to any other person, that the employee reasonably believes evidences a violation of subsection (e) or (f), or any rule or regulation relating to subsection (e) or (f); or (B) cooperates or seeks to cooperate in an investigation or other proceeding concerning the employer’s compliance with the requirements under subsection (e) or (f) or any rule or regulation pertaining to subsection (e) or (f). (8) Role of associations (A) Violation by a member of an association (i) In general If an association acting as the agent of an employer files an application on behalf of such employer, the employer is fully responsible for such application, and for complying with the terms and conditions of subsection (e). If such an employer is determined to have violated any requirement described in this subsection, the penalty for such violation shall apply only to that employer except as provided in clause (ii). (ii) Collective responsibility If the Secretary of Labor determines that the association or other members of the association participated in, had knowledge of, or reason to know of a violation described in clause (i), the penalty shall also be invoked against the association and complicit association members. (B) Violations by an association acting as an employer (i) In general If an association filing an application as a sole or joint employer is determined to have violated any requirement described in this section, the penalty for such violation shall apply only to the association except as provided in clause (ii). (ii) Member responsibility If the Secretary of Labor determines that 1 or more association members participated in, had knowledge of, or reason to know of the violation described in clause (i), the penalty shall be invoked against all complicit association members. (i) Special nonimmigrant visa processing and wage determination procedures for certain agricultural occupations (1) Finding Certain industries possess unique occupational characteristics that necessitate the Secretary of Agriculture to adopt special procedures relating to housing, pay, and visa program application requirements for those industries. (2) Special procedures industry defined In this subsection, the term Special Procedures Industry means— (A) sheepherding and goat herding; (B) itinerant commercial beekeeping and pollination; (C) open range production of livestock; (D) itinerant animal shearing; and (E) custom combining industries. (3) Work locations The Secretary shall allow designated agricultural employers in a Special Procedures Industry that do not operate in a single fixed-site location to provide, as part of its registration or petition under the Program, a list of anticipated work locations, which— (A) may include an anticipated itinerary; and (B) may be subsequently amended by the employer, after notice to the Secretary. (4) Wage rates The Secretary may establish monthly, weekly, or biweekly wage rates for occupations in a Special Procedures Industry for a State or other geographic area. For an employer in those Special Procedures Industries that typically pay a monthly wage, the Secretary shall require that workers will be paid not less frequently than monthly and at a rate no less than the legally required monthly cash wage for such employer as of the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act and in an amount as re-determined annually by the Secretary of Agriculture through rulemaking. (5) Housing The Secretary shall allow for the provision of housing or a housing allowance by employers in Special Procedures Industries and allow housing suitable for workers employed in remote locations. (6) Allergy limitation An employer engaged in the commercial beekeeping or pollination services industry may require that an applicant be free from bee pollen, venom, or other bee-related allergies. (7) Application An individual employer in a Special Procedures Industry may file a program petition on its own behalf or in conjunction with an association of employers. The employer’s petition may be part of several related petitions submitted simultaneously that constitute a master petition. (8) Rulemaking The Secretary or, as appropriate, the Secretary of Homeland Security or the Secretary of Labor, after consultation with employers and employee representatives, shall publish for notice and comment proposed regulations relating to housing, pay, and application procedures for Special Procedures Industries. (j) Miscellaneous provisions (1) Disqualification of nonimmigrant agricultural workers from financial assistance An alien admitted as a nonimmigrant agricultural worker is not eligible for any program of financial assistance under Federal law (whether through grant, loan, guarantee, or otherwise) on the basis of financial need, as such programs are identified by the Secretary in consultation with other agencies of the United States. (2) Monitoring requirement (A) In general The Secretary shall monitor the movement of nonimmigrant agricultural workers through— (i) the Employment Verification System described in section 274A(b); and (ii) the electronic monitoring system established pursuant to subparagraph (B). (B) Electronic monitoring system Not later than 2 years after the effective date of this section, the Secretary of Homeland Security, through the Director of U.S. Citizenship and Immigration Services, shall establish an electronic monitoring system, which shall— (i) be modeled on the Student and Exchange Visitor Information System (SEVIS) and the SEVIS II tracking system administered by U.S. Immigration and Customs Enforcement; (ii) monitor the presence and employment of nonimmigrant agricultural workers; and (iii) assist in ensuring the compliance of designated agricultural employers and nonimmigrant agricultural workers with the requirements of the Program. . (b) Rulemaking The Secretary of Agriculture shall issue regulations to carry out section 218A of the Immigration and Nationality Act, as added by subsection (a), not later than 1 year after the date of the enactment of this Act. (c) Clerical amendment The table of contents is amended by inserting after the item relating to section 218 the following: Sec. 218A. Nonimmigrant agricultural worker program. . (d) Effective date The amendments made by this section shall take effect on October 1, 2014. 2233. Transition of H–2A Worker Program (a) Sunset of program (1) In general Except as provided in paragraph (2), an employer may not petition to employ an alien pursuant to section 101(a)(15)(H)(ii)(a) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15)(H)(ii)(a) ) after the date that is 1 year after the date on which the regulations issued pursuant to section 2241(b) become effective. (2) Exception An employer may employ an alien described in paragraph (1) for the shorter of— (A) 10 months; or (B) the time specified in the position. (b) Conforming amendments (1) Repeal of H–2A nonimmigrant category Section 101(a)(15)(H)(ii) ( 8 U.S.C. 1101(a)(15)(H)(ii) ) is amended by striking subclause (a). (2) Repeal of admission requirements for H–2A worker Section 218 ( 8 U.S.C. 1188 ) is repealed. (3) Conforming amendments (A) Amendment of petition requirements Section 214(c)(1) ( 8 U.S.C. 1184(c)(1) ) is amended by striking For purposes of this subsection and all that follows. (B) Clerical amendment The table of contents is amended by striking the item relating to section 218. (4) Effective date The amendments made by this subsection shall take effect on the date that is 1 year after the effective date of the regulations issued pursuant to section 2241(b). 2234. Reports to Congress on nonimmigrant agricultural workers (a) Annual report by Secretary of Agriculture Not later than September 30 of each year, the Secretary of Agriculture shall submit a report to Congress that identifies, for the previous year, the number, disaggregated by State and by occupation, of— (1) job opportunities approved for employment of aliens admitted pursuant to clause (iii) or clause (iv) of section 101(a)(15)(W) of the Immigration and Nationality Act, as added by section 2231; and (2) aliens actually admitted pursuant to each such clause. (b) Annual report by Secretary of Homeland Security Not later than September 30 of each year, the Secretary shall submit a report to Congress that identifies, for the previous year, the number of aliens described in subsection (a)(2) who— (1) violated the terms of the nonimmigrant agricultural worker program established under section 218A(b) of the Immigration and Nationality Act, as added by section 2232; and (2) have not departed from the United States. 3 Other provisions 2241. Rulemaking (a) Consultation requirement In the course of promulgating any regulation necessary to implement this subtitle, or the amendments made by this subtitle, the Secretary, the Secretary of Agriculture, the Secretary of Labor, and the Secretary of State shall regularly consult with each other. (b) Deadline for issuance of regulations Except as provided in section 2232(b), all regulations to implement this subtitle and the amendments made by this subtitle shall be issued not later than 6 months after the date of the enactment of this Act. 2242. Reports to Congress Not later than 180 days after the date of the enactment of this Act, the Secretary and the Secretary of Agriculture shall jointly submit a report to Congress that describes the measures being taken and the progress made in implementing this subtitle and the amendments made by this subtitle. 2243. Benefits integrity programs (a) In general Without regard to whether personal interviews are conducted in the adjudication of benefits provided for by section 210A, 218A, 245B, 245C, 245D, 245E, or 245F of the Immigration and Nationality Act, or in seeking a benefit under section 101(a)(15)(U) of the Immigration and Nationality Act, section 1242 of the Refugee Crisis in Iraq Act of 2007 ( 8 U.S.C. 1157 note), section 602(b) of the Afghan Allies Protection Act of 2009 ( 8 U.S.C. 1101 note), or section 2211 of this Act, the Secretary shall uphold and maintain the integrity of those benefits by carrying out for each of them, within the Fraud Detection and National Security Directorate of U.S. Citizenship and Immigration Services, programs as follows: (1) A benefit fraud assessment program to quantify fraud rates, detect ongoing fraud trends, and develop appropriate countermeasures, including through a random sample of both pending and completed cases. (2) A compliance review program, including site visits, to identify frauds and deter fraudulent and illegal activities. (b) Reports (1) In general Not later than 90 days after the date of the enactment of this Act, U.S. Citizenship and Immigration Services shall annually submit to Congress a report on the programs carried out pursuant to subsection (a). (2) Elements in first report The initial report submitted under paragraph (1) shall include the methodologies to be used by the Fraud Detection and National Security Directorate for each of the programs specified in paragraphs (1) and (2) of subsection (a). (3) Elements in subsequent reports Each subsequent report under paragraph (1) shall include, for the calendar year covered by such report, a descriptions of examples of fraud detected, fraud rates for programs and types of applicants, and a description of the disposition of the cases in which fraud was detected or suspected. (c) Use of findings of fraud Any instance of fraud or abuse detected pursuant to a program carried out pursuant to subsection (a) may be used to deny or revoke benefits, and may also be referred to U.S. Immigration and Customs Enforcement for investigation of criminal violations of section 266 of the Immigration and Nationality Act ( 8 U.S.C. 1306 ). (d) Funding There are authorized to be appropriated, from the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1), such sums as may be necessary to carry out this section. 2244. Effective date This subtitle and the amendments made by this subtitle, except for sections 2231, 2232, and 2233, shall take effect on the date on which the regulations required under section 2241 are issued, regardless of whether such regulations are issued on an interim basis or on any other basis. C Future immigration 2301. Merit-based points track one (a) In general (1) Worldwide level of merit-based immigrants Section 201(e) ( 8 U.S.C. 1151(e) ) is amended to read as follows: (e) Worldwide level of merit-Based immigrants (1) In general (A) Numerical limitation Subject to paragraphs (2), (3), and (4), the worldwide level of merit-based immigrants is equal to 120,000 for each fiscal year. (B) Status An alien admitted on the basis of a merit-based immigrant visa under this section shall have the status of an alien lawfully admitted for permanent residence. (2) Annual increase (A) In general Subject to subparagraph (B) and paragraph (3), if in any fiscal year the worldwide level of visas available for merit-based immigrants under this section— (i) is less than 75 percent of the number of applicants for such fiscal year, the worldwide level shall increase by 5 percent for the next fiscal year; and (ii) is equal to or more than 75 percent of such number, the worldwide level for the next fiscal year shall be the same as the worldwide level for such fiscal year, minus any amount added to the worldwide level for such fiscal year under paragraph (4). (B) Limitation on increase The worldwide level of visas available for merit-based immigrants shall not exceed 250,000. (3) Employment consideration The worldwide level of visas available for merit-based immigrants may not be increased for a fiscal year under paragraph (2) if the annual average unemployment rate for the civilian labor force 18 years or over in the United States, as determined by the Bureau of Labor Statistics, for such previous fiscal year is more than 8 1/2 percent. (4) Recapture of unused visas The worldwide level of merit-based immigrants described in paragraph (1) for a fiscal year shall be increased by the difference (if any) between the worldwide level established under paragraph (1) for the previous fiscal year and the number of visas actually issued under this subsection during that fiscal year. Such visas shall be allocated for the following year pursuant to section 203(c)(3). . (2) Merit-based immigrants Section 203 ( 8 U.S.C. 1153 ) is amended by inserting after subsection (b) the following: (c) Merit-Based immigrants (1) Fiscal years 2015 through 2017 During each of the fiscal years 2015 through 2017, the worldwide level of merit-based immigrant visas made available under section 201(e)(1) shall be available for aliens described in section 203(b)(3) and in addition to any visas available for such aliens under such section. (2) Subsequent fiscal years During fiscal year 2018 and each subsequent fiscal year, aliens subject to the worldwide level specified in section 201(e) for merit-based immigrants shall be allocated as follows: (A) 50 percent shall be available to applicants with the highest number of points allocated under tier 1 in paragraph (4). (B) 50 percent shall be available to applicants with the highest number of points allocated under tier 2 in paragraph (5). (3) Unused visas If the total number of visas allocated to tier 1 or tier 2 for a fiscal year are not granted during that fiscal year, such number may be added to the number of visas available under section 201(e)(1) for the following fiscal year and allocated as follows: (A) If the unused visas were allocated for tier 1 in a fiscal year, 2/3 of such visas shall be available for aliens allocated visas under tier 1 in the following fiscal year and 1/3 of such visas shall be available for aliens allocated visas under either tier 1 or tier 2 in the following fiscal year. (B) If the unused visas were allocated for tier 2 in a fiscal year, 2/3 of such visas shall be available for aliens allocated visas under tier 2 in the following fiscal year and 1/3 of such visas shall be available for aliens allocated visas under either tier 1 or tier 2 in the following fiscal year. (4) Tier 1 The Secretary shall allocate points to each alien seeking to be a tier 1 merit-based immigrant as follows: (A) Education (i) In general An alien may receive points under only 1 of the following categories: (I) An alien who has received a doctorate degree from an institution of higher education in the United States or the foreign equivalent shall be allocated 15 points. (II) An alien who has received a master’s degree from an institution of higher education in the United States or the foreign equivalent shall be allocated 10 points. (ii) An alien who has received a bachelor’s degree from an institution of higher education (as defined in section 101(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1001(a) ) shall be allocated 5 points. (B) Employment experience An alien shall be allocated not more than 20 points as follows: (i) 3 points for each year the alien has been lawfully employed in a zone 5 occupation in the United States. (ii) 2 points for each year the alien has been lawfully employed in a zone 4 occupation in the United States. (C) Employment related to education An alien who is in the United States and is employed full-time or has an offer of full-time employment in a field related to the alien's education— (i) in a zone 5 occupation shall be allocated 10 points; or (ii) in a zone 4 occupation shall be allocated 8 points. (D) Entrepreneurship An alien who is an entrepreneur in business that employs at least 2 employees in a zone 4 occupation or a zone 5 occupation shall be allocated 10 points. (E) High demand occupation An alien who is employed full-time in the United States or has an offer of full-time employment in a high demand tier 1 occupation shall be allocated 10 points. (F) Civic involvement An alien who has attested that he or she has engaged in a significant amount of community service, as determined by the Secretary, shall be allocated 2 points. (G) English language An alien who received a score of 80 or more on the Test of English as a Foreign Language, or an equivalent score on a similar test, as determined by the Secretary, shall be allocated 10 points. (H) Siblings and married sons and daughters of citizens An alien who is the sibling of a citizen of the United States or who is over 31 years of age and is the married son or married daughter of a citizen of the United States shall be allocated 10 points. (I) Age An alien who is— (i) between 18 and 24 years of age shall be allocated 8 points; (ii) between 25 and 32 years of age shall be allocated 6 points; or (iii) between 33 and 37 years of age shall be allocated 4 points. (J) Country of origin An alien who is a national of a country of which fewer than 50,000 nationals were lawfully admitted to permanent residence in the United States in the previous 5 years shall be allocated 5 points. (5) Tier 2 The Secretary shall allocate points to each alien seeking to be a tier 2 merit-based immigrant as follows: (A) Employment experience An alien shall be allocated 2 points for each year the alien has been lawfully employed in the United States, for a total of not more than 20 points. (B) Special employment criteria An alien who is employed full-time in the United States, or has an offer of full-time employment— (i) in a high demand tier 2 occupation shall be allocated 10 points; or (ii) in a zone 1, zone 2, or zone 3 occupation shall be allocated 10 points. (C) Caregiver An alien who is or has been a primary caregiver shall be allocated 10 points. (D) Exceptional employment record An alien who has a record of exceptional employment, as determined by the Secretary, shall be allocated 10 points. In determining a record of exceptional employment, the Secretary shall consider factors including promotions, longevity, changes in occupations from a lower job zone to a higher job zone, participated in safety training, and increases in pay. (E) Civic involvement An alien who has demonstrated significant civic involvement shall be allocated 2 points. (F) English language (i) English proficiency An alien who has demonstrated English proficiency, as determined by a standardized test designated by the Secretary of Education, shall be allocated 10 points. (ii) English knowledge An alien who has demonstrated English knowledge, as determined by a standardized test designated by the Secretary of Education, shall be allocated 5 points. (G) Siblings and married sons and daughters of citizens An alien who is the sibling of a citizen of the United States or is over the age of 31 and is the married son or married daughter of a citizen of the United States shall be allocated 10 points. (H) Age An alien who is— (i) between 18 and 24 years of age shall be allocated 8 points; (ii) between 25 and 32 years of age shall be allocated 6 points; or (iii) between 33 and 37 years of age shall be allocated 4 points. (I) Country of origin An alien who is a national of a country of which fewer than 50,000 nationals were lawfully admitted to permanent residence in the United States in the previous 5 years shall be allocated 5 points. (6) Application procedures (A) Submission During the 30-day period beginning on the first October 1 occurring at least 3 years after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act, and during each 30-day period beginning on October 1 in subsequent years, eligible aliens may submit, to U.S. Citizenship and Immigration Services, an application for a merit-based immigrant visa that contains such information as the Secretary may reasonably require. (B) Adjudication Before the last day of each fiscal year in which applications are filed pursuant to subparagraph (A), the Director, U.S. Citizenship and Immigration Services, shall— (i) review the applications to determine which aliens will be granted a merit based immigrant visa in the following fiscal year in accordance with this subsection; and (ii) in coordination with the Secretary of State, provide such visas to all successful applicants. (C) Fee An alien who is allocated a visa under this subsection shall pay a fee of $1,500 in addition to any fee assessed to cover the costs to process an application under this subsection. Fees collected under this paragraph shall be deposited by the Secretary into the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1) of the Border Security, Economic Opportunity, and Immigration Modernization Act. (7) Eligibility of aliens in registered provisional immigrant status An alien who was granted registered provisional immigrant status under section 245B is not eligible to receive a merit-based immigrant visa under section 201(e). (8) Ineligibility of aliens with pending or approved petitions An alien who has a petition pending or approved in another immigrant category under this section or section 201 may not apply for a merit-based immigrant visa. (9) Definitions In this subsection: (A) High demand tier 1 occupation The term high demand tier 1 occupation means 1 of the 5 occupations for which the highest number of nonimmigrants described in section 101(a)(15)(H)(i) were sought to be admitted by employers during the previous fiscal year. (B) High demand tier 2 occupation The term high demand tier 2 occupation means 1 of the 5 occupations for which the highest number of positions were sought to become registered positions by employers under section 220(e) during the previous fiscal year. (C) Secretary The term Secretary means the Secretary of Homeland Security. (D) Zone 1 occupation The term zone 1 occupation means an occupation that requires little or no preparation and is classified as a zone 1 occupation on— (i) the Occupational Information Network Database (O*NET) on the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act ; or (ii) such Database or a similar successor database, as designated by the Secretary of Labor, after such date of enactment. (E) Zone 2 occupation The term zone 2 occupation means an occupation that requires some preparation and is classified as a zone 2 occupation on— (i) the Occupational Information Network Database (O*NET) on the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act ; or (ii) such Database or a similar successor database, as designated by the Secretary of Labor, after such date of enactment. (F) Zone 3 occupation The term zone 3 occupation means an occupation that requires medium preparation and is classified as a zone 3 occupation on— (i) the Occupational Information Network Database (O*NET) on the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act ; or (ii) such Database or a similar successor database, as designated by the Secretary of Labor, after such date of enactment. (G) Zone 4 occupation The term zone 4 occupation means an occupation that requires considerable preparation and is classified as a zone 4 occupation on— (i) the Occupational Information Network Database (O*NET) on the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act ; or (ii) such Database or a similar successor database, as designated by the Secretary of Labor, after such date of enactment. (H) Zone 5 occupation The term zone 5 occupation means an occupation that requires extensive preparation and is classified as a zone 5 occupation on— (i) the Occupational Information Network Database (O*NET) on the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act ; or (ii) such Database or a similar successor database, as designated by the Secretary of Labor, after such date of enactment. . (3) GAO study and report (A) Study The Comptroller General of the United States shall conduct a study of the merit-based immigration system established under section 203(c) of the Immigration and Nationality Act, as amended by paragraph (2), to determine, during the first 7 years of such system— (i) how the points described in paragraphs (4)(H), (4)(J), (5)(G), and (5)(I) of section 203(c) of such Act were utilized; (ii) how many of the points allocated to people lawfully admitted for permanent residence were allocated under such paragraphs; (iii) how many people who were allocated points under such paragraphs were not lawfully admitted to permanent residence; (iv) the countries of origin of the people who applied for a merit-based visa under section 203(c) of such Act; (v) the number of such visas issued under tier 1 and tier 2 to males and females, respectively; (vi) the age of individuals who were issued such visas; and (vii) the educational attainment and occupation of people who were issued such visas. (B) Report Not later than 7 years after the date of the enactment of this Act, the Comptroller General shall submit a report to Congress that describes the results of the study conducted pursuant to subparagraph (A). (b) Modification of points The Secretary may submit to Congress a proposal to modify the number of points allocated under subsection (c) of section 203 of the Immigration and Nationality Act ( 8 U.S.C. 1153 ), as amended by subsection (a). (c) Effective date The amendments made by this section shall take effect on October 1, 2014. 2302. Merit-based track two (a) In general In addition to any immigrant visa made available under the Immigration and Nationality Act ( 8 U.S.C. 1101 et seq. ), as amended by this Act, the Secretary of State shall allocate merit-based immigrant visas as described in this section. (b) Status An alien admitted on the basis of a merit-based immigrant visa under this section shall have the status of an alien lawfully admitted for permanent residence (as that term is defined in section 101(a)(20) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(20) ). (c) Eligibility Beginning on October 1, 2014, the following aliens shall be eligible for merit-based immigrant visas under this section: (1) Employment-based immigrants An alien who is the beneficiary of a petition filed before the date of the enactment of this Act to accord status under section 203(b) of the Immigration and Nationality Act, if the visa has not been issued within 5 years after the date on which such petition was filed. (2) Family-sponsored immigrants Subject to subsection (d), an alien who is the beneficiary of a petition filed to accord status under section 203(a) of the Immigration and Nationality Act— (A) prior to the date of the enactment of this Act, if the visa was not issued within 5 years after the date on which such petition was filed; or (B) after such date of enactment, to accord status under paragraph (3) or (4) of section 203(a) of the Immigration and Nationality Act ( 8 U.S.C. 1153(a) ), as in effect the minute before the effective date specified in section 2307(a)(3) of this Act, and the visa was not issued within 5 years after the date on which petition was filed. (3) Long-term alien workers and other merit-based immigrants An alien who— (A) is not admitted pursuant to subparagraph (W) of section 101(a)(15) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15) ); and (B) has been lawfully present in the United States in a status that allows for employment authorization for a continuous period, not counting brief, casual, and innocent absences, of not less than 10 years. (d) Allocation of employment-Sponsored merit-Based immigrant visas In each of the fiscal years 2015 through and including 2021, the Secretary of State shall allocate to aliens described in subsection (c)(1) a number of merit-based immigrant visas equal to 1/7 of the number of aliens described in subsection (c)(1) whose visas had not been issued as of the date of the enactment of this Act. (e) Allocation of family-Sponsored merit-Based immigrant visas The visas authorized by subsection (c)(2) shall be allocated as follows: (1) Spouses and children of permanent residents Petitions to accord status under section 203(a)(2)(A) of the Immigration and Nationality Act ( 8 U.S.C. 1153(a)(2)(A) ), as in effect the minute before the effective date specified in section 2307(a)(3) of this Act, are automatically converted to petitions to accord status to the same beneficiaries as immediate relatives under section 201(b)(2)(A) of the Immigration and Nationality Act ( 8 U.S.C. 1151(b)(2)(A) ). (2) Other family members In each of the fiscal years 2015 through and including 2021, the Secretary of State shall allocate to the aliens described in subsection (c)(2)(A), other than those aliens described in paragraph (1), a number of transitional merit-based immigrant visas equal to 1/7 of the difference between— (A) the number of aliens described in subsection (c)(2)(A) whose visas had not been issued as of the date of the enactment of this Act; and (B) the number of aliens described in paragraph (1). (3) Order of issuance for previously filed applications Subject to paragraphs (1) and (2), the visas authorized by subsection (c)(2)(A) shall be issued without regard to a per country limitation in the order described in section 203(a) of the Immigration and Nationality Act ( 8 U.S.C. 1153(a) ), as amended by section 2305(b), in the order in which the petitions to accord status under such section 203(a) were filed prior to the date of the enactment of this Act. (4) Subsequently filed applications In fiscal year 2022, the Secretary of State shall allocate to the aliens described in subsection (c)(2)(B), the number of merit-based immigrant visas equal to 1/2 of the number of aliens described in subsection (c)(2)(B) whose visas had not been issued by October 1, 2021. In fiscal year 2023, the Secretary of State shall allocate to the aliens described in subsection (c)(2)(B), the number of merit-based immigrant visas equal to the number of aliens described in subsection (c)(2)(B) whose visas had not been issued by October 1, 2022. (5) Order of issuance for subsequently filed applications Subject to paragraph (4), the visas authorized by subsection (c)(2)(B) shall be issued in the order in which the petitions to accord status under section 203(a) of the Immigration and Nationality Act were filed, as in effect the minute before the effective date specified in section 2307(a)(3) of this Act. (f) Applicability of certain grounds of inadmissibility In determining an alien’s inadmissibility under this section, section 212(a)(9)(B) of the Immigration and Nationality Act ( 8 U.S.C. 1193(a)(9)(B) ) shall not apply. (g) Eligibility in years after 2028 Beginning in fiscal year 2029, aliens eligible for adjustment of status under subsection (c)(3) must be lawfully present in an employment authorized status for 20 years prior to filing an application for adjustment of status. 2303. Repeal of the diversity visa program (a) In general Title II ( 8 U.S.C. 1151 et seq. ) is amended— (1) in section 201(a) ( 8 U.S.C. 1151(a) )— (A) in paragraph (1), by adding and at the end; (B) in paragraph (2), by striking ; and at the end and inserting a period; and (C) by striking paragraph (3); (2) in section 203 ( 8 U.S.C. 1153 )— (A) by striking subsection (c); (B) in subsection (e)— (i) by striking paragraph (2); and (ii) by redesignating paragraph (3) as paragraph (2); (C) in subsection (f), by striking (a), (b), or (c) of this section and inserting (a) or (b) ; and (D) in subsection (g), by striking (a), (b), and (c) and inserting (a) and (b) ; and (3) in section 204 ( 8 U.S.C. 1154 )— (A) in subsection (a), as amended by section 2305(d)(6)(A)(i), by striking paragraph (8); and (B) in subsection (e), by striking (a), (b), or (c) and inserting (a) or (b) . (b) Effective date and application (1) Effective date The amendments made by this section shall take effect on October 1, 2014. (2) Application An alien who receives a notification from the Secretary that the alien was selected to receive a diversity immigrant visa under section 203(c) of the Immigration and Nationality Act ( 8 U.S.C. 1153(c) ) for fiscal year 2013 or fiscal year 2014 shall remain eligible to receive such visa under the rules of such section, as in effect on September 30, 2014. No alien may be allocated such a diversity immigrant visa for a fiscal year after fiscal year 2015. 2304. Worldwide levels and recapture of unused immigrant visas (a) Employment-Based immigrants Section 201(d) ( 8 U.S.C. 1151(d) ) is amended to read as follows: (d) Worldwide level of employment-Based immigrants (1) In general (A) Worldwide level For a fiscal year after fiscal year 2015, the worldwide level of employment-based immigrants under this subsection is equal to the sum of— (i) 140,000; and (ii) the number computed under paragraph (2). (B) Fiscal year 2015 For fiscal year 2015, the worldwide level of employment-based immigrants under this subsection is equal to the sum of— (i) 140,000; (ii) the number computed under paragraph (2); and (iii) the number computed under paragraph (3). (2) Previous fiscal year The number computed under this paragraph for a fiscal year is the difference, if any, between the maximum number of visas which may be issued under section 203(a) (relating to family-sponsored immigrants) during the previous fiscal year and the number of visas issued under that section during that year. (3) Unused visas The number computed under this paragraph is the difference, if any, between— (A) the sum of the worldwide levels established under paragraph (1), as in effect on the day before the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act , for fiscal years 1992 through and including 2013; and (B) the number of visas actually issued under section 203(b) during such fiscal years. . (b) Family-Sponsored immigrants Section 201(c) ( 8 U.S.C. 1151(c) ) is amended to read as follows: (c) Worldwide level of family-Sponsored immigrants (1) In general (A) Worldwide level Subject to subparagraph (C), for each fiscal year after fiscal year 2015, the worldwide level of family-sponsored immigrants under this subsection for a fiscal year is equal to the sum of— (i) 480,000 minus the number computed under paragraph (2); and (ii) the number computed under paragraph (3). (B) Fiscal year 2015 Subject to subparagraph (C), for fiscal year 2015, the worldwide level of family-sponsored immigrants under this subsection is equal to the sum of— (i) 480,000 minus the number computed under paragraph (2); (ii) the number computed under paragraph (3); and (iii) the number computed under paragraph (4). (C) Limitation The number computed under subparagraph (A)(i) or (B)(i) may not be less than 226,000, except that beginning on the date that is 18 months after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act , the number computed under subparagraph (A)(i) or (B)(i) may not be less than 161,000. (2) Immediate relatives The number computed under this paragraph for a fiscal year is the number of aliens described in subparagraph (A) or (B) of subsection (b)(2) who were issued immigrant visas, or who otherwise acquired the status of an alien lawfully admitted to the United States for permanent residence, in the previous fiscal year. (3) Previous fiscal year The number computed under this paragraph for a fiscal year is the difference, if any, between the maximum number of visas which may be issued under section 203(b) (relating to employment-based immigrants) during the previous fiscal year and the number of visas issued under that section during that year. (4) Unused visas The number computed under this paragraph is the difference, if any, between— (A) the sum of the worldwide levels established under paragraph (1) for fiscal years 1992 through and including 2013; and (B) the number of visas actually issued under section 203(a) during such fiscal years. . (c) Effective date The amendments made by this section shall take effect on the first day of the first fiscal year beginning after the date of the enactment of this Act. 2305. Reclassification of spouses and minor children of lawful permanent residents as immediate relatives (a) Immediate relatives Section 201(b)(2) ( 8 U.S.C. 1151(b)(2) ) is amended to read as follows: (2) (A) Aliens who are immediate relatives. (B) In this paragraph, the term immediate relative means— (i) a child, spouse, or parent of a citizen of the United States, except that in the case of such a parent such citizen shall be at least 21 years of age; (ii) a child or spouse of an alien lawfully admitted for permanent residence; (iii) a child or spouse of an alien described in clause (i), who is accompanying or following to join the alien; (iv) a child or spouse of an alien described in clause (ii), who is accompanying or following to join the alien; (v) an alien admitted under section 211(a) on the basis of a prior issuance of a visa to the alien’s accompanying parent who is an immediate relative; and (vi) an alien born to an alien lawfully admitted for permanent residence during a temporary visit abroad. (C) If an alien who was the spouse or child of a citizen of the United States or of an alien lawfully admitted for permanent residence and was not legally separated from the citizen or lawful permanent resident at the time of the citizen’s or lawful permanent resident’s death files a petition under section 204(a)(1)(B), the alien spouse (and each child of the alien) shall remain, for purposes of this paragraph, an immediate relative during the period beginning on the date of the citizen’s or permanent resident’s death and ending on the date on which the alien spouse remarries. (D) An alien who has filed a petition under clause (iii) or (iv) of section 204(a)(1)(A) shall remain, for purposes of this paragraph, an immediate relative if the United States citizen or lawful permanent resident spouse or parent loses United States citizenship on account of the abuse. . (b) Allocation of immigrant visas Section 203(a) ( 8 U.S.C. 1153(a) ) is amended— (1) in paragraph (1), by striking 23,400, and inserting 20 percent of the worldwide level of family-sponsored immigrants under section 201(c) ; (2) by striking paragraph (2) and inserting the following: (2) Unmarried sons and unmarried daughters of permanent resident aliens Qualified immigrants who are the unmarried sons or unmarried daughters (but are not the children) of an alien lawfully admitted for permanent residence shall be allocated visas in a number not to exceed 20 percent of the worldwide level of family-sponsored immigrants under section 201(c), plus any visas not required for the class specified in paragraph (1). ; (3) in paragraph (3)— (A) by striking 23,400, and inserting 20 percent of the worldwide level of family-sponsored immigrants under section 201(c) ; and (B) by striking classes specified in paragraphs (1) and (2). and inserting class specified in paragraph (2). ; and (4) in paragraph (4)— (A) by striking 65,000, and inserting 40 percent of the worldwide level of family-sponsored immigrants under section 201(c) ; and (B) by striking classes specified in paragraphs (1) through (3). and inserting class specified in paragraph (3). . (c) Termination of registration Section 203(g) ( 8 U.S.C. 1153(g) ) is amended to read as follows: (g) Lists (1) In general For purposes of carrying out the orderly administration of this title, the Secretary of State may make reasonable estimates of the anticipated numbers of immigrant visas to be issued during any quarter of any fiscal year within each of the categories under subsections (a), (b), and (c) and may rely upon such estimates in authorizing the issuance of visas. (2) Termination of registration (A) Information dissemination Not later than 180 days after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act , the Secretary of Homeland Security and the Secretary of State shall adopt a plan to broadly disseminate information to the public regarding termination of registration procedures described in subparagraphs (B) and (C), including procedures for notifying the Department of Homeland Security and the Department of State of any change of address on the part of a petitioner or a beneficiary of an immigrant visa petition. (B) Termination for failure to adjust The Secretary of Homeland Security shall terminate the registration of any alien who has evidenced an intention to acquire lawful permanent residence under section 245 and who fails to apply to adjust status within 1 year following notification to the alien of the availability of an immigrant visa. (C) Termination for failure to apply The Secretary of State shall terminate the registration of any alien not described in subparagraph (B) who fails to apply for an immigrant visa within 1 year following notification to the alien of the availability of such visa. (3) Reinstatement The registration of any alien that was terminated under paragraph (2) shall be reinstated if, within 2 years following the date of notification of the availability of such visa, the alien demonstrates that such failure to apply was due to good cause. . (d) Technical and conforming amendments (1) Definitions Section 101(a)(15)(K)(ii) ( 8 U.S.C. 1101(a)(15)(K)(ii) ) is amended by striking section 201(b)(2)(A)(i) and inserting section 201(b)(2) (other than clause (v) or (vi) of subparagraph (B)) . (2) Per country level Section 202(a)(1)(A) ( 8 U.S.C. 1152(a)(1)(A) ) is amended by striking section 201(b)(2)(A)(i) and inserting section 201(b)(2) (other than clause (v) or (vi) of subparagraph (B)) . (3) Rules for determining whether certain aliens are immediate relatives Section 201(f) ( 8 U.S.C. 1151(f) ) is amended— (A) in paragraph (1), by striking paragraphs (2) and (3), and inserting paragraph (2), ; (B) by striking paragraph (2); (C) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively; and (D) in paragraph (3), as redesignated by subparagraph (C), by striking through (3) and inserting and (2) . (4) Numerical limitation to any single foreign state Section 202(a)(4) ( 8 U.S.C. 1152(a)(4) ) is amended— (A) by striking subparagraphs (A) and (B); (B) by redesignating subparagraphs (C) and (D) as subparagraphs (A) and (B), respectively; and (C) in subparagraph (A), as redesignated by clause (ii), by striking section 203(a)(2)(B) and inserting section 203(a)(2) . (5) Allocation of immigrant visas Section 203(h) ( 8 U.S.C. 1153(h) ) is amended— (A) in paragraph (1)— (i) in the matter preceding subparagraph (A), by striking subsections (a)(2)(A) and (d) and inserting subsection (d) ; (ii) in subparagraph (A), by striking becomes available for such alien (or, in the case of subsection (d), the date on which an immigrant visa number became available for the alien’s parent), and inserting became available for the alien’s parent, ; and (iii) in subparagraph (B), by striking applicable ; (B) by amending paragraph (2) to read as follows: (2) Petitions described The petition described in this paragraph is a petition filed under section 204 for classification of the alien’s parent under subsection (a), (b), or (c). ; and (C) by amending paragraph (3) to read as follows: (3) Retention of priority date (A) Petitions filed for children For a petition originally filed to classify a child under subsection (d), if the age of the alien is determined under paragraph (1) to be 21 years of age or older on the date that a visa number becomes available to the alien’s parent who was the principal beneficiary of the petition, then, upon the parent’s admission to lawful permanent residence in the United States, the petition shall automatically be converted to a petition filed by the parent for classification of the alien under subsection (a)(2) and the petition shall retain the priority date established by the original petition. (B) Family and employment-based petitions The priority date for any family- or employment-based petition shall be the date of filing of the petition with the Secretary of Homeland Security (or the Secretary of State, if applicable), unless the filing of the petition was preceded by the filing of a labor certification with the Secretary of Labor, in which case that date shall constitute the priority date. The beneficiary of any petition shall retain his or her earliest priority date based on any petition filed on his or her behalf that was approvable when filed, regardless of the category of subsequent petitions. . (6) Procedure for granting immigrant status (A) Petitioning procedure Section 204 ( 8 U.S.C. 1154 ) is amended— (i) by striking subsection (a) and inserting the following: (a) Petitioning procedure (1) In general (A) Except as provided in subparagraph (H), any citizen of the United States or alien lawfully admitted for permanent residence claiming that an alien is entitled to classification by reason of a relationship described in subparagraph (A) or (B) of section 203(a)(1) or to an immediate relative status under section 201(b)(2)(A) may file a petition with the Secretary of Homeland Security for such classification. (B) An alien spouse or alien child described in section 201(b)(2)(C) may file a petition with the Secretary under this paragraph for classification of the alien (and the alien's children) under such section. (C) (i) An alien who is described in clause (ii) may file a petition with the Secretary under this subparagraph for classification of the alien (and any child of the alien) if the alien demonstrates to the Secretary that— (I) the marriage or the intent to marry the citizen of the United States or lawful permanent resident was entered into in good faith by the alien; and (II) during the marriage or relationship intended by the alien to be legally a marriage, the alien or a child of the alien has been battered or has been the subject of extreme cruelty perpetrated by the alien's spouse or intended spouse. (ii) For purposes of clause (i), an alien described in this clause is an alien— (I) (aa) who is the spouse of a citizen of the United States or lawful permanent resident; (bb) who believed that he or she had married a citizen of the United States or lawful permanent resident and with whom a marriage ceremony was actually performed and who otherwise meets any applicable requirements under this Act to establish the existence of and bona fides of a marriage, but whose marriage is not legitimate solely because of the bigamy of such citizen of the United States or lawful permanent resident; or (cc) who was a bona fide spouse of a citizen of the United States or a lawful permanent resident within the past 2 years and— (AA) whose spouse died within the past 2 years; (BB) whose spouse renounced citizenship status or renounced or lost status as a lawful permanent resident within the past 2 years related to an incident of domestic violence; or (CC) who demonstrates a connection between the legal termination of the marriage within the past 2 years and battering or extreme cruelty by a spouse who is a citizen of the United States or a lawful permanent resident spouse; (II) who is a person of good moral character; (III) who is eligible to be classified as an immediate relative under section 201(b)(2)(A) or who would have been so classified but for the bigamy of the citizen of the United States that the alien intended to marry; and (IV) who has resided with the alien's spouse or intended spouse. (D) An alien who is the child of a citizen or lawful permanent resident of the United States, or who was a child of a United States citizen or lawful permanent resident parent who within the past 2 years lost or renounced citizenship status related to an incident of domestic violence, and who is a person of good moral character, who is eligible to be classified as an immediate relative under section 201(b)(2)(A), and who resides, or has resided in the past, with the citizen or lawful permanent resident parent may file a petition with the Secretary of Homeland Security under this paragraph for classification of the alien (and any child of the alien) under such section if the alien demonstrates to the Secretary that the alien has been battered by or has been the subject of extreme cruelty perpetrated by the alien's citizen or lawful permanent resident parent. For purposes of this subparagraph, residence includes any period of visitation. (E) An alien who— (i) is the spouse, intended spouse, or child living abroad of a citizen or lawful permanent resident who— (I) is an employee of the United States Government; (II) is a member of the uniformed services (as defined in section 101(a) of title 10, United States Code); or (III) has subjected the alien or the alien's child to battery or extreme cruelty in the United States; and (ii) is eligible to file a petition under subparagraph (C) or (D), shall file such petition with the Secretary of Homeland Security under the procedures that apply to self-petitioners under subparagraph (C) or (D), as applicable. (F) For the purposes of any petition filed under subparagraph (C) or (D), the denaturalization, loss or renunciation of citizenship or lawful permanent resident status, death of the abuser, divorce, or changes to the abuser's citizenship or lawful permanent resident status after filing of the petition shall not adversely affect the approval of the petition, and for approved petitions shall not preclude the classification of the eligible self-petitioning spouse or child as an immediate relative or affect the alien's ability to adjust status under subsections (a) and (c) of section 245 or obtain status as a lawful permanent resident based on the approved self-petition under such clauses. (G) An alien may file a petition with the Secretary of Homeland Security under this paragraph for classification of the alien under section 201(b)(2)(A) if the alien— (i) is the parent of a citizen of the United States or was a parent of a citizen of the United States who, within the past 2 years, lost or renounced citizenship status related to an incident of domestic violence or died; (ii) is a person of good moral character; (iii) is eligible to be classified as an immediate relative under section 201(b)(2)(A); (iv) resides, or has resided, with the citizen daughter or son; and (v) demonstrates that the alien has been battered or subject to extreme cruelty by the citizen daughter or son. (H) (i) Subparagraph (A) shall not apply to a citizen of the United States who has been convicted of a specified offense against a minor, unless the Secretary of Homeland Security, in the Secretary's sole and unreviewable discretion, determines that the citizen poses no risk to the alien with respect to whom a petition described in subparagraph (A) is filed. (ii) For purposes of clause (i), the term specified offense against a minor has the meaning given such term in section 111 of the Adam Walsh Child Protection and Safety Act of 2006 ( 42 U.S.C. 16911 ). (2) Determination of good moral character Notwithstanding section 101(f), an act or conviction that is waivable with respect to the petitioner for purposes of a determination of the petitioner's admissibility under section 212(a) or deportability under section 237(a) shall not bar the Secretary of Homeland Security from finding the petitioner to be of good moral character under subparagraph (C) or (D) of paragraph (1), if the Secretary finds that the act or conviction was connected to the alien's having been battered or subjected to extreme cruelty. (3) Preference status (A) (i) Any child who attains 21 years of age who has filed a petition under paragraph (1)(D) that was filed or approved before the date on which the child attained 21 years of age shall be considered (if the child has not been admitted or approved for lawful permanent residence by the date the child attained 21 years of age) a petitioner for preference status under paragraph (1), (2), or (3) of section 203(a), whichever paragraph is applicable, with the same priority date assigned to the self-petition filed under paragraph (1)(D). No new petition shall be required to be filed. (ii) Any individual described in clause (i) is eligible for deferred action and work authorization. (iii) Any derivative child who attains 21 years of age who is included in a petition described in subparagraph (B) that was filed or approved before the date on which the child attained 21 years of age shall be considered (if the child has not been admitted or approved for lawful permanent residence by the date the child attained 21 years of age) a VAWA self-petitioner with the same priority date as that assigned to the petitioner in any petition described in subparagraph (B). No new petition shall be required to be filed. (iv) Any individual described in clause (iii) and any derivative child of a petitioner described in subparagraph (B) is eligible for deferred action and work authorization. (B) The petition referred to in subparagraph (A)(iii) is a petition filed by an alien under subparagraph (C) or (D) of paragraph (1) in which the child is included as a derivative beneficiary. (C) Nothing in the amendments made by the Child Status Protection Act ( Public Law 107–208 ; 116 Stat. 927) shall be construed to limit or deny any right or benefit provided under this paragraph. (D) Any alien who benefits from this paragraph may adjust status in accordance with subsections (a) and (c) of section 245 as an alien having an approved petition for classification under subparagraph (C) or (D) of paragraph (1). (E) For purposes of this paragraph, an individual who is not less than 21 years of age, who qualified to file a petition under paragraph (1)(D) as of the minute before the date on which the individual attained 21 years of age, and who did not file such a petition before such day, shall be treated as having filed a petition under such paragraph as of such day if a petition is filed for the status described in such paragraph before the individual attains 25 years of age and the individual shows that the abuse was at least 1 central reason for the filing delay. Subparagraphs (A) through (D) shall apply to an individual described in this subparagraph in the same manner as an individual filing a petition under paragraph (1)(D). (4) Classification as alien with extraordinary ability Any alien desiring to be classified under subparagraph (I), (J), (K), (L), or (M) of section 201(b)(1) or section 203(b)(1)(A), or any person on behalf of such an alien, may file a petition with the Secretary of Homeland Security for such classification. (5) Classification as employment-based immigrant Any employer desiring and intending to employ within the United States an alien entitled to classification under paragraph (1)(B), (1)(C), (2), or (3) of section 203(b) may file a petition with the Secretary of Homeland Security for such classification. (6) Classification as special immigrant (A) Any alien (other than a special immigrant under section 101(a)(27)(D)) desiring to be classified under section 203(b)(4), or any person on behalf of such an alien, may file a petition with the Secretary of Homeland Security for such classification. (B) Aliens claiming status as a special immigrant under section 101(a)(27)(D) may file a petition only with the Secretary of State and only after notification by the Secretary that such status has been recommended and approved pursuant to such section. (7) Classification as immigrant investor Any alien desiring to be classified under paragraph (5) or (6) of section 203(b) may file a petition with the Secretary of Homeland Security for such classification. (8) Diversity visa (A) Any alien desiring to be provided an immigrant visa under section 203(c) may file a petition at the place and time determined by the Secretary of State by regulation. Only 1 such petition may be filed by an alien with respect to any petitioning period established. If more than 1 petition is submitted all such petitions submitted for such period by the alien shall be voided. (B) (i) The Secretary of State shall designate a period for the filing of petitions with respect to visas which may be issued under section 203(c) for the fiscal year beginning after the end of the period. (ii) Aliens who qualify, through random selection, for a visa under section 203(c) shall remain eligible to receive such visa only through the end of the specific fiscal year for which they were selected. (iii) The Secretary of State shall prescribe such regulations as may be necessary to carry out this subparagraph. (C) A petition under this paragraph shall be in such form as the Secretary of State may by regulation prescribe and shall contain such information and be supported by such documentary evidence as the Secretary of State may require. (D) Each petition to compete for consideration for a visa under section 203(c) shall be accompanied by a fee equal to $30. All amounts collected under this subparagraph shall be deposited into the Treasury as miscellaneous receipts. (9) Consideration of credible evidence In acting on petitions filed under subparagraph (C) or (D) of paragraph (1), or in making determinations under paragraphs (2) and (3), the Secretary of Homeland Security shall consider any credible evidence relevant to the petition. The determination of what evidence is credible and the weight to be given that evidence shall be within the sole discretion of the Secretary. (10) Work authorization (A) Upon the approval of a petition as a VAWA self-petitioner, the alien— (i) is eligible for work authorization; and (ii) may be provided an employment authorized endorsement or appropriate work permit incidental to such approval. (B) Notwithstanding any provision of this Act restricting eligibility for employment in the United States, the Secretary of Homeland Security shall grant employment authorization to an alien who has filed an application for status as a VAWA self-petitioner on the date that is the earlier of— (i) the date on which the alien’s application for such status is approved; or (ii) a date determined by the Secretary that is not later than 180 days after the date on which the alien filed the application. (11) Limitation Notwithstanding paragraphs (1) through (10), an individual who was a VAWA petitioner or who had the status of a nonimmigrant under subparagraph (T) or (U) of section 101(a)(15) may not file a petition for classification under this section or section 214 to classify any person who committed the battery or extreme cruelty or trafficking against the individual (or the individual's child), which established the individual's (or individual's child's) eligibility as a VAWA petitioner or for such nonimmigrant status. ; (ii) in subsection (c)(1), by striking or preference status ; and (iii) in subsection (h), by striking or a petition filed under subsection (a)(1)(B)(ii) . (B) Conforming amendments The Act ( 8 U.S.C. 1101 et seq. ) is amended— (i) in section 101(a)— (I) in paragraph (15)(K), by striking 204(a)(1)(A)(viii)(I) each place such term appears and inserting 204(a)(1)(H)(i) ; (II) in paragraph (50), by striking 204(a)(1)(A)(iii)(II)(aa)(BB), 204(a)(1)(B)(ii)(II)(aa)(BB), and inserting 204(a)(1)(C)(ii)(I)(bb) or ; and (III) in paragraph (51)— (aa) in subparagraph (A), by striking 204(a)(1)(A) and inserting 204(a)(1) ; (bb) by striking subparagraph (B); and (cc) by redesignating subparagraphs (C), (D), (E), (F), and (G) as subparagraphs (B), (C), (D), (E), and (F), respectively; (ii) in section 212(a)(4)(C)(i)— (I) in subclause (I), by striking clause (ii), (iii), or (iv) of section 204(a)(1)(A), or and inserting subparagraph (B), (C), or (D) of section 204(a)(1); ; (II) by striking subclause (II); and (III) by redesignating subclause (III) as subclause (II); (iii) in section 216(c)(4)(D), by striking 204(a)(1)(A)(iii)(II)(aa)(BB) and inserting 204(a)(1)(C)(ii)(I)(bb) ; and (iv) in section 240(c)(7)(C)(iv)(I), by striking clause (iii) or (iv) of section 204(a)(1)(A), clause (ii) or (iii) of section 204(a)(1)(B), and inserting subparagraph (C) or (D) of section 204(a)(1), . (7) Excludable aliens Section 212(d)(12)(B) ( 8 U.S.C. 1182(d)(12)(B) ) is amended by striking section 201(b)(2)(A) and inserting section 201(b)(2) (other than subparagraph (B)(vi)) . (8) Admission of nonimmigrants Section 214(r)(3)(A) ( 8 U.S.C. 1184(r)(3)(A) ) is amended by striking section 201(b)(2)(A)(i). and inserting section 201(b)(2) (other than clause (v) or (vi) of subparagraph (B)). . (9) Refugee crisis in Iraq Act of 2007 Section 1243(a)(4) of the Refugee Crisis in Iraq Act of 2007 ( 8 U.S.C. 1157 note) is amended by striking section 201(b)(2)(A)(i) and inserting section 201(b)(2) (other than clause (v) or (vi) of subparagraph (B)) . (10) Processing of visa applications Section 233 of the Department of State Authorization Act, Fiscal Year 2003 ( 8 U.S.C. 1201 note) is amended by striking section 201(b)(2)(A)(i) and inserting section 201(b)(2) (other than clause (v) or (vi) of subparagraph (B)) . (11) Adjustment of status Section 245(a) ( 8 U.S.C. 1255(a) ) is amended to read as follows: (a) (1) The status of an alien who was inspected and admitted or paroled into the United States or the status of any other alien having an approved petition for classification as a VAWA self-petitioner may be adjusted by the Attorney General or the Secretary of Homeland Security, in the Attorney General's or the Secretary's discretion and under such regulations as the Attorney General or Secretary may prescribe, to that of an alien lawfully admitted for permanent residence (regardless of whether the alien has already been admitted for permanent residence) if— (A) the alien makes an application for such adjustment; (B) the alien is eligible to receive an immigrant visa and is admissible to the United States for permanent residence; and (C) subject to paragraph (2), an immigrant visa is immediately available to the alien at the time the alien's application is filed. (2) (A) An application that is based on a petition approved or approvable under subparagraph (A) or (B) of section 204(a)(1) may be filed without regard to the limitation set forth in paragraph (1)(C). (B) An application for adjustment filed for an alien under this paragraph may not be approved until such time as an immigrant visa becomes available for the alien. . (e) Effective date The amendments made by this section shall take effect on the date of the enactment of this Act. 2306. Numerical limitations on individual foreign states (a) Numerical limitation to any single foreign State Section 202(a)(2) ( 8 U.S.C. 1152(a)(2) ) is amended— (1) in the paragraph heading, by striking and employment-based ; (2) by striking (3), (4), and (5), and inserting (3) and (4), ; (3) by striking subsections (a) and (b) of section 203 and inserting section 203(a) ; (4) by striking 7 and inserting 15 ; and (5) by striking such subsections and inserting such section . (b) Conforming amendments Section 202 ( 8 U.S.C. 1152 ) is amended— (1) in subsection (a)— (A) in paragraph (3), by striking both subsections (a) and (b) of section 203 and inserting section 203(a) ; and (B) by striking paragraph (5); and (2) by amending subsection (e) to read as follows: (e) Special rules for countries at ceiling If it is determined that the total number of immigrant visas made available under section 203(a) to natives of any single foreign state or dependent area will exceed the numerical limitation specified in subsection (a)(2) in any fiscal year, in determining the allotment of immigrant visa numbers to natives under section 203(a), visa numbers with respect to natives of that state or area shall be allocated (to the extent practicable and otherwise consistent with this section and section 203) in a manner so that, except as provided in subsection (a)(4), the proportion of the visa numbers made available under each of paragraphs (1) through (4) of section 203(a) is equal to the ratio of the total number of visas made available under the respective paragraph to the total number of visas made available under section 203(a). . (c) Country-Specific offset Section 2 of the Chinese Student Protection Act of 1992 ( 8 U.S.C. 1255 note) is amended— (1) in subsection (a), by striking subsection (e)) and inserting subsection (d)) ; and (2) by striking subsection (d) and redesignating subsection (e) as subsection (d). (d) Effective date The amendments made by this section shall take effect 1 year after the date of the enactment of this Act. 2307. Allocation of immigrant visas (a) Preference allocation for family-Sponsored immigrants (1) In general Section 203(a) ( 8 U.S.C. 1153(a) ), as amended by section 2305(b), is further amended to read as follows: (a) Preference allocation for family-Sponsored immigrants Aliens subject to the worldwide level specified in section 201(c) for family-sponsored immigrants shall be allotted visas as follows: (1) Sons and daughters of citizens Qualified immigrants who are— (A) the unmarried sons or unmarried daughters but not the children of citizens of the United States shall be allocated visas in a number not to exceed 35 percent of the worldwide level authorized in section 201(c), plus the sum of— (i) the number of visas not required for the class specified in paragraph (2) for the current fiscal year; and (ii) the number of visas not required for the class specified in subparagraph (B); or (B) the married sons or married daughters of citizens of the United States who are 31 years of age or younger at the time of filing a petition under section 204 shall be allocated visas in a number not to exceed 25 percent of the worldwide level authorized in section 201(c), plus the number of any visas not required for the class specified in subparagraph (A) current fiscal year. (2) Sons and daughters of permanent residents Qualified immigrants who are the unmarried sons or unmarried daughters of aliens admitted for permanent residence shall be allocated visas in a number not to exceed 40 percent of the worldwide level authorized in section 201(c), plus any visas not required for the class specified in paragraph (1)(A). . (2) Conforming amendments (A) Procedure for granting immigrant status Section 204(f)(1) ( 8 U.S.C. 1154(f)(1) ) is amended by striking section 201(b), 203(a)(1), or 203(a)(3), and inserting section 201(b) or subparagraph (A) or (B) of section 203(a)(1) . (B) Automatic conversion For the purposes of any petition pending or approved based on a relationship described— (i) in subparagraph (A) of section 203(a)(1) of the Immigration and Nationality Act ( 8 U.S.C. 1153(a)(1) ), as amended by paragraph (1), and notwithstanding the age of the alien, such a petition shall be deemed reclassified as a petition based on a relationship described in subparagraph (B) of such section 203(a)(1) upon the marriage of such alien; or (ii) in subparagraph (B) of such section 203(a)(1), such a petition shall be deemed reclassified as a petition based on a relationship described in subparagraph (A) of such section 203(a)(1) upon the legal termination of marriage or death of such alien’s spouse. (3) Effective date The amendments made by this subsection shall take effect on the first day of the first fiscal year that begins at least 18 months following the date of the enactment of this Act. (b) Preference allocation for employment-Based immigrants (1) In general Section 201(b)(1) ( 8 U.S.C. 1151(b)(1) ), as amended by sections 2103(c) and 2212(d), is further amended by adding at the end the following: (H) Derivative beneficiaries as described in section 203(d) of employment-based immigrants under section 203(b). (I) Aliens with extraordinary ability in the sciences, arts, education, business, or athletics which has been demonstrated by sustained national or international acclaim, if, with respect to any such alien— (i) the achievements of such alien have been recognized in the field through extensive documentation; (ii) such alien seeks to enter the United States to continue work in the area of extraordinary ability; and (iii) the entry of such alien into the United States will substantially benefit prospectively the United States. (J) Aliens who are outstanding professors and researchers if, with respect to any such alien— (i) the alien is recognized internationally as outstanding in a specific academic area; (ii) the alien has at least 3 years of experience in teaching or research in the academic area; and (iii) the alien seeks to enter the United States— (I) to be employed in a tenured position (or tenure-track position) within a not for profit university or institution of higher education to teach in the academic area; (II) for employment in a comparable position with a not for profit university or institution of higher education, or a governmental research organization, to conduct research in the area; or (III) for employment in a comparable position to conduct research in the area with a department, division, or institute of a private employer, if the department, division, or institute employs at least 3 persons full-time in research activities and has achieved documented accomplishments in an academic field. (K) Aliens who are multinational executives and managers if, with respect to any such alien— (i) in the 3 years preceding the time of the alien’s application for classification and admission into the United States under this subparagraph, the alien has been employed for at least 1 year by a firm or corporation or other legal entity or an affiliate or subsidiary thereof; and (ii) the alien seeks to enter the United States in order to continue to render services to the same employer or to a subsidiary or affiliate thereof in a capacity that is managerial or executive. (L) Aliens who have earned a doctorate degree from an institution of higher education in the United States or the foreign equivalent. (M) Alien physicians who have completed the foreign residency requirements under section 212(e) or obtained a waiver of these requirements or an exemption requested by an interested State agency or by an interested Federal agency under section 214(l), including those alien physicians who completed such service before the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act . (N) Advanced degrees in a stem field (i) In general An immigrant who— (I) has earned a master’s or higher degree in a field of science, technology, engineering, or mathematics included in the Department of Education's Classification of Instructional Programs taxonomy within the summary groups of computer and information sciences and support services, engineering, mathematics and statistics, biological and biomedical sciences, and physical sciences, from a United States institution of higher education; (II) has an offer of employment from a United States employer in a field related to such degree; and (III) earned the qualifying graduate degree during the 5-year period immediately before the initial filing date of the petition under which the nonimmigrant is a beneficiary. (ii) Definition In this subparagraph, the term United States institution of higher education means an institution that— (I) is described in section 101(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1001(a) ) or is a proprietary institution of higher education (as defined in section 102(b) of such Act ( 20 U.S.C. 1002(b) )); (II) was classified by the Carnegie Foundation for the Advancement of Teaching on January 1, 2012, as a doctorate-granting university with a very high or high level of research activity or classified by the National Science Foundation after the date of enactment of this subparagraph, pursuant to an application by the institution, as having equivalent research activity to those institutions that had been classified by the Carnegie Foundation as being doctorate-granting universities with a very high or high level of research activity; and (III) is accredited by an accrediting body that is itself accredited either by the Department of Education or by the Council for Higher Education Accreditation. . (2) Exception from labor certification requirement for STEM immigrants Section 212(a)(5)(D) ( 8 U.S.C. 1182(a)(5)(D) ) is amended to read as follows: (D) Application of grounds (i) In general Except as provided in clause (ii), the grounds for inadmissibility of aliens under subparagraphs (A) and (B) shall apply to immigrants seeking admission or adjustment of status under paragraph (2) or (3) of section 203(b). (ii) Special rule for STEM immigrants The grounds for inadmissibility of aliens under subparagraph (A) shall not apply to an immigrant seeking admission or adjustment of status under section 203(b)(2)(B) or 201(b)(1)(N). . (c) Technical and conforming amendments (1) Treatment of derivative family members Section 203(d) ( 8 U.S.C. 1153(d) ) is amended to read as follows: (d) Treatment of family members If accompanying or following to join a spouse or parent issued a visa under subsection (a), (b), or (c), subparagraph (I), (J), (K), (L), or (M) of section 201(b)(1), or section 201(b)(2), a spouse or child (as defined in subparagraph (A), (B), (C), (D), or (E) of section 101(b)(1)) shall be entitled to the same immigrant status and the same order of consideration provided in the respective provision. . (2) Aliens who are priority workers or members of the professions holding advanced degrees Section 203(b) ( 8 U.S.C. 1153(b) ) is amended— (A) in the matter preceding paragraph (1), by striking Aliens and inserting Other than aliens described in paragraph (1) or (2)(B), aliens ; (B) in paragraph (1), by striking the matter preceding subparagraph (A) and inserting Aliens described in any of the following subparagraphs may be admitted to the United States without respect to the worldwide level specified in section 201(d) ; and (C) by amending paragraph (2) to read as follows: (2) Aliens who are members of professions holding advanced degrees or prospective employees of national security facilities (A) In general Visas shall be made available, in a number not to exceed 40 percent of the worldwide level authorized in section 201(d), plus any visas not required for the classes specified in paragraph (5) to qualified immigrants who are either of the following: (i) Members of the professions holding advanced degrees or their equivalent whose services in the sciences, arts, professions, or business are sought by an employer in the United States, including alien physicians holding foreign medical degrees that have been deemed sufficient for acceptance by an accredited United States medical residency or fellowship program. (ii) Prospective employees, in a research capacity, of Federal national security, science, and technology laboratories, centers, and agencies, if such immigrants have been lawfully present in the United States for two years prior to employment (unless the Secretary of Homeland Security determines, including upon request of the prospective laboratory, center, or agency, that exceptional circumstances exist justifying waiver of the presence requirement). (B) Waiver of job offer (i) National interest waiver Subject to clause (ii), the Secretary of Homeland Security may, if the Secretary deems it to be in the national interest, waive the requirements of subparagraph (A) that an alien’s services in the sciences, arts, professions, or business be sought by an employer in the United States. (ii) Physicians working in shortage areas or veterans facilities (I) In general The Secretary shall grant a national interest waiver pursuant to clause (i) on behalf of any alien physician with respect to whom a petition for preference classification has been filed under subparagraph (A) if— (aa) the alien physician agrees to work on a full- time basis practicing primary care, specialty medicine, or a combination thereof, in an area or areas designated by the Secretary of Health and Human Services as having a shortage of health care professionals or at a health care facility under the jurisdiction of the Secretary of Veterans Affairs; or (bb) the alien physician is pursuing such waiver based upon service at a facility or facilities that serve patients who reside in a geographic area or areas designated by the Secretary of Health and Human Services as having a shortage of health care professionals (without regard to whether such facility or facilities are located within such an area) and a Federal agency or a local, county, regional, or State department of public health determines that the alien physician’s work at such facility was or will be in the public interest. (II) Prohibition (aa) No permanent resident visa may be issued to an alien physician described in subclause (I) by the Secretary of State under section 204(b), and the Secretary of Homeland Security may not adjust the status of such an alien physician from that of a nonimmigrant alien to that of a permanent resident alien under section 245, until such time as the alien has worked full time as a physician for an aggregate of 5 years (not including the time served in the status of an alien described in section 101(a)(15)(J)), in an area or areas designated by the Secretary of Health and Human Services as having a shortage of health care professionals or at a health care facility under the jurisdiction of the Secretary of Veterans Affairs, or at a facility or facilities meeting the requirements of subclause (I)(bb). (bb) The 5-year service requirement of item (aa) shall be counted from the date the alien physician begins work in the shortage area in any legal status and not the date an immigrant visa petition is filed or approved. Such service shall be aggregated without regard to when such service began and without regard to whether such service began during or in conjunction with a course of graduate medical education. (cc) An alien physician shall not be required to submit an employment contract with a term exceeding the balance of the 5-year commitment yet to be served, nor an employment contract dated within a minimum time period prior to filing of a visa petition pursuant to this subsection. (dd) An alien physician shall not be required to file additional immigrant visa petitions upon a change of work location from the location approved in the original national interest immigrant petition. (III) Statutory construction Nothing in this subparagraph may be construed to prevent the filing of a petition with the Secretary of Homeland Security for classification under section 204(a), by an alien physician described in subclause (I) prior to the date by which such alien physician has completed the service described in subclause (II) or in section 214(l). (C) Guidance and rules The Secretary may prescribe such policy guidance and rules as the Secretary considers appropriate for purposes of subparagraph (A) to ensure national security and promote the interests and competitiveness of the United States. Such rules shall include a definition of the term Federal national security, science, and technology laboratories, centers, and agencies for purposes of clause (ii) of subparagraph (A), which shall include the following: (i) The national security, science, and technology laboratories, centers, and agencies of the Department of Defense, the Department of Energy, the Department of Homeland Security, the elements of the intelligence community (as that term is defined in section 4(3) of the National Security Act of 1947), and any other department or agency of the Federal Government that conducts or funds research and development in the essential national interest. (ii) Federally funded research and development centers (FFRDCs) that are primarily supported by a department or agency of the Federal Government specified in clause (i). . (3) Skilled workers, professionals, and other workers (A) In general Section 203(b)(3)(A) ( 8 U.S.C. 1153(b)(3)(A) ) is amended by striking in a number not to exceed 28.6 percent of such worldwide level, plus any visas not required for the classes specified in paragraphs (1) and (2), and inserting in a number not to exceed 40 percent of the worldwide level authorized in section 201(d), plus any visas not required for the class specified in paragraph (2), . (B) Medical license requirements Section 214(i)(2)(A) ( 8 U.S.C. 1184(i)(2)(A) ) is amended by adding at the end including in the case of a medical doctor, the licensure required to practice medicine in the United States, . (C) Repeal of limitation on other workers Section 203(b)(3) ( 8 U.S.C. 1153(b)(3) ) is amended— (i) by striking subparagraph (B); and (ii) redesignated subparagraph (C) as subparagraph (B). (4) Certain special immigrants Section 203(b)(4) ( 8 U.S.C. 1153(b)(4) ) is amended by striking in a number not to exceed 7.1 percent of such worldwide level, and inserting in a number not to exceed 10 percent of the worldwide level authorized in section 201(d), plus any visas not required for the class specified in paragraph (3), . (5) Employment creation Section 203(b)(5)(A) ( 8 U.S.C. 1153(b)(5)(A) ) is amended by striking in a number not to exceed 7.1 percent of such worldwide level, and inserting in a number not to exceed 10 percent of the worldwide level authorized in section 201(d), plus any visas not required for the class specified in paragraph (4), . (d) Naturalization of employees of certain national security facilities without regard to residency requirements Section 316 ( 8 U.S.C. 1427 ) is amended by adding at the end the following: (g) (1) Any person who, while an alien or a noncitizen national of the United States, has been employed in a research capacity at a Federal national security, science, and technology laboratory, center, or agency (as defined pursuant to section 203(b)(2)(C)) for a period or periods aggregating one year or more may, in the discretion of the Secretary, be naturalized without regard to the residence requirements of this section if the person— (A) has complied with all requirements as determined by the Secretary of Homeland Security, the Secretary of Defense, the Secretary of Energy, or the head of a petitioning department or agency of the Federal Government, including contractual requirements to maintain employment in a research capacity with a Federal national security, science, and technology laboratory, center, or agency for a period not to exceed five years; and (B) has favorably completed and adjudicated a background investigation at the appropriate level, from the employing department or agency of the Federal Government within the last five years. (2) The number of aliens or noncitizen nationals naturalized in any fiscal year under this subsection shall not exceed a number as defined by the Secretary of Homeland Security, in consultation with the head of the petitioning department or agency of the Federal Government. . 2308. Inclusion of communities adversely affected by a recommendation of the Defense Base Closure and Realignment Commission as targeted employment areas (a) In general Section 203(b)(5)(B)(ii) ( 8 U.S.C. 1153(b)(5)(B)(ii) ) is amended by inserting , any community adversely affected by a recommendation by the Defense Base Closure and Realignment Commission, after rural area . (b) Regulations The Secretary, in consultation with the Secretary of Defense, shall implement the amendment made by subsection (a) through appropriate regulations. 2309. V nonimmigrant visas (a) Nonimmigrant eligibility Subparagraph (V) of section 101(a)(15) ( 8 U.S.C. 1101(a)(15) ) is amended to read as follows: (V) (i) subject to section 214(q)(1) and section 212(a)(4), an alien who is the beneficiary of an approved petition under section 203(a) as— (I) the unmarried son or unmarried daughter of a citizen of the United States; (II) the unmarried son or unmarried daughter of an alien lawfully admitted for permanent residence; or (III) the married son or married daughter of a citizen of the United States and who is 31 years of age or younger; or (ii) subject to section 214(q)(2), an alien who is— (I) the sibling of a citizen of the United States; or (II) the married son or married daughter of a citizen of the United States and who is older than 31 years of age; . (b) Employment and period of admission of nonimmigrants described in section 101(a)(15)(V) Section 214(q) ( 8 U.S.C. 1184(q) ) is amended to read as follows: (q) Nonimmigrants described in section 101(a)(15)(V) (1) Certain sons and daughters (A) Employment authorization The Secretary shall— (i) authorize a nonimmigrant admitted pursuant to section 101(a)(15)(V)(i) to engage in employment in the United States during the period of such nonimmigrant's authorized admission; and (ii) provide such a nonimmigrant with an employment authorized endorsement or other appropriate document signifying authorization of employment. (B) Termination of admission The period of authorized admission for such a nonimmigrant shall terminate 30 days after the date on which— (i) such nonimmigrant’s application for an immigrant visa pursuant to the approval of a petition under subsection (a) or (c) of section 203 is denied; or (ii) such nonimmigrant’s application for adjustment of status under section 245 pursuant to the approval of such a petition is denied. (2) Siblings and sons and daughters of citizens (A) Employment authorization The Secretary may not authorize a nonimmigrant admitted pursuant to section 101(a)(15)(V)(ii) to engage in employment in the United States. (B) Period of admission The period of authorized admission as such a nonimmigrant may not exceed 60 days per fiscal year. (C) Treatment of period of admission An alien admitted under section 101(a)(15)(V) may not receive an allocation of points pursuant to section 203(c) for residence in the United States while admitted as such a nonimmigrant. . (c) Public benefits A noncitizen who is lawfully present in the United States pursuant to section 101(a)(15)(V) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15)(V) ) is not eligible for any means-tested public benefits (as such term is defined and implemented in section 403 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 ( 8 U.S.C. 1613 )). A noncitizen admitted under this section— (1) is not entitled to the premium assistance tax credit authorized under section 36B of the Internal Revenue Code of 1986 for his or her coverage; (2) shall be subject to the rules applicable to individuals not lawfully present that are set forth in subsection (e) of such section; (3) shall be subject to the rules applicable to individuals not lawfully present that are set forth in section 1402(e) of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18071(e) ); and (4) shall be subject to the rules applicable to individuals not lawfully present set forth in section 5000A(d)(3) of the Internal Revenue Code of 1986. (d) Effective date The amendments made by this section shall take effect on the first day of the first fiscal year beginning after the date of the enactment of this Act. 2310. Fiancée and fiancé child status protection (a) Definition Section 101(a)(15)(K) ( 8 U.S.C. 1101(a)(15)(K) , as amended by section 2305(d)(6)(B)(i)(I), is further amended— (1) in clause (i), by inserting or of an alien lawfully admitted for permanent residence after 204(a)(1)(H)(i)) ; (2) in clause (ii), by inserting or of an alien lawfully admitted for permanent residence after 204(a)(1)(H)(i)) ; and (3) in clause (iii), by striking the semicolon and inserting , provided that a determination of the age of such child is made using the age of the alien on the date on which the fiancé, fiancée, or immigrant visa petition is filed with the Secretary of Homeland Security to classify the alien's parent as the fiancée or fiancé of a United States citizen or of an alien lawfully admitted for permanent residence (in the case of an alien parent described in clause (i)) or as the spouse of a citizen of the United States or of an alien lawfully admitted to permanent residence under section 201(b)(2)(A) (in the case of an alien parent described in clause (ii)); . (b) Adjustment of status authorized Section 214(d) ( 8 U.S.C. 1184(d) ) is amended— (1) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and (2) in paragraph (1), by striking In the event and all that follows through the end; and (3) by inserting after paragraph (1) the following: (2) (A) If an alien does not marry the petitioner under paragraph (1) within 3 months after the alien and the alien's children are admitted into the United States, the visa previously issued under the provisions of section 1101(a)(15)(K)(i) shall automatically expire and such alien and children shall be required to depart from the United States. If such aliens fail to depart from the United States, they shall be placed in proceedings in accordance with sections 240 and 241. (B) Subject to subparagraphs (C) and (D), if an alien marries the petitioner described in section 101(a)(15)(K)(i) within 90 days after the alien is admitted into the United States, the Secretary or the Attorney General, subject to the provisions of section 245(d), may adjust the status of the alien, and any children accompanying or following to join the alien, to that of an alien lawfully admitted for permanent residence on a conditional basis under section 216 if the alien and any such children apply for such adjustment and are not determined to be inadmissible to the United States. If the alien does not apply for such adjustment within 6 months after the marriage, the visa issued under the provisions of section 1101(a)(15)(K) shall automatically expire. (C) Paragraphs (5) and (7)(A) of section 212(a) shall not apply to an alien who is eligible to apply for adjustment of the alien's status to an alien lawfully admitted for permanent residence under this section. (D) An alien eligible for a waiver of inadmissibility as otherwise authorized under this Act or the Border Security, Economic Opportunity, and Immigration Modernization Act shall be permitted to apply for adjustment of the alien's status to that of an alien lawfully admitted for permanent residence under this section. . (c) Age determination Section 245(d) ( 8 U.S.C. 1255(d) ) is amended— (1) by striking The Attorney General and inserting (1) The Secretary of Homeland Security ; (2) in paragraph (1), as redesignated, by striking Attorney General and inserting Secretary ; and (3) by adding at the end the following: (2) A determination of the age of an alien admitted to the United States under section 101(a)(15)(K)(iii) shall be made, for purposes of adjustment to the status of an alien lawfully admitted for permanent residence on a conditional basis under section 216, using the age of the alien on the date on which the fiancé, fiancée, or immigrant visa petition was filed with the Secretary of Homeland Security to classify the alien's parent as the fiancée or fiancé of a United States citizen or of an alien lawfully admitted to permanent residence (in the case of an alien parent admitted to the United States under section 101(a)(15)(K)(i)) or as the spouse of a United States citizen or of an alien lawfully admitted to permanent residence under section 201(b)(2)(A) (in the case of an alien parent admitted to the United States under section 101(a)(15)(K)(ii)). . (d) Applicability The amendments made by this section shall apply to all petitions or applications described in such amendments that are pending as of the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act . (e) Technical and conforming amendments (1) Definitions Section 101(a)(15)(K) ( 8 U.S.C. 1101(a)(15)(K) ), as amended by subsection (a), is further amended— (A) in clause (ii), by striking section 201(b)(2)(A)(i) and inserting section 201(b)(2) ; and (B) in clause (iii), by striking section 201(b)(2)(A)(i) and inserting section 201(b)(2) . (2) Age determination Paragraph (2) of section 245(d) ( 8 U.S.C. 1255(d) ), as added by subsection (c), is amended by striking section 201(b)(2)(A)(i) and inserting 201(b)(2) . (3) Effective date The amendments made by this subsection shall take effect on the first day of the first fiscal year beginning no earlier than 1 year after the date of the enactment of this Act. 2311. Equal treatment for all stepchildren Section 101(b)(1)(B) ( 8 U.S.C. 1101(b)(1)(B) ) is amended by striking eighteen years and inserting 21 years . 2312. Modification of adoption age requirements Section 101(b)(1) ( 8 U.S.C. 1101(b)(1) ) is amended— (1) in subparagraph (E)— (A) by striking (E)(i) and inserting (E) ; (B) by striking under the age of sixteen years and inserting younger than 18 years of age, or a child adopted when 18 years of age or older if the adopting parent or parents initiated the legal adoption process before the child reached 18 years of age ; (C) by striking ; or and inserting a semicolon; and (D) by striking clause (ii); (2) in subparagraph (F)— (A) by striking (F)(i) and inserting (F) ; (B) by striking sixteen and inserting 18 ; (C) by striking Attorney General and inserting Secretary of Homeland Security ; and (D) by striking clause (ii); and (3) in subparagraph (G), by striking 16 and inserting 18 . 2313. Relief for orphans, widows, and widowers (a) In general (1) Special rule for orphans and spouses In applying clauses (iii) and (iv) of section 201(b)(2)(B) of the Immigration and Nationality Act, as added by section 2305(a) of this Act, to an alien whose citizen or lawful permanent resident relative died before the date of the enactment of this Act, the alien relative may file the classification petition under section 204(a)(1)(A)(ii) of the Immigration and Nationality Act not later than 2 years after the date of the enactment of this Act. (2) Eligibility for parole If an alien was excluded, deported, removed, or departed voluntarily before the date of the enactment of this Act based solely upon the alien's lack of classification as an immediate relative (as defined in section 201(b)(2)(B)(iv) of the Immigration and Nationality Act, as amended by section 2305(a) of this Act) due to the death of such citizen or resident— (A) such alien shall be eligible for parole into the United States pursuant to the Secretary's discretionary authority under section 212(d)(5) of such Act ( 8 U.S.C. 1182(d)(5) ); and (B) such alien's application for adjustment of status shall be considered by the Secretary notwithstanding section 212(a)(9) of such Act ( 8 U.S.C. 1182(a)(9) ). (3) Eligibility for parole If an alien described in section 204(l) of the Immigration and Nationality Act ( 8 U.S.C. 1154(l) ) was excluded, deported, removed, or departed voluntarily before the date of the enactment of this Act— (A) such alien shall be eligible for parole into the United States pursuant to the Secretary's discretionary authority under section 212(d)(5) of such Act ( 8 U.S.C. 1182(d)(5) ); and (B) such alien's application for adjustment of status shall be considered by the Secretary notwithstanding section 212(a)(9) of such Act ( 8 U.S.C. 1182(a)(9) ). (b) Processing of immigrant visas and derivative petitions (1) In general Section 204(b) ( 8 U.S.C. 1154(b) ) is amended— (A) by striking After an investigation and inserting (1) After an investigation ; and (B) by adding at the end the following: (2) (A) Any alien described in subparagraph (B) whose qualifying relative died before the completion of immigrant visa processing may have an immigrant visa application adjudicated as if such death had not occurred. An immigrant visa issued before the death of the qualifying relative shall remain valid after such death. (B) An alien described in this subparagraph is an alien who— (i) is an immediate relative (as described in section 201(b)(2)(B)); (ii) is a family-sponsored immigrant (as described in subsection (a) or (d) of section 203); (iii) is a derivative beneficiary of an employment-based immigrant under section 203(b) (as described in section 203(d)); or (iv) is the spouse or child of a refugee (as described in section 207(c)(2)) or an asylee (as described in section 208(b)(3)). . (2) Transition period (A) In general Notwithstanding a denial or revocation of an application for an immigrant visa for an alien due to the death of the qualifying relative before the date of the enactment of this Act, such application may be renewed by the alien through a motion to reopen, without fee. (B) Inapplicability of bars to entry Notwithstanding section 212(a)(9) of the Immigration and Nationality Act ( 8 U.S.C. 1182(a)(9) ), an alien's application for an immigrant visa shall be considered if the alien was excluded, deported, removed, or departed voluntarily before the date of the enactment of this Act. (c) Naturalization Section 319(a) ( 8 U.S.C. 1430(a) ) is amended by striking States, and inserting States (or if the spouse is deceased, the spouse was a citizen of the United States), . (d) Waivers of inadmissibility Section 212 ( 8 U.S.C. 1182 ) is amended by adding at the end the following: (v) Continued waiver eligibility for widows, widowers, and orphans In the case of an alien who would have been statutorily eligible for any waiver of inadmissibility under this Act but for the death of a qualifying relative, the eligibility of such alien shall be preserved as if the death had not occurred and the death of the qualifying relative shall be the functional equivalent of hardship for purposes of any waiver of inadmissibility which requires a showing of hardship. . (e) Surviving relative consideration for certain petitions and applications Section 204(l)(1) ( 8 U.S.C. 1154(l)(1) ) is amended— (1) by striking who resided in the United States at the time of the death of the qualifying relative and who continues to reside in the United States ; and (2) by striking related applications, and inserting related applications (including affidavits of support), . (f) Family-Sponsored immigrants Section 212(a)(4)(C)(i) ( 8 U.S.C. 1182(a)(4)(C)(i) ), as amended by section 2305(d)(6)(B)(iii), is further amended by adding at the end the following: (III) the status as a surviving relative under 204(l); or . 2314. Discretionary authority with respect to removal, deportation, or inadmissibility of citizen and resident immediate family members (a) Applications for relief from removal Section 240(c)(4) ( 8 U.S.C. 1229a(c)(4) ) is amended by adding at the end the following: (D) Judicial discretion In the case of an alien subject to removal, deportation, or inadmissibility, the immigration judge may exercise discretion to decline to order the alien removable, deportable, or inadmissible from the United States and terminate proceedings if the judge determines that such removal, deportation, or inadmissibility is against the public interest or would result in hardship to the alien's United States citizen or lawful permanent resident parent, spouse, or child, or the judge determines the alien is prima facie eligible for naturalization except that this subparagraph shall not apply to an alien whom the judge determines— (i) is inadmissible or deportable under— (I) subparagraph (B), (C), (D)(ii), (E), (H), (I), or (J) of section 212(a)(2); (II) section 212(a)(3); (III) subparagraph (A), (C), or (D) of section 212(a)(10); or (IV) paragraph (2)(A)(ii), (2)(A)(v), (2)(F), (4), or (6) of section 237(a); or (ii) has— (I) engaged in conduct described in paragraph (8) or (9) of section 103 of the Trafficking Victims Protection Act of 2000 ( 22 U.S.C. 7102 ); or (II) a felony conviction described in section 101(a)(43) that would have been classified as an aggravated felony at the time of conviction. . (b) Secretary's discretion Section 212 ( 8 U.S.C. 1182 ), as amended by section 2313(d), is further amended by adding at the end the following: (w) Secretary's discretion In the case of an alien who is inadmissible under this section or deportable under section 237, the Secretary of Homeland Security may exercise discretion to waive a ground of inadmissibility or deportability if the Secretary determines that such removal or refusal of admission is against the public interest or would result in hardship to the alien's United States citizen or permanent resident parent, spouse, or child. This subsection shall not apply to an alien whom the Secretary determines— (1) is inadmissible or deportable under— (A) subparagraph (B), (C), (D)(ii), (E), (H), (I), or (J) of subsection (a)(2); (B) subsection (a)(3); (C) subparagraph (A), (C), or (D) of subsection (a)(10); (D) paragraphs (2)(A)(ii), (2)(A)(v), (2)(F), or (6) of section 237(a); or (E) section 240(c)(4)(D)(ii)(II); or (2) has— (A) engaged in conduct described in paragraph (8) or (9) of section 103 of the Trafficking Victims Protection Act of 2000 ( 22 U.S.C. 7102 ); or (B) a felony conviction described in section 101(a)(43) that would have been classified as an aggravated felony at the time of conviction. . (c) Reinstatement of removal orders Section 241(a)(5) ( 8 U.S.C. 1231(a)(5) ) is amended by striking the period at the end and inserting , unless the alien reentered prior to attaining the age of 18 years, or reinstatement of the prior order of removal would not be in the public interest or would result in hardship to the alien's United States citizen or permanent resident parent, spouse, or child. . 2315. Waivers of inadmissibility (a) Aliens who entered as children Section 212(a)(9)(B)(iii) ( 8 U.S.C. 1182(a)(9)(B)(iii) ) is amended by adding at the end the following: (VI) Aliens who entered as children Clause (i) shall not apply to an alien who is the beneficiary of an approved petition under 101(a)(15)(H) and who has earned a baccalaureate or higher degree from a United States institution of higher education (as defined in section 101(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1001(a) ), and had not yet reached the age of 16 years at the time of initial entry to the United States. . (b) Aliens unlawfully present Section 212(a)(9)(B)(v) ( 8 U.S.C. 1181(a)(9)(B)(v) is amended— (1) by striking spouse or son or daughter and inserting spouse, son, daughter, or parent ; (2) by striking extreme ; and (3) by inserting , child, after lawfully resident spouse . (c) Previous immigration violations Section 212(a)(9)(C)(i) ( 8 U.S.C. 1182(a)(9)(C)(i) ) is amended by adding , other than an alien described in clause (iii) or (iv) of subparagraph (B), after Any alien . (d) False claims (1) Inadmissibility (A) In general Section 212(a)(6)(C) ( 8 U.S.C. 1182(a)(6)(C) ) is amended to read as follows: (C) Misrepresentation (i) In general Any alien who, by fraud or willfully misrepresenting a material fact, seeks to procure (or within the last 3 years has sought to procure or has procured) a visa, other documentation, or admission into the United States or other benefit provided under this Act is inadmissible. (ii) Falsely claiming citizenship (I) Inadmissibility Subject to subclause (II), any alien who knowingly misrepresents himself or herself to be a citizen of the United States for any purpose or benefit under this chapter (including section 274A) or any other Federal or State law is inadmissible. (II) Special rule for children An alien shall not be inadmissible under this clause if the misrepresentation described in subclause (I) was made by the alien when the alien— (aa) was under 18 years of age; or (bb) otherwise lacked the mental competence to knowingly misrepresent a claim of United States citizenship. (iii) Waiver The Attorney General or the Secretary of Homeland Security may, in the discretion of the Attorney General or the Secretary, waive the application of clause (i) or (ii)(I) for an alien, regardless whether the alien is within or outside the United States, if the Attorney General or the Secretary finds that a determination of inadmissibility to the United States for such alien would— (I) result in extreme hardship to the alien or to the alien’s parent, spouse, son, or daughter who is a citizen of the United States or an alien lawfully admitted for permanent residence; or (II) in the case of a VAWA self-petitioner, result in significant hardship to the alien or a parent or child of the alien who is a citizen of the United States, an alien lawfully admitted for permanent residence, or a qualified alien (as defined in section 431 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 ( 8 U.S.C. 1641(b) )). (iv) Limitation on review No court shall have jurisdiction to review a decision or action of the Attorney General or the Secretary regarding a waiver under clause (iii). . (B) Conforming amendment Section 212 ( 8 U.S.C. 1182 ) is amended by striking subsection (i). (2) Deportability Section 237(a)(3)(D) ( 8 U.S.C. 1227(a)(3)(D) ) is amended to read as follows: (D) Falsely claiming citizenship Any alien described in section 212(a)(6)(C)(ii) is deportable. . 2316. Continuous presence Section 240A(d)(1) ( 8 U.S.C. 1229b(d)(1) ) is amended to read as follows: (1) Termination of continuous period For purposes of this section, any period of continuous residence or continuous physical presence in the United States shall be deemed to end, except in the case of an alien who applies for cancellation of removal under subsection (b)(2), on the date that a notice to appear is filed with the Executive Office for Immigration Review pursuant to section 240. . 2317. Global health care cooperation (a) Temporary absence of aliens providing health care in developing countries (1) In general Title III ( 8 U.S.C. 1401 et seq. ) is amended by inserting after section 317 the following: 317A. Temporary absence of aliens providing health care in developing countries (a) In general Notwithstanding any other provision of this Act, the Secretary of Homeland Security shall allow an eligible alien and the spouse or child of such alien to reside in a candidate country during the period that the eligible alien is working as a physician or other health care worker in a candidate country. During such period the eligible alien and such spouse or child shall be considered— (1) to be physically present and residing in the United States for purposes of naturalization under section 316(a); and (2) to meet the continuous residency requirements under section 316(b). (b) Definitions In this section: (1) Candidate country The term candidate country means a country that the Secretary of State determines to be— (A) eligible for assistance from the International Development Association, in which the per capita income of the country is equal to or less than the historical ceiling of the International Development Association for the applicable fiscal year, as defined by the International Bank for Reconstruction and Development; (B) classified as a lower middle income country in the then most recent edition of the World Development Report for Reconstruction and Development published by the International Bank for Reconstruction and Development and having an income greater than the historical ceiling for International Development Association eligibility for the applicable fiscal year; or (C) qualified to be a candidate country due to special circumstances, including natural disasters or public health emergencies. (2) Eligible alien The term eligible alien means an alien who— (A) has been lawfully admitted to the United States for permanent residence; and (B) is a physician or other healthcare worker. (c) Consultation The Secretary of Homeland Security shall consult with the Secretary of State in carrying out this section. (d) Publication The Secretary of State shall publish— (1) not later than 180 days after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act , a list of candidate countries; (2) an updated version of the list required by paragraph (1) not less often than once each year; and (3) an amendment to the list required by paragraph (1) at the time any country qualifies as a candidate country due to special circumstances under subsection (b)(1)(C). . (2) Rulemaking (A) Requirement Not later than 180 days after the date of the enactment of this Act, the Secretary shall promulgate regulations to carry out the amendments made by this subsection. (B) Content The regulations promulgated pursuant to subparagraph (A) shall— (i) permit an eligible alien (as defined in section 317A of the Immigration and Nationality Act, as added by subsection (a)) and the spouse or child of the eligible alien to reside in a foreign country to work as a physician or other healthcare worker as described in subsection (a) of such section 317A for not less than a 12-month period and not more than a 24-month period, and shall permit the Secretary to extend such period for an additional period not to exceed 12 months, if the Secretary determines that such country has a continuing need for such a physician or other healthcare worker; (ii) provide for the issuance of documents by the Secretary to such eligible alien, and such spouse or child, if appropriate, to demonstrate that such eligible alien, and such spouse or child, if appropriate, is authorized to reside in such country under such section 317A; and (iii) provide for an expedited process through which the Secretary shall review applications for such an eligible alien to reside in a foreign country pursuant to subsection (a) of such section 317A if the Secretary of State determines a country is a candidate country pursuant to subsection (b)(1)(C) of such section 317A. (3) Technical and conforming amendments (A) Definition Section 101(a)(13)(C)(ii) ( 8 U.S.C. 1101(a)(13)(C)(ii) ) is amended by adding except in the case of an eligible alien, or the spouse or child of such alien, who is authorized to be absent from the United States under section 317A, at the end. (B) Documentary requirements Section 211(b) ( 8 U.S.C. 1181(b) ) is amended by inserting , including an eligible alien authorized to reside in a foreign country under section 317A and the spouse or child of such eligible alien, if appropriate, after 101(a)(27)(A), . (C) Ineligible aliens Section 212(a)(7)(A)(i)(I) ( 8 U.S.C. 1182(a)(7)(A)(i)(I) ) is amended by inserting other than an eligible alien authorized to reside in a foreign country under section 317A and the spouse or child of such eligible alien, if appropriate, after Act, . (4) Clerical amendment The table of contents of such Act is amended by inserting after the item relating to section 317 the following: Sec. 317A. Temporary absence of aliens providing health care in developing countries. . (b) Attestation by health care workers (1) Attestation requirement Section 212(a)(5) ( 8 U.S.C. 1182(a)(5) ) is amended by adding at the end the following: (E) Health care workers with other obligations (i) In general An alien who seeks to enter the United States for the purpose of performing labor as a physician or other health care worker is inadmissible unless the alien submits to the Secretary of Homeland Security or the Secretary of State, as appropriate, an attestation that the alien is not seeking to enter the United States for such purpose during any period in which the alien has an outstanding obligation to the government of the alien's country of origin or the alien's country of residence. (ii) Obligation defined In this subparagraph, the term obligation means an obligation incurred as part of a valid, voluntary individual agreement in which the alien received financial assistance to defray the costs of education or training to qualify as a physician or other health care worker in consideration for a commitment to work as a physician or other health care worker in the alien's country of origin or the alien's country of residence. (iii) Waiver The Secretary of Homeland Security may waive a finding of inadmissibility under clause (i) if the Secretary determines that— (I) the obligation was incurred by coercion or other improper means; (II) the alien and the government of the country to which the alien has an outstanding obligation have reached a valid, voluntary agreement, pursuant to which the alien's obligation has been deemed satisfied, or the alien has shown to the satisfaction of the Secretary that the alien has been unable to reach such an agreement because of coercion or other improper means; or (III) the obligation should not be enforced due to other extraordinary circumstances, including undue hardship that would be suffered by the alien in the absence of a waiver. . (2) Effective date The amendment made by paragraph (1) shall take effect on the date that is 180 days after the date of the enactment of this Act. (3) Application Not later than the effective date described in paragraph (2), the Secretary shall begin to carry out subparagraph (E) of section 212(a)(5) of the Immigration and Nationality Act, as added by paragraph (1), including the requirement for the attestation and the granting of a waiver described in clause (iii) of such subparagraph (E), regardless of whether regulations to implement such subparagraph have been promulgated. 2318. Extension and improvement of the Iraqi special immigrant visa program The Refugee Crisis in Iraq Act of 2007 ( 8 U.S.C. 1157 note) is amended— (1) in section 1242, by amending subsection (c) to read as follows: (c) Improved application process Not later than 120 days after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act , the Secretary of State and the Secretary of Homeland Security, in consultation with the Secretary of Defense, shall improve the efficiency by which applications for special immigrant visas under section 1244(a) are processed so that all steps incidental to the issuance of such visas, including required screenings and background checks, are completed not later than 9 months after the date on which an eligible alien applies for such visa. ; (2) in section 1244— (A) in subsection (b)— (i) in paragraph (1)— (I) by amending subparagraph (B) to read as follows: (B) was or is employed in Iraq on or after March 20, 2003, for not less than 1 year, by, or on behalf of— (i) the United States Government; (ii) a media or nongovernmental organization headquartered in the United States; or (iii) an organization or entity closely associated with the United States mission in Iraq that has received United States Government funding through an official and documented contract, award, grant, or cooperative agreement; ; (II) in subparagraph (C), by striking the United States Government and inserting an entity or organization described in subparagraph (B) ; and (III) in subparagraph (D), by striking by striking the United States Government. and inserting such entity or organization. ; and (ii) in paragraph (4)— (I) by striking A recommendation and inserting the following: (A) In general Except as provided under subparagraph (B), a recommendation ; (II) by striking the United States Government prior and inserting an entity or organization described in paragraph (1)(B) prior ; and (III) by adding at the end the following: (B) Review process for denial by Chief of Mission (i) In general An applicant who has been denied Chief of Mission approval required by subparagraph (A) shall— (I) receive a written decision; and (II) be provided 120 days from the date of the decision to request reopening of the decision to provide additional information, clarify existing information, or explain any unfavorable information. (ii) Senior coordinator The Secretary of State shall designate, in the Embassy of the United States in Baghdad, Iraq, a senior coordinator responsible for overseeing the efficiency and integrity of the processing of special immigrant visas under this section, who shall be given— (I) sufficiently high security clearance to review Chief of Mission denials in cases that appear to have relied upon insufficient or incorrect information; and (II) responsibility for ensuring that an applicant described in clause (i) receives the information described in clause (i)(I). ; and (B) in subsection (c)(3), by adding at the end the following: (C) Subsequent fiscal years Notwithstanding subparagraphs (A) and (B), and consistent with subsection (b), any unused balance of the total number of principal aliens who may be provided special immigrant status under this section in fiscal years 2008 through 2012 may be carried forward and provided through the end of fiscal year 2018. ; and (3) in section 1248, by adding at the end the following: (f) Report on improvements (1) In general Not later than 120 days after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act , the Secretary of State and the Secretary of Homeland Security, in consultation with the Secretary of Defense, shall submit a report, with a classified annex, if necessary, to— (A) the Committee on the Judiciary of the Senate; (B) the Committee on Foreign Relations of the Senate; (C) the Committee on the Judiciary of the House of Representatives; and (D) the Committee on Foreign Affairs of the House of Representatives. (2) Contents The report submitted under paragraph (1) shall describe the implementation of improvements to the processing of applications for special immigrant visas under section 1244(a), including information relating to— (A) enhancing existing systems for conducting background and security checks of persons applying for special immigrant status, which shall— (i) support immigration security; and (ii) provide for the orderly processing of such applications without delay; (B) the financial, security, and personnel considerations and resources necessary to carry out this subtitle; (C) the number of aliens who have applied for special immigrant visas under section 1244 during each month of the preceding fiscal year; (D) the reasons for the failure to expeditiously process any applications that have been pending for longer than 9 months; (E) the total number of applications that are pending due to the failure— (i) to receive approval from the Chief of Mission; (ii) for U.S. Citizenship and Immigration Services to complete the adjudication of the Form I–360; (iii) to conduct a visa interview; or (iv) to issue the visa to an eligible alien; (F) the average wait times for an applicant at each of the stages described in subparagraph (E); (G) the number of denials or rejections at each of the stages described in subparagraph (E); and (H) a breakdown of reasons for denials at by the Chief of Mission based on the categories already made available to denied special immigrant visa applicants in the denial letter sent to them by the Chief of Mission. (g) Public quarterly reports Not later than 120 days after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act , and every 3 months thereafter, the Secretary of State and the Secretary of Homeland Security, in consultation with the Secretary of Defense, shall publish a report on the website of the Department of State that describes the efficiency improvements made in the process by which applications for special immigrant visas under section 1244(a) are processed, including information described in subparagraphs (C) through (H) of subsection (f)(2). . 2319. Extension and improvement of the Afghan special immigrant visa program Section 602(b) of the Afghan Allies Protection Act of 2009 ( 8 U.S.C. 1101 note) is amended— (1) in paragraph (2)— (A) in subparagraph (A)— (i) by amending clause (ii) to read as follows: (ii) was or is employed in Afghanistan on or after October 7, 2001, for not less than 1 year, by, or on behalf of— (I) the United States Government; (II) a media or nongovernmental organization headquartered in the United States; or (III) an organization or entity closely associated with the United States mission in Afghanistan that has received United States Government funding through an official and documented contract, award, grant, or cooperative agreement; ; (ii) in clause (iii), by striking the United States Government and inserting an entity or organization described in clause (ii) ; and (iii) in clause (iv), by striking by striking the United States Government. and inserting such entity or organization. ; (B) by amending subparagraph (B) to read as follows: (B) Family members An alien is described in this subparagraph if the alien is— (i) the spouse or minor child of a principal alien described in subparagraph (A) who is accompanying or following to join the principal alien in the United States; or (ii) (I) the spouse, child, parent, or sibling of a principal alien described in subparagraph (A), whether or not accompanying or following to join; and (II) has experienced or is experiencing an ongoing serious threat as a consequence of the qualifying employment of a principal alien described in subparagraph (A). ; and (C) in subparagraph (D)— (i) by striking A recommendation and inserting the following: (i) In general Except as provided under clause (ii), a recommendation ; (ii) by striking the United States Government prior and inserting an entity or organization described in paragraph (2)(A)(ii) prior ; and (iii) by adding at the end the following: (ii) Review process for denial by Chief of Mission (I) In general An applicant who has been denied Chief of Mission approval shall— (aa) receive a written decision; and (bb) be provided 120 days from the date of receipt of such opinion to request reconsideration of the decision to provide additional information, clarify existing information, or explain any unfavorable information. (II) Senior coordinator The Secretary of State shall designate, in the Embassy of the United States in Kabul, Afghanistan, a senior coordinator responsible for overseeing the efficiency and integrity of the processing of special immigrant visas under this section, who shall be given— (aa) sufficiently high security clearance to review Chief of Mission denials in cases that appear to have relied upon insufficient or incorrect information; and (bb) responsibility for ensuring that an applicant described in subclause (I) receives the information described in subclause (I)(aa). ; (2) in paragraph (3)(C), by amending clause (iii) to read as follows: (iii) Fiscal years 2014 through 2018 For each of the fiscal years 2014 through 2018, the total number of principal aliens who may be provided special immigrant status under this section may not exceed the sum of— (I) 5,000; (II) the difference between the number of special immigrant visas allocated under this section for fiscal years 2009 through 2013 and the number of such allocated visas that were issued; and (III) any unused balance of the total number of principal aliens who may be provided special immigrant status in fiscal years 2014 through 2018 that have been carried forward. ; (3) in paragraph (4)— (A) in the heading, by striking Prohibition on fees .— and inserting Application process .— ; (B) by striking The Secretary and inserting the following: (A) In general Not later than 120 days after the date of enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act , the Secretary of State and the Secretary of Homeland Security, in consultation with the Secretary of Defense, shall improve the efficiency by which applications for special immigrant visas under paragraph (1) are processed so that all steps incidental to the issuance of such visas, including required screenings and background checks, are completed not later than 6 months after the date on which an eligible alien applies for such visa. (B) Prohibition on fees The Secretary ; and (4) by adding at the end the following: (12) Report on improvements Not later than 120 days after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act , the Secretary of State and the Secretary of Homeland Security, in consultation with the Secretary of Defense, shall submit to the appropriate committees of Congress a report, with a classified annex, if necessary, that describes the implementation of improvements to the processing of applications for special immigrant visas under this subsection, including information relating to— (A) enhancing existing systems for conducting background and security checks of persons applying for special immigrant status, which shall— (i) support immigration security; and (ii) provide for the orderly processing of such applications without delay; (B) the financial, security, and personnel considerations and resources necessary to carry out this section; (C) the number of aliens who have applied for special immigrant visas under this subsection during each month of the preceding fiscal year; (D) the reasons for the failure to expeditiously process any applications that have been pending for longer than 9 months; (E) the total number of applications that are pending due to the failure— (i) to receive approval from the Chief of Mission; (ii) for U.S. Citizenship and Immigration Services to complete the adjudication of the Form I–360; (iii) to conduct a visa interview; or (iv) to issue the visa to an eligible alien; (F) the average wait times for an applicant at each of the stages described in subparagraph (E); (G) the number of denials or rejections at each of the stages described in subparagraph (E); and (H) a breakdown of reasons for denials by the Chief of Mission based on the categories already made available to denied special immigrant visa applicants in the denial letter sent to them by the Chief of Mission. (13) Public quarterly reports Not later than 120 days after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act , and every 3 months thereafter, the Secretary of State and the Secretary of Homeland Security, in consultation with the Secretary of Defense, shall publish a report on the website of the Department of State that describes the efficiency improvements made in the process by which applications for special immigrant visas under this subsection are processed, including information described in subparagraph (C) through (H) of paragraph (12). . 2320. Special Immigrant Nonminister Religious Worker Program Section 101(a)(27)(C)(ii) (8 U.S.C. 1101 (a)(27)(C)(ii)) is amended in subclauses (II) and (III) by striking before September 30, 2015, both places such term appears. 2321. Special immigrant status for certain surviving spouses and children (a) In general Section 101(a)(27) ( 8 U.S.C. 1101(a)(27) ) is amended in subparagraph (D)— (1) by inserting (i) before an immigrant who is an employee ; (2) by inserting or after grant such status; ; and (3) by inserting after clause (i), as designated by paragraph (1), the following: (ii) an immigrant who is the surviving spouse or child of an employee of the United States Government abroad killed in the line of duty, provided that the employee had performed faithful service for a total of 15 years, or more, and that the principal officer of a Foreign Service establishment (or, in the case of the American Institute of Taiwan, the Director thereof) in his or her discretion, recommends the granting of special immigrant status to the spouse or child and the Secretary of State approves such recommendation and finds that it is in the national interest to grant such status; . (b) Effective date The amendments made by subsection (a) take effect beginning on January 31, 2013, and shall have retroactive effect. 2322. Reunification of certain families of Filipino veterans of World War II (a) Short title This section may be cited as the Filipino Veterans Family Reunification Act . (b) Exemption from immigrant visa limit Section 201(b)(1) ( 8 U.S.C. 1151(b)(1) ), as amended by sections 2103(c), 2212(d), and 2307(b), is further amended by adding at the end the following: (O) Aliens who— (i) are the sons or daughters of a citizen of the United States; and (ii) have a parent (regardless of whether the parent is living or dead) who was naturalized pursuant to— (I) section 405 of the Immigration Act of 1990 ( Public Law 101–649 ; 8 U.S.C. 1440 note); or (II) title III of the Act of October 14, 1940 (54 Stat. 1137, chapter 876), as added by section 1001 of the Second War Powers Act, 1942 (56 Stat. 182, chapter 199). . D Conrad State 30 and physician access 2401. Conrad State 30 Program Section 220(c) of the Immigration and Nationality Technical Corrections Act of 1994 ( Public Law 103–416 ; 8 U.S.C. 1182 note) is amended by striking and before September 30, 2015 . 2402. Retaining physicians who have practiced in medically underserved communities Section 201(b)(1) ( 8 U.S.C. 1151(b)(1) ), as amended by sections 2103(c), 2212(d)(2), 2307(b), and 2323(b) is further amended by adding at the end the following: (P) (i) Alien physicians who have completed service requirements of a waiver requested under section 203(b)(2)(B)(ii), including alien physicians who completed such service before the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act and any spouses or children of such alien physicians. (ii) Nothing in this subparagraph may be construed— (I) to prevent the filing of a petition with the Secretary of Homeland Security for classification under section 204(a) or the filing of an application for adjustment of status under section 245 by an alien physician described in this subparagraph prior to the date by which such alien physician has completed the service described in section 214(l) or worked full-time as a physician for an aggregate of 5 years at the location identified in the section 214(l) waiver or in an area or areas designated by the Secretary of Health and Human Services as having a shortage of health care professionals; or (II) to permit the Secretary of Homeland Security to grant such a petition or application until the alien has satisfied all the requirements of the waiver received under section 214(l). . 2403. Employment protections for physicians (a) In general Section 214(l)(1)(C) ( 8 U.S.C. 1184(l)(1)(C) ) is amended by striking clauses (i) and (ii) and inserting the following: (i) the alien demonstrates a bona fide offer of full-time employment, at a health care organization, which employment has been determined by the Secretary of Homeland Security to be in the public interest; and (ii) the alien agrees to begin employment with the health facility or health care organization in a geographic area or areas which are designated by the Secretary of Health and Human Services as having a shortage of health care professionals by the later of the date that is 90 days after receiving such waiver, 90 days after completing graduate medical education or training under a program approved pursuant to section 212(j)(1), or 90 days after receiving nonimmigrant status or employment authorization, provided that the alien or the alien’s employer petitions for such nonimmigrant status or employment authorization within 90 days of completing graduate medical education or training and agrees to continue to work for a total of not less than 3 years in any status authorized for such employment under this subsection, unless— (I) the Secretary determines that extenuating circumstances exist that justify a lesser period of employment at such facility or organization, in which case the alien shall demonstrate another bona fide offer of employment at a health facility or health care organization, for the remainder of such 3-year period; (II) the interested agency that requested the waiver attests that extenuating circumstances exist that justify a lesser period of employment at such facility or organization in which case the alien shall demonstrate another bona fide offer of employment at a health facility or health care organization so designated by the Secretary of Health and Human Services, for the remainder of such 3-year period; or (III) if the alien elects not to pursue a determination of extenuating circumstances pursuant to subclause (I) or (II), the alien terminates the alien’s employment relationship with such facility or organization, in which case the alien shall be employed for the remainder of such 3-year period, and 1 additional year for each termination, at another health facility or health care organization in a geographic area or areas which are designated by the Secretary of Health and Human Services as having a shortage of health care professionals; and . (b) Physician employment in underserved areas Section 214(l)(1) ( 8 U.S.C. 1184(l)(1) ), as amended by subsection (a), is further amended by adding at the end the following: (E) If a physician pursuing graduate medical education or training pursuant to section 101(a)(15)(J) applies for a Conrad J–1 waiver with an interested State department of health and the application is denied because the State has requested the maximum number of waivers permitted for that fiscal year, the physician's nonimmigrant status shall be automatically extended for 6 months if the physician agrees to seek a waiver under this subsection (except for subparagraph (D)(ii)) to work for an employer in a State that has not yet requested the maximum number of waivers. The physician shall be authorized to work only for such employer from the date on which a new waiver application is filed with the State until the date on which the Secretary of Homeland Security denies such waiver or issues work authorization for such employment pursuant to the approval of such waiver. . (c) Graduate medical education or training Section 214(h)(1), as amended by section 4401(b) of this Act, is further amended by inserting (J) (if entering the United States for graduate medical education or training), after (H)(i)(c), . (d) Contract requirements Section 214(l) ( 8 U.S.C. 1184(l) ) is amended by adding at the end the following: (4) An alien granted a waiver under paragraph (1)(C) shall enter into an employment agreement with the contracting health facility or health care organization that— (A) specifies the maximum number of on-call hours per week (which may be a monthly average) that the alien will be expected to be available and the compensation the alien will receive for on-call time; (B) specifies whether the contracting facility or organization will pay for the alien’s malpractice insurance premiums, including whether the employer will provide malpractice insurance and, if so, the amount of such insurance that will be provided; (C) describes all of the work locations that the alien will work and a statement that the contracting facility or organization will not add additional work locations without the approval of the Federal agency or State agency that requested the waiver; and (D) does not include a non-compete provision. (5) An alien granted a waiver under paragraph (1)(C) whose employment relationship with a health facility or health care organization terminates during the 3-year service period required by such paragraph— (A) shall have a period of 120 days beginning on the date of such termination of employment to submit to the Secretary of Homeland Security applications or petitions to commence employment with another contracting health facility or health care organization in a geographic area or areas which are designated by the Secretary of Health and Human Services as having a shortage of health care professionals; (B) shall be considered to be maintaining lawful status in an authorized stay during the 120-day period referred to in subsection (A); and (C) shall not be considered to be fulfilling the 3-year term of service during the 120-day period referred to in subparagraph (A). . 2404. Allotment of Conrad 30 waivers (a) In general Section 214(l) ( 8 U.S.C. 1184(l) ), as amended by section 2403, is further amended by adding at the end the following: (6) (A) (i) All States shall be allotted a total of 35 waivers under paragraph (1)(B) for a fiscal year if 90 percent of the waivers available to the States receiving at least 5 waivers were used in the previous fiscal year. (ii) When an allocation has occurred under clause (i), all States shall be allotted an additional 5 waivers under paragraph (1)(B) for each subsequent fiscal year if 90 percent of the waivers available to the States receiving at least 5 waivers were used in the previous fiscal year. If the States are allotted 45 or more waivers for a fiscal year, the States will only receive an additional increase of 5 waivers the following fiscal year if 95 percent of the waivers available to the States receiving at least 1 waiver were used in the previous fiscal year. (B) Any increase in allotments under subparagraph (A) shall be maintained indefinitely, unless in a fiscal year, the total number of such waivers granted is 5 percent lower than in the last year in which there was an increase in the number of waivers allotted pursuant to this paragraph, in which case— (i) the number of waivers allotted shall be decreased by 5 for all States beginning in the next fiscal year; and (ii) each additional 5 percent decrease in such waivers granted from the last year in which there was an increase in the allotment, shall result in an additional decrease of 5 waivers allotted for all States, provided that the number of waivers allotted for all States shall not drop below 30. . (b) Academic medical centers Section 214(l)(1)(D) ( 8 U.S.C. 1184(l)(1)(D) ) is amended— (1) in clause (ii), by striking and at the end; (2) in clause (iii), by striking the period at the end and inserting ; and ; and (3) by adding at the end the following: (iv) in the case of a request by an interested State agency— (I) the head of such agency determines that the alien is to practice medicine in, or be on the faculty of a residency program at, an academic medical center (as that term is defined in section 411.355(e)(2) of title 42, Code of Federal Regulations, or similar successor regulation), without regard to whether such facility is located within an area designated by the Secretary of Health and Human Services as having a shortage of health care professionals; and (II) the head of such agency determines that— (aa) the alien physician’s work is in the public interest; and (bb) the grant of such waiver would not cause the number of the waivers granted on behalf of aliens for such State for a fiscal year (within the limitation in subparagraph (B) and subject to paragraph (6)) in accordance with the conditions of this clause to exceed 3. . 2405. Amendments to the procedures, definitions, and other provisions related to physician immigration (a) Allowable visa status for physicians fulfilling waiver requirements in medically underserved areas Section 214(l)(2)(A) ( 8 U.S.C. 1184(l)(2)(A) ) is amended by striking an alien described in section 101(a)(15)(H)(i)(b). and inserting any status authorized for employment under this Act. . (b) Short term work authorization for physicians completing their residencies A physician completing graduate medical education or training as described in section 212(j) of the Immigration and Nationality Act ( 8 U.S.C. 1182(j) ) as a nonimmigrant described in section 101(a)(15)(H)(i) of such Act ( 8 U.S.C. 1101(a)(15)(H)(i) ) shall have such nonimmigrant status automatically extended until October 1 of the fiscal year for which a petition for a continuation of such nonimmigrant status has been submitted in a timely manner and where the employment start date for the beneficiary of such petition is October 1 of that fiscal year. Such physician shall be authorized to be employed incident to status during the period between the filing of such petition and October 1 of such fiscal year. However, the physician’s status and employment authorization shall terminate 30 days from the date such petition is rejected, denied, or revoked. A physician’s status and employment authorization will automatically extend to October 1 of the next fiscal year if all visas as described in such section 101(a)(15)(H)(i) authorized to be issued for the fiscal year have been issued. (c) Applicability of section 212( e ) to spouses and children of J–1 exchange visitors A spouse or child of an exchange visitor described in section 101(a)(15)(J) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15)(J) ) shall not be subject to the requirements of section 212(e) of the Immigration and Nationality Act ( 8 U.S.C. 1182(e) ). E Integration 2501. Definitions In this subtitle: (1) Chief The term Chief means the Chief of the Office. (2) Foundation The term Foundation means the United States Citizenship Foundation established pursuant to section 2531. (3) IEACA grants The term IEACA grants means Initial Entry, Adjustment, and Citizenship Assistance grants authorized under section 2537. (4) Immigrant integration The term immigrant integration means the process by which immigrants— (A) join the mainstream of civic life by engaging and sharing ownership in their local community, the United States, and the principles of the Constitution; (B) attain financial self-sufficiency and upward economic mobility for themselves and their family members; and (C) acquire English language skills and related cultural knowledge necessary to effectively participate in their community. (5) Linguistic integration The term linguistic integration means the acquisition, by limited English proficient individuals, of English language skills and related cultural knowledge necessary to meaningfully and effectively fulfill their roles as community members, family members, and workers. (6) Office The term Office means the Office of Citizenship and New Americans established in U.S. Citizenship and Immigration Services under section 2511. (7) Receiving communities The term receiving communities means the long-term residents of the communities in which immigrants settle. (8) Task Force The term Task Force means the Task Force on New Americans established pursuant to section 2521. (9) USCF council The term USCF Council means the Council of Directors of the Foundation. 1 Citizenship and New Americans A Office of Citizenship and New Americans 2511. Office of Citizenship and New Americans (a) Renaming Office of Citizenship (1) In general Beginning on the date of the enactment of this Act, the Office of Citizenship in U.S. Citizenship and Immigration Services shall be referred to as the Office of Citizenship and New Americans . (2) References Any reference in a law, regulation, document, paper, or other record of the United States to the Office of Citizenship in U.S. Citizenship and Immigration Services shall be deemed to be a reference to the Office of Citizenship and New Americans. (3) Technical and conforming amendments Section 451 of the Homeland Security Act of 2002 ( 6 U.S.C. 271 ) is amended— (A) in the section heading, by striking Bureau of and inserting U.S. ; (B) in subsection (a)(1), by striking the ‘Bureau of and inserting ‘U.S. ; (C) by striking the Bureau of each place such terms appears and inserting U.S. ; and (D) in subsection (f)— (i) by amending the subsection heading to read as follows: Office of Citizenship and New Americans ; and (ii) by striking paragraph (1) and inserting the following: (1) Chief The Office of Citizenship and New Americans shall be within U.S. Citizenship and Immigration Services and shall be headed by the Chief of the Office of Citizenship and New Americans. . (b) Functions Section 451(f) of such Act ( 6 U.S.C. 271(f) ), as amended by subsection (a)(3)(D), is further amended by striking paragraph (2) and inserting the following: (2) Functions The Chief of the Office of Citizenship and New Americans shall— (A) promote institutions and provide training on citizenship responsibilities for aliens interested in becoming naturalized citizens of the United States, including the development of educational materials for such aliens; (B) provide general leadership, consultation, and coordination of the immigrant integration programs across the Federal Government and with State and local entities; (C) in coordination with the Task Force on New Americans established under section 2521 of the Border Security, Economic Opportunity, and Immigration Modernization Act — (i) advise the Director of U.S. Citizenship and Immigration Services, the Secretary of Homeland Security, and the Domestic Policy Council, on— (I) the challenges and opportunities relating to the linguistic, economic, and civic integration of immigrants and their young children and progress in meeting integration goals and indicators; and (II) immigrant integration considerations relating to Federal budgets; (ii) establish national goals for introducing new immigrants into the United States and measure the degree to which such goals are met; (iii) evaluate the scale, quality, and effectiveness of Federal Government efforts in immigrant integration and provide advice on appropriate actions; and (iv) identify the integration implications of new or proposed immigration policies and provide recommendations for addressing such implications; (D) serve as a liaison and intermediary with State and local governments and other entities to assist in establishing local goals, task forces, and councils to assist in— (i) introducing immigrants into the United States; and (ii) promoting citizenship education and awareness among aliens interested in becoming naturalized citizens of the United States; (E) coordinate with other Federal agencies to provide information to State and local governments on the demand for existing Federal and State English education programs and best practices for immigrants who recently arrived in the United States; (F) assist States in coordinating the activities of the grant programs authorized under sections 2537 and 2538 of the Border Security, Economic Opportunity, and Immigration Modernization Act ; (G) submit a biennial report to the appropriate congressional committees that describes the activities of the Office of Citizenship and New Americans; and (H) carry out such other functions and activities as Secretary may assign. . (c) Effective date The amendments made by subsections (a) and (b) shall take effect on the date that is 1 year after the date of the enactment of this Act. B Task Force on New Americans 2521. Establishment (a) In general The Secretary shall establish a Task Force on New Americans. (b) Fully functional The Task Force shall be fully functional not later than 18 months after the date of the enactment of this Act. 2522. Purpose The purposes of the Task Force are— (1) to establish a coordinated Federal program and policy response to immigrant integration issues; and (2) to advise and assist the Federal Government in identifying and fostering policies to carry out the policies and goals established under this chapter. 2523. Membership (a) In general The Task Force shall be comprised of— (1) the Secretary, who shall serve as Chair of the Task Force; (2) the Secretary of the Treasury; (3) the Attorney General; (4) the Secretary of Commerce; (5) the Secretary of Labor; (6) the Secretary of Health and Human Services; (7) the Secretary of Housing and Urban Development; (8) the Secretary of Transportation; (9) the Secretary of Education; (10) the Director of the Office of Management and Budget; (11) the Administrator of the Small Business Administration; (12) the Director of the Domestic Policy Council; (13) the Director of the National Economic Council; and (14) the National Security Advisor. (b) Delegation A member of the Task Force may delegate a senior official, at the Assistant Secretary, Deputy Administrator, Deputy Director, or Assistant Attorney General level, to perform the functions of a Task Force member described in section 2524. 2524. Functions (a) Meetings; functions The Task Force shall— (1) meet at the call of the Chair; and (2) perform such functions as the Secretary may prescribe. (b) Coordinated response The Task Force shall work with executive branch agencies— (1) to provide a coordinated Federal response to issues that impact the lives of new immigrants and receiving communities, including— (A) access to youth and adult education programming; (B) workforce training; (C) health care policy; (D) access to naturalization; and (E) community development challenges; and (2) to ensure that Federal programs and policies adequately address such impacts. (c) Liaisons Members of the Task Force shall serve as liaisons to their respective agencies to ensure the quality and timeliness of their agency’s participation in activities of the Task Force, including— (1) creating integration goals and indicators; (2) implementing the biannual consultation process with the agency’s State and local counterparts; and (3) reporting on agency data collection, policy, and program efforts relating to achieving the goals and indicators referred to in paragraph (1). (d) Recommendations Not later than 18 months after the end of the period specified in section 2521(b), the Task Force shall— (1) provide recommendations to the Domestic Policy Council and the Secretary on the effects of pending legislation and executive branch policy proposals; (2) suggest changes to Federal programs or policies to address issues of special importance to new immigrants and receiving communities; (3) review and recommend changes to policies that have a distinct impact on new immigrants and receiving communities; and (4) assist in the development of legislative and policy proposals of special importance to new immigrants and receiving communities. 2 Public-Private partnership 2531. Establishment of United States Citizenship Foundation The Secretary, acting through the Director of U.S. Citizenship and Immigration Services, is authorized to establish a nonprofit corporation or a not-for-profit, public benefit, or similar entity, which shall be known as the United States Citizenship Foundation . 2532. Funding (a) Gifts to foundation In order to carry out the purposes set forth in section 2533, the Foundation may— (1) solicit, accept, and make gifts of money and other property in accordance with section 501(c)(3) of the Internal Revenue Code of 1986; (2) engage in coordinated work with the Department, including the Office and U.S. Citizenship and Immigration Services; and (3) accept, hold, administer, invest, and spend any gift, devise, or bequest of real or personal property made to the Foundation. (b) Gifts to office of citizenship and new americans The Office may accept gifts from the Foundation to support the functions of the Office. 2533. Purposes The purposes of the Foundation are— (1) to expand citizenship preparation programs for lawful permanent residents; (2) to provide direct assistance for aliens seeking provisional immigrant status, legal permanent resident status, or naturalization as a United States citizen; and (3) to coordinate immigrant integration with State and local entities. 2534. Authorized activities The Foundation shall carry out its purpose by— (1) making United States citizenship instruction and naturalization application services accessible to low-income and other underserved lawful permanent resident populations; (2) developing, identifying, and sharing best practices in United States citizenship preparation; (3) supporting innovative and creative solutions to barriers faced by those seeking naturalization; (4) increasing the use of, and access to, technology in United States citizenship preparation programs; (5) engaging receiving communities in the United States citizenship and civic integration process; (6) administering the New Citizens Award Program to recognize, in each calendar year, not more than 10 United States citizens who— (A) have made outstanding contributions to the United States; and (B) have been naturalized during the 10-year period ending on the date of such recognition; (7) fostering public education and awareness; (8) coordinating its immigrant integration efforts with the Office; (9) awarding grants to eligible public or private nonprofit organizations under section 2537; and (10) awarding grants to State and local governments under section 2538. 2535. Council of directors (a) Members To the extent consistent with section 501(c)(3) of the Internal Revenue Code of 1986, the Foundation shall have a Council of Directors, which shall be comprised of— (1) the Director of U.S. Citizenship and Immigration Services; (2) the Chief of the Office of Citizenship and New Americans; and (3) 10 directors, appointed by the ex-officio directors designated in paragraphs (1) and (2), from national community-based organizations that promote and assist permanent residents with naturalization. (b) Appointment of executive director The USCF Council shall appoint an Executive Director, who shall oversee the day-to-day operations of the Foundation. 2536. Powers The Executive Director is authorized to carry out the purposes set forth in section 2533 on behalf of the Foundation by— (1) accepting, holding, administering, investing, and spending any gift, devise, or bequest of real or personal property made to the Foundation; (2) entering into contracts and other financial assistance agreements with individuals, public or private organizations, professional societies, and government agencies to carry out the functions of the Foundation; (3) entering into such other contracts, leases, cooperative agreements, and other transactions as the Executive Director considers appropriate to carry out the activities of the Foundation; and (4) charging such fees for professional services furnished by the Foundation as the Executive Director determines reasonable and appropriate. 2537. Initial Entry, Adjustment, and Citizenship Assistance Grant Program (a) Authorization The Secretary, acting through the Director of U.S. Citizenship and Immigration Services, may award Initial Entry, Adjustment, and Citizenship Assistance grants to eligible public or private, nonprofit organizations. (b) Use of grant funds IEACA grants shall be used for the design and implementation of programs that provide direct assistance, within the scope of the authorized practice of immigration law— (1) to aliens who are preparing an initial application for registered provisional immigrant status under section 245B of the Immigration and Nationality Act and to aliens who are preparing an initial application for blue card status under section 2211, including assisting applicants in— (A) screening to assess prospective applicants’ potential eligibility or lack of eligibility; (B) completing applications; (C) gathering proof of identification, employment, residence, and tax payment; (D) gathering proof of relationships of eligible family members; (E) applying for any waivers for which applicants and qualifying family members may be eligible; and (F) any other assistance that the Secretary or grantee considers useful to aliens who are interested in applying for registered provisional immigrant status; (2) to aliens seeking to adjust their status under section 245, 245B, 245C, or 245F of the Immigration and Nationality Act; (3) to legal permanent residents seeking to become naturalized United States citizens; and (4) to applicants on— (A) the rights and responsibilities of United States citizenship; (B) civics-based English as a second language; (C) civics, with a special emphasis on common values and traditions of Americans, including an understanding of the history of the United States and the principles of the Constitution; and (D) applying for United States citizenship. 2538. Pilot program to promote immigrant integration at State and local levels (a) Grants authorized The Chief shall establish a pilot program through which the Chief may award grants, on a competitive basis, to States and local governments or other qualifying entities, in collaboration with State and local governments— (1) to establish New Immigrant Councils to carry out programs to integrate new immigrants; or (2) to carry out programs to integrate new immigrants. (b) Application A State or local government desiring a grant under this section shall submit an application to the Chief at such time, in such manner, and containing such information as the Chief may reasonably require, including— (1) a proposal to meet an objective or combination of objectives set forth in subsection (d)(3); (2) the number of new immigrants in the applicant’s jurisdiction; and (3) a description of the challenges in introducing and integrating new immigrants into the State or local community. (c) Priority In awarding grants under this section, the Chief shall give priority to States and local governments or other qualifying entities that— (1) use matching funds from non-Federal sources, which may include in-kind contributions; (2) demonstrate collaboration with public and private entities to achieve the goals of the comprehensive plan developed pursuant to subsection (d)(3); (3) are 1 of the 10 States with the highest rate of foreign-born residents; or (4) have experienced a large increase in the population of immigrants during the most recent 10-year period relative to past migration patterns, based on data compiled by the Office of Immigration Statistics or the United States Census Bureau. (d) Authorized activities A grant awarded under this subsection may be used— (1) to form a New Immigrant Council, which shall— (A) consist of between 15 and 19 individuals, inclusive, from the State, local government, or qualifying organization; (B) include, to the extent practicable, representatives from— (i) business; (ii) faith-based organizations; (iii) civic organizations; (iv) philanthropic organizations; (v) nonprofit organizations, including those with legal and advocacy experience working with immigrant communities; (vi) key education stakeholders, such as State educational agencies, local educational agencies, community colleges, and teachers; (vii) State adult education offices; (viii) State or local public libraries; and (ix) State or local governments; and (C) meet not less frequently than once each quarter; (2) to provide subgrants to local communities, city governments, municipalities, nonprofit organizations (including veterans' and patriotic organizations), or other qualifying entities; (3) to develop, implement, expand, or enhance a comprehensive plan to introduce and integrate new immigrants into the State by— (A) improving English language skills; (B) engaging caretakers with limited English proficiency in their child’s education through interactive parent and child literacy activities; (C) improving and expanding access to workforce training programs; (D) teaching United States history, civics education, citizenship rights, and responsibilities; (E) promoting an understanding of the form of government and history of the United States and the principles of the Constitution; (F) improving financial literacy; and (G) focusing on other key areas of importance to integration in our society; and (4) to engage receiving communities in the citizenship and civic integration process by— (A) increasing local service capacity; (B) building meaningful connections between newer immigrants and long-time residents; (C) communicating the contributions of receiving communities and new immigrants; and (D) engaging leaders from all sectors of the community. (e) Reporting and evaluation (1) Annual report Each grant recipient shall submit an annual report to the Office that describes— (A) the activities undertaken by the grant recipient, including how such activities meet the goals of the Office, the Foundation, and the comprehensive plan described in subsection (d)(3); (B) the geographic areas being served; (C) the number of immigrants in such areas; and (D) the primary languages spoken in such areas. (2) Annual evaluation The Chief shall conduct an annual evaluation of the grant program established under this section— (A) to assess and improve the effectiveness of such grant program; (B) to assess the future needs of immigrants and of State and local governments related to immigrants; and (C) to ensure that grantees recipients and subgrantees are acting within the scope and purpose of this subchapter. 2539. Naturalization ceremonies (a) In general The Chief, in consultation with the Director of the National Park Service, the Archivist of the United States, and other appropriate Federal officials, shall develop and implement a strategy to enhance the public awareness of naturalization ceremonies. (b) Venues In developing the strategy under subsection (a), the Secretary shall consider the use of outstanding and historic locations as venues for select naturalization ceremonies. (c) Reporting requirement The Secretary shall annually submit a report to Congress that contains— (1) the content of the strategy developed under subsection (a); and (2) the progress made towards the implementation of such strategy. 3 Funding 2541. Authorization of appropriations (a) Office of Citizenship and New Americans In addition to any amounts otherwise made available to the Office, there are authorized to be appropriated to carry out the functions described in section 451(f)(2) of the Homeland Security Act of 2002 ( 6 U.S.C. 271(f)(2) ), as amended by section 2511(b)— (1) $10,000,000 for the 5-year period ending on September 30, 2018; and (2) such sums as may be necessary for fiscal year 2019 and subsequent fiscal years. (b) Grant programs There are authorized to be appropriated to implement the grant programs authorized under sections 2537 and 2538, and to implement the strategy under section 2539— (1) $100,000,000 for the 5-year period ending on September 30, 2018; and (2) such sums as may be necessary for fiscal year 2019 and subsequent fiscal years. 4 Reduce barriers to naturalization 2551. Waiver of English requirement for senior new Americans Section 312 ( 8 U.S.C. 1423 ) is amended by striking subsection (b) and inserting the following: (b) The requirements under subsection (a) shall not apply to any person who— (1) is unable to comply with such requirements because of physical or mental disability, including developmental or intellectual disability; or (2) on the date on which the person’s application for naturalization is filed under section 334— (A) is older than 65 years of age; and (B) has been living in the United States for periods totaling at least 5 years after being lawfully admitted for permanent residence. (c) The requirement under subsection (a)(1) shall not apply to any person who, on the date on which the person’s application for naturalization is filed under section 334— (1) is older than 50 years of age and has been living in the United States for periods totaling at least 20 years after being lawfully admitted for permanent residence; (2) is older than 55 years of age and has been living in the United States for periods totaling at least 15 years after being lawfully admitted for permanent residence; or (3) is older than 60 years of age and has been living in the United States for periods totaling at least 10 years after being lawfully admitted for permanent residence. (d) The Secretary of Homeland Security may waive, on a case-by-case basis, the requirement under subsection (a)(2) on behalf of any person who, on the date on which the person’s application for naturalization is filed under section 334— (1) is older than 60 years of age; and (2) has been living in the United States for periods totaling at least 10 years after being lawfully admitted for permanent residence. . 2552. Filing of applications not requiring regular Internet access (a) Electronic filing not required (1) In general The Secretary may not require that an applicant or petitioner for permanent residence or citizenship of the United States use an electronic method to file any application, or access to a customer account. (2) Sunset date This subsection shall cease to be effective on October 1, 2020. (b) Notification requirement Beginning on October 1, 2020, the Secretary may not require that an applicant or petitioner for permanent residence or citizenship of the United States use an electronic method to file any application or access to a customer account unless the Secretary notifies the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives of such requirement not later than 30 days before the effective date of such requirement. 2553. Permissible use of assisted housing by battered immigrants Section 214 of the Housing and Community Development Act of 1980 ( 42 U.S.C. 1436a ) is amended— (1) in subsection (a)— (A) in paragraph (6), by striking ; or and inserting a semicolon; (B) by redesignating paragraph (7) as paragraph (8); and (C) by inserting after paragraph (6) the following new paragraph: (7) a qualified alien described in section 431(c) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 ( 8 U.S.C. 1641(c) ); or ; and (2) in subsection (c)— (A) in paragraph (1)(A), by striking paragraphs (1) through (6) and inserting paragraphs (1) through (7) ; and (B) in paragraph (2)(A), by inserting (other than a qualified alien described in section 431(c) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 ( 8 U.S.C. 1641(c) )) after any alien . 2554. United States citizenship for internationally adopted individuals (a) Automatic citizenship Section 104 of the Child Citizenship Act of 2000 ( Public Law 106–395 ; 8 U.S.C. 1431 note) is amended to read as follows: 104. Applicability The amendments made by this title shall apply to any individual who satisfies the requirements under section 320 or 322 of the Immigration and Nationality Act, regardless of the date on which such requirements were satisfied. . (b) Modification of Preadoption Visitation Requirement Section 101(b)(1)(F)(i) ( 8 U.S.C. 1101(b)(1)(F)(i) ), as amended by section 2312, is further amended by striking at least twenty-five years of age, who personally saw and observed the child prior to or during the adoption proceedings; and inserting who is at least 25 years of age, at least 1 of whom personally saw and observed the child before or during the adoption proceedings; . (c) Automatic citizenship for children of United States citizens who are physically present in the United States (1) In general Section 320(a)(3) ( 8 U.S.C. 1431(a)(3) ) is amended to read as follows: (3) The child is physically present in the United States in the legal custody of the citizen parent pursuant to a lawful admission. . (2) Applicability to individual’s who no longer have legal status Notwithstanding the lack of legal status or physical presence in the United States, a person shall be deemed to meet the requirements under section 320 of the Immigration and Nationality Act, as amended by paragraph (1), if the person— (A) was born outside of the United States; (B) was adopted by a United States citizen before the person reached 18 years of age; (C) was legally admitted to the United States; and (D) would have qualified for automatic United States citizenship if the amendments made by paragraph (1) had been in effect at the time of such admission. (d) Retroactive application Section 320(b) ( 8 U.S.C. 1431(b) ) is amended by inserting , regardless of the date on which the adoption was finalized before the period at the end. (e) Applicability The amendments made by this section shall apply to any individual adopted by a citizen of the United States regardless of whether the adoption occurred prior to, on, or after the date of the enactment of the Child Citizenship Act of 2000. III Interior enforcement A Employment Verification System 3101. Unlawful employment of unauthorized aliens (a) In general Section 274A ( 8 U.S.C. 1324a ) is amended to read as follows: 274A. Unlawful employment of aliens (a) Making employment of unauthorized aliens unlawful (1) In general It is unlawful for an employer— (A) to hire, recruit, or refer for a fee an alien for employment in the United States knowing that the alien is an unauthorized alien with respect to such employment; or (B) to hire, recruit, or refer for a fee for employment in the United States an individual without complying with the requirements under subsections (c) and (d). (2) Continuing employment (A) Prohibition on continued employment of unauthorized aliens It is unlawful for an employer, after hiring an alien for employment, to continue to employ the alien in the United States knowing that the alien is (or has become) an unauthorized alien with respect to such employment. (B) Prohibition on consideration of previous unauthorized status Nothing in this section may be construed to prohibit the employment of an individual who is authorized for employment in the United States if such individual was previously an unauthorized alien. (3) Use of labor through contract For purposes of this section, any employer that uses a contract, subcontract, or exchange to obtain the labor of an alien in the United States while knowing that the alien is an unauthorized alien with respect to performing such labor shall be considered to have hired the alien for employment in the United States in violation of paragraph (1)(A). (4) Use of State employment agency documentation For purposes of paragraphs (1)(B), (5), and (6), an employer shall be deemed to have complied with the requirements under subsection (c) with respect to the hiring of an individual who was referred for such employment by a State employment agency (as defined by the Secretary) if the employer has and retains (for the period and in the manner described in subsection (c)(3)) appropriate documentation of such referral by such agency, certifying that such agency has complied with the procedures described in subsection (c) with respect to the individual’s referral. An employer that relies on a State agency’s certification of compliance with subsection (c) under this paragraph may utilize and retain the State agency’s certification of compliance with the procedures described in subsection (d), if any, in the manner provided under this paragraph. (5) Good faith defense (A) Defense An employer, person, or entity that hires, employs, recruits, or refers individuals for employment in the United States, or is otherwise obligated to comply with the requirements under this section and establishes good faith compliance with the requirements under paragraphs (1) through (4) of subsection (c) and subsection (d)— (i) has established an affirmative defense that the employer, person, or entity has not violated paragraph (1)(A) with respect to hiring and employing; and (ii) has established compliance with its obligations under subparagraph (A) and (B) of paragraph (1) and subsection (c) unless the Secretary demonstrates that the employer had knowledge that an individuals hired, employed, recruited, or referred by the employer, person, or entity is an unauthorized alien. (B) Exception for certain employers An employer who is not required to participate in the System or who is participating in the System on a voluntary basis pursuant to subsection (d)(2)(J) has established an affirmative defense under subparagraph (A) and need not demonstrate compliance with the requirements under subsection (d). (6) Good faith compliance (A) In general Except as otherwise provided in this subsection, an employer, person, or entity is considered to have complied with a requirement under this subsection notwithstanding a technical or procedural failure to meet such requirement if there was a good faith attempt to comply with the requirement. (B) Exception if failure to correct after notice Subparagraph (A) shall not apply if— (i) the failure is not de minimis; (ii) the Secretary of Homeland Security has explained to the employer, person, or entity the basis for the failure and why it is not de minimis; (iii) the employer, person, or entity has been provided a period of not less than 30 days (beginning after the date of the explanation) to correct the failure; and (iv) the employer, person, or entity has not corrected the failure voluntarily within such period. (C) Exception for pattern or practice violators Subparagraph (A) shall not apply to an employer, person, or entity that has engaged or is engaging in a pattern or practice of violations of paragraph (1)(A) or (2). (7) Presumption After the date on which an employer is required to participate in the System under subsection (d), the employer is presumed to have acted with knowledge for purposes of paragraph (1)(A) if the employer hires, employs, recruits, or refers an employee for a fee and fails to make an inquiry to verify the employment authorization status of the employee through the System. (8) Continued application of workforce and labor protection remedies despite unauthorized employment (A) In general Subject only to subparagraph (B), all rights and remedies provided under any Federal, State, or local law relating to workplace rights, including but not limited to back pay, are available to an employee despite— (i) the employee's status as an unauthorized alien during or after the period of employment; or (ii) the employer's or employee's failure to comply with the requirements of this section. (B) Reinstatement Reinstatement shall be available to individuals who— (i) are authorized to work in the United States at the time such relief is ordered or effectuated; or (ii) lost employment-authorized status due to the unlawful acts of the employer under this section. (b) Definitions In this section: (1) Commissioner The term Commissioner means the Commissioner of Social Security. (2) Department Except as otherwise provided, the term Department means the Department of Homeland Security. (3) Employer The term employer means any person or entity, including an agency or department of a Federal, State, or local government, an agent, or a System service provider acting on behalf of an employer, that hires, employs, recruits, or refers for a fee an individual for employment in the United States that is not casual, sporadic, irregular, or intermittent (as defined by the Secretary). (4) Employment authorized status The term employment authorized status means, with respect to an individual, that the individual is authorized to be employed in the United States under the immigration laws of the United States. (5) Secretary Except as otherwise specifically provided, the term Secretary means the Secretary of Homeland Security. (6) System The term System means the Employment Verification System established under subsection (d). (7) Unauthorized alien The term unauthorized alien means an alien who, with respect to employment in the United States at a particular time— (A) is not lawfully admitted for permanent residence; or (B) is not authorized to be employed under this Act or by the Secretary. (8) Workplace rights The term workplace rights means rights guaranteed under Federal, State, or local labor or employment laws, including laws concerning wages and hours, benefits and employment standards, labor relations, workplace health and safety, work-related injuries, nondiscrimination, and retaliation for exercising rights under such laws. (c) Document verification requirements Any employer hiring an individual for employment in the United States shall comply with the following requirements and the requirements under subsection (d) to verify that the individual has employment authorized status. (1) Attestation after examination of documentation (A) In general (i) Examination by employer An employer shall attest, under penalty of perjury on a form prescribed by the Secretary, that the employer has verified the identity and employment authorization status of the individual— (I) by examining— (aa) a document specified in subparagraph (C); or (bb) a document specified in subparagraph (D) and a document specified in subparagraph (E); and (II) by utilizing an identity authentication mechanism described in clause (iii) or (iv) of subparagraph (F). (ii) Publication of documents The Secretary shall publish a picture of each document specified in subparagraphs (C) and (E) on the U.S. Citizenship and Immigration Services website. (B) Requirements (i) Form The form referred to in subparagraph (A)(i)— (I) shall be prescribed by the Secretary not later than 6 months after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act ; (II) shall be available as— (aa) a paper form; (bb) a form that may be completed by an employer via telephone or video conference; (cc) an electronic form; or (dd) a form that is integrated electronically with the requirements under subsection (d). (ii) Attestation Each such form shall require the employer to sign an attestation with a handwritten, electronic, or digital pin code signature, according to standards prescribed by the Secretary. (iii) Compliance An employer has complied with the requirements under this paragraph with respect to examination of the documents included in subclauses (I) and (II) of subparagraph (A)(i) if— (I) the employer has, in good faith, followed applicable regulations and any written procedures or instructions provided by the Secretary; and (II) a reasonable person would conclude that the documentation is genuine and relates to the individual presenting such documentation. (C) Documents establishing identity and employment authorized status A document is specified in this subparagraph if the document is unexpired (unless the validity of the document is extended by law) and is 1 of the following: (i) A United States passport or passport card issued to an individual pursuant to the Secretary of State's authority under the Act entitled An Act to regulate the issue and validity of passports, and for other purposes , approved July 3, 1926 ( 22 U.S.C. 211a ). (ii) A document issued to an alien evidencing that the alien is lawfully admitted for permanent residence or another document issued to an individual evidencing the individual's employment authorized status, as designated by the Secretary, if the document— (I) contains a photograph of the individual, or such other personal identifying information relating to the individual as the Secretary determines, by regulation, to be sufficient for the purposes of this subparagraph; (II) is evidence of employment authorized status; and (III) contains security features to make the document resistant to tampering, counterfeiting, and fraudulent use. (iii) An enhanced driver’s license or identification card issued to a national of the United States by a State, an outlying possession of the United States, or a federally recognized Indian tribe that— (I) meets the requirements under section 202 of the REAL ID Act of 2005 (division B of Public Law 109–13 ; 49 U.S.C. 30301 note); and (II) the Secretary has certified by notice published in the Federal Register and through appropriate notice directly to employers registered in the System 3 months prior to publication that such enhanced license or card is suitable for use under this subparagraph based upon the accuracy and security of the issuance process, security features on the document, and such other factors as the Secretary may prescribe. (iv) A passport issued by the appropriate authority of a foreign country accompanied by a Form I–94 or Form I–94A (or similar successor record), or other documentation as designated by the Secretary that specifies the individual’s status in the United States and the duration of such status if the proposed employment is not in conflict with any restriction or limitation specified on such form or documentation. (v) A passport issued by the Federated States of Micronesia or the Republic of the Marshall Islands with evidence of nonimmigrant admission to the United States under the Compact of Free Association between the United States and the Federated States of Micronesia or the Republic of the Marshall Islands. (D) Documents establishing identity of individual A document is specified in this subparagraph if the document is unexpired (unless the validity of the document is extended by law) and is 1 of the following: (i) A driver’s license or identity card that is not described in subparagraph (C)(iii) and is issued to an individual by a State or an outlying possession of the United States, a federally recognized Indian tribe, or an agency (including military) of the Federal Government if the driver’s license or identity card includes, at a minimum— (I) the individual’s photograph, name, date of birth, gender, and driver’s license or identification card number; and (II) security features to make the license or card resistant to tampering, counterfeiting, and fraudulent use. (ii) A voter registration card. (iii) A document that complies with the requirements under section 7209(b)(1) of the Intelligence Reform and Terrorism Prevention Act of 2004 ( Public Law 108–458 ; 8 U.S.C. 1185 note). (iv) For individuals under 18 years of age who are unable to present a document listed in clause (i) or (ii), documentation of personal identity of such other type as the Secretary determines will provide a reliable means of identification, which may include an attestation as to the individual’s identity by a parent or legal guardian under penalty of perjury. (E) Documents evidencing employment authorization A document is specified in this subparagraph if the document is unexpired (unless the validity of the document is extended by law) and is 1 of the following: (i) A social security account number card issued by the Commissioner, other than a card which specifies on its face that the card is not valid to evidence employment authorized status or has other similar words of limitation. (ii) Any other documentation evidencing employment authorized status that the Secretary determines and publishes in the Federal Register and through appropriate notice directly to employers registered within the System to be acceptable for purposes of this subparagraph if such documentation, including any electronic security measures linked to such documentation, contains security features to make such documentation resistant to tampering, counterfeiting, and fraudulent use. (F) Identity authentication mechanism (i) Definitions In this subparagraph: (I) Covered identity document The term covered identity document means a valid— (aa) United States passport, passport card, or a document evidencing lawful permanent residence status or employment authorized status issued to an alien; (bb) enhanced driver's license or identity card issued by a participating State or an outlying possession of the United States; or (cc) photograph and appropriate identifying information provided by the Secretary of State pursuant to the granting of a visa. (II) Participating state The term participating State means a State that has an agreement with the Secretary to provide the Secretary, for purposes of identity verification in the System, with photographs and appropriate identifying information maintained by the State. (ii) Requirement for identity authentication In addition to verifying the documents specified in subparagraph (C), (D), or (E) and utilizing the System under subsection (d), each employer shall use an identity authentication mechanism described in clause (iii) or provided in clause (iv) after it becomes available to verify the identity of each individual the employer seeks to hire. (iii) Photo tool (I) Use requirement An employer hiring an individual who has a covered identity document shall verify the identity of such individual using the photo tool described in subclause (II). (II) Development requirement The Secretary shall develop and maintain a photo tool that enables employers to match the photo on a covered identity document provided to the employer to a photo maintained by a U.S. Citizenship and Immigration Services database. (iv) Additional security measures (I) Use requirement An employer seeking to hire an individual whose identity may not be verified using the photo tool described in clause (iii) shall verify the identity of such individual using the additional security measures described in subclause (II). (II) Development requirement The Secretary shall develop, after publication in the Federal Register and an opportunity for public comment, specific and effective additional security measures to adequately verify the identity of an individual whose identity may not be verified using the photo tool described in clause (iii). Such additional security measures— (aa) shall be kept up-to-date with technological advances; and (bb) shall provide a means of identity authentication in a manner that provides a high level of certainty as to the identity of such individual, using immigration and identifying information that may include review of identity documents or background screening verification techniques using publicly available information. (G) Authority to prohibit use of certain documents If the Secretary determines, after publication in the Federal Register and an opportunity for public comment, that any document or class of documents specified in subparagraph (B), (C), or (D) does not reliably establish identity or that employment authorized status is being used fraudulently to an unacceptable degree, the Secretary— (i) may prohibit or restrict the use of such document or class of documents for purposes of this subsection; and (ii) shall directly notify all employers registered within the System of the prohibition through appropriate means. (H) Authority to allow use of certain documents If the Secretary has determined that another document or class of documents, such as a document issued by a federally recognized Indian tribe, may be used to reliably establish identity or employment authorized status, the Secretary— (i) may allow the use of that document or class of documents for purposes of this subsection after publication in the Federal Register and an opportunity for public comment; (ii) shall publish a description of any such document or class of documents on the U.S. Citizenship and Immigration Services website; and (iii) shall directly notify all employers registered within the System of the addition through appropriate means. (2) Individual attestation of employment authorization An individual, upon commencing employment with an employer, shall— (A) attest, under penalty of perjury, on the form prescribed by the Secretary, that the individual is— (i) a citizen of the United States; (ii) an alien lawfully admitted for permanent residence; (iii) an alien who has employment authorized status; or (iv) otherwise authorized by the Secretary to be hired for such employment; (B) provide such attestation by a handwritten, electronic, or digital pin code signature; and (C) provide the individual’s social security account number to the Secretary, unless the individual has not yet been issued such a number, on such form as the Secretary may require. (3) Retention of verification record (A) In general After completing a form for an individual in accordance with paragraphs (1) and (2), the employer shall retain a version of such completed form and make such form available for inspection by the Secretary or the Office of Special Counsel for Immigration-Related Unfair Employment Practices of the Department of Justice during the period beginning on the hiring date of the individual and ending on the later of— (i) the date that is 3 years after such hiring date; or (ii) the date that is 1 year after the date on which the individual’s employment with the employer is terminated. (B) Requirement for electronic retention The Secretary— (i) shall permit an employer to retain the form described in subparagraph (A) in electronic form; and (ii) shall permit an employer to retain such form in paper, microfiche, microfilm, portable document format, or other media. (4) Copying of documentation and recordkeeping The Secretary may promulgate regulations regarding— (A) copying documents and related information pertaining to employment verification presented by an individual under this subsection; and (B) retaining such information during a period not to exceed the required retention period set forth in paragraph (3). (5) Penalties An employer that fails to comply with any requirement under this subsection may be penalized under subsection (e)(4)(B). (6) Protection of civil rights (A) In general Nothing in this section may be construed to diminish any rights otherwise protected by Federal law. (B) Prohibition on discrimination An employer shall use the procedures for document verification set forth in this paragraph for all employees without regard to race, color, religion, sex, national origin, or, unless specifically permitted in this section, to citizenship status. (7) Receipts The Secretary may authorize the use of receipts for replacement documents, and temporary evidence of employment authorization by an individual to meet a documentation requirement under this subsection on a temporary basis not to exceed 1 year, after which time the individual shall provide documentation sufficient to satisfy the documentation requirements under this subsection. (8) No authorization of national identification cards Nothing in this section may be construed to directly or indirectly authorize the issuance, use, or establishment of a national identification card. (d) Employment Verification System (1) In general (A) Establishment The Secretary, in consultation with the Commissioner, shall establish the Employment Verification System. (B) Monitoring The Secretary shall create the necessary processes to monitor— (i) the functioning of the System, including the volume of the workflow, the speed of processing of queries, the speed and accuracy of responses; (ii) the misuse of the System, including the prevention of fraud or identity theft; (iii) whether the use of the System results in wrongful adverse actions or discrimination based upon a prohibited factor against citizens or nationals of the United States or individuals who have employment authorized status; and (iv) the security, integrity, and privacy of the System. (C) Procedures The Secretary— (i) shall create processes to provide an individual with direct access to the individual's case history in the System, including— (I) the identities of all persons or entities that have queried the individual through the System; (II) the date of each such query; and (III) the System response for each such query; and (ii) in consultation with the Commissioner, shall develop— (I) protocols to notify an individual, in a timely manner through the use of electronic correspondence or mail, that a query for the individual has been processed through the System; or (II) a process for the individual to submit additional queries to the System or notify the Secretary of potential identity fraud. (2) Participation requirements (A) Federal government Except as provided in subparagraph (B), all agencies and departments in the executive, legislative, or judicial branches of the Federal Government shall participate in the System beginning on the earlier of— (i) the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act , to the extent required under section 402(e)(1) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (division C of Public Law 104–208 ; 8 U.S.C. 1324a ) and as already implemented by each agency or department; or (ii) the date that is 90 days after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act . (B) Federal contractors Federal contractors shall participate in the System as provided in the final rule relating to employment eligibility verification published in the Federal Register on November 14, 2008 (73 Fed. Reg. 67,651), or any similar subsequent regulation, for which purpose references to E-Verify in the final rule shall be construed to apply to the System. (C) Critical infrastructure (i) In general Beginning on the date that is 1 year after the date on which regulations are published implementing this subsection, the Secretary may authorize or direct any employer, person, or entity responsible for granting access to, protecting, securing, operating, administering, or regulating part of the critical infrastructure (as defined in section 1016(e) of the Critical Infrastructure Protection Act of 2001 ( 42 U.S.C. 5195c(e) )) to participate in the System to the extent the Secretary determines that such participation will assist in the protection of the critical infrastructure. (ii) Notification to employers The Secretary shall notify an employer required to participate in the System under this subparagraph not later than 90 days before the date on which the employer is required to participate. (D) Employers with more than 5,000 employees Not later than 2 years after regulations are published implementing this subsection, all employers with more than 5,000 employees shall participate in the System with respect to all newly hired employees and employees with expiring temporary employment authorization documents. (E) Employers with more than 500 employees Not later than 3 years after regulations are published implementing this subsection, all employers with more than 500 employees shall participate in the System with respect to all newly hired employees and employees with expiring temporary employment authorization documents. (F) Agricultural employment Not later than 4 years after regulations are published implementing this subsection, employers of employees performing agricultural employment (as defined in section 218A of this Act and section 2202 of the Border Security, Economic Opportunity, and Immigration Modernization Act ) shall participate in the System with respect to all newly hired employees and employees with expiring temporary employment authorization documents. An agricultural employee shall not be counted for purposes of subparagraph (D) or (E). (G) All employers Except as provided in subparagraph (H), not later than 4 years after regulations are published implementing this subsection, all employers shall participate in the System with respect to all newly hired employees and employees with expiring temporary employment authorization documents. (H) Tribal government employers (i) Rulemaking In developing regulations to implement this subsection, the Secretary shall— (I) consider the effects of this section on federally recognized Indian tribes and tribal members; and (II) consult with the governments of federally recognized Indian tribes. (ii) Required participation Not later than 5 years after regulations are published implementing this subsection, all employers owned by, or entities of, the government of a federally recognized Indian tribe shall participate in the System with respect to all newly hired employees and employees with expiring temporary employment authorization documents. (I) Immigration law violators (i) Orders finding violations An order finding any employer to have violated this section or section 274C may, in the Secretary's discretion, require the employer to participate in the System with respect to newly hired employees and employees with expiring temporary employment authorization documents, if such employer is not otherwise required to participate in the System under this section. The Secretary shall monitor such employer’s compliance with System procedures. (ii) Pattern or practice of violations The Secretary may require an employer that is required to participate in the System with respect to newly hired employees to participate in the System with respect to the employer's current employees if the employer is determined by the Secretary or other appropriate authority to have engaged in a pattern or practice of violations of the immigration laws of the United States. (J) Voluntary participation The Secretary may permit any employer that is not required to participate in the System under this section to do so on a voluntary basis. (3) Consequence of failure to participate (A) In general Except as provided in subparagraph (B), the failure, other than a de minimis or inadvertent failure, of an employer that is required to participate in the System to comply with the requirements of the System with respect to an individual— (i) shall be treated as a violation of subsection (a)(1)(B) with respect to that individual; and (ii) creates a rebuttable presumption that the employer has violated paragraph (1)(A) or (2) of subsection (a). (B) Exception (i) In general Subparagraph (A) shall not apply in a criminal prosecution. (ii) Use as evidence Nothing in this paragraph may be construed to limit the use in the prosecution of a Federal crime, in a manner otherwise consistent with Federal criminal law and procedure, of evidence relating to the employer’s failure to comply with requirements of the System. (4) Procedures for participants in the system (A) In general An employer participating in the System shall register such participation with the Secretary and, when hiring any individual for employment in the United States, shall comply with the following: (i) Registration of employers The Secretary, through notice in the Federal Register, shall prescribe procedures that employers shall be required to follow to register with the System. (ii) Updating information The employer is responsible for providing notice of any change to the information required under subclauses (I), (II), and (III) of clause (v) before conducting any further inquiries within the System, or on such other schedule as the Secretary may prescribe. (iii) Training The Secretary shall require employers to undergo such training as the Secretary determines to be necessary to ensure proper use, protection of civil rights and civil liberties, privacy, integrity, and security of the System. To the extent practicable, such training shall be made available electronically on the U.S. Citizenship and Immigration Services website. (iv) Notification to employees The employer shall inform individuals hired for employment that the System— (I) will be used by the employer; (II) may be used for immigration enforcement purposes; and (III) may not be used to discriminate or to take adverse action against a national of the United States or an alien who has employment authorized status. (v) Provision of additional information The employer shall obtain from the individual (and the individual shall provide) and shall record in such manner as the Secretary may specify— (I) the individual’s social security account number; (II) if the individual does not attest to United States citizenship or status as a national of the United States under subsection (c)(2), such identification or authorization number established by the Department as the Secretary shall specify; and (III) such other information as the Secretary may require to determine the identity and employment authorization of an individual. (vi) Presentation of documentation The employer, and the individual whose identity and employment authorized status are being confirmed, shall fulfill the requirements under subsection (c). (B) Seeking confirmation (i) In general An employer shall use the System to confirm the identity and employment authorized status of any individual during— (I) the period beginning on the date on which the individual accepts an offer of employment and ending 3 business days after the date on which employment begins; or (II) such other reasonable period as the Secretary may prescribe. (ii) Limitation An employer may not make the starting date of an individual’s employment or training or any other term and condition of employment dependent on the receipt of a confirmation of identity and employment authorized status by the System. (iii) Reverification If an individual has a limited period of employment authorized status, the individual's employer shall reverify such status through the System not later than 3 business days after the last day of such period. (iv) Other employment For employers directed by the Secretary to participate in the System under paragraph (2)(C)(i) to protect critical infrastructure or otherwise specified circumstances in this section to verify their entire workforce, the System may be used for initial verification of an individual who was hired before the employer became subject to the System, and the employer shall initiate all required procedures on or before such date as the Secretary shall specify. (v) Notification (I) In general The Secretary shall provide, and the employer shall utilize, as part of the System, a method of notifying employers of a confirmation or nonconfirmation of an individual’s identity and employment authorized status, or a notice that further action is required to verify such identity or employment eligibility (referred to in this subsection as a further action notice ). (II) Procedures The Secretary shall— (aa) directly notify the individual and the employer, by means of electronic correspondence, mail, text message, telephone, or other direct communication, of a nonconfirmation or further action notice; (bb) provide information about filing an administrative appeal under paragraph (6) and a filing for review before an administrative law judge under paragraph (7); and (cc) establish procedures to directly notify the individual and the employer of a confirmation. (III) Implementation The Secretary may provide for a phased-in implementation of the notification requirements under this clause, as appropriate. The notification system shall cover all inquiries not later than 1 year from the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act . (C) Confirmation or nonconfirmation (i) Initial response (I) In general Except as provided in subclause (II), the System shall provide— (aa) a confirmation of an individual’s identity and employment authorized status or a further action notice at the time of the inquiry; and (bb) an appropriate code indicating such confirmation or such further action notice. (II) Alternative deadline If the System is unable to provide immediate confirmation or further action notice for technological reasons or due to unforeseen circumstances, the System shall provide a confirmation or further action notice not later than 3 business days after the initial inquiry. (ii) Confirmation upon initial inquiry If the employer receives an appropriate confirmation of an individual’s identity and employment authorized status under the System, the employer shall record the confirmation in such manner as the Secretary may specify. (iii) Further action notice and later confirmation or nonconfirmation (I) Notification and acknowledgment that further action is required Not later than 3 business days after an employer receives a further action notice of an individual’s identity or employment eligibility under the System, or during such other reasonable time as the Secretary may prescribe, the employer shall notify the individual for whom the confirmation is sought of the further action notice and any procedures specified by the Secretary for addressing such notice. The further action notice shall be given to the individual in writing and the employer shall acknowledge in the System under penalty of perjury that it provided the employee with the further action notice. The individual shall affirmatively acknowledge in writing, or in such other manner as the Secretary may specify, the receipt of the further action notice from the employer. If the individual refuses to acknowledge the receipt of the further action notice, or acknowledges in writing that the individual will not contest the further action notice under subclause (II), the employer shall notify the Secretary in such manner as the Secretary may specify. (II) Contest Not later than 10 business days after receiving notification of a further action notice under subclause (I), the individual shall contact the appropriate Federal agency and, if the Secretary so requires, appear in person for purposes of verifying the individual’s identity and employment eligibility. The Secretary, in consultation with the Commissioner and other appropriate Federal agencies, shall specify an available secondary verification procedure to confirm the validity of information provided and to provide a confirmation or nonconfirmation. Any procedures for reexamination shall not limit in any way an employee’s right to appeal a nonconfirmation. (III) No contest If the individual refuses to acknowledge receipt of the further action notice, acknowledges that the individual will not contest the further action notice as provided in subclause (I), or does not contact the appropriate Federal agency within the period specified in subclause (II), following expiration of the period specified in subclause (II), a nonconfirmation shall be issued. The employer shall record the nonconfirmation in such manner as the Secretary may specify and terminate the individual’s employment. An individual’s failure to contest a further action notice shall not be considered an admission of guilt with respect to any violation of this section or any provision of law. (IV) Confirmation or nonconfirmation Unless the period is extended in accordance with this subclause, the System shall provide a confirmation or nonconfirmation not later than 10 business days after the date on which the individual contests the further action notice under subclause (II). If the Secretary determines that good cause exists, after taking into account adverse impacts to the employer, and including time to permit the individual to obtain and provide needed evidence of identity or employment eligibility, the Secretary shall extend the period for providing confirmation or nonconfirmation for stated periods beyond 10 business days. When confirmation or nonconfirmation is provided, the confirmation system shall provide an appropriate code indicating such confirmation or nonconfirmation. (V) Reexamination Nothing in this section shall prevent the Secretary from establishing procedures to reexamine a case where a confirmation or nonconfirmation has been provided if subsequently received information indicates that the confirmation or nonconfirmation may not have been correct. Any procedures for reexamination shall not limit in any way an employee’s right to appeal a nonconfirmation. (VI) Employee protections An employer may not terminate employment or take any other adverse action against an individual solely because of a failure of the individual to have identity and employment eligibility confirmed under this subsection until— (aa) a nonconfirmation has been issued; (bb) if the further action notice was contested, the period to timely file an administrative appeal has expired without an appeal or the contestation to the further action notice is withdrawn; or (cc) if an appeal before an administrative law judge under paragraph (7) has been filed, the nonconfirmation has been upheld or the appeal has been withdrawn or dismissed. (iv) Notice of nonconfirmation Not later than 3 business days after an employer receives a nonconfirmation, or during such other reasonable time as the Secretary may provide, the employer shall notify the individual who is the subject of the nonconfirmation, and provide information about filing an administrative appeal pursuant to paragraph (6) and a request for a hearing before an administrative law judge pursuant to paragraph (7). The nonconfirmation notice shall be given to the individual in writing and the employer shall acknowledge in the System under penalty of perjury that it provided the notice (or adequately attempted to provide notice, but was unable to do so despite reasonable efforts). The individual shall affirmatively acknowledge in writing, or in such other manner as the Secretary may prescribe, the receipt of the nonconfirmation notice from the employer. If the individual refuses or fails to acknowledge the receipt of the nonconfirmation notice, the employer shall notify the Secretary in such manner as the Secretary may prescribe. (D) Consequences of nonconfirmation (i) Termination of continued employment Except as provided in clause (iii), an employer that has received a nonconfirmation regarding an individual and has made reasonable efforts to notify the individual in accordance with subparagraph (C)(iv) shall terminate the employment of the individual upon the expiration of the time period specified in paragraph (7). (ii) Continued employment after nonconfirmation If the employer continues to employ an individual after receiving nonconfirmation and exhaustion of all appeals or expiration of all rights to appeal if not appealed, in violation of clause (i), a rebuttable presumption is created that the employer has violated paragraphs (1)(A) and (2) of subsection (a). Such presumption shall not apply in any prosecution under subsection (k)(1). (iii) Effect of administrative appeal or review by administrative law judge If an individual files an administrative appeal of the nonconfirmation within the time period specified in paragraph (6)(A), or files for review with an administrative law judge specified in paragraph (7)(A), the employer shall not terminate the individual’s employment under this subparagraph prior to the resolution of the administrative appeal unless the Secretary or Commissioner terminates the stay under paragraph (6)(B) or (7)(B). (iv) Weekly report The Director of U.S. Citizenship and Immigration Services shall submit a weekly report to the Assistant Secretary for Immigration and Customs Enforcement that includes, for each individual who receives final nonconfirmation through the System— (I) the name of such individual; (II) his or her social security number or alien file number; (III) the name and contact information for his or her current employer; and (IV) any other critical information that the Assistant Secretary determines to be appropriate. (E) Obligation to respond to queries and additional information (i) In general Employers shall comply with requests for information from the Secretary and the Special Counsel for Immigration-Related Unfair Employment Practices of the Department of Justice, including queries concerning current and former employees, within the time frame during which records are required to be maintained under this section regarding such former employees, if such information relates to the functioning of the System, the accuracy of the responses provided by the System, or any suspected misuse, discrimination, fraud, or identity theft in the use of the System. Failure to comply with a request under this clause constitutes a violation of subsection (a)(1)(B). (ii) Action by individuals (I) In general Individuals being verified through the System may be required to take further action to address questions identified by the Secretary or the Commissioner regarding the documents relied upon for purposes of subsection (c). (II) Notification Not later than 3 business days after the receipt of such questions regarding an individual, or during such other reasonable time as the Secretary may prescribe, the employer shall— (aa) notify the individual of any such requirement for further actions; and (bb) record the date and manner of such notification. (III) Acknowledgment The individual shall acknowledge the notification received from the employer under subclause (II) in writing, or in such other manner as the Secretary may prescribe. (iii) Rulemaking (I) In general The Secretary, in consultation with the Commissioner and the Attorney General, is authorized to issue regulations implementing, clarifying, and supplementing the requirements under this subparagraph— (aa) to facilitate the functioning, accuracy, and fairness of the System; (bb) to prevent misuse, discrimination, fraud, or identity theft in the use of the System; or (cc) to protect and maintain the confidentiality of information that could be used to locate or otherwise place at risk of harm victims of domestic violence, dating violence, sexual assault, stalking, and human trafficking, and of the applicant or beneficiary of any petition described in section 384(a)(2) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 ( 8 U.S.C. 1367(a)(2) ). (II) Notice The regulations issued under subclause (I) shall be— (aa) published in the Federal Register; and (bb) provided directly to all employers registered in the System. (F) Designated agents The Secretary shall establish a process— (i) for certifying, on an annual basis or at such times as the Secretary may prescribe, designated agents and other System service providers seeking access to the System to perform verification queries on behalf of employers, based upon training, usage, privacy, and security standards prescribed by the Secretary; (ii) for ensuring that designated agents and other System service providers are subject to monitoring to the same extent as direct access users; and (iii) for establishing standards for certification of electronic I–9 programs. (G) Requirement to provide information (i) In general No later than 3 months after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act , the Secretary, in consultation with the Secretary of Labor, the Secretary of Agriculture, the Commissioner, the Attorney General, the Equal Employment Opportunity Commission, and the Administrator of the Small Business Administration, shall commence a campaign to disseminate information respecting the procedures, rights, and remedies prescribed under this section. (ii) Campaign requirements The campaign authorized under clause (i)— (I) shall be aimed at increasing the knowledge of employers, employees, and the general public concerning employer and employee rights, responsibilities, and remedies under this section; and (II) shall be coordinated with the public education campaign conducted by U.S. Citizenship and Immigration Services. (iii) Assessment The Secretary shall assess the success of the campaign in achieving the goals of the campaign. (iv) Authority to contract In order to carry out and assess the campaign under this subparagraph, the Secretary may, to the extent deemed appropriate and subject to the availability of appropriations, contract with public and private organizations for outreach and assessment activities under the campaign. (v) Authorization of appropriations There are authorized to be appropriated to carry out this paragraph $40,000,000 for each of the fiscal years 2014 through 2016. (H) Authority to modify information requirements Based on a regular review of the System and the document verification procedures to identify misuse or fraudulent use and to assess the security of the documents and processes used to establish identity or employment authorized status, the Secretary, in consultation with the Commissioner, after publication of notice in the Federal Register and an opportunity for public comment, may modify, if the Secretary determines that the modification is necessary to ensure that the System accurately and reliably determines the identity and employment authorized status of employees and maintain existing protections against misuse, discrimination, fraud, and identity theft— (i) the information that shall be presented to the employer by an individual; (ii) the information that shall be provided to the System by the employer; and (iii) the procedures that shall be followed by employers with respect to the process of verifying an individual through the System. (I) Self-verification Subject to appropriate safeguards to prevent misuse of the system, the Secretary, in consultation with the Commissioner, shall establish a secure self-verification procedure to permit an individual who seeks to verify the individual’s own employment eligibility to contact the appropriate agency and, in a timely manner, correct or update the information contained in the System. (5) Protection from liability for actions taken on the basis of information provided by the System An employer shall not be liable to a job applicant, an employee, the Federal Government, or a State or local government, under Federal, State, or local criminal or civil law for any employment-related action taken with respect to a job applicant or employee in good faith reliance on information provided by the System. (6) Administrative appeal (A) In general An individual who is notified of a nonconfirmation may, not later than 10 business days after the date that such notice is received, file an administrative appeal of such nonconfirmation with the Commissioner if the notice is based on records maintained by the Commissioner, or in any other case, with the Secretary. An individual who did not timely contest a further action notice timely received by that individual for which the individual acknowledged receipt may not be granted a review under this paragraph. (B) Administrative stay of nonconfirmation The nonconfirmation shall be automatically stayed upon the timely filing of an administrative appeal, unless the nonconfirmation resulted after the individual acknowledged receipt of the further action notice but failed to contact the appropriate agency within the time provided. The stay shall remain in effect until the resolution of the appeal, unless the Secretary or the Commissioner terminates the stay based on a determination that the administrative appeal is frivolous or filed for purposes of delay. (C) Review for error The Secretary and the Commissioner shall develop procedures for resolving administrative appeals regarding nonconfirmations based upon the information that the individual has provided, including any additional evidence or argument that was not previously considered. Any such additional evidence or argument shall be filed within 10 business days of the date the appeal was originally filed. Appeals shall be resolved within 20 business days after the individual has submitted all evidence and arguments the individual wishes to submit, or has stated in writing that there is no additional evidence that the individual wishes to submit. The Secretary and the Commissioner may, on a case by case basis for good cause, extend the filing and submission period in order to ensure accurate resolution of an appeal before the Secretary or the Commissioner. (D) Preponderance of evidence Administrative appeal under this paragraph shall be limited to whether a nonconfirmation notice is supported by a preponderance of the evidence. (E) Damages, fees, and costs No money damages, fees or costs may be awarded in the administrative appeal process under this paragraph. (7) Review by administrative law judge (A) In general Not later than 30 days after the date an individual receives a final determination on an administrative appeal under paragraph (6), the individual may obtain review of such determination by filing a complaint with a Department of Justice administrative law judge in accordance with this paragraph. (B) Stay of nonconfirmation The nonconfirmation related to such final determination shall be automatically stayed upon the timely filing of a complaint under this paragraph, and the stay shall remain in effect until the resolution of the complaint, unless the administrative law judge determines that the action is frivolous or filed for purposes of delay. (C) Service The respondent to complaint filed under this paragraph is either the Secretary or the Commissioner, but not both, depending upon who issued the administrative order under paragraph (6). In addition to serving the respondent, the plaintiff shall serve the Attorney General. (D) Authority of administrative law judge (i) Rules of practice The Secretary shall promulgate regulations regarding the rules of practice in appeals brought pursuant to this subsection. (ii) Authority of administrative law judge The administrative law judge shall have power to— (I) terminate a stay of a nonconfirmation under subparagraph (B) if the administrative law judge determines that the action is frivolous or filed for purposes of delay; (II) adduce evidence at a hearing; (III) compel by subpoena the attendance of witnesses and the production of evidence at any designated place or hearing; (IV) resolve claims of identity theft; and (V) enter, upon the pleadings and any evidence adduced at a hearing, a decision affirming or reversing the result of the agency, with or without remanding the cause for a rehearing. (iii) Subpoena In case of contumacy or refusal to obey a subpoena lawfully issued under this section and upon application of the administrative law judge, an appropriate district court of the United States may issue an order requiring compliance with such subpoena and any failure to obey such order may be punished by such court as a contempt of such court. (iv) Training An administrative law judge hearing cases shall have special training respecting employment authorized status verification. (E) Order by administrative law judge (i) In general The administrative law judge shall issue and cause to be served to the parties in the proceeding an order which may be appealed as provided in subparagraph (G). (ii) Contents of order Such an order shall uphold or reverse the final determination on the request for reconsideration and order lost wages and other appropriate remedies as provided in subparagraph (F). (F) Compensation for error (i) In general In cases in which the administrative law judge reverses the final determination of the Secretary or the Commissioner made under paragraph (6), and the administrative law judge finds that— (I) the nonconfirmation was due to gross negligence or intentional misconduct of the employer, the administrative law judge may order the employer to pay the individual lost wages, and reasonable costs and attorneys’ fees incurred during administrative and judicial review; or (II) such final determination was erroneous by reason of the negligence of the Secretary or the Commissioner, the administrative law judge may order the Secretary or the Commissioner to pay the individual lost wages, and reasonable costs and attorneys’ fees incurred during the administrative appeal and the administrative law judge review. (ii) Calculation of lost wages Lost wages shall be calculated based on the wage rate and work schedule that prevailed prior to termination. The individual shall be compensated for wages lost beginning on the first scheduled work day after employment was terminated and ending 120 days after completion of the administrative law judge’s review described in this paragraph or the day after the individual is reinstated or obtains employment elsewhere, whichever occurs first. If the individual obtains employment elsewhere at a lower wage rate, the individual shall be compensated for the difference in wages for the period ending 120 days after completion of the administrative law judge review process. No lost wages shall be awarded for any period of time during which the individual was not in employment authorized status. (iii) Payment of compensation Notwithstanding any other law, payment of compensation for lost wages, costs, and attorneys’ fees under this paragraph, or compromise settlements of the same, shall be made as provided by section 1304 of title 31, United States Code. Appropriations made available to the Secretary or the Commissioner, accounts provided for under section 286, and funds from the Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund shall not be available to pay such compensation. (G) Appeal No later than 45 days after the entry of such final order, any person adversely affected by such final order may seek review of such order in the United States Court of Appeals for the circuit in which the violation is alleged to have occurred or in which the employer resides or transacts business. (8) Management of the system (A) In general The Secretary is authorized to establish, manage, and modify the System, which shall— (i) respond to inquiries made by participating employers at any time through the Internet, or such other means as the Secretary may designate, concerning an individual’s identity and whether the individual is in employment authorized status; (ii) maintain records of the inquiries that were made, of confirmations provided (or not provided), and of the codes provided to employers as evidence of their compliance with their obligations under the System; and (iii) provide information to, and require action by, employers and individuals using the System. (B) Design and operation of system The System shall be designed and operated— (i) to maximize its reliability and ease of use by employers consistent with protecting the privacy and security of the underlying information, and ensuring full notice of such use to employees; (ii) to maximize its ease of use by employees, including direct notification of its use, of results, and ability to challenge results; (iii) to respond accurately to all inquiries made by employers on whether individuals are authorized to be employed and to register any times when the system is unable to receive inquiries; (iv) to maintain appropriate administrative, technical, and physical safeguards to prevent unauthorized disclosure of personal information, misuse by employers and employees, and discrimination; (v) to require regularly scheduled refresher training of all users of the System to ensure compliance with all procedures; (vi) to allow for auditing of the use of the System to detect misuse, discrimination, fraud, and identity theft, to protect privacy and assess System accuracy, and to preserve the integrity and security of the information in all of the System, including— (I) to develop and use tools and processes to detect or prevent fraud and identity theft, such as multiple uses of the same identifying information or documents to fraudulently gain employment; (II) to develop and use tools and processes to detect and prevent misuse of the system by employers and employees; (III) to develop tools and processes to detect anomalies in the use of the system that may indicate potential fraud or misuse of the system; (IV) to audit documents and information submitted by employees to employers, including authority to conduct interviews with employers and employees, and obtain information concerning employment from the employer; (vii) to confirm identity and employment authorization through verification and comparison of records as determined necessary by the Secretary; (viii) to confirm electronically the issuance of the employment authorization or identity document and— (I) if such photograph is available, to display the digital photograph that the issuer placed on the document so that the employer can compare the photograph displayed to the photograph on the document presented by the employee; or (II) if a photograph is not available from the issuer, to confirm the authenticity of the document using such alternative procedures as the Secretary may specify; and (ix) to provide appropriate notification directly to employers registered with the System of all changes made by the Secretary or the Commissioner related to allowed and prohibited documents, and use of the System. (C) Safeguards to the System (i) Requirement to develop The Secretary, in consultation with the Commissioner and other appropriate Federal and State agencies, shall develop policies and procedures to ensure protection of the privacy and security of personally identifiable information and identifiers contained in the records accessed or maintained by the System. The Secretary, in consultation with the Commissioner and other appropriate Federal and State agencies, shall develop and deploy appropriate privacy and security training for the Federal and State employees accessing the records under the System. (ii) Privacy audits The Secretary, acting through the Chief Privacy Officer of the Department, shall conduct regular privacy audits of the policies and procedures established under clause (i), including any collection, use, dissemination, and maintenance of personally identifiable information and any associated information technology systems, as well as scope of requests for this information. The Chief Privacy Officer shall review the results of the audits and recommend to the Secretary any changes necessary to improve the privacy protections of the program. (iii) Accuracy audits (I) In general Not later than November 30 of each year, the Inspector General of the Department of Homeland Security shall submit a report to the Secretary, with a copy to the President of the Senate and the Speaker of the House of Representatives, that sets forth the error rate of the System for the previous fiscal year and the assessments required to be submitted by the Secretary under subparagraphs (A) and (B) of paragraph (10). The report shall describe in detail the methodology employed for purposes of the report, and shall make recommendations for how error rates may be reduced. (II) Error rate defined In this clause, the term error rate means the percentage determined by dividing— (aa) the number of employment authorized individuals who received further action notices, contested such notices, and were subsequently found to be employment authorized; by (bb) the number of System inquiries submitted for employment authorized individuals. (III) Reduction of penalties for recordkeeping or verification practices following persistent system inaccuracies Notwithstanding subsection (e)(4)(C)(i), in any calendar year following a report by the Inspector General under subclause (I) that the System had an error rate higher than 0.3 percent for the previous fiscal year, the civil penalty assessable by the Secretary or an administrative law judge under that subsection for each first-time violation by an employer who has not previously been penalized under this section may not exceed $1,000. (iv) Records security program Any person, including a private third party vendor, who retains document verification or System data pursuant to this section shall implement an effective records security program that— (I) ensures that only authorized personnel have access to document verification or System data; and (II) ensures that whenever such data is created, completed, updated, modified, altered, or corrected in electronic format, a secure and permanent record is created that establishes the date of access, the identity of the individual who accessed the electronic record, and the particular action taken. (v) Records security program In addition to the security measures described in clause (iv), a private third party vendor who retains document verification or System data pursuant to this section shall implement an effective records security program that— (I) provides for backup and recovery of any records maintained in electronic format to protect against information loss, such as power interruptions; and (II) ensures that employees are trained to minimize the risk of unauthorized or accidental alteration or erasure of such data in electronic format. (vi) Authorized personnel defined In this subparagraph, the term authorized personnel means anyone registered as a System user, or anyone with partial or full responsibility for completion of employment authorization verification or retention of data in connection with employment authorization verification on behalf of an employer. (D) Available facilities and alternative accommodations The Secretary shall make appropriate arrangements and develop standards to allow employers or employees, including remote hires, who are otherwise unable to access the System to use electronic and telephonic formats (including video conferencing, scanning technology, and other available technologies), Federal Government facilities, public facilities, or other available locations in order to utilize the System. (E) Responsibilities of the Secretary (i) In general As part of the System, the Secretary shall maintain a reliable, secure method, which, operating through the System and within the time periods specified, compares the name, alien identification or authorization number, or other information as determined relevant by the Secretary, provided in an inquiry against such information maintained or accessed by the Secretary in order to confirm (or not confirm) the validity of the information provided, the correspondence of the name and number, whether the alien has employment authorized status (or, to the extent that the Secretary determines to be feasible and appropriate, whether the records available to the Secretary verify the identity or status of a national of the United States), and such other information as the Secretary may prescribe. (ii) Photograph display As part of the System, the Secretary shall establish a reliable, secure method, which, operating through the System, displays the digital photograph described in subparagraph (B)(viii)(I). (iii) Timing of notices The Secretary shall have authority to prescribe when a confirmation, nonconfirmation, or further action notice shall be issued. (iv) Use of information The Secretary shall perform regular audits under the System, as described in subparagraph (B)(vi) and shall utilize the information obtained from such audits, as well as any information obtained from the Commissioner pursuant to part E of title XI of the Social Security Act ( 42 U.S.C. 1301 et seq. ), for the purposes of this section and to administer and enforce the immigration laws. (v) Identity fraud protection To prevent identity fraud, not later than 18 months after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act , the Secretary shall— (I) in consultation with the Commissioner, establish a program to provide a reliable, secure method for an individual to temporarily suspend or limit the use of the individual's social security account number or other identifying information for verification by the System; and (II) for each individual being verified through the System— (aa) notify the individual that the individual has the option to limit the use of the individual's social security account number or other identifying information for verification by the System; and (bb) provide instructions to the individuals for exercising the option referred to in item (aa). (vi) Allowing parents to prevent theft of their child's identity The Secretary, in consultation with the Commissioner, shall establish a program that provides a reliable, secure method by which parents or legal guardians may suspend or limit the use of the social security account number or other identifying information of a minor under their care for the purposes of the System. The Secretary may implement the program on a limited pilot program basis before making it fully available to all individuals. (vii) Protection from multiple use The Secretary and the Commissioner shall establish a procedure for identifying and handling a situation in which a social security account number has been identified to be subject to unusual multiple use in the System or is otherwise suspected or determined to have been compromised by identity fraud. (viii) Monitoring and compliance unit The Secretary shall establish or designate a monitoring and compliance unit to detect and reduce identity fraud and other misuse of the System. (ix) Civil rights and civil liberties assessments (I) Requirement to conduct The Secretary shall conduct regular civil rights and civil liberties assessments of the System, including participation by employers, other private entities, and Federal, State, and local government entities. (II) Requirement to respond Employers, other private entities, and Federal, State, and local entities shall timely respond to any request in connection with such an assessment. (III) Assessment and recommendations The Officer for Civil Rights and Civil Liberties of the Department shall review the results of each such assessment and recommend to the Secretary any changes necessary to improve the civil rights and civil liberties protections of the System. (F) Grants to States (i) In general The Secretary shall create and administer a grant program to help provide funding for States that grant— (I) the Secretary access to driver’s license information as needed to confirm that a driver’s license presented under subsection (c)(1)(D)(i) confirms the identity of the subject of the System check, and that a driver’s license matches the State’s records; and (II) such assistance as the Secretary may request in order to resolve further action notices or nonconfirmations relating to such information. (ii) Construction with the Driver's Privacy Protection Act of 1994 The provision of a photograph to the Secretary as described in clause (i) may not be construed as a violation of section 2721 of title 18, United States Code, and is a permissible use under subsection (b)(1) of that section. (iii) Authorization of appropriations There is authorized to be appropriated to the Secretary $250,000,000 to carry out this subparagraph. (G) Responsibilities of the Secretary of State As part of the System, the Secretary of State shall provide to the Secretary access to passport and visa information as needed to confirm that a passport, passport card, or visa presented under subsection (c)(1)(C) confirms the identity of the subject of the System check, and that a passport, passport card, or visa photograph matches the Secretary of State’s records, and shall provide such assistance as the Secretary may request in order to resolve further action notices or nonconfirmations relating to such information. (H) Updating information The Commissioner, the Secretary, and the Secretary of State shall update their information in a manner that promotes maximum accuracy and shall provide a process for the prompt correction of erroneous information. (9) Limitation on use of the System Notwithstanding any other provision of law, nothing in this subsection may be construed to permit or allow any department, bureau, or other agency of the United States Government or any other entity to utilize any information, database, or other records assembled under this subsection for any purpose other than for employment verification or to ensure secure, appropriate and nondiscriminatory use of the System. (10) Annual report and certification Not later than 18 months after the promulgation of regulations to implement this subsection, and annually thereafter, the Secretary shall submit to Congress a report that includes the following: (A) An assessment, as submitted to the Secretary by the Inspector General of the Department of Homeland Security pursuant to paragraph (8)(C)(iii)(I), of the accuracy rates of further action notices and other System notices provided by employers to individuals who are authorized to be employed in the United States. (B) An assessment, as submitted to the Secretary by the Inspector General of the Department of Homeland Security pursuant to paragraph (8)(C)(iii)(I), of the accuracy rates of further action notices and other System notices provided directly (by the System) in a timely fashion to individuals who are not authorized to be employed in the United States. (C) An assessment of any challenges faced by small employers in utilizing the System. (D) An assessment of the rate of employer noncompliance (in addition to failure to provide required notices in a timely fashion) in each of the following categories: (i) Taking adverse action based on a further action notice. (ii) Use of the System for nonemployees or other individuals before they are offered employment. (iii) Use of the System to reverify employment authorized status of current employees except if authorized to do so. (iv) Use of the System selectively, except in cases in which such use is authorized. (v) Use of the System to deny employment or post-employment benefits or otherwise interfere with labor rights. (vi) Requiring employees or applicants to use any self-verification feature or to provide self-verification results. (vii) Discouraging individuals who receive a further action notice from challenging the further action notice or appealing a determination made by the System. (E) An assessment of the rate of employee noncompliance in each of the following categories: (i) Obtaining employment when unauthorized with an employer complying with the System in good faith. (ii) Failure to provide required documents in a timely manner. (iii) Attempting to use fraudulent documents or documents not related to the individual. (iv) Misuse of the administrative appeal and judicial review process. (F) An assessment of the amount of time taken for— (i) the System to provide the confirmation or further action notice; (ii) individuals to contest further action notices; (iii) the System to provide a confirmation or nonconfirmation of a contested further action notice; (iv) individuals to file an administrative appeal of a nonconfirmation; and (v) resolving administrative appeals regarding nonconfirmations. (11) Annual GAO study and report (A) Requirement The Comptroller General shall, for each year, undertake a study to evaluate the accuracy, efficiency, integrity, and impact of the System. (B) Report Not later than 18 months after the promulgation of regulations to implement this subsection, and yearly thereafter, the Comptroller General shall submit to Congress a report containing the findings of the study carried out under this paragraph. Each such report shall include, at a minimum, the following: (i) An assessment of System performance with respect to the rate at which individuals who are eligible for employment in the United States are correctly approved within the required periods, including a separate assessment of such rate for naturalized United States citizens, nationals of the United States, and aliens. (ii) An assessment of the privacy and confidentiality of the System and of the overall security of the System with respect to cybertheft and theft or misuse of private data. (iii) An assessment of whether the System is being implemented in a manner that is not discriminatory or used for retaliation against employees. (iv) An assessment of the most common causes for the erroneous issuance of nonconfirmations by the System and recommendations to correct such causes. (v) The recommendations of the Comptroller General regarding System improvements. (vi) An assessment of the frequency and magnitude of changes made to the System and the impact on the ability for employers to comply in good faith. (vii) An assessment of the direct and indirect costs incurred by employers in complying with the System, including costs associated with retaining potential employees through the administrative appeals process and receiving a nonconfirmation. (viii) An assessment of any backlogs or delays in the System providing the confirmation or further action notice and impacts to hiring by employers. (e) Compliance (1) Complaints and investigations The Secretary shall establish procedures— (A) for individuals and entities to file complaints respecting potential violations of subsections (a) or (f)(1); (B) for the investigation of those complaints which the Secretary deems appropriate to investigate; and (C) for providing notification to the Special Counsel for Immigration-Related Unfair Employment Practices of the Department of Justice of potential violations of section 274B. (2) Authority in investigations In conducting investigations and proceedings under this subsection— (A) immigration officers shall have reasonable access to examine evidence of the employer being investigated; (B) immigration officers designated by the Secretary, and administrative law judges and other persons authorized to conduct proceedings under this section, may compel by subpoena the attendance of relevant witnesses and the production of relevant evidence at any designated place in an investigation or case under this subsection. In case of refusal to fully comply with a subpoena lawfully issued under this paragraph, the Secretary may request that the Attorney General apply in an appropriate district court of the United States for an order requiring compliance with the subpoena, and any failure to obey such order may be punished by the court as contempt. Failure to cooperate with the subpoena shall be subject to further penalties, including further fines and the voiding of any mitigation of penalties or termination of proceedings under paragraph (4)(E); and (C) the Secretary, in cooperation with the Commissioner and Attorney General, and in consultation with other relevant agencies, shall establish a Joint Employment Fraud Task Force consisting of, at a minimum— (i) the System’s compliance personnel; (ii) immigration law enforcement officers; (iii) personnel of the Office of Special Counsel for Immigration-Related Unfair Employment Practices of the Department of Justice; (iv) personnel of the Office for Civil Rights and Civil Liberties of the Department; and (v) personnel of Office of Inspector General of the Social Security Administration. (3) Compliance procedures (A) Pre-penalty notice If the Secretary has reasonable cause to believe that there has been a civil violation of this section in the previous 3 years, the Secretary shall issue to the employer concerned a written notice of the Department’s intention to issue a claim for a monetary or other penalty. Such pre-penalty notice shall— (i) describe the violation; (ii) specify the laws and regulations allegedly violated; (iii) disclose the material facts which establish the alleged violation; (iv) describe the penalty sought to be imposed; and (v) inform such employer that such employer shall have a reasonable opportunity to make representations as to why a monetary or other penalty should not be imposed. (B) Employer’s response Whenever any employer receives written pre-penalty notice of a fine or other penalty in accordance with subparagraph (A), the employer may, within 60 days from receipt of such notice, file with the Secretary its written response to the notice. The response may include any relevant evidence or proffer of evidence that the employer wishes to present with respect to whether the employer violated this section and whether, if so, the penalty should be mitigated, and shall be filed and considered in accordance with procedures to be established by the Secretary. (C) Right to a hearing Before issuance of an order imposing a penalty on any employer, person, or entity, the employer, person, or entity shall be entitled to a hearing before an administrative law judge, if requested within 60 days of the notice of penalty. The hearing shall be held at the nearest location practicable to the place where the employer, person, or entity resides or of the place where the alleged violation occurred. (D) Issuance of orders If no hearing is so requested, the Secretary’s imposition of the order shall constitute a final and unappealable order. If a hearing is requested and the administrative law judge determines, upon clear and convincing evidence received, that there was a violation, the administrative law judge shall issue the final determination with a written penalty claim. The penalty claim shall specify all charges in the information provided under clauses (i) through (iii) of subparagraph (A) and any mitigation of the penalty that the administrative law judge deems appropriate under paragraph (4)(E). (4) Civil penalties (A) Hiring or continuing to employ unauthorized aliens Any employer that violates any provision of subsection (a)(1)(A) or (a)(2) shall— (i) pay a civil penalty of not less than $3,500 and not more than $7,500 for each unauthorized alien with respect to which each violation of either subsection (a)(1)(A) or (a)(2) occurred; (ii) if the employer has previously been fined as a result of a previous enforcement action or previous violation under this paragraph, pay a civil penalty of not less than $5,000 and not more than $15,000 for each unauthorized alien with respect to which a violation of either subsection (a)(1)(A) or (a)(2) occurred; and (iii) if the employer has previously been fined more than once under this paragraph, pay a civil penalty of not less than $10,000 and not more than $25,000 for each unauthorized alien with respect to which a violation of either subsection (a)(1)(A) or (a)(2) occurred. (B) Enhanced penalties After the Secretary certifies to Congress that the System has been established, implemented, and made mandatory for use by all employers in the United States, the Secretary may establish an enhanced civil penalty for an employer who— (i) fails to query the System to verify the identify and work authorized status of an individual; and (ii) violates a Federal, State, or local law related to— (I) the payment of wages; (II) hours worked by employees; or (III) workplace health and safety. (C) Recordkeeping or verification practices Any employer that violates or fails to comply with any requirement under subsection (a)(1)(B), other than a minor or inadvertent failure, as determined by the Secretary, shall pay a civil penalty of— (i) not less than $500 and not more than $2,000 for each violation; (ii) if an employer has previously been fined under this paragraph, not less than $1,000 and not more than $4,000 for each violation; and (iii) if an employer has previously been fined more than once under this paragraph, not less than $2,000 and not more than $8,000 for each violation. (D) Other penalties The Secretary may impose additional penalties for violations, including cease and desist orders, specially designed compliance plans to prevent further violations, suspended fines to take effect in the event of a further violation, and in appropriate cases, the remedy provided by paragraph (f)(2). (E) Mitigation The Secretary or, if an employer requests a hearing, the administrative law judge, is authorized, upon such terms and conditions as the Secretary or administrative law judge deems reasonable and just and in accordance with such procedures as the Secretary may establish or any procedures established governing the administrative law judge’s assessment of penalties, to reduce or mitigate penalties imposed upon employers, based upon factors including, the employer’s hiring volume, compliance history, good-faith implementation of a compliance program, the size and level of sophistication of the employer, and voluntary disclosure of violations of this subsection to the Secretary. The Secretary or administrative law judge shall not mitigate a penalty below the minimum penalty provided by this section, except that the Secretary may, in the case of an employer subject to penalty for recordkeeping or verification violations only who has not previously been penalized under this section, in the Secretary’s or administrative law judge’s discretion, mitigate the penalty below the statutory minimum or remit it entirely. In any case where a civil money penalty has been imposed on an employer under section 274B for an action or omission that is also a violation of this section, the Secretary or administrative law judge shall mitigate any civil money penalty under this section by the amount of the penalty imposed under section 274B. (F) Effective date The civil money penalty amounts and the enhanced penalties provided by subparagraphs (A), (B), and (C) of this paragraph and by subsection (f)(2) shall apply to violations of this section committed on or after the date that is 1 year after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act . For violations committed prior to such date of enactment, the civil money penalty amounts provided by regulations implementing this section as in effect the minute before such date of enactment with respect to knowing hiring or continuing employment, verification, or indemnity bond violations, as appropriate, shall apply. (5) Order of internal review and certification of compliance (A) Employer compliance If the Secretary has reasonable cause to believe that an employer has failed to comply with this section, the Secretary is authorized, at any time, to require that the employer certify that it is in compliance with this section, or has instituted a program to come into compliance. (B) Employer certification (i) Requirement Except as provided in subparagraph (C), not later than 60 days after receiving a notice from the Secretary requiring a certification under subparagraph (A), an official with responsibility for, and authority to bind the company on, all hiring and immigration compliance notices shall certify under penalty of perjury that the employer is in conformance with the requirements of paragraphs (1) through (4) of subsection (c), pertaining to document verification requirements, and with subsection (d), pertaining to the System (once the System is implemented with respect to that employer according to the requirements under subsection (d)(2)), and with any additional requirements that the Secretary may promulgate by regulation pursuant to subsection (c) or (d) or that the employer has instituted a program to come into compliance with these requirements. (ii) Application Clause (i) shall not apply until the date that the Secretary certifies to Congress that the System has been established, implemented, and made mandatory for use by all employers in the United States. (C) Extension of deadline At the request of the employer, the Secretary may extend the 60-day deadline for good cause. (D) Standards or methods The Secretary is authorized to publish in the Federal Register standards or methods for such certification, require specific recordkeeping practices with respect to such certifications, and audit the records thereof at any time. This authority shall not be construed to diminish or qualify any other penalty provided by this section. (6) Requirements for review of a final determination With respect to judicial review of a final determination or penalty order issued under paragraph (3)(D), the following requirements apply: (A) Deadline The petition for review must be filed no later than 30 days after the date of the final determination or penalty order issued under paragraph (3)(D). (B) Venue and forms The petition for review shall be filed with the court of appeals for the judicial circuit where the employer’s principal place of business was located when the final determination or penalty order was made. The record and briefs do not have to be printed. The court shall review the proceeding on a typewritten or electronically filed record and briefs. (C) Service The respondent is the Secretary. In addition to serving the respondent, the petitioner shall serve the Attorney General. (D) Petitioner’s brief The petitioner shall serve and file a brief in connection with a petition for judicial review not later than 40 days after the date on which the administrative record is available, and may serve and file a reply brief not later than 14 days after service of the brief of the respondent, and the court may not extend these deadlines, except for good cause shown. If a petitioner fails to file a brief within the time provided in this paragraph, the court shall dismiss the appeal unless a manifest injustice would result. (E) Scope and standard for review The court of appeals shall conduct a de novo review of the administrative record on which the final determination was based and any additional evidence that the Court finds was previously unavailable at the time of the administrative hearing. (F) Exhaustion of administrative remedies A court may review a final determination under paragraph (3)(C) only if— (i) the petitioner has exhausted all administrative remedies available to the petitioner as of right, including any administrative remedies established by regulation, and (ii) another court has not decided the validity of the order, unless the reviewing court finds that the petition presents grounds that could not have been presented in the prior judicial proceeding or that the remedy provided by the prior proceeding was inadequate or ineffective to test the validity of the order. (G) Enforcement of orders If the final determination issued against the employer under this subsection is not subjected to review as provided in this paragraph, the Attorney General, upon request by the Secretary, may bring a civil action to enforce compliance with the final determination in any appropriate district court of the United States. The court, on a proper showing, shall issue a temporary restraining order or a preliminary or permanent injunction requiring that the employer comply with the final determination issued against that employer under this subsection. In any such civil action, the validity and appropriateness of the final determination shall not be subject to review. (7) Creation of lien If any employer liable for a fee or penalty under this section neglects or refuses to pay such liability after demand and fails to file a petition for review (if applicable) as provided in paragraph (6), the amount of the fee or penalty shall be a lien in favor of the United States on all property and rights to property, whether real or personal, belonging to such employer. If a petition for review is filed as provided in paragraph (6), the lien shall arise upon the entry of a final judgment by the court. The lien continues for 20 years or until the liability is satisfied, remitted, set aside, or terminated. (8) Filing notice of lien (A) Place for filing The notice of a lien referred to in paragraph (7) shall be filed as described in 1 of the following: (i) Under State laws (I) Real property In the case of real property, in 1 office within the State (or the county, or other governmental subdivision), as designated by the laws of such State, in which the property subject to the lien is situated. (II) Personal property In the case of personal property, whether tangible or intangible, in 1 office within the State (or the county, or other governmental subdivision), as designated by the laws of such State, in which the property subject to the lien is situated, except that State law merely conforming to or reenacting Federal law establishing a national filing system does not constitute a second office for filing as designated by the laws of such State. (ii) With clerk of district court In the office of the clerk of the United States district court for the judicial district in which the property subject to the lien is situated, whenever the State has not by law designated 1 office which meets the requirements of clause (i). (iii) With recorder of deeds of the District of Columbia In the office of the Recorder of Deeds of the District of Columbia, if the property subject to the lien is situated in the District of Columbia. (B) Situs of property subject to lien For purposes of subparagraph (A), property shall be deemed to be situated as follows: (i) Real property In the case of real property, at its physical location. (ii) Personal property In the case of personal property, whether tangible or intangible, at the residence of the taxpayer at the time the notice of lien is filed. (C) Determination of residence For purposes of subparagraph (B)(ii), the residence of a corporation or partnership shall be deemed to be the place at which the principal executive office of the business is located, and the residence of a taxpayer whose residence is outside the United States shall be deemed to be in the District of Columbia. (D) Effect of filing notice of lien (i) In general Upon filing of a notice of lien in the manner described in this paragraph, the lien shall be valid against any purchaser, holder of a security interest, mechanic’s lien, or judgment lien creditor, except with respect to properties or transactions specified in subsection (b), (c), or (d) of section 6323 of the Internal Revenue Code of 1986 for which a notice of tax lien properly filed on the same date would not be valid. (ii) Notice of lien The notice of lien shall be considered a notice of lien for taxes payable to the United States for the purpose of any State or local law providing for the filing of a notice of a tax lien. A notice of lien that is registered, recorded, docketed, or indexed in accordance with the rules and requirements relating to judgments of the courts of the State where the notice of lien is registered, recorded, docketed, or indexed shall be considered for all purposes as the filing prescribed by this section. (iii) Other provisions The provisions of section 3201(e) of title 28, United States Code, shall apply to liens filed as prescribed by this paragraph. (E) Enforcement of a lien A lien obtained through this paragraph shall be considered a debt as defined by section 3002 of title 28, United States Code and enforceable pursuant to chapter 176 of such title. (9) Attorney General adjudication The Attorney General shall have jurisdiction to adjudicate administrative proceedings under this subsection. Such proceedings shall be conducted in accordance with requirements of section 554 of title 5, United States Code. (f) Criminal and civil penalties and injunctions (1) Prohibition of indemnity bonds It is unlawful for an employer, in the hiring of any individual, to require the individual to post a bond or security, to pay or agree to pay an amount, or otherwise to provide a financial guarantee or indemnity, against any potential liability arising under this section relating to such hiring of the individual. (2) Civil penalty Any employer who is determined, after notice and opportunity for mitigation of the monetary penalty under subsection (e), to have violated paragraph (1) shall be subject to a civil penalty of $10,000 for each violation and to an administrative order requiring the return of any amounts received in violation of such paragraph to the employee or, if the employee cannot be located, to the general fund of the Treasury. (g) Government contracts (1) Contractors and recipients Whenever an employer who is a Federal contractor (meaning an employer who holds a Federal contract, grant, or cooperative agreement, or reasonably may be expected to submit an offer for or be awarded a government contract) is determined by the Secretary to have violated this section on more than 3 occasions or is convicted of a crime under this section, the employer shall be considered for debarment from the receipt of Federal contracts, grants, or cooperative agreements in accordance with the procedures and standards and for the periods prescribed by the Federal Acquisition Regulation. However, any administrative determination of liability for civil penalty by the Secretary or the Attorney General shall not be reviewable in any debarment proceeding. (2) Inadvertent violations Inadvertent violations of recordkeeping or verification requirements, in the absence of any other violations of this section, shall not be a basis for determining that an employer is a repeat violator for purposes of this subsection. (3) Other remedies available Nothing in this subsection shall be construed to modify or limit any remedy available to any agency or official of the Federal Government for violation of any contractual requirement to participate in the System, as provided in the final rule relating to employment eligibility verification published in the Federal Register on November 14, 2008 (73 Fed. Reg. 67,651), or any similar subsequent regulation. (h) Preemption The provisions of this section preempt any State or local law, ordinance, policy, or rule, including any criminal or civil fine or penalty structure, relating to the hiring, continued employment, or status verification for employment eligibility purposes, of unauthorized aliens. A State, locality, municipality, or political subdivision may exercise its authority over business licensing and similar laws as a penalty for failure to use the System. (i) Deposit of amounts received Except as otherwise specified, civil penalties collected under this section shall be deposited by the Secretary into the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1) of the Border Security, Economic Opportunity, and Immigration Modernization Act . (j) Challenges to validity of the System (1) In general Any right, benefit, or claim not otherwise waived or limited pursuant to this section is available in an action instituted in the United States District Court for the District of Columbia, but shall be limited to determinations of— (A) whether this section, or any regulation issued to implement this section, violates the Constitution of the United States; or (B) whether such a regulation issued by or under the authority of the Secretary to implement this section, is contrary to applicable provisions of this section or was issued in violation of chapter 5 of title 5, United States Code. (2) Deadlines for bringing actions Any action instituted under this subsection must be filed no later than 180 days after the date the challenged section or regulation described in subparagraph (A) or (B) of paragraph (1) becomes effective. No court shall have jurisdiction to review any challenge described in subparagraph (B) after the time period specified in this subsection expires. (k) Criminal penalties and injunctions for pattern or practice violations (1) Pattern and practice Any employer who engages in a pattern or practice of knowing violations of subsection (a)(1)(A) or (a)(2) shall be fined under title 18, United States Code, no more than $10,000 for each unauthorized alien with respect to whom such violation occurs, imprisoned for not more than 2 years for the entire pattern or practice, or both. (2) Term of imprisonment The maximum term of imprisonment of a person convicted of any criminal offense under the United States Code shall be increased by 5 years if the offense is committed as part of a pattern or practice of violations of subsection (a)(1)(A) or (a)(2). (3) Enjoining of pattern or practice violations Whenever the Secretary or the Attorney General has reasonable cause to believe that an employer is engaged in a pattern or practice of employment in violation of subsection (a)(1)(A) or (a)(2), the Attorney General may bring a civil action in the appropriate district court of the United States requesting such relief, including a permanent or temporary injunction, restraining order, or other order against the employer, as the Secretary or Attorney General deems necessary. (l) Criminal penalties for unlawful and abusive employment (1) In general Any person who, during any 12-month period, knowingly employs or hires, employs, recruits, or refers for a fee for employment 10 or more individuals within the United States who are under the control and supervision of such person— (A) knowing that the individuals are unauthorized aliens; and (B) under conditions that violate section 5(a) of the Occupational Safety and Health Act of 1970 ( 29 U.S.C. 654(a) (relating to occupational safety and health), section 6 or 7 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206 and 207) (relating to minimum wages and maximum hours of employment), section 3142 of title 40, United States Code, (relating to required wages on construction contracts), or sections 6703 or 6704 of title 41, United States Code, (relating to required wages on service contracts), shall be fined under title 18, United States Code, or imprisoned for not more than 10 years, or both. (2) Attempt and conspiracy Any person who attempts or conspires to commit any offense under this section shall be punished in the same manner as a person who completes the offense. . (b) Report on use of the System in the agricultural industry Not later than 18 months after the date of the enactment of this Act, the Secretary, in consultation with the Secretary of Agriculture, shall submit a report to Congress that assesses implementation of the Employment Verification System established under section 274A(d) of the Immigration and Nationality Act, as amended by subsection (a), in the agricultural industry, including the use of such System technology in agriculture industry hiring processes, user, contractor, and third-party employer agent employment practices, timing and logistics regarding employment verification and reverification processes to meet agriculture industry practices, and identification of potential challenges and modifications to meet the unique needs of the agriculture industry. Such report shall review— (1) the modality of access, training and outreach, customer support, processes for further action notices and secondary verifications for short-term workers, monitoring, and compliance procedures for such System; (2) the interaction of such System with the process to admit nonimmigrant workers pursuant to section 218 or 218A of the Immigration and Nationality Act ( 8 U.S.C. 1188 et seq. ) and with enforcement of the immigration laws; and (3) the collaborative use of processes of other Federal and State agencies that intersect with the agriculture industry. (c) Report on impact of the System on employers Not later than 18 months after the date of the enactment of this Act, the Secretary shall submit to Congress a report that assesses— (1) the implementation of the Employment Verification System established under section 274A(d) of the Immigration and Nationality Act, as amended by subsection (a), by employers; (2) any adverse impact on the revenues, business processes, or profitability of employers required to use such System; and (3) the economic impact of such System on small businesses. (d) Government Accountability Office study of the effects of document requirements on employment authorized persons and employers (1) Study The Comptroller General of the United States shall carry out a study of— (A) the effects of the documentary requirements of section 274A of the Immigration and Nationality Act, as amended by subsection (a), on employers, naturalized United States citizens, nationals of the United States, and individuals with employment authorized status; and (B) the challenges such employers, citizens, nationals, or individuals may face in obtaining the documentation required under that section. (2) Report Not later than 4 years after the date of the enactment of this Act, the Comptroller General shall submit to Congress a report containing the findings of the study carried out under paragraph (1). Such report shall include, at a minimum, the following: (A) An assessment of available information regarding the number of working age nationals of the United States and individuals who have employment authorized status who lack documents required for employment by such section 274A. (B) A description of the additional steps required for individuals who have employment authorized status and do not possess the documents required by such section 274A to obtain such documents. (C) A general assessment of the average financial costs for individuals who have employment authorized status who do not possess the documents required by such section 274A to obtain such documents. (D) A general assessment of the average financial costs and challenges for employers who have been required to participate in the Employment Verification System established by subsection (d) of such section 274A. (E) A description of the barriers to individuals who have employment authorized status in obtaining the documents required by such section 274A, including barriers imposed by the executive branch of the Government. (F) Any particular challenges facing individuals who have employment authorized status who are members of a federally recognized Indian tribe in complying with the provisions of such section 274A. (e) Repeal of pilot programs and E-Verify and transition procedures (1) Repeal Sections 401, 402, 403, 404, and 405 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (division C of Public Law 104–208 ; 8 U.S.C. 1324a note) are repealed. (2) Transition procedures (A) Continuation of E-Verify Program Notwithstanding the repeals made by paragraph (1), the Secretary shall continue to operate the E-Verify Program as described in section 403 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (division C of Public Law 104–208 ; 8 U.S.C. 1324a note), as in effect the minute before the date of the enactment of this Act, until the transition to the System described in section 274A(d) of the Immigration and Nationality Act, as amended by subsection (a), is determined by the Secretary to be complete. (B) Transition to the system Any employer who was participating in the E-Verify Program described in section 403 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (division C of Public Law 104–208 ; 8 U.S.C. 1324a note), as in effect the minute before the date of the enactment of this Act, shall participate in the System described in section 274A(d) of the Immigration and Nationality Act, as amended by subsection (a), to the same extent and in the same manner that the employer participated in such E-Verify Program. (3) Construction The repeal made by paragraph (1) may not be construed to limit the authority of the Secretary to allow or continue to allow the participation in such System of employers who have participated in such E-Verify Program, as in effect on the minute before the date of the enactment of this Act. (f) Conforming amendment Section 274(a) ( 8 U.S.C. 1324(a) ) is amended— (1) by striking paragraph (3); and (2) by redesignating paragraph (4) as paragraph (3). 3102. Increasing security and integrity of social security cards (a) Fraud-Resistant, tamper-Resistant, wear-Resistant, and identity theft-Resistant social security cards (1) Issuance (A) Preliminary work Not later than 180 days after the date of the enactment of this Act, the Commissioner of Social Security shall begin work to administer and issue fraud-resistant, tamper-resistant, wear-resistant, and identity theft-resistant social security cards. (B) Completion Not later than 5 years after the date of the enactment of this Act, the Commissioner of Social Security shall issue only social security cards determined to be fraud-resistant, tamper-resistant, wear-resistant, and identity theft-resistant. (2) Amendment (A) In general Section 205(c)(2)(G) of the Social Security Act ( 42 U.S.C. 405(c)(2)(G) ) is amended by striking the second sentence and inserting the following: The social security card shall be fraud-resistant, tamper-resistant, wear-resistant, and identity theft-resistant. . (B) Effective date The amendment made by subparagraph (A) shall take effect on the date that is 5 years after the date of the enactment of this Act. (3) Authorization of appropriation There are authorized to be appropriated, from the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1), such sums as may be necessary to carry out this section and the amendments made by this section. (4) Emergency designation for congressional enforcement In the Senate, amounts made available under this subsection are designated as an emergency requirement pursuant to section 403(a) of S. Con. Res. 13 (111th Congress), the concurrent resolution on the budget for fiscal year 2010. (5) Emergency designation for statutory paygo Amounts made available under this subsection are designated as an emergency requirement under section 4(g) of the Statutory Pay-As-You-Go Act of 2010 ( Public Law 111–139 ; 2 U.S.C. 933(g) ). (b) Multiple cards Section 205(c)(2)(G) of the Social Security Act ( 42 U.S.C. 405(c)(2)(G) ), as amended by subsection (a)(2), is amended— (1) by inserting (i) after (G) ; and (2) by adding at the end the following: (ii) The Commissioner of Social Security shall restrict the issuance of multiple replacement social security cards to any individual to 3 per year and 10 for the life of the individual, except that the Commissioner may allow for reasonable exceptions from the limits under this clause on a case-by-case basis in compelling circumstances. . (c) Criminal penalties (1) Social security fraud (A) In general Chapter 47 of title 18, United States Code, is amended by inserting at the end the following: 1041. Social security fraud Any person who— (1) knowingly possesses or uses a social security account number or social security card knowing that the number or card was obtained from the Commissioner of Social Security by means of fraud or false statement; (2) knowingly and falsely represents a number to be the social security account number assigned by the Commissioner of Social Security to him or her or to another person, when such number is known not to be the social security account number assigned by the Commissioner of Social Security to him or her or to such other person; (3) knowingly, and without lawful authority, buys, sells, or possesses with intent to buy or sell a social security account number or a social security card that is or purports to be a number or card issued by the Commissioner of Social Security; (4) knowingly alters, counterfeits, forges, or falsely makes a social security account number or a social security card; (5) knowingly uses, distributes, or transfers a social security account number or a social security card knowing the number or card to be intentionally altered, counterfeited, forged, falsely made, or stolen; or (6) without lawful authority, knowingly produces or acquires for any person a social security account number, a social security card, or a number or card that purports to be a social security account number or social security card, shall be fined under this title, imprisoned not more than 5 years, or both. . (B) Table of sections amendment The table of sections for chapter 47 of title 18, United States Code, is amended by adding after the item relating to section 1040 the following: 1041. Social security fraud. . (2) Information disclosure (A) In general Notwithstanding any other provision of law and subject to subparagraph (B), the Commissioner of Social Security shall disclose for the purpose of investigating a violation of section 1041 of title 18, United States Code, or section 274A, 274B, or 274C of the Immigration and Nationality Act ( 8 U.S.C. 1324a , 1324b, and 1324c), after receiving a written request from an officer in a supervisory position or higher official of any Federal law enforcement agency, the following records of the Social Security Administration: (i) Records concerning the identity, address, location, or financial institution accounts of the holder of a social security account number or social security card. (ii) Records concerning the application for and issuance of a social security account number or social security card. (iii) Records concerning the existence or nonexistence of a social security account number or social security card. (B) Limitation The Commissioner of Social Security shall not disclose any tax return or tax return information pursuant to subparagraph (A) except as authorized by section 6103 of the Internal Revenue Code of 1986. 3103. Increasing security and integrity of immigration documents Not later than 1 year after the date of the enactment of this Act, the Secretary shall submit a report to Congress on the feasibility, advantages, and disadvantages of including, in addition to a photograph, other biometric information on each employment authorization document issued by the Department. 3104. Responsibilities of the Social Security Administration Title XI of the Social Security Act ( 42 U.S.C. 1301 et seq. ) is amended by adding at the end the following new part: E Employment Verification 1186. Responsibilities of the Commissioner of Social Security (a) Confirmation of employment verification data As part of the employment verification system established by the Secretary of Homeland Security under the provisions of section 274A of the Immigration and Nationality Act ( 8 U.S.C. 1324a ) (in this section referred to as the System ), the Commissioner of Social Security shall, subject to the provisions of section 274A(d) of the Immigration and Nationality Act ( 8 U.S.C. 1324a(d) ), establish a reliable, secure method that, operating through the System and within the time periods specified in section 274A(d) of such Act— (1) compares the name, date of birth, social security account number, and available citizenship information provided in an inquiry against such information maintained by the Commissioner in order to confirm (or not confirm) the validity of the information provided regarding an individual whose identity and employment eligibility must be confirmed; (2) determines the correspondence of the name, date of birth, and number; (3) determines whether the name and number belong to an individual who is deceased according to the records maintained by the Commissioner; (4) determines whether an individual is a national of the United States, as defined in section 101(a)(22) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(22) ); and (5) determines whether the individual has presented a social security account number that is not valid for employment. (b) Prohibition The System shall not disclose or release social security information to employers through the confirmation system (other than such confirmation or nonconfirmation, information provided by the employer to the System, or the reason for the issuance of a further action notice). . 3105. Improved prohibition on discrimination based on national origin or citizenship status (a) In general Section 274B(a) ( 8 U.S.C. 1324b(a) ) is amended to read as follows: (a) Prohibition on discrimination based on national origin or citizenship status (1) Prohibition on discrimination generally It is an unfair immigration-related employment practice for a person, other entity, or employment agency, to discriminate against any individual (other than an unauthorized alien defined in section 274A(b)) because of such individual’s national origin or citizenship status, with respect to the following: (A) The hiring of the individual for employment. (B) The verification of the individual’s eligibility to work in the United States. (C) The discharging of the individual from employment. (2) Exceptions Paragraph (1) shall not apply to the following: (A) A person, other entity, or employer that employs 3 or fewer employees, except for an employment agency. (B) A person’s or entity’s discrimination because of an individual’s national origin if the discrimination with respect to that employer, person, or entity and that individual is covered under section 703 of the Civil Rights Act of 1964 ( 42 U.S.C. 2000e–2 ), unless the discrimination is related to an individual’s verification of employment authorization. (C) Discrimination because of citizenship status which— (i) is otherwise required in order to comply with a provision of Federal, State, or local law related to law enforcement; (ii) is required by Federal Government contract; or (iii) the Secretary or Attorney General determines to be essential for an employer to do business with an agency or department of the Federal Government or a State, local, or tribal government. (3) Additional exception providing right to prefer equally qualified citizens Notwithstanding any other provision of this section, it is not an unfair immigration-related employment practice for an employer (as defined in section 274A(b)) to prefer to hire, recruit, or refer for a fee an individual who is a citizen or national of the United States over another individual who is an alien if the 2 individuals are equally qualified. (4) Unfair immigration-related employment practices relating to the System It is also an unfair immigration-related employment practice for a person, other entity, or employment agency— (A) to discharge or constructively discharge an individual solely due to a further action notice issued by the Employment Verification System created by section 274A until the administrative appeal described in section 274A(d)(6) is completed; (B) to use the System with regard to any person for any purpose except as authorized by section 274A(d); (C) to use the System to reverify the employment authorization of a current employee, including an employee continuing in employment, other than reverification upon expiration of employment authorization, or as otherwise authorized under section 274A(d) or by regulation; (D) to use the System selectively for employees, except where authorized by law; (E) to fail to provide to an individual any notice required in section 274A(d) within the relevant time period; (F) to use the System to deny workers’ employment or post-employment benefits; (G) to misuse the System to discriminate based on national origin or citizenship status; (H) to require an employee or prospective employee to use any self-verification feature of the System or provide, as a condition of application or employment, any self-verification results; (I) to use an immigration status verification system, service, or method other than those described in section 274A for purposes of verifying employment eligibility; or (J) to grant access to document verification or System data, to any individual or entity other than personnel authorized to have such access, or to fail to take reasonable safeguards to protect against unauthorized loss, use, alteration, or destruction of System data. (5) Prohibition of intimidation or retaliation It is also an unfair immigration-related employment practice for a person, other entity, or employment agency to intimidate, threaten, coerce, or retaliate against any individual— (A) for the purpose of interfering with any right or privilege secured under this section; or (B) because the individual intends to file or has filed a charge or a complaint, testified, assisted, or participated in any manner in an investigation, proceeding, or hearing under this section. (6) Treatment of certain documentary practices as employment practices A person’s, other entity’s, or employment agency’s request, for purposes of verifying employment eligibility, for more or different documents than are required under section 274A, or for specific documents, or refusing to honor documents tendered that reasonably appear to be genuine shall be treated as an unfair immigration-related employment practice. (7) Prohibition of withholding employment records It is an unfair immigration-related employment practice for an employer that is required under Federal, State, or local law to maintain records documenting employment, including dates or hours of work and wages received, to fail to provide such records to any employee upon request. (8) Professional, commercial, and business licenses An individual who is authorized to be employed in the United States may not be denied a professional, commercial, or business license on the basis of his or her immigration status. (9) Employment agency defined In this section, the term employment agency means any employer, person, or entity regularly undertaking with or without compensation to procure employees for an employer or to procure for employees opportunities to work for an employer and includes an agent of such employer, person, or entity. . (b) Referral by EEOC Section 274B(b) ( 8 U.S.C. 1324b(b) ) is amended by adding at the end the following: (3) Referral by EEOC The Equal Employment Opportunity Commission shall refer all matters alleging immigration-related unfair employment practices filed with the Commission, including those alleging violations of paragraphs (1), (4), (5), and (6) of subsection (a) to the Special Counsel for Immigration-Related Unfair Employment Practices of the Department of Justice. . (c) Authorization of appropriations Section 274B(l)(3) ( 8 U.S.C. 1324b(l)(3) ) is amended by striking the period at the end and inserting and an additional $40,000,000 for each of fiscal years 2014 through 2016. . (d) Fines (1) In general Section 274B(g)(2)(B) ( 8 U.S.C. 1324b(g)(2)(B) ) is amended by striking clause (iv) and inserting the following: (iv) to pay any applicable civil penalties prescribed below, the amounts of which may be adjusted periodically to account for inflation as provided by law— (I) except as provided in subclauses (II) through (IV), to pay a civil penalty of not less than $2,000 and not more than $5,000 for each individual subjected to an unfair immigration-related employment practice; (II) except as provided in subclauses (III) and (IV), in the case of an employer, person, or entity previously subject to a single order under this paragraph, to pay a civil penalty of not less than $4,000 and not more than $10,000 for each individual subjected to an unfair immigration-related employment practice; (III) except as provided in subclause (IV), in the case of an employer, person, or entity previously subject to more than 1 order under this paragraph, to pay a civil penalty of not less than $8,000 and not more than $25,000 for each individual subjected to an unfair immigration-related employment practice; and (IV) in the case of an unfair immigration-related employment practice described in paragraphs (4) through (7) of subsection (a), to pay a civil penalty of not less than $500 and not more than $2,000 for each individual subjected to an unfair immigration-related employment practice. . (2) Effective date The amendment made by paragraph (1) shall take effect on the date that is 1 year after the date of the enactment of this Act and apply to violations occurring on or after such date of enactment. 3106. Rulemaking (a) Interim final regulations (1) In general Not later than 1 year after the date of the enactment of this Act— (A) the Secretary, shall issue regulations implementing sections 3101 and 3104 and the amendments made by such sections (except for section 274A(d)(7) of the Immigration and Nationality Act); and (B) the Attorney General shall issue regulations implementing section 274A(d)(7) of the Immigration and Nationality Act, as added by section 3101, section 3105, and the amendments made by such sections. (2) Effective date Regulations issued pursuant to paragraph (1) shall be effective immediately on an interim basis, but are subject to change and revision after public notice and opportunity for a period for public comment. (b) Final regulations Within a reasonable time after publication of the interim regulations under subsection (a), the Secretary, in consultation with the Commissioner of Social Security and the Attorney General, shall publish final regulations implementing this subtitle. 3107. Office of the Small Business and Employee Advocate (a) Establishment of Small Business and Employee Advocate The Secretary shall establish and maintain within U.S. Citizenship and Immigration Services the Office of the Small Business and Employee Advocate (in this section referred to as the Office ). The purpose of the Office shall be to assist small businesses and individuals in complying with the requirements of section 274A of the Immigration and Nationality Act ( 8 U.S.C. 1324a ), as amended by this Act, including the resolution of conflicts arising in the course of attempted compliance with such requirements. (b) Functions The functions of the Office shall include, but not be limited to, the following: (1) Informing small businesses and individuals about the verification practices required by section 274A of the Immigration and Nationality Act, including, but not limited to, the document verification requirements and the employment verification system requirements under subsections (c) and (d) of that section. (2) Assisting small businesses and individuals in addressing allegedly erroneous further action notices and nonconfirmations issued under subsection (d) of section 274A of the Immigration and Nationality Act. (3) Informing small businesses and individuals of the financial liabilities and criminal penalties that apply to violations and failures to comply with the requirements of section 274A of the Immigration and Nationality Act, including, but not limited to, by issuing best practices for compliance with that section. (4) To the extent practicable, proposing changes to the Secretary in the administrative practices of the employment verification system required under subsection (d) of section 274A of the Immigration and Nationality Act to mitigate the problems identified under paragraph (2). (5) Making recommendations through the Secretary to Congress for legislative action to mitigate such problems. (c) Authority To issue assistance order (1) In general Upon application filed by a small business or individual with the Office (in such form, manner, and at such time as the Secretary shall by regulations prescribe), the Office may issue an assistance order if— (A) the Office determines the small business or individual is suffering or about to suffer a significant hardship as a result of the manner in which the employment verification laws under subsections (c) and (d) of section 274A of the Immigration and Nationality Act are being administered by the Secretary; or (B) the small business or individual meets such other requirements as are set forth in regulations prescribed by the Secretary. (2) Determination of hardship For purposes of paragraph (1), a significant hardship shall include— (A) an immediate threat of adverse action; (B) a delay of more than 60 days in resolving employment verification system problems; (C) the incurring by the small business or individual of significant costs if relief is not granted; or (D) irreparable injury to, or a long-term adverse impact on, the small business or individual if relief is not granted. (3) Standards when administrative guidance not followed In cases where a U.S. Citizenship and Immigration Services employee is not following applicable published administrative guidance, the Office shall construe the factors taken into account in determining whether to issue an assistance order under this subsection in the manner most favorable to the small business or individual. (4) Terms of assistance order The terms of an assistance order under this subsection may require the Secretary within a specified time period— (A) to determine whether any employee is or is not authorized to work in the United States; or (B) to abate any penalty under section 274A of the Immigration and Nationality Act that the Office determines is arbitrary, capricious, or disproportionate to the underlying offense. (5) Authority to modify or rescind Any assistance order issued by the Office under this subsection may be modified or rescinded— (A) only by the Office, the Director or Deputy Director of U.S. Citizenship and Immigration Services, or the Secretary or the Secretary's designee; and (B) if rescinded by the Director or Deputy Director of U.S. Citizenship and Immigration Services, only if a written explanation of the reasons of such official for the modification or rescission is provided to the Office. (6) Suspension of running of period of limitation The running of any period of limitation with respect to an action described in paragraph (4)(A) shall be suspended for— (A) the period beginning on the date of the small business or individual’s application under paragraph (1) and ending on the date of the Office’s decision with respect to such application; and (B) any period specified by the Office in an assistance order issued under this subsection pursuant to such application. (7) Independent action of office Nothing in this subsection shall prevent the Office from taking any action in the absence of an application under paragraph (1). (d) Accessibility to the public (1) In person, online, and telephone assistance The Office shall provide information and assistance specified in subsection (b) in person at locations designated by the Secretary, online through an Internet website of the Department available to the public, and by telephone. (2) Availability to all employers In making information and assistance available, the Office shall prioritize the needs of small businesses and individuals. However, the information and assistance available through the Office shall be available to any employer. (e) Avoiding duplication through coordination In the discharge of the functions of the Office, the Secretary shall consult with the Secretary of Labor, the Secretary of Agriculture, the Commissioner, the Attorney General, the Equal Employment Opportunity Commission, and the Administrator of the Small Business Administration in order to avoid duplication of efforts across the Federal Government. (f) Definitions In this section: (1) The term employer has the meaning given that term in section 274A(b) of the Immigration and Nationality Act. (2) The term small business means an employer with 49 or fewer employees. (g) Funding There shall be appropriated, from the Comprehensive Immigration Reform Trust Fund established by section 9(a)(1) of this Act, such sums as may be necessary to carry out the functions of the Office. B Protecting United States workers 3201. Protections for victims of serious violations of labor and employment law or crime (a) In general Section 101(a)(15)(U) ( 8 U.S.C. 1101(a)(15)(U) ) is amended— (1) in clause (i)— (A) by amending subclause (I) to read as follows: (I) the alien— (aa) has suffered substantial physical or mental abuse or substantial harm as a result of having been a victim of criminal activity described in clause (iii) or of a covered violation described in clause (iv); or (bb) is a victim of criminal activity described in clause (iii) or of a covered violation described in clause (iv) and would suffer extreme hardship upon removal; ; (B) in subclause (II), by inserting , or a covered violation resulting in a claim described in clause (iv) that is not the subject of a frivolous lawsuit by the alien before the semicolon at the end; and (C) by amending subclauses (III) and (IV) to read as follows: (III) the alien (or in the case of an alien child who is younger than 16 years of age, the parent, legal guardian, or next friend of the alien) has been helpful, is being helpful, or is likely to be helpful to— (aa) a Federal, State, or local law enforcement official, a Federal, State, or local prosecutor, a Federal, State, or local judge, the Department of Homeland Security, the Equal Employment Opportunity Commission, the Department of Labor, or other Federal, State, or local authorities investigating or prosecuting criminal activity described in clause (iii); or (bb) any Federal, State, or local governmental agency or judge investigating, prosecuting, or seeking civil remedies for any cause of action, whether criminal, civil, or administrative, arising from a covered violation described in clause (iv) and presents a certification from such Federal, State, or local governmental agency or judge attesting that the alien has been helpful, is being helpful, or is likely to be helpful to such agency in the investigation, prosecution, or adjudication arising from a covered violation described in clause (iv); and (IV) the criminal activity described in clause (iii) or the covered violation described in clause (iv)— (aa) violated the laws of the United States; or (bb) occurred in the United States (including Indian country and military installations) or the territories and possessions of the United States; ; (2) in clause (ii)(II), by striking and at the end; (3) by moving clause (iii) 2 ems to the left; (4) in clause (iii), by inserting child abuse; elder abuse; after stalking; ; (5) by adding at the end the following: (iv) a covered violation referred to in this clause is— (I) a serious violation involving 1 or more of the following or any similar activity in violation of any Federal, State, or local law: serious workplace abuse, exploitation, retaliation, or violation of whistleblower protections; (II) a violation giving rise to a civil cause of action under section 1595 of title 18, United States Code; or (III) a violation resulting in the deprivation of due process or constitutional rights. . (b) Savings provision Nothing in section 101(a)(15)(U)(iv)(I) of the Immigration and Nationality Act, as added by subsection (a), may be construed as altering the definition of retaliation or discrimination under any other provision of law. (c) Temporary stay of removal Section 274A ( 8 U.S.C. 1324a ), as amended by section 3101, is further amended— (1) in subsection (e) by adding at the end the following: (10) Conduct in enforcement actions If the Secretary undertakes an enforcement action at a facility about which a bona fide workplace claim has been filed or is contemporaneously filed, or as a result of information provided to the Secretary in retaliation against employees for exercising their rights related to a bona fide workplace claim, the Secretary shall ensure that— (A) any aliens arrested or detained who are necessary for the investigation or prosecution of a bona fide workplace claim or criminal activity (as described in subparagraph (T) or (U) of section 101(a)(15)) are not removed from the United States until after the Secretary— (i) notifies the appropriate law enforcement agency with jurisdiction over such violations or criminal activity; and (ii) provides such agency with the opportunity to interview such aliens; (B) no aliens entitled to a stay of removal or abeyance of removal proceedings under this section are removed; and (C) the Secretary shall stay the removal of an alien who— (i) has filed a claim regarding a covered violation described in clause (iv) of section 101(a)(15)(U) and is the victim of the same violations under an existing investigation; (ii) is a material witness in any pending or anticipated proceeding involving a bona fide workplace claim or civil rights claim; or (iii) has filed for relief under such section if the alien is working with law enforcement as described in clause (i)(III) of such section. ; and (2) by adding at the end the following: (m) Victims of criminal activity or labor and employment violations The Secretary of Homeland Security may permit an alien to remain temporarily in the United States and authorize the alien to engage in employment in the United States if the Secretary determines that the alien— (1) has filed for relief under section 101(a)(15)(U); or (2) (A) has filed, or is a material witness to, a bona fide claim or proceedings resulting from a covered violation (as defined in section 101(a)(15)(U)(iv)); and (B) has been helpful, is being helpful, or is likely to be helpful, in the investigation, prosecution of, or pursuit of civil remedies related to the claim arising from a covered violation, to— (i) a Federal, State, or local law enforcement official; (ii) a Federal, State, or local prosecutor; (iii) a Federal, State, or local judge; (iv) the Department of Homeland Security; (v) the Equal Employment Opportunity Commission; or (vi) the Department of Labor. . (d) Conforming amendments Section 214(p) ( 8 U.S.C. 1184(p) ) is amended— (1) in paragraph (1), by striking in section 101(a)(15)(U)(iii). both places it appears and inserting in clause (iii) of section 101(a)(15)(U) or investigating, prosecuting, or seeking civil remedies for claims resulting from a covered violation described in clause (iv) of such section. ; and (2) in the first sentence of paragraph (6)— (A) by striking in section 101(a)(15)(U)(iii) and inserting in clause (iii) of section 101(a)(15)(U) or claims resulting from a covered violation described in clause (iv) of such section ; and (B) by inserting or claim arising from a covered violation after prosecution of such criminal activity . (e) Modification of limitation on authority To adjust status for victims of crimes Section 245(m)(1) ( 8 U.S.C. 1255(m)(1) ) is amended, in the matter before subparagraph (A), by inserting or an investigation or prosecution regarding a workplace or civil rights claim after prosecution . (f) Expansion of limitation on sources of information that may be used To make adverse determinations (1) In general Section 384(a)(1) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 ( 8 U.S.C. 1367(a)(1) ) is amended— (A) in each of subparagraphs (A) through (D), by striking the comma at the end and inserting a semicolon; (B) subparagraph (E), by striking the criminal activity, and inserting abuse and the criminal activity or bona fide workplace claim (as defined in subsection (e)); ; (C) in subparagraph (F), by striking , the trafficker or perpetrator, and inserting ), the trafficker or perpetrator; or ; and (D) by inserting after subparagraph (F) the following: (G) the alien's employer; or . (2) Workplace claim defined Section 384 of such Act ( 8 U.S.C. 1367 ) is amended by adding at the end the following: (e) Workplace claims (1) Workplace claims defined (A) In general In subsection (a)(1), the term workplace claim means any claim, petition, charge, complaint, or grievance filed with, or submitted to, a Federal, State, or local agency or court, relating to the violation of applicable Federal, State, or local labor or employment laws. (B) Construction Subparagraph (A) may not be construed to alter what constitutes retaliation or discrimination under any other provision of law. (2) Penalty for false claims Any person who knowingly presents a false or fraudulent claim to a law enforcement official in relation to a covered violation described in section 101(a)(15)(U)(iv) of the Immigration and Nationality Act for the purpose of obtaining a benefit under this section shall be subject to a civil penalty of not more than $1,000. (3) Limitation on stay of adverse determinations In the case of an alien applying for status under section 101(a)(15)(U) of the Immigration and Nationality Act and seeking relief under that section, the prohibition on adverse determinations under subsection (a) shall expire on the date that the alien's application for status under such section is denied and all opportunities for appeal of the denial have been exhausted. . (g) Removal proceedings Section 239(e) ( 8 U.S.C. 1229(e) ) is amended— (1) in paragraph (1)— (A) by striking In cases where and inserting If ; and (B) by striking paragraph (2), and inserting paragraph (2) or as a result of information provided to the Secretary of Homeland Security in retaliation against individuals for exercising or attempting to exercise their employment rights or other legal rights, ; and (2) in paragraph (2), by adding at the end the following: (C) At a facility about which a bona fide workplace claim has been filed or is contemporaneously filed. . 3202. Employment Verification System Education Funding (a) Disposition of civil penalties Penalties collected under subsections (e)(4) and (f)(3) of section 274A of the Immigration and Nationality Act, amended by section 3101, shall be deposited, as offsetting receipts, into the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1). (b) Expenditures Amounts deposited into the Trust Fund under subsection (a) shall be made available to the Secretary and the Attorney General to provide education to employers and employees regarding the requirements, obligations, and rights under the Employment Verification System. (c) Determination of budgetary effects (1) Emergency designation for congressional enforcement In the Senate, amounts made available under this section are designated as an emergency requirement pursuant to section 403(a) of S. Con. Res. 13 (111th Congress), the concurrent resolution on the budget for fiscal year 2010. (2) Emergency designation for statutory paygo Amounts made available under this section are designated as an emergency requirement under section 4(g) of the Statutory Pay-As-You-Go Act of 2010 ( Public Law 111–139 ; 2 U.S.C. 933(g) ). 3203. Directive to the United States Sentencing Commission (a) In general Pursuant to its authority under section 994 of title 28, United States Code, and in accordance with subsection (b), the United States Sentencing Commission shall promulgate sentencing guidelines or amend existing sentencing guidelines to modify, if appropriate, the penalties imposed on persons convicted of offenses under— (1) section 274A of the Immigration and Nationality Act ( 8 U.S.C. 1324a ), as amended by section 3101; (2) section 16 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 216 ); and (3) any other Federal law covering similar conduct. (b) Requirements In carrying out subsection (a), the Sentencing Commission shall provide sentencing enhancements for any person convicted of an offense described in subsection (a) if such offense involves— (1) the intentional confiscation of identification documents; (2) corruption, bribery, extortion, or robbery; (3) sexual abuse; (4) serious bodily injury; (5) an intent to defraud; or (6) a pattern of conduct involving multiple violations of law that— (A) creates, through knowing and intentional conduct, a risk to the health or safety of any victim; or (B) denies payments due to victims for work completed. C Other provisions 3301. Funding (a) Establishment of the Interior Enforcement Account There is hereby established in the Treasury of the United States an account which shall be known as the Interior Enforcement Account. (b) Appropriations There are authorized to be appropriated to the Interior Enforcement Account $1,000,000,000 to carry out this title and the amendments made by this title, including the following appropriations: (1) In each of the 5 years beginning on the date of the enactment of this Act, the appropriations necessary to increase to a level not less than 5,000, by the end of such 5-year period, the total number of personnel of the Department assigned exclusively or principally to an office or offices in U.S. Citizenship and Immigration Services and U.S. Immigration and Customs Enforcement (and consistent with the missions of such agencies), dedicated to administering the System, and monitoring and enforcing compliance with sections 274A, 274B, and 274C of the Immigration and Nationality Act ( 8 U.S.C. 1324a , 1324b, and 1324c), including compliance with the requirements of the Electronic Verification System established under section 274A(d) of the Immigration and Nationality Act ( 8 U.S.C. 1324a(d) ), as amended by section 3101. Such personnel shall perform compliance and monitoring functions, including the following: (A) Verify compliance of employers participating in such System with the requirements for participation that are prescribed by the Secretary. (B) Monitor such System for multiple uses of social security account numbers and immigration identification numbers that could indicate identity theft or fraud. (C) Monitor such System to identify discriminatory or unfair practices. (D) Monitor such System to identify employers who are not using such System properly, including employers who fail to make available appropriate records with respect to their queries and any notices of confirmation, nonconfirmation, or further action. (E) Identify instances in which an employee alleges that an employer violated the employee's privacy or civil rights, or misused such System, and create procedures for an employee to report such an allegation. (F) Analyze and audit the use of such System and the data obtained through such System to identify fraud trends, including fraud trends across industries, geographical areas, or employer size. (G) Analyze and audit the use of such System and the data obtained through such System to develop compliance tools as necessary to respond to changing patterns of fraud. (H) Provide employers with additional training and other information on the proper use of such System, including training related to privacy and employee rights. (I) Perform threshold evaluation of cases for referral to the Special Counsel for Immigration-Related Unfair Employment Practices of the Department of Justice or the Equal Employment Opportunity Commission, and other officials or agencies with responsibility for enforcing anti-discrimination, civil rights, privacy, or worker protection laws, as may be appropriate. (J) Any other compliance and monitoring activities that the Secretary determines are necessary to ensure the functioning of such System. (K) Investigate identity theft and fraud detected through such System and undertake the necessary enforcement or referral actions. (L) Investigate use of or access to fraudulent documents and undertake the necessary enforcement actions. (M) Perform any other investigations that the Secretary determines are necessary to ensure the lawful functioning of such System, and undertake any enforcement actions necessary as a result of such investigations. (2) The appropriations necessary to acquire, install, and maintain technological equipment necessary to support the functioning of such System and the connectivity between U.S. Citizenship and Immigration Services and U.S. Immigration and Customs Enforcement, the Department of Justice, and other agencies or officials with respect to the sharing of information to support such System and related immigration enforcement actions. (3) The appropriations necessary to establish a robust redress process for employees who wish to appeal contested nonconfirmations to ensure the accuracy and fairness of such System. (4) The appropriations necessary to provide a means by which individuals may access their own employment authorization data to ensure the accuracy of such data, independent of an individual's employer. (5) The appropriations necessary to carry out the identity authentication mechanisms described in section 274A(c)(1)(F) of the Immigration and Nationality Act, as amended by section 3101(a). (6) The appropriations necessary for the Office for Civil Rights and Civil Liberties and the Office of Privacy of the Department to perform the responsibilities of such Offices related to such System. (7) The appropriations necessary to make grants to States to support the States in assisting the Federal Government in carrying out the provisions of this title and the amendments made by this title. (c) Establishment of reimbursable agreement between the Department of Homeland Security and the Social Security Administration Effective for fiscal years beginning on or after the date of enactment of this Act, the Secretary and the Commissioner of Social Security shall enter into and maintain an agreement that— (1) provides funds to the Commissioner for the full costs of the responsibilities of the Commissioner under this section, including— (A) acquiring, installing, and maintaining technological equipment and systems necessary for the fulfillment of the responsibilities of the Commissioner under this section; and (B) responding to individuals who contest a further action notice provided by the employment verification system established under section 274A of the Immigration and Nationality Act, as amended by section 3101; (2) provides such funds quarterly in advance of the applicable quarter based on estimating methodology agreed to by the Commissioner and the Secretary; and (3) requires an annual accounting and reconciliation of the actual costs incurred and the funds provided under the agreement which shall be reviewed by the Office of the Inspector General of the Social Security Administration and the Department. (d) Authorization of appropriations to the Attorney General There are authorized to be appropriated to the Attorney General such sums as may be necessary to carry out the provisions of this title and the amendments made by this title, including enforcing compliance with section 274B of the Immigration and Nationality Act, as amended by section 3105. (e) Authorization of appropriations to the Secretary of State There are authorized to be appropriated to the Secretary of State such sums as may be necessary to carry out the provisions of this title and the amendments made by this title. 3302. Effective date Except as otherwise specifically provided, this title and the amendments made by this title shall take effect on the date of the enactment of this Act. 3303. Mandatory exit system (a) Establishment (1) In general Not later than December 31, 2015, the Secretary shall establish a mandatory exit data system that shall include a requirement for the collection of data from machine-readable visas, passports, and other travel and entry documents for all categories of aliens who are exiting from air and sea ports of entry. (2) Biometric exit data system Not later than 2 years after the date of the enactment of this Act, the Secretary shall establish a mandatory biometric exit data system at the 10 United States airports that support the highest volume of international air travel, as determined by Department of Transportation international flight departure data. (3) Report Not later than 3 years after the date of the enactment of this Act, the Secretary shall submit a report to Congress that analyzes the effectiveness of biometric exit data collection at the 10 airports referred to in paragraph (2). (4) Mandatory biometric exit data system Absent intervening action by Congress, the Secretary, not later than 6 years after the date of the enactment of this Act, shall establish a mandatory biometric exit data system at all the Core 30 international airports in the United States, as so designated by the Federal Aviation Administration. (5) Expansion of biometric exit data system to major sea and land ports Not later than 6 years after the date of the enactment of this Act, the Secretary shall submit a plan to Congress for the expansion of the biometric exit system to major sea and land entry and exit points within the United States based upon— (A) the performance of the program established pursuant to paragraph (2); (B) the findings of the study conducted pursuant to paragraph (3); and (C) the projected costs to develop and deploy an effective biometric exit data system. (6) Data collection There are authorized to be appropriated, from the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1), such sums as may be necessary to carry out this section (b) Integration and interoperability (1) Integration of data system The Secretary shall fully integrate all data from databases and data systems that process or contain information on aliens, which are maintained by— (A) the Department, at— (i) the U.S. Immigration and Customs Enforcement; (ii) the U.S. Customs and Border Protection; and (iii) the U.S. Citizenship and Immigration Services; (B) the Department of Justice, at the Executive Office for Immigration Review; and (C) the Department of State, at the Bureau of Consular Affairs. (2) Interoperable component The fully integrated data system under paragraph (1) shall be an interoperable component of the exit data system. (3) Interoperable data system The Secretary shall fully implement an interoperable electronic data system to provide current and immediate access to information in the databases of Federal law enforcement agencies and the intelligence community that is relevant to determine— (A) whether to issue a visa; or (B) the admissibility or deportability of an alien. (4) Training The Secretary shall establish ongoing training modules on immigration law to improve adjudications at United States ports of entry, consulates, and embassies. (c) Information sharing The Secretary shall report to the appropriate Federal law enforcement agency, intelligence agency, national security agency, or component of the Department of Homeland Security any alien who was lawfully admitted into the United States and whose individual data in the integrated exit data system shows that he or she has not departed the country when he or she was legally required to do so, and shall ensure that— (1) if the alien has departed the United States when he or she was legally required to do so, the information contained in the integrated exit data system is updated to reflect the alien’s departure; or (2) if the alien has not departed the United States when he or she was legally required to do so, reasonably available enforcement resources are employed to locate the alien and to commence removal proceedings against the alien. 3304. Identity-theft resistant manifest information for passengers, crew, and non-crew onboard departing aircraft and vessels (a) Definitions Except as otherwise specifically provided, in this section: (1) Identity-theft resistant collection location The term identity-theft resistant collection location means a location within an airport or seaport— (A) within the path of the departing alien, such that the alien would not need to significantly deviate from that path to comply with exit requirements at which air or vessel carrier employees, as applicable, either presently or routinely are available if an alien needs processing assistance; and (B) which is equipped with technology that can securely collect and transmit identity-theft resistant departure information to the Department. (2) US–VISIT The term US–VISIT means the United States-Visitor and Immigrant Status Indicator Technology system. (b) Identity theft resistant manifest information (1) Passport or visa collection requirement Except as provided in subsection (c), an appropriate official of each commercial aircraft or vessel departing from the United States to any port or place outside the United States shall ensure transmission to U.S. Customs and Border Protection of identity-theft resistant departure manifest information covering alien passengers, crew, and non-crew. Such identity-theft resistant departure manifest information— (A) shall be transmitted to U.S. Customs and Border Protection at the place and time specified in paragraph (3) by means approved by the Secretary; and (B) shall set forth the information specified in paragraph (4) or other information as required by the Secretary. (2) Manner of collection Carriers boarding alien passengers, crew, and noncrew subject to the requirement to provide information upon departure for US–VISIT processing shall collect identity-theft resistant departure manifest information from each alien at an identity-theft resistant collection location at the airport or seaport before boarding that alien on transportation for departure from the United States, at a time as close to the originally scheduled departure of that passenger's aircraft or sea vessel as practicable. (3) Time and manner of submission (A) In general The appropriate official specified in paragraph (1) shall ensure transmission of the identity-theft resistant departure manifest information required and collected under paragraphs (1) and (2) to the Data Center or Headquarters of U.S. Customs and Border Protection, or such other data center as may be designated. (B) Transmission The biometric departure information may be transmitted to the Department over any means of communication authorized by the Secretary for the transmission of other electronic manifest information containing personally identifiable information and under transmission standards currently applicable to other electronic manifest information. (C) Submission along with other information Files containing the identity-theft resistant departure manifest information— (i) may be sent with other electronic manifest data prior to departure or may be sent separately from any topically related electronic manifest data; and (ii) may be sent in batch mode. (4) Information required The identity-theft resistant departure information required under paragraphs (1) through (3) for each covered passenger or crew member shall contain alien data from machine-readable visas, passports, and other travel and entry documents issued to the alien. (c) Exception The identity-theft resistant departure information specified in this section is not required for any alien active duty military personnel traveling as passengers on board a departing Department of Defense commercial chartered aircraft. (d) Carrier maintenance and use of identity-Theft resistant departure manifest information Carrier use of identity-theft resistant departure manifest information for purposes other than as described in standards set by the Secretary is prohibited. Carriers shall immediately notify the Chief Privacy Officer of the Department in writing in the event of unauthorized use or access, or breach, of identity-theft resistant departure manifest information. (e) Collection at specified location If the Secretary determines that an air or vessel carrier has not adequately complied with the provisions of this section, the Secretary may, in the Secretary's discretion, require the air or vessel carrier to collect identity-theft resistant departure manifest information at a specific location prior to the issuance of a boarding pass or other document on the international departure, or the boarding of crew, in any port through which the carrier boards aliens for international departure under the supervision of the Secretary for such period as the Secretary considers appropriate to ensure the adequate collection and transmission of biometric departure manifest information. (f) Funding There shall be appropriated to the Interior Enforcement Account $500,000,000 to reimburse carriers for their reasonable actual expenses in carrying out their duties as described in this section. (g) Determination of budgetary effects (1) Emergency designation for congressional enforcement In the Senate, amounts made available under this section are designated as an emergency requirement pursuant to section 403(a) of S. Con. Res. 13 (111th Congress), the concurrent resolution on the budget for fiscal year 2010. (2) Emergency designation for statutory paygo Amounts made available under this section are designated as an emergency requirement under section 4(g) of the Statutory Pay-As-You-Go Act of 2010 ( Public Law 111–139 ; 2 U.S.C. 933(g) ). 3305. Profiling (a) Prohibition In making routine or spontaneous law enforcement decisions, such as ordinary traffic stops, Federal law enforcement officers may not use race or ethnicity to any degree, except that officers may rely on race and ethnicity if a specific suspect description exists. (b) Exceptions (1) Specific investigation In conducting activities in connection with a specific investigation, Federal law enforcement officers may consider race and ethnicity only to the extent that there is trustworthy information, relevant to the locality or time frame, that links persons of a particular race or ethnicity to an identified criminal incident, scheme, or organization. This standard applies even where the use of race or ethnicity might otherwise be lawful. (2) National security In investigating or preventing threats to national security or other catastrophic events (including the performance of duties related to air transportation security), or in enforcing laws protecting the integrity of the Nation’s borders, Federal law enforcement officers may not consider race or ethnicity except to the extent permitted by the Constitution and laws of the United States. (3) Defined term In this section, the term Federal law enforcement officer means any officer, agent, or employee of the United States authorized by law or by a Government agency to engage in or supervise the prevention, detection, investigation, or prosecution of any violation of Federal law. (c) Study and regulations (1) Data collection Not later than 180 days after the date of the enactment of this Act, the Secretary shall begin collecting data regarding the individualized immigration enforcement activities of covered Department officers. (2) Study Not later than 180 days after data collection under paragraph (1) commences, the Secretary shall complete a study analyzing the data. (3) Regulations Not later than 90 days after the date the study required by paragraph (2) is completed, the Secretary, in consultation with the Attorney General, shall issue regulations regarding the use of race, ethnicity, and any other suspect classifications the Secretary deems appropriate by covered Department officers. (4) Reports Not later than 30 days after completion of the study required by paragraph (2), the Secretary shall submit the study to— (A) the Committee on Homeland Security and Governmental Affairs of the Senate; (B) the Committee on Homeland Security of the House of Representatives; (C) the Committee on Appropriations of the Senate; (D) the Committee on Appropriations of the House of Representatives; (E) the Committee on the Judiciary of the Senate; and (F) the Committee on the Judiciary of the House of Representatives. (5) Defined term In this subsection, the term covered Department officer means any officer, agent, or employee of United States Customs and Border Protection, United States Immigration and Customs Enforcement, or the Transportation Security Administration. 3306. Enhanced penalties for certain drug offenses on Federal lands (a) Cultivating or manufacturing controlled substances on Federal property Section 401(b)(5) of the Controlled Substances Act ( 21 U.S.C. 841(b)(5) ) is amended by striking as provided in this subsection and inserting for not more than 10 years, in addition to any other term of imprisonment imposed under this subsection, . (b) Use of hazardous substances Pursuant to its authority under section 994 of title 28, United States Code, the United States Sentencing Commission shall amend the Federal Sentencing Guidelines and policy statements to ensure that the guidelines provide an additional penalty increase of 2 offense levels above the sentence otherwise applicable for a violation of section 401(a) of the Controlled Substances Act ( 21 U.S.C. 841(a) ) if the offense— (1) includes the use of a poison, chemical, or other hazardous substance to cultivate or manufacture controlled substances on Federal property; (2) creates a hazard to humans, wildlife, or domestic animals; (3) degrades or harms the environment or natural resources; or (4) pollutes an aquifer, spring, stream, river, or body of water. (c) Stream diversion or clear cutting on Federal property (1) Prohibition on stream diversion or clear cutting on Federal property Section 401(b) of the Controlled Substances Act is amended by adding at the end the following: (8) Destruction of bodies of water Any person who violates subsection (a) in a manner that diverts, redirects, obstructs, or drains an aquifer, spring, stream, river, or body of water or clear cuts timber while cultivating or manufacturing a controlled substance on Federal property shall be fined in accordance with title 18, United States Code. . (2) Federal Sentencing Guidelines enhancement Pursuant to its authority under section 994 of title 28, United States Code, the United States Sentencing Commission shall amend the Federal Sentencing Guidelines and policy statements to ensure that the guidelines provide an additional penalty increase of 2 offense levels for above the sentence otherwise applicable for a violation of section 401(a) of the Controlled Substances Act ( 21 U.S.C. 841(a) ) if the offense involves the diversion, redirection, obstruction, or draining of an aquifer, spring, stream, river, or body of water or the clear cut of timber while cultivating or manufacturing a controlled substance on Federal property. (d) Booby traps on Federal land Section 401(d)(1) of the Controlled Substances Act ( 21 U.S.C. 841(d)(1) ) is amended by inserting cultivated, after is being . (e) Use or possession of firearms in connection with drug offenses on Federal lands Pursuant to its authority under section 994 of title 28, United States Code, the United States Sentencing Commission shall amend the Federal Sentencing Guidelines and policy statements to ensure that the guidelines provide an additional penalty increase of 2 offense levels above the sentence otherwise applicable for a violation of section 401(a) of the Controlled Substances Act ( 21 U.S.C. 841(a) ) if the offense involves the possession of a firearm while cultivating or manufacturing controlled substances on Federal lands. D Asylum and refugee provisions 3401. Time limits and efficient adjudication of genuine asylum claims Section 208(a)(2) ( 8 U.S.C. 1158(a)(2) ) is amended— (1) in subparagraph (A), by inserting or the Secretary of Homeland Security after Attorney General both places such term appears; (2) by striking subparagraphs (B) and (D); (3) by redesignating subparagraph (C) as subparagraph (B); (4) in subparagraph (B), as redesignated, by striking subparagraph (D) and inserting subparagraphs (C) and (D) ; and (5) by inserting after subparagraph (B), as redesignated, the following: (C) Changed circumstances Notwithstanding subparagraph (B), an application for asylum of an alien may be considered if the alien demonstrates, to the satisfaction of the Attorney General or the Secretary of Homeland Security, the existence of changed circumstances that materially affect the applicant’s eligibility for asylum. (D) Motion to reopen certain meritorious claims Notwithstanding subparagraph (B) or section 240(c)(7), an alien may file a motion to reopen an asylum claim during the 2-year period beginning on the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act if the alien— (i) was denied asylum based solely upon a failure to meet the 1-year application filing deadline in effect on the date on which the application was filed; (ii) was granted withholding of removal pursuant to section 241(b)(3) and has not obtained lawful permanent residence in the United States pursuant to any other provision of law; (iii) is not subject to the safe third country exception under subparagraph (A) or a bar to asylum under subsection (b)(2) and should not be denied asylum as a matter of discretion; and (iv) is physically present in the United States when the motion is filed. . 3402. Refugee family protections (a) Children of refugee or asylee spouses and children A child of an alien who qualifies for admission as a spouse or child under section 207(c)(2)(A) or 208(b)(3) of the Immigration and Nationality Act ( 8 U.S.C. 1157(c)(2)(A) and 1158(b)(3)) shall be entitled to the same status as such alien if the child— (1) is accompanying or following to join such alien; and (2) is otherwise eligible under section 207(c)(2)(A) or 208(b)(3) of the Immigration and Nationality Act. 3403. Clarification on designation of certain refugees (a) Termination of certain preferential treatment in immigration of Amerasians Section 584 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1988 ( 8 U.S.C. 1101 note) is amended by adding at the end the following: (f) No visa may be issued under this section if the petition or application for such visa is submitted on or after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act . . (b) Refugee designation Section 207(c)(1) ( 8 U.S.C. 1157(c)(1) ) is amended— (1) by inserting (A) before Subject to the numerical limitations ; and (2) by adding at the end the following: (B) (i) The President, upon a recommendation of the Secretary of State made in consultation with the Secretary of Homeland Security, and after appropriate consultation, may designate specifically defined groups of aliens— (I) whose resettlement in the United States is justified by humanitarian concerns or is otherwise in the national interest; and (II) who— (aa) share common characteristics that identify them as targets of persecution on account of race, religion, nationality, membership in a particular social group, or political opinion; or (bb) having been identified as targets as described in item (aa), share a common need for resettlement due to a specific vulnerability. (ii) An alien who establishes membership in a group designated under clause (i) to the satisfaction of the Secretary of Homeland Security shall be considered a refugee for purposes of admission as a refugee under this section unless the Secretary determines that such alien ordered, incited, assisted, or otherwise participated in the persecution of any person on account of race, religion, nationality, membership in a particular social group, or political opinion. (iii) A designation under clause (i) is for purposes of adjudicatory efficiency and may be revoked by the President at any time after notification to Congress. (iv) Categories of aliens established under section 599D of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990 ( Public Law 101–167 ; 8 U.S.C. 1157 note)— (I) shall be designated under clause (i) until the end of the first fiscal year commencing after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act ; and (II) shall be eligible for designation thereafter at the discretion of the President, considering, among other factors, whether a country under consideration has been designated by the Secretary of State as a Country of Particular Concern for engaging in or tolerating systematic, ongoing, and egregious violations of religious freedom. (v) A designation under clause (i) shall not influence decisions to grant, to any alien, asylum under section 208, protection under section 241(b)(3), or protection under the Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment, done at New York December 10, 1984. (vi) A decision to deny admission under this section to an alien who establishes to the satisfaction of the Secretary that the alien is a member of a group designated under clause (i) shall— (I) be in writing; and (II) state, to the maximum extent feasible, the reason for the denial. (vii) Refugees admitted pursuant to a designation under clause (i) shall be subject to the number of admissions and be admissible under this section. . 3404. Asylum determination efficiency Section 235(b)(1)(B)(ii) ( 8 U.S.C. 1225(b)(1)(B)(ii) ) is amended by striking asylum. and inserting asylum by an asylum officer. The asylum officer, after conducting a nonadversarial asylum interview and seeking supervisory review, may grant asylum to the alien under section 208 or refer the case to a designee of the Attorney General, for a de novo asylum determination, for relief under the Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment, done at New York December 10, 1984, or for protection under section 241(b)(3). . 3405. Stateless persons in the United States (a) In general Chapter 1 of title II ( 8 U.S.C. 1151 et seq. ) is amended by adding at the end the following: 210A. Protection of certain stateless persons in the United States (a) Stateless persons (1) In general In this section, the term stateless person means an individual who is not considered a national under the operation of the laws of any country. (2) Designation of specific stateless groups The Secretary of Homeland Security, in consultation with the Secretary of State, may, in the discretion of the Secretary, designate specific groups of individuals who are considered stateless persons, for purposes of this section. (b) Status of stateless persons (1) Relief for certain individuals determined to be stateless persons The Secretary of Homeland Security or the Attorney General may, in his or her discretion, provide conditional lawful status to an alien who is otherwise inadmissible or deportable from the United States if the alien— (A) is a stateless person present in the United States; (B) applies for such relief; (C) has not lost his or her nationality as a result of his or her voluntary action or knowing inaction after arrival in the United States; (D) except as provided in paragraphs (2) and (3), is not inadmissible under section 212(a); and (E) is not described in section 241(b)(3)(B)(i). (2) Inapplicability of certain provisions The provisions under paragraphs (4), (5), (7), and (9)(B) of section 212(a) shall not apply to any alien seeking relief under paragraph (1). (3) Waiver The Secretary or the Attorney General may waive any other provisions of such section, other than subparagraphs (B), (C), (D)(ii), (E), (G), (H), or (I) of paragraph (2), paragraph (3), paragraph (6)(C)(i) (with respect to misrepresentations relating to the application for relief under paragraph (1)), or subparagraphs (A), (C), (D), or (E) of paragraph (10) of section 212(a), with respect to such an alien for humanitarian purposes, to assure family unity, or if it is otherwise in the public interest. (4) Submission of passport or travel document Any alien who seeks relief under this section shall submit to the Secretary of Homeland Security or the Attorney General— (A) any available passport or travel document issued at any time to the alien (whether or not the passport or document has expired or been cancelled, rescinded, or revoked); or (B) an affidavit, sworn under penalty of perjury— (i) stating that the alien has never been issued a passport or travel document; or (ii) identifying with particularity any such passport or travel document and explaining why the alien cannot submit it. (5) Work authorization The Secretary of Homeland Security may authorize an alien who has applied for and is found prima facie eligible for or been granted relief under paragraph (1) to engage in employment in the United States. (6) Travel documents The Secretary may issue appropriate travel documents to an alien who has been granted relief under paragraph (1) that would allow him or her to travel abroad and be admitted to the United States upon return, if otherwise admissible. (7) Treatment of spouse and children The spouse or child of an alien who has been granted conditional lawful status under paragraph (1) shall, if not otherwise eligible for admission under paragraph (1), be granted conditional lawful status under this section if accompanying, or following to join, such alien if— (A) the spouse or child is admissible (except as otherwise provided in paragraphs (2) and (3)) and is not described in section 241(b)(3)(B)(i); and (B) the qualifying relationship to the principal beneficiary existed on the date on which such alien was granted conditional lawful status. (c) Adjustment of status (1) Inspection and examination At the end of the 1-year period beginning on the date on which an alien has been granted conditional lawful status under subsection (b), the alien may apply for lawful permanent residence in the United States if— (A) the alien has been physically present in the United States for at least 1 year; (B) the alien’s conditional lawful status has not been terminated by the Secretary of Homeland Security or the Attorney General, pursuant to such regulations as the Secretary or the Attorney General may prescribe; and (C) the alien has not otherwise acquired permanent resident status. (2) Requirements for adjustment of status The Secretary of Homeland Security or the Attorney General, under such regulations as the Secretary or the Attorney General may prescribe, may adjust the status of an alien granted conditional lawful status under subsection (b) to that of an alien lawfully admitted for permanent residence if such alien— (A) is a stateless person; (B) properly applies for such adjustment of status; (C) has been physically present in the United States for at least 1 year after being granted conditional lawful status under subsection (b); (D) is not firmly resettled in any foreign country; and (E) is admissible (except as otherwise provided under paragraph (2) or (3) of subsection (b)) as an immigrant under this chapter at the time of examination of such alien for adjustment of status. (3) Record Upon approval of an application under this subsection, the Secretary of Homeland Security shall establish a record of the alien’s admission for lawful permanent residence as of the date that is 1 year before the date of such approval. (4) Numerical limitation The number of aliens who may receive an adjustment of status under this section for a fiscal year shall be subject to the numerical limitation of section 203(b)(4). (d) Proving the claim In determining an alien’s eligibility for lawful conditional status or adjustment of status under this subsection, the Secretary of Homeland Security or the Attorney General shall consider any credible evidence relevant to the application. The determination of what evidence is credible and the weight to be given that evidence shall be within the sole discretion of the Secretary or the Attorney General. (e) Review (1) Administrative review No appeal shall lie from the denial of an application by the Secretary, but such denial will be without prejudice to the alien’s right to renew the application in proceedings under section 240. (2) Motions to reopen Notwithstanding any limitation imposed by law on motions to reopen removal, deportation, or exclusion proceedings, any individual who is eligible for relief under this section may file a motion to reopen proceedings in order to apply for relief under this section. Any such motion shall be filed within 2 years of the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act . (f) Limitation (1) Applicability The provisions of this section shall only apply to aliens present in the United States. (2) Savings provision Nothing in this section may be construed to authorize or require— (A) the admission of any alien to the United States; (B) the parole of any alien into the United States; or (C) the grant of any motion to reopen or reconsider filed by an alien after departure or removal from the United States. . (b) Judicial review Section 242(a)(2)(B)(ii) ( 8 U.S.C. 1252(a)(2)(B)(ii) ) is amended by striking 208(a). and inserting 208(a) or 210A. . (c) Conforming amendment Section 203(b)(4) ( 8 U.S.C. 1153(b)(4) ) is amended by inserting to aliens granted an adjustment of status under section 210A(c) or after level, . (d) Clerical amendment The table of contents for the Immigration and Nationality Act is amended by inserting after the item relating to section 210 the following: Sec. 210A. Protection of stateless persons in the United States. . 3406. U visa accessibility Section 214(p)(2)(A) ( 8 U.S.C. 1184(p)(2)(A) ) is amended by striking 10,000. and inserting 18,000, of which not more than 3,000 visas may be issued for aliens who are victims of a covered violation described in section 101(a)(15)(U). . 3407. Work authorization while applications for U and T visas are pending (a) U visas Section 214(p) ( 8 U.S.C. 1184(p) ), as amended by section 3406 of this Act, is further amended— (1) in paragraph (6), by striking the last sentence; and (2) by adding at the end the following: (7) Work authorization Notwithstanding any provision of this Act granting eligibility for employment in the United States, the Secretary of Homeland Security shall grant employment authorization to an alien who has filed an application for nonimmigrant status under section 101(a)(15)(U) on the date that is the earlier of— (A) the date on which the alien’s application for such status is approved; or (B) a date determined by the Secretary that is not later than 180 days after the date on which the alien filed the application. . (b) T visas Section 214(o) ( 8 U.S.C. 1184(o) ) is amended by adding at the end the following: (8) Notwithstanding any provision of this Act granting eligibility for employment in the United States, the Secretary of Homeland Security shall grant employment authorization to an alien who has filed an application for nonimmigrant status under section 101(a)(15)(T) on the date that is the earlier of— (A) the date on which the alien’s application for such status is approved; or (B) a date determined by the Secretary that is not later than 180 days after the date on which the alien filed the application. . 3408. Representation at overseas refugee interviews Section 207(c) ( 8 U.S.C. 1157(c) ) is amended by adding at the end the following: (5) The adjudicator of an application for refugee status under this section shall consider all relevant evidence and maintain a record of the evidence considered. (6) An applicant for refugee status may be represented, including at a refugee interview, at no expense to the Government, by an attorney or accredited representative who— (A) was chosen by the applicant; and (B) is authorized by the Secretary of Homeland Security to be recognized as the representative of such applicant in an adjudication under this section. (7) (A) A decision to deny an application for refugee status under this section— (i) shall be in writing; and (ii) shall provide, to the maximum extent feasible, information on the reason for the denial, including— (I) the facts underlying the determination; and (II) whether there is a waiver of inadmissibility available to the applicant. (B) The basis of any negative credibility finding shall be part of the written decision. (8) (A) An applicant who is denied refugee status under this section may file a request with the Secretary for a review of his or her application not later than 120 days after such denial. (B) A request filed under subparagraph (A) shall be adjudicated by refugee officers who have received training on considering requests for review of refugee applications that have been denied. (C) The Secretary shall publish the standard applied to a request for review. (D) A request for review may result in the decision being granted, denied, or reopened for a further interview. (E) A decision on a request for review under this paragraph— (i) shall be in writing; and (ii) shall provide, to the maximum extent feasible, information on the reason for the denial. . 3409. Law enforcement and national security checks (a) Refugees Section 207(c)(1) ( 8 U.S.C. 1157(c)(1) ) is amended by adding at the end the following: No alien shall be admitted as a refugee until the identity of the applicant, including biographic and biometric data, has been checked against all appropriate records or databases maintained by the Secretary of Homeland Security, the Attorney General, the Secretary of State, and other Federal records or databases that the Secretary of Homeland Security considers necessary, to determine any national security, law enforcement, or other grounds on which the alien may be inadmissible to the United States or ineligible to apply for or be granted refugee status. . (b) Asylees Section 208(d)(5)(A)(i) ( 8 U.S.C. 1158(d)(5)(A)(i) ) is amended to read as follows: (i) asylum shall not be granted until the identity of the applicant, using biographic and biometric data, has been checked against all appropriate records or databases maintained by the Secretary of Homeland Security, the Attorney General, the Secretary of State, and other Federal records or databases that the Secretary of Homeland Security considers necessary, to determine any national security, law enforcement, or other grounds on which the alien may be inadmissible to the United States or ineligible to apply for or be granted asylum; . 3410. Tibetan refugee assistance (a) Short title This section may be cited as the Tibetan Refugee Assistance Act of 2013 . (b) Transition for displaced Tibetans Notwithstanding the numerical limitations specified in sections 201 and 202 of the Immigration and Nationality Act (8 U.S.C. 1151 and 1152), 5,000 immigrant visas shall be made available to qualified displaced Tibetans described in subsection (c) during the 3-year period beginning on October 1, 2013. (c) Qualified displaced Tibetan described (1) In general An individual is a qualified displaced Tibetan if such individual— (A) is a native of Tibet; and (B) has been continuously residing in India or Nepal since before the date of the enactment of this Act. (2) Native of Tibet described For purposes of paragraph (1)(A), an individual shall be considered a native of Tibet if such individual— (A) was born in Tibet; or (B) is the son, daughter, grandson, or granddaughter of an individual who was born in Tibet. (d) Derivative status for spouses and children A spouse or child (as defined in subparagraphs (A), (B), (C), (D), or (E) of section 101(b)(1) of the Immigration and Nationality Act ( 8 U.S.C. 1101(b)(1) )) shall, if not otherwise entitled to an immigrant status and the immediate issuance of a visa under this section, be entitled to the same status, and the same order of consideration, provided under this section, if accompanying, or following to join, the spouse or parent of such spouse or child. (e) Distribution of visa numbers The Secretary of State shall ensure that immigrant visas provided under subsection (b) are made available to qualified displaced Tibetans described in subsection (c) or (d) in an equitable manner, giving preference to those qualified displaced Tibetans who— (1) are not resettled in India or Nepal; or (2) are most likely to be resettled successfully in the United States. 3411. Termination of asylum or refugee status (a) Termination of status Except as provided in subsections (b) and (c), any alien who is granted asylum or refugee status under this Act or the Immigration and Nationality Act ( 8 U.S.C. 1101 et seq. ), who, without good cause as determined by the Secretary or the Attorney General, subsequently returns to the country of such alien’s nationality or, in the case of an alien having no nationality, returns to any country in which such alien last habitually resided, and who applied for such status because of persecution or a well-founded fear of persecution in that country on account of race, religion, nationality, membership in a particular social group, or political opinion, shall have his or her refugee or asylum status terminated. (b) Waiver The Secretary has discretion to waive subsection (a) if it is established to the satisfaction of the Secretary or the Attorney General that the alien had good cause for the return. The waiver may be sought prior to departure from the United States or upon return. (c) Exception for certain aliens from Cuba Subsection (a) shall not apply to an alien who is eligible for adjustment to that of an alien lawfully admitted for permanent residence pursuant to the Cuban Adjustment Act of 1966 ( Public Law 89–732 ). 3412. Asylum clock Section 208(d)(2) ( 8 U.S.C. 1158(d)(2) ) is amended by striking is not entitled to employment authorization and all that follows through prior to 180 days after and inserting shall be provided employment authorization 180 days after . E Shortage of immigration court resources for removal proceedings 3501. Shortage of immigration court personnel for removal proceedings (a) Immigration court judges The Attorney General shall increase the total number of immigration judges to adjudicate current pending cases and efficiently process future cases by at least— (1) 75 in fiscal year 2014; (2) 75 in fiscal year 2015; and (3) 75 in fiscal year 2016. (b) Necessary support staff for immigration court judges The Attorney General shall address the shortage of support staff for immigration judges by ensuring that each immigration judge has the assistance of the necessary support staff, including the equivalent of 1 staff attorney or law clerk and 1 legal assistant. (c) Annual increases in board of immigration appeals personnel The Attorney General shall increase the number of Board of Immigration Appeals staff attorneys (including the necessary additional support staff) to efficiently process cases by at least— (1) 30 in fiscal year 2014; (2) 30 in fiscal year 2015; and (3) 30 in fiscal year 2016. (d) Funding There shall be appropriated, from the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1), such sums as may be necessary to carry out this section. 3502. Improving immigration court efficiency and reducing costs by increasing access to legal information (a) Clarification regarding the authority of the Attorney General To appoint counsel to aliens in immigration proceedings Section 292 ( 8 U.S.C. 1362 ) is amended— (1) by inserting (a) before In any ; (2) by striking (at no expense to the Government) ; (3) by striking he shall and inserting the person shall ; and (4) by adding at the end the following: (b) The Government is not required to provide counsel to aliens under subsection (a). However, the Attorney General may, in the Attorney General’s sole and unreviewable discretion, appoint or provide counsel to aliens in immigration proceedings conducted under section 240 of this Act. . (b) Appointment of counsel in certain cases; right To review certain documents in removal proceedings Section 240(b) ( 8 U.S.C. 1229a(b) ) is amended— (1) in paragraph (4)— (A) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively; (B) in subparagraph (A), by striking , at no expense to the Government, ; (C) by inserting after subparagraph (A) the following new subparagraph: (B) the alien shall, at the beginning of the proceedings or at a reasonable time thereafter, automatically receive a complete copy of all relevant documents in the possession of the Department of Homeland Security, including all documents (other than documents protected from disclosure by privilege, including national security information referenced in subparagraph (C), law enforcement sensitive information, and information prohibited from disclosure pursuant to any other provision of law) contained in the file maintained by the Government that includes information with respect to all transactions involving the alien during the immigration process (commonly referred to as an A-file ), and all documents pertaining to the alien that the Department of Homeland Security has obtained or received from other government agencies, unless the alien waives the right to receive such documents by executing a knowing and voluntary waiver in a language that he or she understands fluently, ; and (D) by adding at the end the following: The Government is not required to provide counsel to aliens under this paragraph. However, the Attorney General may, in the Attorney General’s sole and unreviewable discretion, appoint or provide counsel at government expense to aliens in immigration proceedings. ; and (2) by adding at the end the following new paragraph: (8) Failure to provide alien required documents In the absence of a waiver under subparagraph (B) of paragraph (4), a removal proceeding may not proceed until the alien has received the documents as required under such subparagraph. . (c) Appointment of counsel for unaccompanied alien children and aliens with a serious mental disability Section 292 ( 8 U.S.C. 1362 ), as amended by subsection (a), is further amended by adding at the end the following: (c) Notwithstanding subsection (b), the Attorney General shall appoint counsel, at the expense of the Government if necessary, to represent an alien in a removal proceeding who has been determined by the Secretary to be an unaccompanied alien child, is incompetent to represent himself or herself due to a serious mental disability that would be included in section 3(1) of the Americans with Disabilities Act of 1990 ( 42 U.S.C. 12102(1) ), or is considered particularly vulnerable when compared to other aliens in removal proceedings, such that the appointment of counsel is necessary to help ensure fair resolution and efficient adjudication of the proceedings. . (d) Funding There shall be appropriated, from the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1), such sums as may be necessary to carry out this section and the amendments made by this section. 3503. Office of Legal Access Programs (a) Establishment of Office of Legal Access Programs The Attorney General shall maintain, within the Executive Office for Immigration Review, an Office of Legal Access Programs to develop and administer a system of legal orientation programs to make immigration proceedings more efficient and cost effective by educating aliens regarding administrative procedures and legal rights under United States immigration law and to establish other programs to assist in providing aliens access to legal information. (b) Legal orientation programs The legal orientation programs— (1) shall provide programs to assist detained aliens in making informed and timely decisions regarding their removal and eligibility for relief from removal in order to increase efficiency and reduce costs in immigration proceedings and Federal custody processes and to improve access to counsel and other legal services; (2) may provide services to detained aliens in immigration proceedings under sections 235, 238, 240, and 241(a)(5) of the Immigration and Nationality Act ( 8 U.S.C. 1225 , 1228, 1229a, and 1231(a)(5)) and to other aliens in immigration and asylum proceedings under sections 235, 238, and 240 of the Immigration and Nationality Act ( 8 U.S.C. 1225 , 1228, and 1229a); and (3) shall identify unaccompanied alien children, aliens with a serious mental disability, and other particularly vulnerable aliens for consideration by the Attorney General pursuant to section 292(c) of the Immigration and Nationality Act, as added by section 3502(c). (c) Procedures The Secretary, in consultation with the Attorney General, shall establish procedures that ensure that legal orientation programs are available for all detained aliens within 5 days of arrival into custody and to inform such aliens of the basic procedures of immigration hearings, their rights relating to those hearings under the immigration laws, information that may deter such aliens from filing frivolous legal claims, and any other information deemed appropriate by the Attorney General, such as a contact list of potential legal resources and providers. (d) Rule of construction Nothing in this subsection shall be construed to create any substantive or procedural right or benefit that is legally enforceable by any party against the United States or its agencies or officers or any other person. (e) Funding There shall be appropriated, from the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1), such sums as may be necessary to carry out this section. 3504. Codifying Board of Immigration Appeals (a) Definition of board member Section 101(a) ( 8 U.S.C. 1101(a) ) is amended by adding at the end the following: (53) The term Board Member means an attorney whom the Attorney General appoints to serve on the Board of Immigration Appeals within the Executive Office of Immigration Review, and is qualified to review decisions of immigration judges and other matters within the jurisdiction of the Board of Immigration Appeals. . (b) Board of Immigration Appeals Section 240(a)(1) ( 8 U.S.C. 1229a(a)(1) ) is amended by adding at the end the following: The Board of Immigration Appeals and its Board Members shall review decisions of immigration judges under this section. . (c) Appeals Section 240(b)(4) ( 8 U.S.C. 1229a(b)(4) ), as amended by section 3502(b), is further amended— (1) in subparagraph (B), by striking , and and inserting a semicolon; (2) in subparagraph (C), by striking the period and inserting ; and ; and (3) by inserting after subparagraph (C) the following: (D) the alien or the Department of Homeland Security may appeal the immigration judge’s decision to a 3-judge panel of the Board of Immigration Appeals. . (d) Decision and burden of proof Section 240(c)(1)(A) ( 8 U.S.C. 1229a(c)(1)(A) ) is amended to read as follows: (A) In general At the conclusion of the proceeding, the immigration judge shall decide whether an alien is removable from the United States. The determination of the immigration judge shall be based only on the evidence produced at the hearing. On appeal, the Board of Immigration Appeals shall issue a written opinion. The opinion shall address all dispositive arguments raised by the parties. The panel may incorporate by reference the opinion of the immigration judge whose decision is being reviewed, provided that the panel also addresses any arguments made by the nonprevailing party regarding purported errors of law, fact, or discretion. . 3505. Improved training for immigration judges and Board Members (a) In general Section 240 ( 8 U.S.C. 1229a ) is amended by adding at the end the following: (f) Improved training (1) Improved training for immigration judges and board members (A) In general In consultation with the Attorney General and the Director of the Federal Judicial Center, the Director of the Executive Office for Immigration Review shall review and modify, as appropriate, training programs for immigration judges and Board Members. (B) Elements of review Each such review shall study— (i) the expansion of the training program for new immigration judges and Board Members; (ii) continuing education regarding current developments in the field of immigration law; and (iii) methods to ensure that immigration judges are trained on properly crafting and dictating decisions. (2) Improved training and guidance for staff The Director of the Executive Office for Immigration Review shall— (A) modify guidance and training regarding screening standards and standards of review; and (B) ensure that Board Members provide staff attorneys with appropriate guidance in drafting decisions in individual cases, consistent with the policies and directives of the Director of the Executive Office for Immigration Review and the Chairman of the Board of Immigration Appeals. . (b) Funding There shall be appropriated, from the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1), such sums as may be necessary to carry out this section and the amendment made by this section. 3506. Improved resources and technology for immigration courts and Board of Immigration Appeals (a) Improved on-Bench reference materials and decision templates The Director of the Executive Office for Immigration Review shall ensure that immigration judges are provided with updated reference materials and standard decision templates that conform to the law of the circuits in which they sit. (b) Practice manual The Director of the Executive Office for Immigration Review shall produce a practice manual describing best practices for the immigration courts and shall make such manual available electronically to counsel and litigants who appear before the immigration courts. (c) Recording system and other technologies (1) Plan required The Director of the Executive Office for Immigration Review shall provide the Attorney General with a plan and a schedule to replace the immigration courts’ tape recording system with a digital recording system that is compatible with the information management systems of the Executive Office for Immigration Review. (2) Audio recording system Consistent with the plan described in paragraph (1), the Director shall pilot a digital audio recording system not later than 1 year after the enactment of this Act, and shall begin nationwide implementation of that system as soon as practicable. (d) Improved transcription services Not later than 1 year after the enactment of this Act, the Director of the Executive Office for Immigration Review shall report to the Attorney General on the current transcription services utilized by the Office and recommend improvements to this system regarding quality and timeliness of transcription. (e) Improved interpreter selection Not later than 1 year after the enactment of this Act, the Director of the Executive Office for Immigration Review shall report to the Attorney General on the current interpreter selection process utilized by the Office and recommend improvements to this process regarding screening, hiring, certification, and evaluation of staff and contract interpreters. (f) Funding There shall be appropriated, from the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1), such sums as may be necessary to carry out this section. 3507. Transfer of responsibility for trafficking protections (a) Transfer of responsibility (1) In general All unexpended balances appropriated or otherwise available to the Department of Health and Human Services and its Office of Refugee Resettlement in connection with the functions provided for in paragraphs (5) and (6) of section 235(c) of the William Wilberforce Trafficking Victims Protection Reauthorization Act of 2008 ( 8 U.S.C. 1232(c) ), shall, subject to section 202 of the Budget and Accounting Procedures Act of 1950, be transferred to the Department of Justice. Funds transferred pursuant to this paragraph shall remain available until expended and shall be used only for the purposes for which the funds were originally authorized and appropriated. (2) Contract authority The Attorney General may award grants to, and enter into contracts to carry out the functions set forth in paragraphs (5) and (6) of Section 235(c) of the William Wilberforce Trafficking Victims Protection Reauthorization Act of 2008. (b) Conforming amendments Section 235(c) of the William Wilberforce Trafficking Victims Protection Reauthorization Act of 2008 ( 8 U.S.C. 1232(c) ) is amended— (1) in paragraph (5)— (A) by striking Secretary of Health and Human Services each place it appears and inserting Attorney General ; and (B) by striking the last sentence; and (2) in paragraph (6)— (A) by striking Secretary of Health and Human Services each place it appears and inserting Attorney General ; (B) in subparagraphs (B)(ii), (D), and (F), by striking Secretary each place it appears and inserting Attorney General ; and (C) in subparagraph (F), by striking and Human Services . F Prevention of trafficking in persons and abuses involving workers recruited abroad 3601. Definitions (a) In general Except as otherwise provided by this subtitle, the terms used in this subtitle shall have the same meanings, respectively, as are given those terms in section 3 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 203 ). (b) Other definitions (1) Foreign labor contractor The term foreign labor contractor means any person who performs foreign labor contracting activity, including any person who performs foreign labor contracting activity wholly outside of the United States, except that the term does not include any entity of the United States Government. (2) Foreign labor contracting activity The term foreign labor contracting activity means recruiting, soliciting, or related activities with respect to an individual who resides outside of the United States in furtherance of employment in the United States, including when such activity occurs wholly outside of the United States. (3) Person The term person means any natural person or any corporation, company, firm, partnership, joint stock company or association or other organization or entity (whether organized under law or not), including municipal corporations. (4) Worker the term worker means an individual or exchange visitor who is the subject of foreign labor contracting activity. 3602. Disclosure (a) Requirement for disclosure Any person who engages in foreign labor contracting activity shall ascertain and disclose in writing in English and in the primary language of the worker at the time of the worker’s recruitment, the following information: (1) The identity and address of the employer and the identity and address of the person conducting the recruiting on behalf of the employer, including any subcontractor or agent involved in such recruiting. (2) All assurances and terms and conditions of employment, from the prospective employer for whom the worker is being recruited, including the work hours, level of compensation to be paid, the place and period of employment, a description of the type and nature of employment activities, any withholdings or deductions from compensation and any penalties for terminating employment. (3) A signed copy of the work contract between the worker and the employer. (4) The type of visa under which the foreign worker is to be employed, the length of time for which the visa will be valid, the terms and conditions under which the visa may be renewed, and a clear statement of any expenses associated with securing or renewing the visa. (5) An itemized list of any costs or expenses to be charged to the worker and any deductions to be taken from wages, including any costs for housing or accommodation, transportation to and from the worksite, meals, health insurance, workers’ compensation, costs of benefits provided, medical examinations, healthcare, tools, or safety equipment costs. (6) The existence of any labor organizing effort, strike, lockout, or other labor dispute at the place of employment. (7) Whether and the extent to which workers will be compensated through workers' compensation, private insurance, or otherwise for injuries or death, including work-related injuries and death, during the period of employment and, if so, the name of the State workers' compensation insurance carrier or the name of the policyholder of the private insurance, the name and the telephone number of each person who must be notified of an injury or death, and the time period within which such notice must be given. (8) A statement, in a form specified by the Secretary— (A) stating that— (i) no foreign labor contractor, agent, or employee of a foreign labor contractor, may lawfully assess any fee (including visa fees, processing fees, transportation fees, legal expenses, placement fees, and other costs) to a worker for any foreign labor contracting activity; and (ii) the employer may bear such costs or fees for the foreign labor contractor, but that these fees cannot be passed along to the worker; (B) explaining that— (i) no additional significant requirements or changes may be made to the original contract signed by the worker without at least 24 hours to consider such changes and the specific consent of the worker, obtained voluntarily and without threat of penalty; and (ii) any significant changes made to the original contract that do not comply with clause (i) shall be a violation of this subtitle and be subject to the provisions of section 3610 of this Act; and (C) describing the protections afforded the worker by this section and by section 202 of the William Wilberforce Trafficking Victims Protection Reauthorization Act of 2008 ( 8 U.S.C. 1375b ) and any applicable visa program, including— (i) relevant information about the procedure for filing a complaint provided for in section 3610; and (ii) the telephone number for the national human trafficking resource center hotline number. (9) Any education or training to be provided or required, including— (A) the nature, timing, and cost of such training; (B) the person who will pay such costs; (C) whether the training is a condition of employment, continued employment, or future employment; and (D) whether the worker will be paid or remunerated during the training period, including the rate of pay. (b) Relationship to labor and employment laws Nothing in the disclosure required by subsection (a) shall constitute a legal conclusion as to the worker’s status or rights under the labor and employment laws. (c) Prohibition on false and misleading information No foreign labor contractor or employer who engages in any foreign labor contracting activity shall knowingly provide materially false or misleading information to any worker concerning any matter required to be disclosed under subsection (a). The disclosure required by this section is a document concerning the proper administration of a matter within the jurisdiction of a department or agency of the United States for the purposes of section 1519 of title 18, United States Code. 3603. Prohibition on discrimination (a) In general It shall be unlawful for an employer or a foreign labor contractor to fail or refuse to hire, discharge, intimidate, threaten, restrain, coerce, or blacklist any individual or otherwise discriminate against an individual with respect to compensation, terms, conditions, or privileges of employment, because of such individual's race, color, creed, sex, national origin, religion, age, or disability. (b) Determinations of discrimination For the purposes of determining the existence of unlawful discrimination under subsection (a)— (1) in the case of a claim of discrimination based on race, color, creed, sex, national origin, or religion, the same legal standards shall apply as are applicable under title VII of the Civil Rights Act of 1964 ( 42 U.S.C. 2000e et seq. ); (2) in the case of a claim of discrimination based on unlawful discrimination based on age, the same legal standards shall apply as are applicable under the Age Discrimination in Employment Act of 1967 ( 29 U.S.C. 621 et seq. ); and (3) in the case of a claim of discrimination based on disability, the same legal standards shall apply as are applicable under title I of the Americans With Disabilities Act of 1990 ( 42 U.S.C. 12111 et seq. ). 3604. Recruitment fees No employer, foreign labor contractor, or agent or employee of a foreign labor contractor, shall assess any fee (including visa fees, processing fees, transportation fees, legal expenses, placement fees, and other costs) to a worker for any foreign labor contracting activity. 3605. Registration (a) Requirement To register (1) In general Subject to paragraph (2), prior to engaging in any foreign labor contracting activity, any person who is a foreign labor contractor or who, for any money or other valuable consideration paid or promised to be paid, performs a foreign labor contracting activity on behalf of a foreign labor contractor, shall obtain a certificate of registration from the Secretary of Labor pursuant to regulations promulgated by the Secretary under subsection (c). (2) Exception for certain employers An employer, or employee of an employer, who engages in foreign labor contracting activity solely to find employees for that employer’s own use, and without the participation of any other foreign labor contractor, shall not be required to register under this section. (b) Notification (1) Annual employer notification Each employer shall notify the Secretary, not less frequently than once every year, of the identity of any foreign labor contractor involved in any foreign labor contracting activity for, or on behalf of, the employer, including at a minimum, the name and address of the foreign labor contractor, a description of the services for which the foreign labor contractor is being used, whether the foreign labor contractor is to receive any economic compensation for the services, and, if so, the identity of the person or entity who is paying for the services. (2) Annual foreign labor contractor notification Each foreign labor contractor shall notify the Secretary, not less frequently than once every year, of the identity of any subcontractee, agent, or foreign labor contractor employee involved in any foreign labor contracting activity for, or on behalf of, the foreign labor contractor. (3) Noncompliance notification An employer shall notify the Secretary of the identity of a foreign labor contractor whose activities do not comply with this subtitle. (4) Agreement Not later than 7 days after receiving a request from the Secretary, an employer shall provide the Secretary with the identity of any foreign labor contractor with which the employer has a contract or other agreement. (c) Regulations Not later than 180 days after the date of the enactment of this Act, the Secretary shall promulgate regulations to establish an efficient electronic process for the timely investigation and approval of an application for a certificate of registration of foreign labor contractors, including— (1) a declaration, subscribed and sworn to by the applicant, stating the applicant's permanent place of residence, the foreign labor contracting activities for which the certificate is requested, and such other relevant information as the Secretary may require; (2) a set of fingerprints of the applicant; (3) an expeditious means to update registrations and renew certificates; (4) providing for the consent of any foreign labor recruiter to the designation by a court of the Secretary as an agent available to accept service of summons in any action against the applicant, if the applicant has left the jurisdiction in which the action is commenced, otherwise has become unavailable to accept service, or is subject to personal jurisdiction in no State; (5) providing for the consent of any foreign labor recruiter to jurisdiction in the Department or any Federal or State court in the United States for any action brought by any aggrieved individual or worker; (6) providing for cooperation in any investigation by the Secretary or other appropriate authorities; (7) providing for consent to the forfeiture of the bond for failure to cooperate with these provisions; (8) providing for consent to be liable for violations of this subtitle by any agents or subcontractees of any level in relation to the foreign labor contracting activity of the agent or subcontractee to the same extent as if the foreign labor contractor had committed the violation; and (9) providing for consultation with other appropriate Federal agencies to determine whether any reason exists to deny registration to a foreign labor contractor. (d) Term of registration Unless suspended or revoked, a certificate under this section shall be valid for 2 years. (e) Application fee (1) Requirement for fee In addition to any other fees authorized by law, the Secretary shall impose a fee, to be deposited in the general fund of the Treasury, on a foreign labor contractor that submits an application for a certificate of registration under this section. (2) Amount of fee The amount of the fee required by paragraph (1) shall be set at a level that the Secretary determines sufficient to cover the full costs of carrying out foreign labor contract registration activities under this subtitle, including worker education and any additional costs associated with the administration of the fees collected. (f) Refusal To issue; revocation In accordance with regulations promulgated by the Secretary, the Secretary shall refuse to issue or renew, or shall revoke and debar from eligibility to obtain a certificate of registration for a period of not greater than 5 years, after notice and an opportunity for a hearing, a certificate of registration under this section if— (1) the applicant for, or holder of, the certification has knowingly made a material misrepresentation in the application for such certificate; (2) the applicant for, or holder of, the certification is not the real party in interest in the application or certificate of registration and the real party in interest— (A) is a person who has been refused issuance or renewal of a certificate; (B) has had a certificate revoked; or (C) does not qualify for a certificate under this section; (3) the applicant for, or holder of, the certification has been convicted within the preceding 5 years of— (A) any felony under State or Federal law or crime involving robbery, bribery, extortion, embezzlement, grand larceny, burglary, arson, violation of narcotics laws, murder, rape, assault with intent to kill, assault which inflicts grievous bodily injury, prostitution, peonage, or smuggling or harboring individuals who have entered the United States illegally; or (B) any crime relating to gambling, or to the sale, distribution or possession of alcoholic beverages, in connection with or incident to any labor contracting activities; or (4) the applicant for, or holder of, the certification has materially failed to comply with this section. (g) Re-Registration of violators The Secretary shall establish a procedure by which a foreign labor contractor that has had its registration revoked under subsection (f) may seek to re-register under this subsection by demonstrating to the Secretary’s satisfaction that the foreign labor contractor has not violated this subtitle in the previous 5 years and that the foreign labor contractor has taken sufficient steps to prevent future violations of this subtitle. 3606. Bonding requirement (a) In general The Secretary shall require a foreign labor contractor to post a bond in an amount sufficient to ensure the ability of the foreign labor contractor to discharge its responsibilities and to ensure protection of workers, including wages. (b) Regulations The Secretary, by regulation, shall establish the conditions under which the bond amount is determined, paid, and forfeited. (c) Relationship to other remedies The bond requirements and forfeiture of the bond under this section shall be in addition to other remedies under 3610 or any other law. 3607. Maintenance of lists (a) In general The Secretary shall maintain— (1) a list of all foreign labor contractors registered under this subsection, including— (A) the countries from which the contractors recruit; (B) the employers for whom the contractors recruit; (C) the visa categories and occupations for which the contractors recruit; and (D) the States where recruited workers are employed; and (2) a list of all foreign labor contractors whose certificate of registration the Secretary has revoked. (b) Updates; availability The Secretary shall— (1) update the lists required by subsection (a) on an ongoing basis, not less frequently than every 6 months; and (2) make such lists publicly available, including through continuous publication on Internet websites and in written form at and on the websites of United States embassies in the official language of that country. (c) Inter-Agency availability The Secretary shall share the information described in subsection (a) with the Secretary of State. 3608. Amendment to the Immigration and Nationality Act Section 214 ( 8 U.S.C. 1184 ) is amended by adding at the end the following: (s) A visa shall not be issued under the subparagraph (A)(iii), (B)(i) (but only for domestic servants described in clause (i) or (ii) of section 274a.12(c)(17) of title 8, Code of Federal Regulations (as in effect on December 4, 2007)), (G)(v), (H), (J), (L), (Q), (R), or (W) of section 101(a)(15) until the consular officer— (1) has provided to and reviewed with the applicant, in the applicant’s language (or a language the applicant understands), a copy of the information and resources pamphlet required by section 202 of the William Wilberforce Trafficking Victims Protection Reauthorization Act of 2008 ( 8 U.S.C. 1375b ); and (2) has reviewed and made a part of the visa file the foreign labor recruiter disclosures required by section 3602 of the Border Security, Economic Opportunity, and Immigration Modernization Act , including whether the foreign labor recruiter is registered pursuant to that section. . 3609. Responsibilities of Secretary of State (a) In general The Secretary of State shall ensure that each United States diplomatic mission has a person who shall be responsible for receiving information from any worker who has been subject to violations of this subtitle. (b) Provision of information The responsible person referred to in subsection (a) shall ensure that the information received is provided to the Department of Justice, the Department of Labor, or any other relevant Federal agency. (c) Mechanisms The Attorney General and the Secretary shall ensure that there is a mechanism for any actions that need to be taken in response to information received under subsection (a). (d) Assistance from foreign government The person designated for receiving information pursuant to subsection (a) is strongly encouraged to coordinate with governments and civil society organizations in the countries of origin to ensure the worker receives additional support. (e) Maintenance and availability of information The Secretary of State shall ensure that consulates maintain information regarding the identities of foreign labor contractors and the employers to whom the foreign labor contractors supply workers. The Secretary of State shall make such information publicly available in written form and online, including on the websites of United States embassies in the official language of that country. (f) Annual public disclose The Secretary of State shall make publicly available online, on an annual basis, data disclosing the gender, country of origin and state, if available, date of birth, wage, level of training, and occupation category, disaggregated by job and by visa category and subcategory. 3610. Enforcement provisions (a) Complaints and investigations The Secretary— (1) shall establish a process for the receipt, investigation, and disposition of complaints filed by any person, including complaints respecting a foreign labor contractor’s compliance with this subtitle; and (2) either pursuant to the process required by paragraph (1) or otherwise, may investigate employers or foreign labor contractors, including actions occurring in a foreign country, as necessary to determine compliance with this subtitle. (b) Enforcement (1) In general A worker who believes that he or she has suffered a violation of this subtitle may seek relief from an employer by— (A) filing a complaint with the Secretary within 3 years after the date on which the violation occurred or date on which the employee became aware of the violation; or (B) if the Secretary has not issued a final decision within 120 days of the filing of the complaint and there is no showing that such delay is due to the bad faith of the claimant, bringing an action at law or equity for de novo review in the appropriate district court of the United States, which shall have jurisdiction over such an action without regard to the amount in controversy. (2) Procedure (A) In general Unless otherwise provided herein, a complaint under paragraph (1)(A) shall be governed under the rules and procedures set forth in paragraphs (1) and (2)(A) of section 42121(b) of title 49, United States Code. (B) Exception Notification of a complaint under paragraph (1)(A) shall be made to each person or entity named in the complaint as a defendant and to the employer. (C) Statute of limitations An action filed in a district court of the United States under paragraph (1)(B) shall be commenced not later than 180 days after the last day of the 120-day period referred to in that paragraph. (D) Jury trial A party to an action brought under paragraph (1)(B) shall be entitled to trial by jury. (c) Administrative enforcement (1) In general If the Secretary finds, after notice and an opportunity for a hearing, any foreign labor contractor or employer failed to comply with any of the requirements of this subtitle, the Secretary may impose the following against such contractor or employer— (A) a fine in an amount not more than $10,000 per violation; and (B) upon the occasion of a third violation or a failure to comply with representations, a fine of not more than $25,000 per violation. (d) Authority To ensure compliance The Secretary is authorized to take other such actions, including issuing subpoenas and seeking appropriate injunctive relief and recovery of damages, as may be necessary to assure compliance with the terms and conditions of this subtitle. (e) Bonding Pursuant to the bonding requirement in section 3606, bond liquidation and forfeitures shall be in addition to other remedies under this section or any other law. (f) Civil action (1) In general The Secretary or any person aggrieved by a violation of this subtitle may bring a civil action against any foreign labor contractor that does not meet the requirements under subsection (g)(2) in any court of competent jurisdiction— (A) to seek remedial action, including injunctive relief; (B) to recover damages on behalf of any worker harmed by a violation of this subsection; and (C) to ensure compliance with requirements of this section. (2) Actions by the secretary of homeland security (A) Sums recovered Any sums recovered by the Secretary on behalf of a worker under paragraph (1) or through liquidation of the bond held pursuant to section 3606 shall be held in a special deposit account and shall be paid, on order of the Secretary, directly to each worker affected. Any such sums not paid to a worker because of inability to do so within a period of 5 years shall be credited as an offsetting collection to the appropriations account of the Secretary for expenses for the administration of this section and shall remain available to the Secretary until expended or may be used for enforcement of the laws within the jurisdiction of the wage and hour division or may be transferred to the Secretary of Health and Human Services for the purpose of providing support to programs that provide assistance to victims of trafficking in persons or other exploited persons. The Secretary shall work with any attorney or organization representing workers to locate workers owed sums under this section. (B) Representation Except as provided in section 518(a) of title 28, United States Code, the Attorney General may appear for and represent the Secretary in any civil litigation brought under this paragraph. All such litigation shall be subject to the direction and control of the Attorney General. (3) Actions by individuals (A) Award If the court finds in a civil action filed by an individual under this section that the defendant has violated any provision of this subtitle (or any regulation issued pursuant to this subtitle), the court may award— (i) damages, up to and including an amount equal to the amount of actual damages, and statutory damages of up to $1,000 per plaintiff per violation, or other equitable relief, except that with respect to statutory damages— (I) multiple infractions of a single provision of this subtitle (or of a regulation under this subtitle) shall constitute only 1 violation for purposes of section 3602(a) to determine the amount of statutory damages due a plaintiff; and (II) if such complaint is certified as a class action the court may award— (aa) damages up to an amount equal to the amount of actual damages; and (bb) statutory damages of not more than the lesser of up to $1,000 per class member per violation, or up to $500,000; and other equitable relief; (ii) reasonable attorneys’ fees and costs; and (iii) such other and further relief, including declaratory and injunctive relief, as necessary to effectuate the purposes of this subtitle. (B) Criteria In determining the amount of statutory damages to be awarded under subparagraph (A), the court is authorized to consider whether an attempt was made to resolve the issues in dispute before the resort to litigation. (C) Bond To satisfy the damages, fees, and costs found owing under this clause, the Secretary shall release as much of the bond held pursuant to section 3606 as necessary. (D) Appeal Any civil action brought under this section shall be subject to appeal as provided in chapter 83 of title 28, United States Code ( 28 U.S.C. 1291 et seq. ). (E) Access to legal services corporation Notwithstanding any other provision of law, the Legal Services Corporation and recipients of its funding may provide legal assistance on behalf of any alien with respect to any provision of this subtitle. (g) Agency liability (1) In general Beginning 180 days after the Secretary has promulgated regulations pursuant to section 3605(c), an employer who retains the services of a foreign labor contractor shall only use those foreign labor contractors who are registered under section 3605. (2) Safe harbor An employer shall not have any liability under this section if the employer hires workers referred by a foreign labor contractor that has a valid registration with the Department pursuant to section 3604. (3) Liability for agents Foreign labor contractors shall be subject to the provisions of this section for violations committed by the foreign labor contractor's agents or subcontractees of any level in relation to their foreign labor contracting activity to the same extent as if the foreign labor contractor had committed the violation. (h) Retaliation (1) In general No person shall intimidate, threaten, restrain, coerce, discharge, or in any other manner discriminate or retaliate against any worker or their family members (including a former employee or an applicant for employment) because such worker disclosed information to any person that the worker reasonably believes evidences a violation of this section (or any rule or regulation pertaining to this section), including seeking legal assistance of counsel or cooperating with an investigation or other proceeding concerning compliance with this section (or any rule or regulation pertaining to this section). (2) Enforcement An individual who is subject to any conduct described in paragraph (1) may, in a civil action, recover appropriate relief, including reasonable attorneys’ fees and costs, with respect to that violation. Any civil action under this subparagraph shall be stayed during the pendency of any criminal action arising out of the violation. (i) Waiver of rights Agreements by employees purporting to waive or to modify their rights under this subtitle shall be void as contrary to public policy. (j) Presence during pendency of actions (1) In general If other immigration relief is not available, the Attorney General and the Secretary shall grant advance parole to permit a nonimmigrant to remain legally in the United States for time sufficient to fully and effectively participate in all legal proceedings related to any action taken pursuant to this section. (2) Regulations Not later than 180 days after the date of the enactment of this Act, the Secretary shall promulgate regulations to carry out paragraph (1). 3611. Detecting and preventing child trafficking The Secretary shall mandate the live training of all U.S. Customs and Border Protection personnel who are likely to come into contact with unaccompanied alien children. Such training shall incorporate the services of child welfare professionals with expertise in culturally competent, trauma-centered, and developmentally appropriate interviewing skills to assist U.S. Customs and Border Protection in the screening of children attempting to enter the United States. 3612. Protecting child trafficking victims (a) Short title This section may be cited as the Child Trafficking Victims Protection Act . (b) Defined term In this section, the term unaccompanied alien children has the meaning given such term in section 462 of the Homeland Security Act of 2002 ( 6 U.S.C. 279 ). (c) Care and transportation Notwithstanding any other provision of law, the Secretary shall ensure that all unaccompanied alien children who will undergo any immigration proceedings before the Department or the Executive Office for Immigration Review are duly transported and placed in the care and legal and physical custody of the Office of Refugee Resettlement not later than 72 hours after their apprehension absent exceptional circumstances, including a natural disaster or comparable emergency beyond the control of the Secretary or the Office of Refugee Resettlement. The Secretary, to the extent practicable, shall ensure that female officers are continuously present during the transfer and transport of female detainees who are in the custody of the Department. (d) Qualified resources (1) In general The Secretary shall provide adequately trained and qualified staff and resources, including the accommodation of child welfare officials, in accordance with subsection (e), at U.S. Customs and Border Protection ports of entry and stations. (2) Child welfare professionals The Secretary of Health and Human Services, in consultation with the Secretary, shall hire, on a full- or part-time basis, child welfare professionals who will provide assistance, either in person or by other appropriate methods of communication, in not fewer than 7 of the U.S. Customs and Border Protection offices or stations with the largest number of unaccompanied alien child apprehensions in the previous fiscal year. (e) Child welfare professionals (1) In general The Secretary, in consultation with the Secretary of Health and Human Services, shall ensure that qualified child welfare professionals with expertise in culturally competent, trauma-centered, and developmentally appropriate interviewing skills are available at each major port of entry described in subsection (d). (2) Duties Child welfare professionals described in paragraph (1) shall— (A) develop guidelines for treatment of unaccompanied alien children in the custody of the Department; (B) conduct screening of all unaccompanied alien children in accordance with section 235(a)(4) of the William Wilberforce Trafficking Victims Protection Reauthorization Act of 2008 ( 8 U.S.C. 1232(a)(4) ); (C) notify the Department and the Office of Refugee Resettlement of children that potentially meet the notification and transfer requirements set forth in subsections (a) and (b) of section 235 of such Act ( 8 U.S.C. 1232 ); (D) interview adult relatives accompanying unaccompanied alien children; (E) provide an initial family relationship and trafficking assessment and recommendations regarding unaccompanied alien children's initial placements to the Office of Refugee Resettlement, which shall be conducted in accordance with the time frame set forth in subsections (a)(4) and (b)(3) of section 235 of such Act ( 8 U.S.C. 1232 ); and (F) ensure that each unaccompanied alien child in the custody of U.S. Customs and Border Protection— (i) receives emergency medical care when necessary; (ii) receives emergency medical and mental health care that complies with the standards adopted pursuant to section 8(c) of the Prison Rape Elimination Act of 2003 ( 42 U.S.C. 15607(c) ) whenever necessary, including in cases in which a child is at risk to harm himself, herself, or others; (iii) is provided with climate appropriate clothing, shoes, basic personal hygiene and sanitary products, a pillow, linens, and sufficient blankets to rest at a comfortable temperature; (iv) receives adequate nutrition; (v) enjoys a safe and sanitary living environment; (vi) has access to daily recreational programs and activities if held for a period longer than 24 hours; (vii) has access to legal services and consular officials; and (viii) is permitted to make supervised phone calls to family members. (3) Final determinations The Office of Refugee Resettlement in accordance with applicable policies and procedures for sponsors, shall submit final determinations on family relationships to the Secretary, who shall consider such adult relatives for community-based support alternatives to detention. (4) Report Not later than 18 months after the date of the enactment of this Act, and annually thereafter, the Secretary shall submit a report to Congress that— (A) describes the screening procedures used by the child welfare professionals to screen unaccompanied alien children; (B) assesses the effectiveness of such screenings; and (C) includes data on all unaccompanied alien children who were screened by child welfare professionals; (f) Immediate notification The Secretary shall notify the Office of Refugee Resettlement of an unaccompanied alien child in the custody of the Department as soon as practicable, but generally not later than 48 hours after the Department encounters the child, to effectively and efficiently coordinate the child’s transfer to and placement with the Office of Refugee Resettlement. (g) Notice of rights and right to access to counsel (1) In general The Secretary shall ensure that all unaccompanied alien children, upon apprehension, are provided— (A) an interview and screening with a child welfare professional described in subsection (e)(1); and (B) an orientation and oral and written notice of their rights under the Immigration and Nationality Act, including— (i) their right to relief from removal; (ii) their right to confer with counsel (as guaranteed under section 292 of such Act ( 8 U.S.C. 1362 )), family, or friends while in the temporary custody of the Department; and (iii) relevant complaint mechanisms to report any abuse or misconduct they may have experienced. (2) Languages The Secretary shall ensure that— (A) the video orientation and written notice of rights described in paragraph (1) is available in English and in the 5 most common native languages spoken by the unaccompanied children held in custody at that location during the preceding fiscal year; and (B) the oral notice of rights is available in English and in the most common native language spoken by the unaccompanied children held in custody at that location during the preceding fiscal year. (h) Confidentiality The Secretary of Health and Human Services shall maintain the privacy and confidentiality of all information gathered in the course of providing care, custody, placement, and follow-up services to unaccompanied alien children, consistent with the best interest of the unaccompanied alien child, by not disclosing such information to other government agencies or nonparental third parties unless such disclosure is— (1) recorded in writing and placed in the child’s file; (2) in the child's best interest; and (3) (A) authorized by the child or by an approved sponsor in accordance with section 235 of the William Wilberforce Trafficking Victims Protection Reauthorization Act of 2008 ( 8 U.S.C. 1232 ) and the Health Insurance Portability and Accountability Act ( Public Law 104–191 ); or (B) provided to a duly recognized law enforcement entity to prevent imminent and serious harm to another individual. (i) Other policies and procedures The Secretary shall adopt fundamental child protection policies and procedures— (1) for reliable age determinations of children, developed in consultation with medical and child welfare experts, which exclude the use of fallible forensic testing of children’s bone and teeth; (2) to utilize all legal authorities to defer the child’s removal if the child faces a risk of life-threatening harm upon return including due to the child’s mental health or medical condition; and (3) to ensure, in accordance with the Juvenile Justice and Delinquency Prevention Act of 1974 ( 42 U.S.C. 5601 et seq. ), that unaccompanied alien children, while in detention, are— (A) physically separated from any adult who is not an immediate family member; and (B) separated from— (i) immigration detainees and inmates with criminal convictions; (ii) pretrial inmates facing criminal prosecution; and (iii) inmates exhibiting violent behavior. (j) Repatriation and reintegration program (1) In general The Administrator of the United States Agency for International Development, in conjunction with the Secretary, the Secretary of Health and Human Services, the Attorney General, international organizations, and nongovernmental organizations in the United States with expertise in repatriation and reintegration, shall create a multi-year program to develop and implement best practices and sustainable programs in the United States and within the country of return to ensure the safe and sustainable repatriation and reintegration of unaccompanied alien children into their country of nationality or of last habitual residence, including placement with their families, legal guardians, or other sponsoring agencies. (2) Report on repatriation and reintegration of unaccompanied alien children Not later than 18 months after the date of the enactment of this Act, and annually thereafter, the Administrator of the Agency for International Development shall submit a substantive report to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives on efforts to improve repatriation and reintegration programs for unaccompanied alien children. (k) Transfer of funds (1) Authorization The Secretary, in accordance with a written agreement between the Secretary and the Secretary of Health and Human Services, shall transfer such amounts as may be necessary to carry out the duties described in subsection (f)(2) from amounts appropriated for U.S. Customs and Border Protection to the Department of Health and Human Services. (2) Report Not later than 15 days before any proposed transfer under paragraph (1), the Secretary of Health and Human Services, in consultation with the Secretary, shall submit a detailed expenditure plan that describes the actions proposed to be taken with amounts transferred under such paragraph to— (A) the Committee on Appropriations of the Senate ; and (B) the Committee on Appropriations of the House of Representatives . 3613. Rule of construction Nothing in this subtitle shall be construed to preempt or alter any other rights or remedies, including any causes of action, available under any other Federal or State law. 3614. Regulations The Secretary shall, in consultation with the Secretary of Labor, prescribe regulations to implement this subtitle and to develop policies and procedures to enforce the provisions of this subtitle. G Interior enforcement 3701. Criminal street gangs (a) Inadmissibility Section 212(a)(2) ( 8 U.S.C. 1182(a)(2) ) is amended by inserting after subparagraph (I) the following: (J) Aliens in criminal street gangs (i) In general Any alien is inadmissible— (I) who has been convicted of an offense for which an element was active participation in a criminal street gang (as defined in section 521(a) of title 18, United States Code) and the alien— (aa) had knowledge that the gang’s members engaged in or have engaged in a continuing series of offenses described in section 521(c) of title 18, United States Code; and (bb) acted with the intention to promote or further the felonious activities of the criminal street gang or maintain or increase his or her position in the gang; or (II) subject to clause (ii), who is 18 years of age or older, who is physically present outside the United States, whom the Secretary determines by clear and convincing evidence, based upon law enforcement information deemed credible by the Secretary, has, since the age of 18, knowingly and willingly participated in a criminal street gang with knowledge that such participation promoted or furthered the illegal activity of the gang. (ii) Waiver The Secretary may waive clause (i)(II) if the alien has renounced all association with the criminal street gang, is otherwise admissible, and is not a threat to the security of the United States. . (b) Grounds for deportation Section 237(a)(2) ( 8 U.S.C. 1227(a)(2) ) is amended by adding at the end the following: (G) Aliens associated with criminal street gangs Any alien is removable who has been convicted of an offense for which an element was active participation in a criminal street gang (as defined in section 521(a) of title 18, United States Code), and the alien— (i) had knowledge that the gang's members engaged in or have engaged in a continuing series of offenses described in section 521(c) of title 18, United States Code; and (ii) acted with the intention to promote or further the felonious activities the criminal street gang or increase his or her position in such gang. . (c) Ground of ineligibility for registered provisional immigrant status (1) In general An alien who is 18 years of age or older is ineligible for registered provisional immigrant status if the Secretary determines that the alien— (A) has been convicted of an offense for which an element was active participation in a criminal street gang (as defined in section 521(a) of title 18, United States Code, and the alien— (i) had knowledge that the gang's members engaged in or have engaged in a continuing series of offenses described in section 521(c) of title 18, United States Code; and (ii) acted with the intention to promote or further the felonious activities of the criminal street gang or maintain or increase his or her position in such gang; or (B) subject to paragraph (2), any alien who is 18 years of age or older whom the Secretary determines by clear and convincing evidence, based upon law enforcement information deemed credible by the Secretary, has, since the age of 18, knowingly and willingly participated in a such gang with knowledge that such participation promoted or furthered the illegal activity of such gang. (2) Waiver The Secretary may waive the application of paragraph (1)(B) if the alien has renounced all association with the criminal street gang, is otherwise admissible, and is not a threat to the security of the United States. 3702. Banning habitual drunk drivers from the United States (a) Grounds for inadmissibility Section 212(a)(2) ( 8 U.S.C. 1182(a)(2) ), as amended by section 3701(a), is further amended— (1) by redesignating subparagraph (F) as subparagraph (L); and (2) by inserting after subparagraph (E) the following: (F) Habitual drunk drivers An alien convicted of 3 or more offenses for driving under the influence or driving while intoxicated on separate dates is inadmissible. . (b) Grounds for deportation Section 237(a)(2) ( 8 U.S.C. 1227(a)(2) ), as amended by section 3701(b), is further amended by adding at the end the following: (H) Habitual drunk drivers An alien convicted of 3 or more offenses for driving under the influence or driving while intoxicated, at least 1 of which occurred after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act , is deportable. . (c) In general (1) Aggravated felony Section 101(a)(43)(F) ( 8 U.S.C. 1101(a)(43)(F) ) is amended by striking for which the term of imprisonment and inserting , including a third drunk driving conviction, for which the term of imprisonment is . (2) Effective date and application (A) Effective date The amendment made by paragraph (1) shall take effect on the date of the enactment of this Act. (B) Application (i) In general Except as provided in subparagraph (ii), the amendment made by paragraph (1) shall apply to a conviction for drunk driving that occurred before, on, or after such date of enactment. (ii) Two or more prior convictions An alien who received 2 or more convictions for drunk driving before the date of the enactment of this Act may not be subject to removal for the commission of an aggravated felony pursuant to section 237(a)(2)(A)(iii) of the Immigration and Nationality Act ( 8 U.S.C. 1227(a)(2)(A)(iii) ) on the basis of such convictions until the date on which the alien is convicted of a drunk driving offense after such date of enactment. 3703. Sexual abuse of a minor Section 101(a)(43)(A) ( 8 U.S.C. 1101(a)(43)(A) ) is amended by striking murder, rape, or sexual abuse of a minor; and inserting murder, rape, or sexual abuse of a minor, whether or not the minority of the victim is established by evidence contained in the record of conviction or by credible evidence extrinsic to the record of conviction; . 3704. Illegal entry (a) In general Section 275 ( 8 U.S.C. 1325 ) is amended to read as follows: 275. Illegal entry (a) In general (1) Criminal offenses An alien shall be subject to the penalties set forth in paragraph (2) if the alien— (A) enters or crosses the border into the United States at any time or place other than as designated by the Secretary of Homeland Security; (B) eludes examination or inspection by an immigration officer, or a customs or agriculture inspection at a port of entry; or (C) enters or crosses the border to the United States by means of a knowingly false or misleading representation or the concealment of a material fact. (2) Criminal penalties Any alien who violates any provision under paragraph (1)— (A) shall, for the first violation, be fined under title 18, United States Code, imprisoned not more than 12 months, or both; (B) shall, for a second or subsequent violation, or following an order of voluntary departure, be fined under such title, imprisoned not more than 3 years, or both; (C) if the violation occurred after the alien had been convicted of 3 or more misdemeanors with the convictions occurring on different dates or of a felony for which the alien served a term of imprisonment of 15 days or more, shall be fined under such title, imprisoned not more than 10 years, or both; and (D) if the violation occurred after the alien had been convicted of a felony for which the alien was sentenced to a term of imprisonment of not less than 30 months, shall be fined under such title, imprisoned not more than 15 years, or both. (3) Prior convictions The prior convictions described in subparagraphs (C) and (D) of paragraph (2) are elements of the offenses described in that paragraph and the penalties in such subparagraphs shall apply only in cases in which the conviction or convictions that form the basis for the additional penalty are— (A) alleged in the indictment or information; and (B) proven beyond a reasonable doubt at trial or admitted by the defendant under oath as part of a plea agreement. (b) Improper time or place; civil penalties Any alien older than 18 years of age who is apprehended while knowingly entering, attempting to enter, or crossing or attempting to cross the border to the United States at a time or place other than as designated by immigration officers shall be subject to a civil penalty, in addition to any criminal or other civil penalties that may be imposed under any other provision of law, in an amount equal to— (1) not less than $250 or more than $5,000 for each such entry, crossing, attempted entry, or attempted crossing; or (2) twice the amount specified in paragraph (1) if the alien had previously been subject to a civil penalty under this subsection. (c) Fraudulent marriage An individual who knowingly enters into a marriage for the purpose of evading any provision of the immigration laws shall be imprisoned for not more than 5 years, fined not more than $250,000, or both. (d) Commercial enterprises Any individual who knowingly establishes a commercial enterprise for the purpose of evading any provision of the immigration laws shall be imprisoned for not more than 5 years, fined in accordance with title 18, United States Code, or both. . (b) Clerical amendment The table of contents is amended by striking the item relating to section 275 and inserting the following: Sec. 275. Illegal entry. . (c) Effective date The amendments made by this section shall take effect 1 year after the date of the enactment of this Act. 3705. Reentry of removed alien Section 276 ( 8 U.S.C. 1326 ) is amended to read as follows: 276. Reentry of removed alien (a) Reentry after removal Any alien who has been denied admission, excluded, deported, or removed, or who has departed the United States while an order of exclusion, deportation, or removal is outstanding, and subsequently enters, attempts to enter, crosses the border to, attempts to cross the border to, or is at any time found in the United States, shall be fined under title 18, United States Code, and imprisoned not more than 2 years. (b) Reentry of criminal offenders Notwithstanding the penalty provided in subsection (a), if an alien described in that subsection— (1) was convicted for 3 or more misdemeanors, with the convictions occurring on different dates, before such removal or departure, the alien shall be fined under title 18, United States Code, and imprisoned not more than 10 years, or both; (2) was convicted for a felony before such removal or departure for which the alien was sentenced to a term of imprisonment of not less than 30 months, the alien shall be fined under such title, and imprisoned not more than 15 years, or both; (3) was convicted for a felony before such removal or departure for which the alien was sentenced to a term of imprisonment of not less than 60 months, the alien shall be fined under such title, and imprisoned not more than 20 years, or both; (4) was convicted for 3 felonies, with the convictions occurring on different dates before such removal or departure, the alien shall be fined under such title, and imprisoned not more than 20 years, or both; or (5) was convicted, before such removal or departure, for murder, rape, kidnapping, or a felony offense described in chapter 77 (relating to peonage and slavery) or 113B (relating to terrorism) of such title, the alien shall be fined under such title, and imprisoned not more than 20 years, or both. (c) Reentry after repeated removal Any alien who has been denied admission, excluded, deported, or removed 3 or more times and thereafter enters, attempts to enter, crosses the border to, attempts to cross the border to, or is at any time found in the United States, shall be fined under title 18, United States Code, and imprisoned not more than 10 years, or both. (d) Proof of prior convictions The prior convictions described in subsection (b) are elements of the offenses described in that subsection, and the penalties in such subsection shall apply only in cases in which the conviction or convictions that form the basis for the additional penalty are— (1) alleged in the indictment or information; and (2) proven beyond a reasonable doubt at trial or admitted by the defendant under oath as part of a plea agreement. (e) Affirmative defenses It shall be an affirmative defense to a violation of this section that— (1) prior to the alleged violation, the alien had sought and received the express consent of the Secretary of Homeland Security to reapply for admission into the United States; or (2) at the time of the prior exclusion, deportation, removal, or denial of admission alleged in the violation, the alien had not yet reached 18 years of age and had not been convicted of a crime or adjudicated a delinquent minor by a court of the United States, or a court of a state or territory, for conduct that would constitute a felony if committed by an adult. (f) Limitation on collateral attack on underlying deportation order In a criminal proceeding under this section, an alien may not challenge the validity of the deportation order described in subsection (a) or subsection (c) unless the alien demonstrates that— (1) the alien exhausted any administrative remedies that may have been available to seek relief against the order; (2) the deportation proceedings at which the order was issued improperly deprived the alien of the opportunity for judicial review; and (3) the entry of the order was fundamentally unfair. (g) Reentry of alien removed prior to completion of term of imprisonment Any alien removed pursuant to section 241(a)(4) who enters, attempts to enter, crosses the border to, attempts to cross the border to, or is at any time found in, the United States shall be incarcerated for the remainder of the sentence of imprisonment which was pending at the time of deportation without any reduction for parole or supervised release unless the alien affirmatively demonstrates that the Secretary of Homeland Security has expressly consented to the alien's reentry or the alien is prima facie eligible for protection from removal. Such alien shall be subject to such other penalties relating to the reentry of removed aliens as may be available under this section or any other provision of law. (h) Limitation It is not aiding and abetting a violation of this section for an individual to provide an alien with emergency humanitarian assistance, including emergency medical care and food, or to transport the alien to a location where such assistance can be rendered without compensation or the expectation of compensation. (i) Definitions In this section: (1) Felony The term felony means any criminal offense punishable by a term of imprisonment of more than 1 year under the laws of the United States, any State, or a foreign government. (2) Misdemeanor The term misdemeanor means any criminal offense punishable by a term of imprisonment of not more than 1 year under the applicable laws of the United States, any State, or a foreign government. (3) Removal The term removal includes any denial of admission, exclusion, deportation, or removal, or any agreement by which an alien stipulates or agrees to exclusion, deportation, or removal. (4) State The term State means a State of the United States, the District of Columbia, and any commonwealth, territory, or possession of the United States. . 3706. Penalties relating to vessels and aircraft Section 243(c) ( 8 U.S.C. 1253(c) ) is amended— (1) by striking Attorney General each place such term appears and inserting Secretary of Homeland Security ; (2) by striking Commissioner each place such term appears and inserting Secretary of Homeland Security ; and (3) in paragraph (1)— (A) in subparagraph (A), by striking $2,000 and inserting $5,000 ; (B) in subparagraph (B), by striking $5,000 and inserting $10,000 ; (C) by amending subparagraph (C) to read as follows: (C) Compromise The Secretary of Homeland Security, in the Secretary’s unreviewable discretion and upon the receipt of a written request, may mitigate the monetary penalties required under this subsection for each alien stowaway to an amount equal to not less than $2,000, upon such terms that the Secretary determines to be appropriate. ; and (D) by inserting at the end the following: (D) Exception A person, acting without compensation or the expectation of compensation, is not subject to penalties under this paragraph if the person is— (i) providing, or attempting to provide, an alien with humanitarian assistance, including emergency medical care or food or water; or (ii) transporting the alien to a location where such humanitarian assistance can be rendered without compensation or the expectation of compensation. . 3707. Reform of passport, visa, and immigration fraud offenses (a) Trafficking in passports Section 1541 of title 18, United States Code, is amended to read as follows: 1541. Trafficking in passports (a) Multiple passports Subject to subsection (b), any person who, during any period of 3 years or less, knowingly— (1) and without lawful authority produces, issues, or transfers 3 or more passports; (2) forges, counterfeits, alters, or falsely makes 3 or more passports; (3) secures, possesses, uses, receives, buys, sells, or distributes 3 or more passports, knowing the passports to be forged, counterfeited, altered, falsely made, stolen, procured by fraud, or produced or issued without lawful authority; or (4) completes, mails, prepares, presents, signs, or submits 3 or more applications for a United States passport, knowing the applications to contain any materially false statement or representation, shall be fined under this title, imprisoned not more than 20 years, or both. (b) Use in a terrorism offense Any person who commits an offense described in subsection (a) to facilitate an act of international terrorism (as defined in section 2331) shall be fined under this title, imprisoned not more than 25 years, or both. (c) Passport materials Any person who knowingly and without lawful authority produces, buys, sells, possesses, or uses any official material (or counterfeit of any official material) used to make 10 or more passports, including any distinctive paper, seal, hologram, image, text, symbol, stamp, engraving, or plate, shall be fined under this title, imprisoned not more than 20 years, or both. . (b) False statement in an application for a passports Section 1542 of title 18, United States Code, is amended to read as follows: 1542. False statement in an application for a passport (a) In general Any person who knowingly makes any material false statement or representation in an application for a United States passport, or mails, prepares, presents, or signs an application for a United States passport knowing the application to contain any material false statement or representation, shall be fined under this title, imprisoned not more than 25 years (if the offense was committed to facilitate an act of international terrorism (as defined in section 2331 of this title)), 20 years (if the offense was committed to facilitate a drug trafficking crime (as defined in section 929(a) of this title)), 15 years (in the case of any other offense), or both. (b) Venue (1) In general An offense under subsection (a) may be prosecuted in any district— (A) in which the false statement or representation was made or the application for a United States passport was prepared or signed; or (B) in which or to which the application was mailed or presented. (2) Offenses outside the United States An offense under subsection (a) involving an application prepared and adjudicated outside the United States may be prosecuted in the district in which the resultant passport was or would have been produced. (c) Savings clause Nothing in this section may be construed to limit the venue otherwise available under sections 3237 and 3238 of this title. . (c) Misuse of a passport Section 1544 of title 18, United States Code, is amended to read as follows: 1544. Misuse of a passport Any person who knowingly— (1) misuses or attempts to misuse for their own purposes any passport issued or designed for the use of another; (2) uses or attempts to use any passport in violation of the laws, regulations, or rules governing the issuance and use of the passport; (3) secures, possesses, uses, receives, buys, sells, or distributes or attempts to secure, possess, use, receive, buy, sell, or distribute any passport knowing the passport to be forged, counterfeited, altered, falsely made, procured by fraud, or produced or issued without lawful authority; or (4) substantially violates the terms and conditions of any safe conduct duly obtained and issued under the authority of the United States, shall be fined under this title, imprisoned not more than 25 years (if the offense was committed to facilitate an act of international terrorism (as defined in section 2331 of this title)), 20 years (if the offense was committed to facilitate a drug trafficking crime (as defined in section 929(a) of this title)), 15 years (in the case of any other offense), or both. . (d) Schemes To provide fraudulent immigration services Section 1545 of title 18, United States Code, is amended to read as follows: 1545. Schemes to provide fraudulent immigration services (a) In general Any person who knowingly executes a scheme or artifice, in connection with any matter that is authorized by or arises under any Federal immigration law or any matter the offender claims or represents is authorized by or arises under any Federal immigration law, to— (1) defraud any person; or (2) obtain or receive money or anything else of value from any person by means of false or fraudulent pretenses, representations, or promises, shall be fined under this title, imprisoned not more than 10 years, or both. (b) Misrepresentation Any person who knowingly and falsely represents that such person is an attorney or an accredited representative (as that term is defined in section 1292.1 of title 8, Code of Federal Regulations (or any successor regulation)) in any matter arising under any Federal immigration law shall be fined under this title, imprisoned not more than 15 years, or both. . (e) Immigration and visa fraud Section 1546 of title 18, United States Code, is amended— (1) by amending the section heading to read as follows: 1546. Immigration and visa fraud ; (2) by redesignating subsection (b) as subsection (d); and (3) by inserting after subsection (a) the following new subsections: (b) Trafficking Any person who, during any period of 3 years or less, knowingly— (1) and without lawful authority produces, issues, or transfers 3 or more immigration documents; (2) forges, counterfeits, alters, or falsely makes 3 or more immigration documents; (3) secures, possesses, uses, buys, sells, or distributes 3 or more immigration documents, knowing the immigration documents to be forged, counterfeited, altered, stolen, falsely made, procured by fraud, or produced or issued without lawful authority; or (4) completes, mails, prepares, presents, signs, or submits 3 or more immigration documents knowing the documents to contain any materially false statement or representation, shall be fined under this title, imprisoned not more than 20 years, or both. (c) Immigration document materials Any person who knowingly and without lawful authority produces, buys, sells, possesses, or uses any official material (or counterfeit of any official material) used to make 10 or more immigration documents, including any distinctive paper, seal, hologram, image, text, symbol, stamp, engraving, or plate, shall be fined under this title, imprisoned not more than 20 years, or both. . (f) Alternative imprisonment maximum for certain offenses Section 1547 of title 18, United States Code, is amended— (1) in the matter preceding paragraph (1), by striking (other than an offense under section 1545) ; (2) in paragraph (1), by striking 15 and inserting 20 ; and (3) in paragraph (2), by striking 20 and inserting 25 . (g) Authorized law enforcement activities Chapter 75 of title 18, United States Code, is amended by adding after section 1547 the following: 1548. Authorized law enforcement activities Nothing in this chapter may be construed to prohibit— (1) any lawfully authorized investigative, protective, or intelligence activity of a law enforcement agency of the United States, a State, or a political subdivision of a State, or an intelligence agency of the United States; or (2) any activity authorized under title V of the Organized Crime Control Act of 1970 ( Public Law 91–452 ; 84 Stat. 933). . (h) Table of sections amendment The table of sections for chapter 75 of title 18, United States Code, is amended to read as follows: Sec. 1541. Trafficking in passports. 1542. False statement in an application for a passport. 1543. Forgery or false use of a passport. 1544. Misuse of a passport. 1545. Schemes to provide fraudulent immigration services. 1546. Immigration and visa fraud. 1547. Alternative imprisonment maximum for certain offenses. 1548. Authorized law enforcement activities. . 3708. Combating schemes to defraud aliens (a) Regulations, forms, and procedures The Secretary and the Attorney General, for matters within their respective jurisdictions arising under the immigration laws, shall promulgate appropriate regulations, forms, and procedures defining the circumstances in which— (1) persons submitting applications, petitions, motions, or other written materials relating to immigration benefits or relief from removal under the immigration laws will be required to identify who (other than immediate family members) assisted them in preparing or translating the immigration submissions; and (2) any person or persons who received compensation (other than a nominal fee for copying, mailing, or similar services) in connection with the preparation, completion, or submission of such materials will be required to sign the form as a preparer and provide identifying information. (b) Civil injunctions against immigration service provider The Attorney General may commence a civil action in the name of the United States to enjoin any immigration service provider from further engaging in any fraudulent conduct that substantially interferes with the proper administration of the immigration laws or who willfully misrepresents such provider's legal authority to provide representation before the Department of Justice or the Department. (c) Definitions In this section: (1) Immigration laws The term immigration laws has the meaning given that term in section 101(a)(17) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(17) ). (2) Immigration service provider The term immigration service provider means any individual or entity (other than an attorney or individual otherwise authorized to provide representation in immigration proceedings as provided in Federal regulation) who, for a fee or other compensation, provides any assistance or representation to aliens in relation to any filing or proceeding relating to the alien which arises, or which the provider claims to arise, under the immigration laws, executive order, or presidential proclamation. 3709. Inadmissibility and removal for passport and immigration fraud offenses (a) Inadmissibility Section 212(a)(2)(A)(i) ( 8 U.S.C. 1182(a)(2)(A)(i) ) is amended— (1) in subclause (I), by striking , or at the end and inserting a semicolon; (2) in subclause (II), by striking the comma at the end and inserting ; or ; and (3) by inserting after subclause (II) the following: (III) a violation of section 1541, 1545, and subsection (b) of section 1546 of title 18, United States Code, . (b) Removal Section 237(a)(3)(B)(iii) ( 8 U.S.C. 1227(a)(3)(B)(iii) ) is amended to read as follows: (iii) of a violation of section 1541, 1545, and subsection (b) of section 1546 of title 18, United States Code, . (c) Effective date The amendments made by subsections (a) and (b) shall apply to proceedings pending on or after the date of the enactment of this Act, with respect to conduct occurring on or after that date. 3710. Directives related to passport and document fraud (a) Directive to the United States Sentencing Commission (1) In general Pursuant to the authority under section 994 of title 28, United States Code, the United States Sentencing Commission shall promulgate or amend the sentencing guidelines, policy statements, and official commentaries, if appropriate, related to passport fraud offenses, including the offenses described in chapter 75 of title 18, United States Code, as amended by section 3707, to reflect the serious nature of such offenses. (2) Report Not later than 1 year after the date of the enactment of this Act, the United States Sentencing Commission shall submit a report on the implementation of this subsection to— (A) the Committee on the Judiciary of the Senate; and (B) the Committee on the Judiciary of the House of Representatives. (b) Protection for legitimate refugees and asylum seekers (1) In general (A) Requirement for guidelines The Attorney General, in consultation with the Secretary, shall develop binding prosecution guidelines for Federal prosecutors to ensure that each prosecution of an alien seeking entry into the United States by fraud is consistent with the United States treaty obligations under Article 31(1) of the Convention Relating to the Status of Refugees, done at Geneva July 28, 1951 (as made applicable by the Protocol Relating to the Status of Refugees, done at New York January 31, 1967 (19 UST 6223)). (B) No private right of action The guidelines developed pursuant to subparagraph (A), and any internal office procedures related to such guidelines— (i) are intended solely for the guidance of attorneys of the United States; and (ii) are not intended to, do not, and may not be relied upon to, create any right or benefit, substantive or procedural, enforceable at law by any party in any administrative, civil, or criminal matter. (2) Protection of vulnerable persons A person described in paragraph (3) may not be prosecuted under chapter 75 of title 18, United States Code, or under section 275 or 276 of the Immigration and Nationality Act (8 U.S.C. 1325 and 1326), in connection with the person’s entry or attempted entry into the United States until after the date on which the person’s application for such protection, classification, or status has been adjudicated and denied in accordance with the Immigration and Nationality Act ( 8 U.S.C. 1101 et seq. ). (3) Persons seeking protection, classification, or status A person described in this paragraph is a person who— (A) is seeking protection, classification, or status; and (B) (i) has filed an application for asylum under section 208 of the Immigration and Nationality Act ( 8 U.S.C. 1158 ), withholding of removal under section 241(b)(3) of such Act ( 8 U.S.C. 1231(b)(3) ), or relief under the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment, done at New York, December 10, 1994, pursuant to title 8, Code of Federal Regulations; (ii) indicates immediately after apprehension, that he or she intends to apply for such asylum, withholding of removal, or relief and promptly files the appropriate application; (iii) has been referred for a credible fear interview, a reasonable fear interview, or an asylum-only hearing under section 235 of the Immigration and Nationality Act ( 8 U.S.C. 1225 ) or part 208 of title 8, Code of Federal Regulations; or (iv) has filed an application for classification or status under— (I) subparagraph (T) or (U) of paragraph (15), paragraph (27)(J), or paragraph (51) of section 101(a) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a) ); or (II) section 216(c)(4)(C) or 240A(b)(2) of such Act ( 8 U.S.C. 1186a(c)(4)(C) and 1229b(b)(2)). 3711. Inadmissible aliens (a) Deterring aliens ordered removed from remaining in the United States unlawfully Section 212(a)(9)(A) ( 8 U.S.C. 1182(a)(9)(A) ) is amended— (1) in clause (i), by striking seeks admission within 5 years of the date of such removal (or within 20 years and inserting seeks admission not later than 5 years after the date of the alien’s removal (or not later than 20 years after the alien’s removal ; and (2) in clause (ii), by striking seeks admission within 10 years of the date of such alien’s departure or removal (or within 20 years of and inserting seeks admission not later than 10 years after the date of the alien’s departure or removal (or not later than 20 years after . (b) Biometric screening Section 212 ( 8 U.S.C. 1182 ) is amended— (1) in subsection (a)(7), by adding at the end the following: (C) Withholding information Except as provided in subsection (d)(2), any alien who willfully, through his or her own fault, refuses to comply with a lawful request for biometric information is inadmissible. ; and (2) in subsection (d), by inserting after paragraph (1) the following: (2) The Secretary may waive the application of subsection (a)(7)(C) for an individual alien or a class of aliens. . (c) Precluding admissibility of aliens convicted of serious criminal offenses and domestic violence, stalking, child abuse, and violation of protection orders (1) Inadmissibility on criminal and related grounds; waivers Section 212 ( 8 U.S.C. 1182 ), as amended by this Act, is further amended— (A) in subsection (a)(2), as amended by sections 3401 and 3402, is further amended by inserting after subparagraph (J) the following: (K) Crimes of domestic violence, stalking, or violation of protective orders; crimes against children (i) Domestic violence, stalking, and child abuse (I) In general Any alien who has been convicted of a crime of domestic violence, a crime of stalking, or a crime of child abuse, child neglect, or child abandonment, provided the alien served at least 1 year imprisonment for the crime, or provided the alien was convicted of offenses constituting more than 1 such crime, not arising out of a single scheme of criminal misconduct, is inadmissible. (II) Crime of domestic violence defined In this clause, the term crime of domestic violence means any crime of violence (as defined in section 16 of title 18, United States Code) against a person committed by a current or former spouse of the person, by an individual with whom the person shares a child in common, by an individual who is cohabiting with or has cohabited with the person as a spouse, by an individual similarly situated to a spouse of the person under the domestic or family violence laws of the jurisdiction where the offense occurs, or by any other individual against a person who is protected from that individual's acts under the domestic or family violence laws of the United States or any State, Indian tribal government, or unit of local or foreign government. (ii) Violators of protection orders (I) In general Any alien who at any time is enjoined under a protection order issued by a court and whom the court determines has engaged in conduct that constitutes criminal contempt of the portion of a protection order that involves protection against credible threats of violence, repeated harassment, or bodily injury to the person or persons for whom the protection order was issued, is inadmissible. (II) Protection order defined In this clause, the term protection order means any injunction issued for the purpose of preventing violent or threatening acts of domestic violence, including temporary or final orders issued by civil or criminal courts (other than support or child custody orders or provisions) whether obtained by filing an independent action or as an independent order in another proceeding. (iii) Applicability This subparagraph shall not apply to an alien who has been battered or subjected to extreme cruelty and who is not and was not the primary perpetrator of violence in the relationship, upon a determination by the Attorney General or the Secretary of Homeland Security that— (I) the alien was acting in self-defense; (II) the alien was found to have violated a protection order intended to protect the alien; or (III) the alien committed, was arrested for, was convicted of, or pled guilty to committing a crime that did not result in serious bodily injury. ; and (B) in subsection (h)— (i) by striking The Attorney General may, in his discretion, waive the application of subparagraphs (A)(i)(I), (B), (D), and (E) of subsection (a)(2) and inserting The Attorney General or the Secretary of Homeland Security may waive the application of subparagraphs (A)(i)(I), (B), (D), and (E) of subsection (a)(2) ; and (ii) by inserting or the Secretary of Homeland Security after the Attorney General each place that term appears. (2) Effective date The amendments made by this subsection shall apply to any acts that occurred on or after the date of the enactment of this Act. 3712. Organized and abusive human smuggling activities (a) Enhanced penalties (1) In general Title II ( 8 U.S.C. 1151 et seq. ) is amended by adding at the end the following: 295. Organized human smuggling (a) Prohibited activities Whoever, while acting for profit or other financial gain, knowingly directs or participates in an effort or scheme to assist or cause 5 or more persons (other than a parent, spouse, or child of the offender)— (1) to enter, attempt to enter, or prepare to enter the United States— (A) by fraud, falsehood, or other corrupt means; (B) at any place other than a port or place of entry designated by the Secretary; or (C) in a manner not prescribed by the immigration laws and regulations of the United States; or (2) to travel by air, land, or sea toward the United States (whether directly or indirectly)— (A) knowing that the persons seek to enter or attempt to enter the United States without lawful authority; and (B) with the intent to aid or further such entry or attempted entry; or (3) to be transported or moved outside of the United States— (A) knowing that such persons are aliens in unlawful transit from 1 country to another or on the high seas; and (B) under circumstances in which the persons are in fact seeking to enter the United States without official permission or legal authority; shall be punished as provided in subsection (c) or (d). (b) Conspiracy and attempt Any person who attempts or conspires to violate subsection (a) of this section shall be punished in the same manner as a person who completes a violation of such subsection. (c) Base penalty Except as provided in subsection (d), any person who violates subsection (a) or (b) shall be fined under title 18, imprisoned for not more than 20 years, or both. (d) Enhanced penalties Any person who violates subsection (a) or (b) shall— (1) in the case of a violation during and in relation to which a serious bodily injury (as defined in section 1365 of title 18) occurs to any person, be fined under title 18, imprisoned for not more than 30 years, or both; (2) in the case of a violation during and in relation to which the life of any person is placed in jeopardy, be fined under title 18, imprisoned for not more than 30 years, or both; (3) in the case of a violation involving 10 or more persons, be fined under title 18, imprisoned for not more than 30 years, or both; (4) in the case of a violation involving the bribery or corruption of a U.S. or foreign government official, be fined under title 18, imprisoned for not more than 30 years, or both; (5) in the case of a violation involving robbery or extortion (as those terms are defined in paragraph (1) or (2), respectively, of section 1951(b)) be fined under title 18, imprisoned for not more than 30 years, or both; (6) in the case of a violation during and in relation to which any person is subjected to an involuntary sexual act (as defined in section 2246(2) of title 18), be fined under title 18, imprisoned for not more than 30 years, or both; or (7) in the case of a violation resulting in the death of any person, be fined under title 18, imprisoned for any term of years or for life, or both. (e) Lawful authority defined (1) In general In this section, the term lawful authority — (A) means permission, authorization, or license that is expressly provided for in the immigration laws of the United States or accompanying regulations; and (B) does not include any such authority secured by fraud or otherwise obtained in violation of law, nor does it include authority sought, but not approved. (2) Application to travel or entry No alien shall be deemed to have lawful authority to travel to or enter the United States if such travel or entry was, is, or would be in violation of law. (f) Effort or scheme For purposes of this section, effort or scheme to assist or cause 5 or more persons does not require that the 5 or more persons enter, attempt to enter, prepare to enter, or travel at the same time so long as the acts are completed within 1 year. 296. Unlawfully hindering immigration, border, and customs controls (a) Illicit spotting Whoever knowingly transmits to another person the location, movement, or activities of any Federal, State, or tribal law enforcement agency with the intent to further a Federal crime relating to United States immigration, customs, controlled substances, agriculture, monetary instruments, or other border controls shall be fined under title 18, imprisoned not more than 10 years, or both. (b) Destruction of united states border controls Whoever knowingly and without lawful authorization destroys, alters, or damages any fence, barrier, sensor, camera, or other physical or electronic device deployed by the Federal Government to control the border or a port of entry or otherwise seeks to construct, excavate, or make any structure intended to defeat, circumvent or evade any such fence, barrier, sensor camera, or other physical or electronic device deployed by the Federal government to control the border or a port of entry shall be fined under title 18, imprisoned not more than 10 years, or both, and if, at the time of the offense, the person uses or carries a firearm or who, in furtherance of any such crime, possesses a firearm, that person shall be fined under title 18, imprisoned not more than 20 years, or both. (c) Conspiracy and attempt Any person who attempts or conspires to violate subsection (a) or (b) of this section shall be punished in the same manner as a person who completes a violation of such subsection. . (2) Table of contents amendment The table of contents is amended by adding after the item relating to section 294 the following: Sec. 295. Organized human smuggling. Sec. 296. Unlawfully hindering immigration, border, and customs controls. . (b) Prohibiting carrying or use of a firearm during and in relation to an alien smuggling crime Section 924(c) of title 18, United States Code, is amended— (1) in paragraph (1)— (A) in subparagraph (A), by inserting , alien smuggling crime, after crime of violence each place that term appears; and (B) in subparagraph (D)(ii), by inserting , alien smuggling crime, after crime of violence ; and (2) by adding at the end the following: (6) For purposes of this subsection, the term alien smuggling crime means any felony punishable under section 274(a), 277, or 278 of the Immigration and Nationality Act ( 8 U.S.C. 1324(a) , 1327, and 1328). . (c) Statute of limitations Section 3298 of title 18, United States Code, is amended by inserting , 295, 296, or 297 after 274(a) . 3713. Preventing criminals from renouncing citizenship during wartime Section 349(a) ( 8 U.S.C. 1481(a) ) is amended— (1) by striking paragraph (6); and (2) redesignating paragraph (7) as paragraph (6). 3714. Diplomatic security service Paragraph (1) of section 37(a) of the State Department Basic Authorities Act of 1956 ( 22 U.S.C. 2709(a) ) is amended to read as follows: (1) conduct investigations concerning— (A) illegal passport or visa issuance or use; (B) identity theft or document fraud affecting or relating to the programs, functions, and authorities of the Secretary of State; (C) violations of chapter 77 of title 18, United States Code; and (D) Federal offenses committed within the special maritime and territorial jurisdiction of the United States (as defined in section 7(9) of title 18, United States Code); . 3715. Secure alternatives programs (a) In general The Secretary shall establish secure alternatives programs that incorporate case management services in each field office of the Department to ensure appearances at immigration proceedings and public safety. (b) Contract authority The Secretary shall contract with nongovernmental community-based organizations to conduct screening of detainees, provide appearance assistance services, and operate community-based supervision programs. Secure alternatives shall offer a continuum of supervision mechanisms and options, including community support, depending on an assessment of each individual’s circumstances. The Secretary may contract with nongovernmental organizations to implement secure alternatives that maintain custody over the alien. (c) Individualized determinations In determining whether to use secure alternatives, the Secretary shall make an individualized determination, and for each individual placed on secure alternatives, shall review the level of supervision on a monthly basis. Secure alternatives shall not be used when release on bond or recognizance is determined to be a sufficient measure to ensure appearances at immigration proceedings and public safety. (d) Custody The Secretary may use secure alternatives programs to maintain custody over any alien detained under the Immigration and Nationality Act, except for aliens detained under section 236A of such Act ( 8 U.S.C. 1226a ). If an individual is not eligible for release from custody or detention, the Secretary shall consider the alien for placement in secure alternatives that maintain custody over the alien, including the use of electronic ankle devices. 3716. Oversight of detention facilities (a) Definitions In this section: (1) Applicable standards The term applicable standards means the most recent version of detention standards and detention-related policies issued by the Secretary or the Director of U.S. Immigration and Customs Enforcement. (2) Detention facility The term detention facility means a Federal, State, or local government facility, or a privately owned and operated facility, that is used, in whole or in part, to hold individuals under the authority of the Director of U.S. Immigration and Customs Enforcement, including facilities that hold such individuals under a contract or agreement with the Director. (b) Detention requirements The Secretary shall ensure that all persons detained pursuant to the Immigration and Nationality Act ( 8 U.S.C. 1101 et seq. ) are treated humanely and benefit from the protections set forth in this section. (c) Oversight requirements (1) Annual inspection All detention facilities shall be inspected by the Secretary on a regular basis, but not less than annually, for compliance with applicable detention standards issued by the Secretary and other applicable regulations. (2) Routine oversight In addition to annual inspections, the Secretary shall conduct routine oversight of detention facilities, including unannounced inspections. (3) Availability of records All detention facility contracts, memoranda of agreement, and evaluations and reviews shall be considered records for purposes of section 552(f)(2) of title 5, United States Code. (4) Consultation The Secretary shall seek input from nongovernmental organizations regarding their independent opinion of specific facilities. (d) Compliance mechanisms (1) Agreements (A) New agreements Compliance with applicable standards of the Secretary and all applicable regulations, and meaningful financial penalties for failure to comply, shall be a material term in any new contract, memorandum of agreement, or any renegotiation, modification, or renewal of an existing contract or agreement, including fee negotiations, executed with detention facilities. (B) Existing agreements Not later than 180 days after the date of the enactment of this Act, the Secretary shall secure a modification incorporating these terms for any existing contracts or agreements that will not be renegotiated, renewed, or otherwise modified. (C) Cancellation of agreements Unless the Secretary provides a reasonable extension to a specific detention facility that is negotiating in good faith, contracts or agreements with detention facilities that are not modified within 1 year of the date of the enactment of this Act will be cancelled. (D) Provision of information In making modifications under this paragraph, the Secretary shall require that detention facilities provide to the Secretary all contracts, memoranda of agreement, evaluations, and reviews regarding the facility on a regular basis. The Secretary shall make these materials publicly available. (2) Financial penalties (A) Requirement to impose Subject to subparagraph (C), the Secretary shall impose meaningful financial penalties upon facilities that fail to comply with applicable detention standards issued by the Secretary and other applicable regulations. (B) Timing of imposition Financial penalties imposed under subparagraph (A) shall be imposed immediately after a facility fails to achieve an adequate or the equivalent median score in any performance evaluation. (C) Waiver The requirements of subparagraph (A) may be waived if the facility corrects the noted deficiencies and receives an adequate score in not more than 90 days. (D) Multiple offenders In cases of persistent and substantial noncompliance, including scoring less than adequate or the equivalent median score in 2 consecutive inspections, the Secretary shall terminate contracts or agreements with such facilities within 60 days, or in the case of facilities operated by the Secretary, such facilities shall be closed within 90 days. (e) Reporting requirements (1) Objectives Not later than June 30 of each year, the Secretary shall prepare and submit to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives a report on inspection and oversight activities of detention facilities. (2) Contents Each report submitted under paragraph (1) shall include— (A) a description of each detention facility found to be in noncompliance with applicable detention standards issued by the Department and other applicable regulations; (B) a description of the actions taken by the Department to remedy any findings of noncompliance or other identified problems, including financial penalties, contract or agreement termination, or facility closure; and (C) information regarding whether the actions described in subparagraph (B) resulted in compliance with applicable detention standards and regulations. 3717. Procedures for bond hearings and filing of notices to appear (a) Aliens in custody Section 236 ( 8 U.S.C. 1226 ) is amended by adding at the end the following: (f) Procedures for custody hearings For any alien taken into custody under any provision of this Act, with the exception of minors being transferred to or in the custody of the Office of Refugee Resettlement, the following shall apply: (1) The Secretary of Homeland Security shall, without unnecessary delay and not later than 72 hours after the alien is taken into custody, file the Notice to Appear or other relevant charging document with the immigration court having jurisdiction over the location where the alien was apprehended, and serve such notice on the alien. (2) The Secretary shall immediately determine whether the alien shall remain in custody or be released and, without unnecessary delay and not later than 72 hours after the alien was taken into custody, serve upon the alien the custody decision specifying the reasons for continued custody and the amount of bond if any. (3) The Attorney General shall ensure the alien has the opportunity to appear before an immigration judge for a custody determination hearing promptly after service of the Secretary’s custody decision. The immigration judge may, on the Secretary’s motion and upon a showing of good cause, postpone a custody redetermination hearing for no more than 72 hours after service of the custody decision, except that in no case shall the hearing occur more than 6 days (including weekends and holidays) after the alien was taken into custody. (4) The immigration judge shall advise the alien of the right to postpone the custody determination hearing and shall, on the oral or written request of the individual, postpone the custody determination hearing for a period of not more than 14 days. (5) Except for aliens that the immigration judge has determined are deportable under section 236(c) or certified under section 236A, the immigration judge shall review the custody determination de novo and may continue to detain the alien only if the Secretary demonstrates that no conditions, including the use of alternatives to detention that maintain custody over the alien, will reasonably assure the appearance of the alien as required and the safety of any other person and the community. For aliens whom the immigration judge has determined are deportable under section 236(c), the immigration judge may review the custody determination if the Secretary agrees the alien is not a danger to the community, and alternatives to detention exist that ensure the appearance of the alien, as required, and the safety of any other person and the community. (6) In the case of any alien remaining in custody after a custody determination, the Attorney General shall provide de novo custody determination hearings before an immigration judge every 90 days so long as the alien remains in custody. An alien may also obtain a de novo custody redetermination hearing at any time upon a showing of good cause. (7) The Secretary shall inform the alien of his or her rights under this paragraph at the time the alien is first taken into custody. . (b) Limitations on solitary confinement (1) In general Section 236(d) ( 8 U.S.C. 1226(d) ) is amended by adding at the end the following: (3) Nature of detention (A) Definitions In this paragraph: (i) Administrative segregation The term administrative segregation means a nonpunitive form of solitary confinement for administrative reasons. (ii) Disciplinary segregation The term disciplinary segregation means a punitive form of solitary confinement for disciplinary reasons. (iii) Serious mental illness The term serious mental illness means a substantial disorder of thought or mood that significantly impairs judgment, behavior, capacity to recognize reality, or ability to cope with the ordinary demands of life. (iv) Solitary confinement The term solitary confinement means cell confinement of 22 hours or more per day. (B) Limitations on solitary confinement (i) In general The use of solitary confinement of an alien in custody pursuant to this section, section 235, or section 241 shall be limited to situations in which such confinement— (I) is necessary— (aa) to control a threat to detainees, staff, or the security of the facility; (bb) to discipline the alien for a serious disciplinary infraction if alternative sanctions would not adequately regulate the alien’s behavior; or (cc) for good order during the last 24 hours before an alien is released, removed, or transferred from the facility; (II) is limited to the briefest term and under the least restrictive conditions practicable and consistent with the rationale for placement and with the progress achieved by the alien; and (III) complies with the requirements set forth in this subparagraph. (ii) Children Children who are younger than 18 years of age may not be placed in solitary confinement. (iii) Serious mental illness (I) In general An alien with a serious mental illness may not be placed in involuntary solitary confinement due to mental illness unless— (aa) such confinement is necessary for the alien's own protection; or (bb) if the alien requires emergency stabilization or poses a significant threat to staff or others in general population. (II) Maximum period An alien diagnosed with serious mental illness may not be placed in solitary confinement for more than 15 days unless the Secretary of Homeland Security determines that— (aa) any less restrictive alternative is more likely than not to cause greater harm to the alien than the solitary confinement period imposed; or (bb) the likely harm to the alien is not substantial and the period of solitary confinement is the least restrictive alternative necessary to protect the alien, other detainees, or others. (iv) Own protection (I) In general Involuntary solitary confinement for an alien’s own protection may be used only for the least amount of time practicable and if no readily available and less restrictive alternative will maintain the alien’s safety. (II) Maximum period An alien may not be placed in involuntary solitary confinement for the alien's own protection for longer than 15 days unless the Secretary of Homeland Security determines that any less restrictive alternative is more likely than not to cause greater harm to the alien than the solitary confinement period imposed. (III) Prohibited factors The Secretary of Homeland Security may not rely solely on an alien’s age, physical disability, sexual orientation, gender identity, race, or religion. The Secretary shall make an individualized assessment in each case. (v) Medical care An alien placed in solitary confinement— (I) shall be visited by a medical professional at least 3 times each week; (II) shall receive at least weekly mental health monitoring by a licensed mental health clinician; and (III) shall be removed from solitary confinement if— (aa) a mental health clinician determines that such detention is having a significant negative impact on the alien’s mental health; and (bb) an appropriate alternative is available. (vi) Notification; access to counsel If an alien is placed in solitary confinement, the alien— (I) shall be informed verbally, and in writing, of the reason for such confinement and the intended duration of such confinement, if specified at the time of initial placement; and (II) shall be offered access to counsel on the same basis as detainees in the general population. (vii) Longer solitary confinement periods If an alien has been subject to involuntary solitary confinement for more than 14 consecutive days, the Secretary of Homeland Security shall conduct a timely review to determine whether continued placement is justified by an extreme disciplinary infraction or is the least restrictive means of protecting the alien or others. Any alien held in solitary confinement for more than 7 days shall be given a reasonable opportunity to challenge such placement with the detention facility administrator, which will promptly respond to such challenge in writing. (viii) Oversight The Secretary of Homeland Security shall ensure that— (I) he or she is regularly informed about the use of solitary confinement in all facilities at which aliens are detained; and (II) the Department fully complies with the provisions under this paragraph. (C) Disciplinary segregation Disciplinary segregation is authorized only pursuant to the order of a facility disciplinary panel following a hearing in which the detainee is determined to have violated a facility rule. (D) Administrative segregation Administrative segregation is authorized only as necessary to ensure the safety of the detainee or others, the protection of property, or the security or good order of the facility. Detainees in administrative segregation shall be offered programming opportunities and privileges consistent with those available in the general population, except where precluded by safety or security concerns. . (2) Annual report The Secretary shall— (A) collect and compile information regarding the prevalence, reasons for, and duration of solitary confinement in all facilities described in paragraph (3); (B) submit an annual report containing the information described in subparagraph (A) to Congress not later than 30 days after the end of the reporting period; and (C) make the data contained in the report submitted under subparagraph (B) publicly available. (3) Rulemaking The Secretary shall adopt regulations or policies to carry out section 236(d)(3) of the Immigration and Nationality Act, as amended by paragraph (1), at all facilities at which aliens are detained pursuant to section 235, 236, or 241 of such Act. (c) Stipulated removal Section 240(d) ( 8 U.S.C. 1229a ) is amended to read as follows: (d) Stipulated removal The Attorney General shall provide by regulation for the entry by an immigration judge of an order of removal stipulated to by the alien (or the alien's representative) and the Service. An immigration judge may enter a stipulated removal order only upon a finding at an in-person hearing that the stipulation is voluntary, knowing, and intelligent. A stipulated order shall constitute a conclusive determination of the alien's removability from the United States. . 3718. Sanctions for countries that delay or prevent repatriation of their nationals Section 243(d) ( 8 U.S.C. 1253(d) ) is amended to read as follows: (d) Discontinuing granting visas to nationals of countries that deny or delay accepting aliens Notwithstanding section 221(c), if the Secretary of Homeland Security determines, in consultation with the Secretary of State, that the government of a foreign country denies or unreasonably delays accepting aliens who are citizens, subjects, nationals, or residents of that country after the Secretary asks whether the government will accept an alien under this section, or after a determination that the alien is inadmissible under paragraph (6) or (7) of section 212(a), the Secretary of State shall order consular officers in that foreign country to discontinue granting visas, or classes of visas, until the Secretary of Homeland Security notifies the Secretary of State that the country has accepted the aliens. . 3719. Gross violations of human rights (a) Inadmissibility of certain aliens Section 212(a)(3)(E) ( 8 U.S.C. 1182(a)(3)(E) ) is amended by striking clause (iii) and inserting the following: (iii) Commission of acts of torture, extrajudicial killings, war crimes, or widespread or systematic attacks on civilians Any alien who planned, ordered, assisted, aided and abetted, committed, or otherwise participated, including through command responsibility, in the commission of— (I) any act of torture (as defined in section 2340 of title 18, United States Code); (II) any extrajudicial killing (as defined in section 3(a) of the Torture Victim Protection Act of 1991 ( 28 U.S.C. 1350 note)) under color of law of any foreign nation; (III) a war crime (as defined in section 2441 of title 18, United States Code); or (IV) any of the following acts as a part of a widespread or systematic attack directed against a civilian population, with knowledge of the attack: murder, extermination, enslavement, forcible transfer of population, arbitrary detention, rape, sexual slavery, enforced prostitution, forced pregnancy, enforced sterilization, or any other form of sexual violence of comparable gravity; persecution on political racial, national, ethnic, cultural, religious, or gender grounds; enforced disappearance of persons; or other inhumane acts of a similar character intentionally causing great suffering or serious bodily or mental injury, is inadmissible. (iv) Limitation Clause (iii) shall not apply to an alien if the Secretary of Homeland Security or the Attorney General determine that the actions giving rise to the alien’s inadmissibility under such clause were committed under duress. In determining whether the alien was subject to duress, the Secretary may consider, among relevant factors, the age of the alien at the time such actions were committed. . (b) Denying safe haven to foreign human rights violators Section 2(a)(2) of the Torture Victim Protection Act of 1991 ( 28 U.S.C. 1350 note) is amended— (1) by inserting after killing the following: , a war crime (as defined in subsections (c) and (d) of section 2441 of title 18, United States Code), a widespread or systematic attack on civilians (as defined in section 212(a)(3)(E)(iii)(IV) of the Immigration and Nationality Act), or genocide (as defined in section 1091(a) of such title 18) ; and (2) by striking to the individual’s legal representative and inserting to that individual or to that individual’s legal representative . (c) Nonapplicability of confidentiality requirement with respect to visa records The President may make public, without regard to the requirements under section 222(f) of the Immigration and Nationality Act ( 8 U.S.C. 1202(f) ), with respect to confidentiality of records pertaining to the issuance or refusal of visas or permits to enter the United States, the names of aliens deemed inadmissible on the basis of section 212(a)(3)(E)(iii) of such Act, as amended by subsection (a). 3720. Reporting and recordkeeping requirements relating to the detention of aliens (a) In general In order for Congress and the public to assess the full costs of apprehending, detaining, processing, supervising, and removing aliens, and how the money Congress appropriates for detention is allocated by Federal agencies, the Assistant Secretary for Immigration and Customs and Enforcement (referred to in this section as the Assistant Secretary ), the Director of the Executive Office of Immigration Review, and the Commissioner responsible for U.S. Customs and Border Protection (referred to in this section as the Commissioner ) shall— (1) maintain the information required under subsections (b), (c), and (d); and (2) submit reports on that information to Congress and make that information available to the public in accordance with subsection (e). (b) Maintenance of information by U.S. Immigration and Customs Enforcement The Assistant Secretary shall record and maintain, in the database of U.S. Immigration and Customs Enforcement relating to detained aliens, the following information with respect to each alien detained pursuant to the Immigration and Nationality Act ( 8 U.S.C. 1101 et seq. ): (1) The provision of law that provides specific authority for the alien’s detention and the beginning and end dates of the alien’s detention pursuant to that authority. If the alien’s detention is authorized by different provisions of law during different periods of time, the Assistant Secretary shall record and maintain the provision of law that provides authority for the alien’s detention during each such period. (2) The place where the alien was apprehended or where U.S. Immigration and Customs Enforcement assumed custody of the alien. (3) Each location where U.S. Immigration and Customs Enforcement detains the alien until the alien is released from custody or removed from the United States, including any period of redetention. (4) The gender and age of each detained alien in the custody of U.S. Immigration and Customs Enforcement. (5) The number of days the alien is detained, including the number of days spent in any given detention facility and the total amount of time spent in detention. (6) The immigration charges that are the basis for the alien’s removal proceedings. (7) The status of the alien’s removal proceedings and each date on which those proceedings progress from 1 stage of proceeding to another. (8) The length of time the alien was detained following a final administrative order of removal and the reasons for the continued detention. (9) The initial custody determination or review made by U.S. Immigration and Customs Enforcement, including whether the alien received notice of a custody determination or review and when the custody determination or review took place. (10) The risk assessment results for the alien, including if the alien is subject to mandatory custody or detention. (11) The reason for the alien’s release from detention and the conditions of release imposed on the alien, if applicable. (c) Maintenance of information by Executive Office of Immigration Review The Director of the Executive Office of Immigration Review shall record and maintain, in the database of the Executive Office of Immigration Review relating to detained aliens in removal proceedings, the following information with respect to each such alien: (1) The immigration charges that are the basis for the alien’s removal proceedings, including any revision of the immigration charges and the date of each such revision. (2) The gender and age of the alien. (3) The status of the alien’s removal proceedings and each date on which those proceedings progress from one stage of proceeding to another. (4) The statutory basis for any bond hearing conducted and the outcomes of the bond hearing. (5) Whether each court hearing is conducted in person, by audio link, or by video conferencing. (6) The date of each attorney entry of appearance before an immigration judge using Form EOIR–28 and the scope of the appearance to which the form related. (d) Maintenance of information by U.S. Customs and Border Protection The Commissioner shall record and maintain in the database of U.S. Customs and Border Protection relating to detained aliens the following information with respect to each alien detained pursuant to the Immigration and Nationality Act ( 8 U.S.C. 1101 et seq. ): (1) The provision of law that provides specific authority for the alien’s detention and the beginning and end dates of the alien’s detention. (2) The place where the alien was apprehended. (3) The gender and age of the alien. (4) Each location where U.S. Customs and Border Protection detains the alien until the alien is released from custody or removed from the United States, including any period of redetention. (5) The number of days that the alien is detained in the custody of U.S. Customs and Border Protection. (6) The immigration charges that are the basis for the alien’s removal proceedings while the alien is in the custody of U.S. Customs and Border Protection. (7) The initial custody determination by U.S. Customs and Border Protection, including whether the alien received notice of a custody determination or review, when the custody determination or review took place, and whether U.S. Customs and Border Protection offered the option of stipulated removal to a detained alien. (8) The reason for the alien’s release from detention and the conditions of release to detention imposed on the alien, if applicable. (e) Reporting requirements (1) Periodic reports The Assistant Secretary, the Director of the Executive Office of Immigration Review, and the Commissioner shall periodically, but not less frequently than annually, submit to Congress a report containing a summary of the information required to be maintained by this section. Each such report shall include summaries of national-level data as well as summaries of the information required by this section by State and county. (2) Other reports The Assistant Secretary shall report to Congress not less frequently than annually on— (A) the number of aliens detained for more than 3 months, 6 months, 1 year, and 2 years; and (B) the average period of detention before receipt of a final administrative order of removal and after receipt of such an order. (3) Availability to public The reports required under this subsection and the information for each alien on which the reports are based shall be made available to the public without the need to submit a request under section 552 of title 5, United States Code (commonly referred to as the Freedom of Information Act ). (4) Privacy protections No alien's identity may be disclosed when information described in paragraph (3) is made publicly available. (f) Definitions In this section: (1) Case outcome The term case outcome includes a grant of relief from deportation under section 240A of the Immigration and Nationality Act ( 8 U.S.C. 1229b ), voluntary departure pursuant to section 240B of that Act ( 8 U.S.C. 1229c ), removal pursuant to section 238 of that Act ( 8 U.S.C. 1228 ), judicial termination of proceedings, termination of proceedings by U.S. Immigration and Customs Enforcement, cancellation of the notice to appear, or permission to withdraw application for admission without any removal order being issued. (2) Place where the alien was apprehended The term place where the alien was apprehended refers to the city, county, and State where an alien is apprehended. (3) Reason for the alien’s release from detention The term reason for the alien’s release from detention refers to release on bond, on an alien's own recognizance, on humanitarian grounds, after grant of relief, or due to termination of proceedings or removal. (4) Removal proceedings The term removal proceedings refers to a removal case of any kind, including expedited removal, administrative removal, stipulated removal, reinstatement, and voluntary removal and removals in which an applicant is permitted to withdraw his or her application for admission. (5) Stage The term stage , with respect to a proceeding, refers to whether the alien is in proceedings before an immigration judge, the Board of Immigration Appeals, a United States court of appeals, or on remand from a United States court of appeals. 3721. Powers of immigration officers and employees at sensitive locations Section 287 ( 8 U.S.C. 1357 ) is amended by adding at the end the following: (i) (1) In order to ensure individuals’ access to sensitive locations, this subsection applies to enforcement actions by officers and agents of U.S. Immigration and Customs Enforcement and officers and agents of U.S. Customs and Border Protection. (2) (A) An enforcement action may not take place at, or be focused on, a sensitive location, except as follows: (i) Under exigent circumstances. (ii) If prior approval is obtained. (B) If an enforcement action is taking place pursuant to subparagraph (A) and the condition permitting the enforcement action ceases, the enforcement action shall cease. (3) (A) When proceeding with an enforcement action at or near a sensitive location, officers and agents referred to in paragraph (1) shall conduct themselves as discreetly as possible, consistent with officer and public safety, and make every effort to limit the time at or focused on the sensitive location. (B) If, in the course of an enforcement action that is not initiated at or focused on a sensitive location, officers or agents are led to or near a sensitive location, and no exigent circumstance exists, such officers or agents shall conduct themselves in a discreet manner, maintain surveillance, and immediately consult their supervisor before taking any further enforcement action, in order to determine whether such action should be discontinued. (C) This section not apply to the transportation of an individual apprehended at or near a land or sea border to a hospital or healthcare provider for the purpose of providing such individual medical care. (4) (A) Each official specified in subparagraph (B) shall ensure that the employees under the supervision of such official receive annual training on compliance with the requirements of this subsection in enforcement actions at or focused on sensitive locations and enforcement actions that lead officers or agents to or near a sensitive location. (B) The officials specified in ths subparagraph are the following: (i) The Chief Counsel of U.S. Immigration and Customs Enforcement. (ii) The Field Office Directors of U.S. Immigration and Customs Enforcement. (iii) Each Special Agent in Charge of U.S. Immigration and Customs Enforcement. (iv) Each Chief Patrol Agent of U.S. Customs and Border Protection. (v) The Director of Field Operations of U.S. Customs and Border Protection. (vi) The Director of Air and Marine Operations of U.S. Customs and Border Protection. (vii) The Internal Affairs Special Agent in Charge of U.S. Customs and Border Protection. (5) (A) The Director of U.S. Immigration and Customs Enforcement and the Commissioner of U.S. Customs and Border Protection shall each submit to the appropriate committees of Congress each year a report on the enforcement actions undertaken by U.S. Immigration and Customs Enforcement and U.S. Customs and Border Protection, respectively, during the preceding year that were covered by this subsection. (B) Each report on an agency for a year under this paragraph shall set forth the following: (i) The number of enforcement actions at or focused on a sensitive location. (ii) The number of enforcement actions where officers or agents were subsequently led to or near a sensitive location. (iii) The date, site, and State, city, and county in which each enforcement action covered by clause (i) or (ii) occurred. (iv) The component of the agency responsible for each such enforcement action. (v) A description of the intended target of each such enforcement action. (vi) The number of individuals, if any, arrested or taken into custody through each such enforcement action. (vii) The number of collateral arrests, if any, from each such enforcement action and the reasons for each such arrest. (viii) A certification of whether the location administrator was contacted prior to, during, or after each such enforcement action. (C) Each report under this paragraph shall be made available to the public without the need to submit a request under section 552 of title 5, United States Code (commonly referred to as the Freedom of Information Act ). (6) In this subsection: (A) The term appropriate committees of Congress means— (i) the Committee on Homeland Security and Governmental Affairs of the Senate; (ii) the Committee on the Judiciary of the Senate ; (iii) the Committee on Homeland Security of the House of Representatives ; and (iv) the Committee on the Judiciary of the House of Representatives . (B) The term enforcement action means an arrest, interview, search, or surveillance for the purposes of immigration enforcement, and includes an enforcement action at, or focused on, a sensitive location that is part of a joint case led by another law enforcement agency. (C) The term exigent circumstances means a situation involving the following: (i) The imminent risk of death, violence, or physical harm to any person, including a situation implicating terrorism or the national security of the United States in some other manner. (ii) The immediate arrest or pursuit of a dangerous felon, terrorist suspect, or other individual presenting an imminent danger or public safety risk. (iii) The imminent risk of destruction of evidence that is material to an ongoing criminal case. (D) The term prior approval means the following: (i) In the case of officers and agents of U.S. Immigration and Customs Enforcement, prior written approval for a specific, targeted operation from one of the following officials: (I) The Assistant Director of Operations, Homeland Security Investigations. (II) The Executive Associate Director of Homeland Security Investigations. (III) The Assistant Director for Field Operations, Enforcement, and Removal Operations. (IV) The Executive Associate Director for Field Operations, Enforcement, and Removal Operations. (ii) In the case of officers and agents of U.S. Customs and Border Protection, prior written approval for a specific, targeted operation from one of the following officials: (I) A Chief Patrol Agent. (II) The Director of Field Operations. (III) The Director of Air and Marine Operations (IV) The Internal Affairs Special Agent in Charge. (E) The term sensitive location includes the following: (i) Hospitals and health clinics. (ii) Public and private schools (including pre-schools, primary schools, secondary schools, postsecondary schools (including colleges and universities), and other institutions of learning such as vocational or trade schools). (iii) Organizations assisting children, pregnant women, victims of crime or abuse, or individuals with mental or physical disabilities. (iv) Churches, synagogues, mosques, and other places of worship, such as buildings rented for the purpose of religious services. (v) Such other locations as the Secretary of Homeland Security shall specify for purposes of this subsection. . H Protection of Children Affected by Immigration Enforcement 3801. Short title This subtitle may be cited as the Humane Enforcement and Legal Protections for Separated Children Act or the HELP Separated Children Act . 3802. Definitions In this subtitle: (1) Apprehension The term apprehension means the detention or arrest by officials of the Department or cooperating entities. (2) Child The term child means an individual who has not attained 18 years of age. (3) Child welfare agency The term child welfare agency means a State or local agency responsible for child welfare services under subtitles B and E of title IV of the Social Security Act ( 42 U.S.C. 601 et seq. ). (4) Cooperating entity The term cooperating entity means a State or local entity acting under agreement with the Secretary. (5) Detention facility The term detention facility means a Federal, State, or local government facility, or a privately owned and operated facility, that is used, in whole or in part, to hold individuals under the authority of the Director of U.S. Immigration and Customs Enforcement, including facilities that hold such individuals under a contract or agreement with the Director. (6) Immigration enforcement action The term immigration enforcement action means the apprehension of 1 or more individuals whom the Department has reason to believe are removable from the United States by the Secretary or a cooperating entity. (7) Parent The term parent means a biological or adoptive parent of a child, whose parental rights have not been relinquished or terminated under State law or the law of a foreign country, or a legal guardian under State law or the law of a foreign country. 3803. Apprehension procedures for immigration enforcement-related activities (a) Apprehension procedures In any immigration enforcement action, the Secretary and cooperating entities shall— (1) as soon as possible, but generally not later than 2 hours after an immigration enforcement action, inquire whether an individual is a parent or primary caregiver of a child in the United States and provide any such individuals with— (A) the opportunity to make a minimum of 2 telephone calls to arrange for the care of such child in the individual’s absence; and (B) contact information for— (i) child welfare agencies and family courts in the same jurisdiction as the child; and (ii) consulates, attorneys, and legal service providers capable of providing free legal advice or representation regarding child welfare, child custody determinations, and immigration matters; (2) notify the child welfare agency with jurisdiction over the child if the child’s parent or primary caregiver is unable to make care arrangements for the child or if the child is in imminent risk of serious harm; (3) ensure that personnel of the Department and cooperating entities do not, absent medical necessity or extraordinary circumstances, compel or request children to interpret or translate for interviews of their parents or of other individuals who are encountered as part of an immigration enforcement action; and (4) ensure that any parent or primary caregiver of a child in the United States— (A) absent medical necessity or extraordinary circumstances, is not transferred from his or her area of apprehension until the individual— (i) has made arrangements for the care of such child; or (ii) if such arrangements are unavailable or the individual is unable to make such arrangements, is informed of the care arrangements made for the child and of a means to maintain communication with the child; (B) absent medical necessity or extraordinary circumstances, and to the extent practicable, is placed in a detention facility either— (i) proximate to the location of apprehension; or (ii) proximate to the individual’s habitual place of residence; and (C) receives due consideration of the best interests of such child in any decision or action relating to his or her detention, release, or transfer between detention facilities. (b) Requests to State and local entities If the Secretary requests a State or local entity to hold in custody an individual whom the Department has reason to believe is removable pending transfer of that individual to the custody of the Secretary or to a detention facility, the Secretary shall also request that the State or local entity provide the individual the protections specified in paragraphs (1) and (2) of subsection (a), if that individual is found to be the parent or primary caregiver of a child in the United States. (c) Protections against trafficking preserved The provisions of this section shall not be construed to impede, delay, or in any way limit the obligations of the Secretary, the Attorney General, or the Secretary of Health and Human Services under section 235 of the William Wilberforce Trafficking Victims Protection Reauthorization Act of 2008 ( 8 U.S.C. 1232 ) or section 462 of the Homeland Security Act of 2002 ( 6 U.S.C. 279 ). 3804. Access to children, State and local courts, child welfare agencies, and consular officials At all detention facilities, the Secretary shall— (1) prominently post in a manner accessible to detainees and visitors and include in detainee handbooks information on the protections of this subtitle as well as information on potential eligibility for parole or release; (2) absent extraordinary circumstances, ensure that individuals who are detained by the Department and are parents of children in the United States are— (A) permitted regular phone calls and contact visits with their children; (B) provided with contact information for child welfare agencies and family courts in the relevant jurisdictions; (C) able to participate fully and, to the extent possible, in person in all family court proceedings and any other proceedings that may impact their right to custody of their children; (D) granted free and confidential telephone calls to relevant child welfare agencies and family courts as often as is necessary to ensure that the best interest of their children, including a preference for family unity whenever appropriate, can be considered in child welfare agency or family court proceedings; (E) able to fully comply with all family court or child welfare agency orders impacting custody of their children; (F) provided access to United States passport applications or other relevant travel document applications for the purpose of obtaining travel documents for their children; (G) afforded timely access to a notary public for the purpose of applying for a passport for their children or executing guardianship or other agreements to ensure the safety of their children; and (H) granted adequate time before removal to obtain passports, apostilled birth certificates, travel documents, and other necessary records on behalf of their children if such children will accompany them on their return to their country of origin or join them in their country of origin; and (3) where doing so would not impact public safety or national security, facilitate the ability of detained alien parents and primary caregivers to share information regarding travel arrangements with their consulate, children, child welfare agencies, or other caregivers in advance of the detained alien individual’s departure from the United States. 3805. Mandatory training The Secretary, in consultation with the Secretary of Health and Human Services, the Secretary of State, the Attorney General, and independent child welfare and family law experts, shall develop and provide training on the protections required under sections 3803 and 3804 to all personnel of the Department, cooperating entities, and detention facilities operated by or under agreement with the Department who regularly engage in immigration enforcement actions and in the course of such actions come into contact with individuals who are parents or primary caregivers of children in the United States. 3806. Rulemaking Not later than 180 days after the date of the enactment of this Act, the Secretary shall promulgate regulations to implement sections 3803 and 3804 of this Act. 3807. Severability If any provision of this subtitle or amendment made by this subtitle, or the application of a provision or amendment to any person or circumstance, is held to be unconstitutional, the remainder of this subtitle and amendments made by this subtitle, and the application of the provisions and amendment to any person or circumstance, shall not be affected by the holding. IV Reforms to nonimmigrant visa programs A Employment-Based nonimmigrant visas 4101. Market-based H–1B visa limits (a) In general Section 214(g) ( 8 U.S.C. 1184(g) ) is amended— (1) in paragraph (1)— (A) in the matter preceding subparagraph (A), by striking (beginning with fiscal year 1992) ; and (B) by amending subparagraph (A) to read as follows: (A) under section 101(a)(15)(H)(i)(b) may not exceed the sum of— (i) the base allocation calculated under paragraph (9)(A); and (ii) the allocation adjustment calculated under paragraph (9)(B); and ; (2) by redesignating paragraph (10) as subparagraph (D) of paragraph (9); (3) by redesignating paragraph (9) as paragraph (10); and (4) by inserting after paragraph (8) the following: (9) (A) Except as provided in subparagraph (C), the base allocation of nonimmigrant visas under section 101(a)(15)(H)(i)(b) for each fiscal year shall be equal to— (i) the sum of— (I) the base allocation for the most recently completed fiscal year; and (II) the allocation adjustment under subparagraph (B) for the most recently completed fiscal year; (ii) if the number calculated under clause (i) is less than 115,000, 115,000; or (iii) if the number calculated under clause (i) is more than 180,000, 180,000. (B) (i) If the number of cap-subject nonimmigrant visa petitions accepted for filing under section 101(a)(15)(H)(i)(b) during the first 45 days petitions may be filed for a fiscal year is equal to the base allocation for such fiscal year, an additional 20,000 such visas shall be made available beginning on the 46th day on which petitions may be filed for such fiscal year. (ii) If the base allocation of cap-subject nonimmigrant visa petitions accepted for filing under section 101(a)(15)(H)(i)(b) for a fiscal year is reached during the 15-day period ending on the 60th day on which petitions may be filed for such fiscal year, an additional 15,000 such visas shall be made available beginning on the 61st day on which petitions may be filed for such fiscal year. (iii) If the base allocation of cap-subject nonimmigrant visa petitions accepted for filing under section 101(a)(15)(H)(i)(b) for a fiscal year is reached during the 30-day period ending on the 90th day on which petitions may be filed for such fiscal year, an additional 10,000 such visas shall be made available beginning on the 91st day on which petitions may be filed for such fiscal year. (iv) If the base allocation of cap-subject nonimmigrant visa petitions accepted for filing under section 101(a)(15)(H)(i)(b) for a fiscal year is reached during the 185-day period ending on the 275th day on which petitions may be filed for such fiscal year, an additional 5,000 such visas shall be made available beginning on the date on which such allocation is reached. (v) If the number of cap-subject nonimmigrant visa petitions accepted for filing under section 101(a)(15)(H)(i)(b) for a fiscal year is at least 5,000 fewer than the base allocation, but is not more than 9,999 fewer than the base allocation, the allocation adjustment for the following fiscal year shall be −5,000. (vi) If the number of cap-subject nonimmigrant visa petitions accepted for filing under section 101(a)(15)(H)(i)(b) for a fiscal year is at least 10,000 fewer than the base allocation, but not more than 14,999 fewer than the base allocation, the allocation adjustment for the following fiscal year shall be −10,000. (vii) If the number of cap-subject nonimmigrant visa petitions accepted for filing under section 101(a)(15)(H)(i)(b) for a fiscal year is at least 15,000 fewer than the base allocation, but not more than 19,999 fewer than the base allocation, the allocation adjustment for the following fiscal year shall be −15,000. (viii) If the number of cap-subject nonimmigrant visa petitions accepted for filing under section 101(a)(15)(H)(i)(b) for a fiscal year is at least 20,000 fewer than the base allocation, the allocation adjustment for the following fiscal year shall be −20,000. (C) An allocation adjustment under clause (i), (ii), (iii), or (iv) of subparagraph (B)— (i) may not increase the total number of nonimmigrant visas available for any fiscal year under section 101(a)(15)(H)(i)9b) above 180,000; and (ii) may not take place to make additional nonimmigrant visas available for any fiscal year in which the national occupational unemployment rate for ‘Management, Professional, and Related Occupations’, as published by the Bureau of Labor Statistics each month, averages 4.5 percent or greater over the 12-month period preceding the date of the Secretary’s determination of whether the cap should be increased or decreased. . (b) Increase in allocation for STEM nonimmigrants Section 214(g)(5)(C) ( 8 U.S.C. 1184(g)(5)(C) ) is amended to read as follows: (C) has earned a master's or higher degree, in a field of science, technology, engineering, or math included in the Department of Education’s Classification of Instructional Programs taxonomy within the summary groups of computer and information sciences and support services, engineering, mathematics and statistics, biological and biomedical sciences, and physical sciences, from a United States institution of higher education (as defined in section 101(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1001(a) ) until the number of aliens who are exempted from such numerical limitation during such year exceed 25,000. . (c) Publication (1) Data summarizing petitions The Secretary shall timely upload to a public website data that summarizes the adjudication of nonimmigrant petitions under section 101(a)(15)(H)(i)(b) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15)(H)(i)(b) ) during each fiscal year. (2) Annual numerical limitation As soon as practicable and no later than March 2 of each fiscal year, the Secretary shall publish in the Federal Register the numerical limitation determined under section 214(g)(1)(A) for such fiscal year. (d) Effective date and application The amendments made by subsection (a) shall take effect on the first day of the first fiscal year beginning after the date of the enactment of this Act and apply to applications for nonimmigrant visas under section 101(a)(15)(H)(i)(b) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15)(H)(i)(b) ) for such fiscal year. 4102. Employment authorization for dependents of employment-based nonimmigrants Section 214(c) ( 8 U.S.C. 1184(c) ) is amended— (1) by striking Attorney General each place such term appears and inserting Secretary of Homeland Security ; and (2) in paragraph (2), by amending subparagraph (E) to read as follows: (E) (i) In the case of an alien spouse admitted under section 101(a)(15)(L), who is accompanying or following to join a principal alien admitted under such section, the Secretary of Homeland Security shall— (I) authorize the alien spouse to engage in employment in the United States; and (II) provide the spouse with an employment authorized endorsement or other appropriate work permit. (ii) In the case of an alien spouse admitted under section 101(a)(15)(H)(i)(b), who is accompanying or following to join a principal alien admitted under such section, the Secretary of Homeland Security shall— (I) authorize the alien spouse to engage in employment in the United States; and (II) provide such a spouse with an employment authorized endorsement or other appropriate work permit, if appropriate. (iii) (I) Upon the request of the Secretary of State, the Secretary of Homeland Security may suspend employment authorizations under clause (ii) to nationals of a foreign country that does not permit reciprocal employment to nationals of the United States who are accompanying or following to join the employment-based nonimmigrant husband or wife of such spouse to be employed in such foreign country based on that status. (II) In subclause (I), the term employment-based nonimmigrant means an individual who is admitted to a foreign country to perform employment similar to the employment described in section 101(a)(15)(H)(i)(b). . 4103. Eliminating impediments to worker mobility (a) Deference to prior approvals Section 214(c) ( 8 U.S.C. 1184(c) ), as amended by section 4102, is further amended by adding at the end the following: (15) Subject to paragraph (2)(D) and subsection (g) and section 104(c) and subsections (a) and (b) of section 106 of the American Competitiveness in the Twenty-first Century Act of 2000 ( Public Law 106–313 ; 8 U.S.C. 1184 note), the Secretary of Homeland Security shall give deference to a prior approval of a petition in reviewing a petition to extend the status of a nonimmigrant admitted under subparagraph (H)(i)(b) or (L) of section 101(a)(15) if the petition involves the same alien and petitioner unless the Secretary determines that— (A) there was a material error with regard to the previous petition approval; (B) a substantial change in circumstances has taken place; (C) new material information has been discovered that adversely impacts the eligibility of the employer or the nonimmigrant; or (D) in the Secretary's discretion, such extension should not be approved. . (b) Effect of employment termination Section 214(n) ( 8 U.S.C. 1184(n) ) is amended by adding at the end the following: (3) A nonimmigrant admitted under section 101(a)(15)(H)(i)(b) whose employment relationship terminates before the expiration of the nonimmigrant's period of authorized admission shall be deemed to have retained such legal status throughout the entire 60-day period beginning on the date such employment is terminated. A nonimmigrant who files a petition to extend, change, or adjust their status at any point during such period shall be deemed to have lawful status under section 101(a)(15)(H)(i)(b) while that petition is pending. . (c) Visa revalidation Section 222(c) ( 8 U.S.C. 1202(c) ) is amended— (1) by inserting (1) before Every alien ; and (2) by adding at the end the following: (2) The Secretary of State may, at the Secretary's discretion, renew in the United States the visa of an alien admitted under subparagraph (A), (E), (G), (H), (I), (L), (N), (O), (P), (R), or (W) of section 101(a)(15) if the alien has remained eligible for such status and qualifies for a waiver of interview as provided for in subsection (h)(1)(D). . (d) Interview waivers for low risk visa applicants Section 222(h)(1) ( 8 U.S.C. 1202(h)(1) ) is amended— (1) in subparagraph (B)(iv), by striking or at the end; (2) in subparagraph (C)(ii), by striking and at the end and inserting or ; and (3) by adding at the end the following: (D) by the Secretary of State, in consultation with the Secretary of Homeland Security, for such aliens or classes of aliens— (i) that the Secretary determines generally represent a low security risk; (ii) for which an in-person interview would not add material benefit to the adjudication process; (iii) unless the Secretary of State, after a review of all standard database and biometric checks, the visa application, and other supporting documents, determines that an interview is unlikely to reveal derogatory information; and (iv) except that in every case, the Secretary of State retains the right to require an applicant to appear for an interview; and . 4104. STEM education and training (a) Fee Section 212(a)(5)(A) ( 8 U.S.C. 1182(a)(5)(A) ) is amended by adding at the end the following: (v) Fee An employer shall submit, along with an application for a certification under this subparagraph, a fee of $1,000, which shall be deposited in the STEM Education and Training Account established under section 286(w). . (b) H–1B nonimmigrant petitioner account Section 286(s) ( 8 U.S.C. 1356(s) ) is amended by striking paragraphs (3) and (4) and inserting the following: (3) Low-income stem scholarship program (A) In general Thirty percent of the amounts deposited into the H–1B Nonimmigrant Petitioner Account shall remain available to the Director of the National Science Foundation until expended for scholarships described in section 414(d) of the American Competitiveness and Workforce Improvement Act of 1998 ( 42 U.S.C. 1869c ) for low-income students enrolled in a program of study leading to a degree in science, technology, engineering, or mathematics. (B) Stem education for underrepresented The Director shall work in consultation with, or direct scholarship funds through, national nonprofit organizations that primarily focus on science, technology, engineering, or mathematics education for underrepresented groups, such as women and minorities. (C) Loan forgiveness The Director may expend funds from the Account for purposes of loan forgiveness or repayment of student loans which led to a low-income student obtaining a degree in science, technology, engineering, mathematics, or other high demand fields. (4) National science foundation grant program for k–12 science, technology, engineering, and mathematics education (A) In general Ten percent of the amounts deposited into the H–1B Nonimmigrant Petitioner Account shall remain available to the Director of the National Science Foundation until expended to carry out a direct or matching grant program to support improvement in K–12 education, including through private-public partnerships. Grants awarded pursuant to this paragraph shall include formula based grants that target lower income populations with a focus on reaching women and minorities. (B) Types of programs covered The Director shall award grants to programs that— (i) support the development and implementation of standards-based instructional materials models and related student assessments that enable K–12 students to acquire an understanding of science, technology, engineering, and mathematics, and to develop critical thinking skills; (ii) provide systemic improvement in training K–12 teachers and education for students in science, technology, engineering, and mathematics, including by supporting efforts to promote gender-equality among students receiving such instruction; (iii) support the professional development of K–12 science, technology, engineering, and mathematics teachers in the use of technology in the classroom; (iv) stimulate systemwide K–12 reform of science, technology, engineering, and mathematics in urban, rural, and economically disadvantaged regions of the United States; (v) provide externships and other opportunities for students to increase their appreciation and understanding of science, technology, engineering, and mathematics (including summer institutes sponsored by an institution of higher education for students in grades 7 through 12 that provide instruction in such fields); (vi) involve partnerships of industry, educational institutions, and national or regional community based organizations with demonstrated experience addressing the educational needs of disadvantaged communities; (vii) provide college preparatory support to expose and prepare students for careers in science, technology, engineering, and mathematics; or (viii) provide for carrying out systemic reform activities under section 3(a)(1) of the National Science Foundation Act of 1950 ( 42 U.S.C. 1862(a)(1) ). . (c) Use of fee Section 286 ( 8 U.S.C. 1356 ) is amended by adding at the end the following: (w) STEM Education and Training Account (1) In general There is established in the general fund of the Treasury a separate account, which shall be known as the STEM Education and Training Account . Notwithstanding any other section of this title, there shall be deposited as offsetting receipts into the Account all of the fees collected under section 212(a)(5)(A)(v). (2) Purposes (A) In general The purposes of the STEM Education and Training Account are to enhance the economic competitiveness of the United States by— (i) strengthening STEM education, including in computer science, at all levels; (ii) ensuring that schools have access to well-trained and effective STEM teachers; (iii) supporting efforts to strengthen the elementary and secondary curriculum, including efforts to make courses in computer science more broadly available; and (iv) helping colleges and universities produce more graduates in fields needed by American employers. (B) Defined term In this paragraph, the term STEM education means instruction in a field of science, technology, engineering or math included in the Department of Education's Classification of Instructional Programs taxonomy within the summary groups of computer and information sciences and support services, engineering, mathematics and statistics, biological and biomedical sciences, and physical sciences. (3) Allocations to states and territories (A) In general Subject to subparagraph (B), the Secretary of Education shall proportionately allocate 70 percent of the amounts deposited into the STEM Education and Training Account each fiscal year to the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the United States Virgin Islands, American Samoa, and the Northern Mariana Islands in an amount that bears the same relationship as the proportion the State, district, or territory received under subpart 2 of part A of title I of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6331 et seq. ) for the preceding fiscal year bears to the amount all States and territories received under that subpart for the preceding fiscal year. (B) Minimum allocations No State or territory shall receive less than an amount equal to 0.5 percent of the total amount made available to all States from the STEM Education and Training Account. If a State or territory does not request an allocation from the Account for a fiscal year, the Secretary shall reallocate the State's allocation to the remaining States and territories in accordance with this paragraph. (C) Use of funds Amounts allocated pursuant to this paragraph may be used for the activities described in section 4104(c) of the Border Security, Economic Opportunity, and Immigration Modernization Act . (4) Stem capacity building at minority-serving institutions (A) In general The Secretary of Education shall allocate 20 percent of the amounts deposited into the STEM Education and Training Account to establish or expand programs to award grants to institutions described in subparagraph (C)— (i) to enhance the quality of undergraduate science, technology, engineering, and mathematics education at such institutions; and (ii) to increase the retention and graduation rates of students pursuing degrees in such fields at such institutions. (B) Types of programs covered Grants awarded under this paragraph shall be awarded to— (i) minority-serving institutions of higher education for— (I) activities to improve courses and curriculum in science, technology, engineering, and mathematics; (II) efforts to promote gender equality among students enrolled in such courses; (III) faculty development; (IV) stipends for undergraduate students participating in research; and (V) other activities consistent with subparagraph (A), as determined by the Secretary of Education; and (ii) to other institutions of higher education to partner with the institutions described in clause (i) for— (I) faculty and student development and exchange; (II) research infrastructure development; (III) joint research projects; and (IV) identification and development of minority and low-income candidates for graduate studies in science, technology, engineering, and mathematics degree programs. (C) Institutions included In this paragraph, the term institutions shall include— (i) colleges eligible to receive funds under the Act of August 30, 1890 (7 U.S.C. 321–326a and 328), including Tuskegee University; (ii) 1994 Institutions, as defined in section 532 of the Equity in Educational Land-Grant Status Act of 1994 ( 7 U.S.C. 301 note); (iii) part B institutions (as defined in section 322 of the Higher Education Act of 1965 ( 20 U.S.C. 1061 )); and (iv) Hispanic-serving institutions, as defined in section 502(a)(5) of the Higher Education Act of 1965 ( 20 U.S.C. 1101a(a)(5) ). (D) Granting of bonding authority A recipient of a grant awarded under this paragraph is authorized to utilize such funds for the issuance of bonds to fund research infrastructure development. (E) Loan forgiveness The Director may expend funds from the allocation under this paragraph for purposes of loan forgiveness or repayment of student loans which led to a low-income student obtaining a degree in science, technology, engineering, mathematics, or other high demand fields. (5) Workforce investment The Secretary of Education shall allocate 5 percent of the amounts deposited into the STEM Education and Training Account to the Secretary of Labor until expended for statewide workforce investment activities that may also benefit veterans and their spouses, including youth activities and statewide employment and training and activities for adults and dislocated workers described in section 128(a) of the Workforce Investment Act of 1998 ( 29 U.S.C. 2853(a) ), and the development of licensing and credentialing programs. (6) American dream accounts The Secretary of Education shall allocate 3 percent of the amounts deposited into the STEM Education and Training Account to award grants, on a competitive basis, to eligible entities to enable such eligible entities to establish and administer American Dream Accounts under section 4104(e) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 . (7) Administration expenses The Secretary of Education may expend up to 2 percent of the amounts deposited into the STEM Education and Training Account for administrative expenses, including conducting an annual evaluation of the implementation and impact of the activities funded by the STEM Education and Training Account as required under section 4104(c)(3) of the Border Security, Economic Opportunity, and Immigration Modernization Act . . (d) STEM education grants (1) Application process (A) In general Each Governor and Chief State School Officer desiring an allocation from the STEM Education and Training Account under section 286(w)(3) of the Immigration and Nationality Act, as added by subsection (b), shall jointly submit a plan, including a proposed budget, signed by the Governor and Chief State School Officer, to the Secretary of Education at such time, in such form, and including such information as the Secretary of Education may prescribe pursuant to subparagraph (B). The plan shall describe how the State plans to improve STEM education to meet the needs of students and employers in the State. (B) Rulemaking The Secretary of Education shall issue a rule, through a rulemaking procedure that complies with section 553 of title 5, United States Code, prescribing the information that should be included in the State plans submitted under subparagraph (A). (2) Allowable activities A State, district, or territory that receives funding from the STEM Education and Training Account may use such funding to develop and implement science, technology, engineering, and mathematics (STEM) activities to serve students, including students of underrepresented groups such as minorities, economically disadvantaged, and females by— (A) strengthening the State’s STEM academic achievement standards; (B) implementing strategies for the recruitment, training, placement, and retention of teachers in STEM fields, including computer science; (C) carrying out initiatives designed to assist students in succeeding and graduating from postsecondary STEM programs; (D) improving the availability and access to STEM-related worker training programs, including community college courses and programs; (E) forming partnerships with higher education, economic development, workforce, industry, and local educational agencies; or (F) engaging in other activities, as determined by the State, in consultation with businesses and State agencies, to improve STEM education. (3) National evaluation (A) In general Using amounts allocated under section 286(w)(7) of the Immigration and Nationality Act, as added by subsection (b), the Secretary of Education shall conduct, directly or through a grant or contract, an annual evaluation of the implementation and impact of the activities funded by the STEM Education and Training Account. (B) Annual Report The Secretary shall submit a report describing the results of each evaluation conducted under subparagraph (A) to— (i) the President; (ii) the Committee on the Judiciary of the Senate ; (iii) the Committee on the Judiciary of the House of Representatives ; (iv) the Committee on Health, Education, Labor, and Pensions of the Senate ; and (v) the Committee on Education and the Workforce of the House of Representatives . (C) Dissemination The Secretary shall make the findings of the evaluation widely available to educators, the business community, and the public. (4) Rule of construction Nothing in this subsection may be construed to permit the Secretary of Education or any other Federal official to approve the content or academic achievement standards of a State. (e) American Dream Accounts (1) Definitions In this subsection: (A) American dream account The term American Dream Account means a personal online account for low-income students that monitors higher education readiness and includes a college savings account. (B) Appropriate committees of Congress The term appropriate committees of Congress means— (i) the Committee on Health, Education, Labor, and Pensions of the Senate ; (ii) the Committee on Appropriations of the Senate ; (iii) the Committee on Finance of the Senate ; (iv) the Committee on Education and the Workforce of the House of Representatives ; (v) the Committee on Appropriations of the House of Representatives ; (vi) the Committee on Ways and Means of the House of Representatives ; and (vii) any other committee of the Senate or House of Representatives that the Secretary determines appropriate. (C) College savings account The term college savings account means a savings account that— (i) provides some tax-preferred accumulation; (ii) is widely available (such as Qualified Tuition Programs under section 529 of the Internal Revenue Code of 1986 or Coverdell Education Savings Accounts under section 530 of the Internal Revenue Code of 1986); and (iii) contains funds that may be used only for the costs associated with attending an institution of higher education, including— (I) tuition and fees; (II) room and board; (III) textbooks; (IV) supplies and equipment; and (V) Internet access. (D) Dual enrollment program The term dual enrollment program means an academic program through which a secondary school student is able simultaneously to earn credit toward a secondary school diploma and a postsecondary degree or credential. (E) Eligible Entity The term eligible entity means— (i) a State educational agency; (ii) a local educational agency; (iii) a charter school or charter management organization; (iv) an institution of higher education; (v) a nonprofit organization; (vi) an entity with demonstrated experience in educational savings or in assisting low-income students to prepare for, and attend, an institution of higher education; or (vii) a consortium of 2 or more of the entities described in clause (i) through (vi). (F) ESEA definitions The terms local educational agency , parent , and State educational agency have the meanings given the terms in section 9101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 ) and the term charter school has the meaning given the term in section 5210 of such Act. (G) Institution of higher education The term institution of higher education has the meaning given the term in section 101(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1001(a) ). (H) Low-income student The term low-income student means a student who is eligible to receive a free or reduced price lunch under the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1751 et seq. ). (2) Grant program (A) Program authorized The Secretary of Education is authorized to award grants, on a competitive basis, to eligible entities to enable such eligible entities to establish and administer American Dream Accounts for a group of low-income students. (B) Reservation From the amount made available each fiscal year to carry out this section under section 286(w)(6) of the Immigration and Nationality Act, the Secretary of Education shall reserve not more than 5 percent of such amount to carry out the evaluation activities described in paragraph (5)(A). (C) Duration A grant awarded under this subsection shall be for a period of not more than 3 years. The Secretary of Education may extend such grant for an additional 2-year period if the Secretary of Education determines that the eligible entity has demonstrated significant progress, based on the factors described in paragraph (3)(B)(xi). (3) Applications; priority (A) In general Each eligible entity desiring a grant under this subsection shall submit an application to the Secretary of Education at such time, in such manner, and containing such information as the Secretary of Education may require. (B) Contents The application described in subparagraph (A) shall include— (i) a description of the characteristics of a group of not less than 30 low-income public school students who— (I) are, at the time of the application, attending a grade not higher than grade 9; and (II) will, under the grant, receive an American Dream Account; (ii) a description of how the eligible entity will engage, and provide support (such as tutoring and mentoring for students, and training for teachers and other stakeholders) either online or in person, to— (I) the students in the group described in clause (i); (II) the family members and teachers of such students; and (III) other stakeholders such as school administrators and school counselors; (iii) an identification of partners who will assist the eligible entity in establishing and sustaining American Dream Accounts; (iv) a description of what experience the eligible entity or the eligible entity's partners have in managing college savings accounts, preparing low-income students for postsecondary education, managing online systems, and teaching financial literacy; (v) a description of how the eligible entity will help increase the value of the college savings account portion of each American Dream Account, such as by providing matching funds or incentives for academic achievement; (vi) a description of how the eligible entity will notify each participating student in the group described in subparagraph (A), on a semiannual basis, of the current balance and status of the student’s college savings account portion of the student’s American Dream Account; (vii) a plan that describes how the eligible entity will monitor participating students in the group described in clause (i) to ensure that each student's American Dream Account will be maintained if a student in such group changes schools before graduating from secondary school; (viii) a plan that describes how the American Dream Accounts will be managed for not less than 1 year after a majority of the students in the group described in clause (i) graduate from secondary school; (ix) a description of how the eligible entity will encourage students in the group described in clause (i) who fail to graduate from secondary school to continue their education; (x) a description of how the eligible entity will evaluate the grant program, including by collecting, as applicable, data about the students in the group described in clause (i) during the grant period, and, if sufficient grant funds are available, after the grant period, including (I) attendance rates; (II) progress reports; (III) grades and course selections; (IV) the student graduation rate (as defined in section 1111 (b)(2)(C)(vi) of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6311(b)(2)(C)(vi) )); (V) rates of student completion of the Free Application for Federal Student Aid described in section 483 of the Higher Education Act of 1965 ( 20 U.S.C. 1090 ); (VI) rates of enrollment in an institution of higher education; and (VII) rates of completion at an institution of higher education; (xi) a description of what will happen to the funds in the college savings account portion of the American Dream Accounts that are dedicated to participating students described in clause (i) who have not matriculated at an institution of higher education at the time of the conclusion of the period of American Dream Account management described in clause (viii); (xii) a description of how the eligible entity will ensure that funds in the college savings account portion of the American Dream Accounts will not make families ineligible for public assistance; and (xiii) a description of how the eligible entity will ensure that participating students described in clause (i) will have access to the Internet; (C) Priority In awarding grants under this subsection, the Secretary of Education shall give priority to applications from eligible entities that— (i) are described in paragraph (1)(E)(vii); (ii) serve the largest number of low-income students; (iii) emphasize preparing students to pursue careers in science, technology, engineering, or mathematics; or (iv) in the case of an eligible entity described in clause (i) or (ii) of paragraph (1)(E), provide opportunities for participating students described in clause (i) to participate in a dual enrollment program at no cost to the student. (4) Authorized activities (A) In general An eligible entity that receives a grant under this subsection shall use such grant funds to establish an American Dream Account for each participating student described in paragraph (3)(B)(i), which will be used to— (i) open a college savings account for such student; (ii) monitor the progress of such student online, which— (I) shall include monitoring student data relating to— (aa) grades and course selections; (bb) progress reports; and (cc) attendance and disciplinary records; and (II) may also include monitoring student data relating to a broad range of information, provided by teachers and family members, related to postsecondary education readiness, access, and completion; (iii) provide opportunities for such students, either online or in person, to learn about financial literacy, including by— (I) assisting such students in financial planning for enrollment in an institution of higher education; and (II) assisting such students in identifying and applying for financial aid (such as loans, grants, and scholarships) for an institution of higher education; (iv) provide opportunities for such students, either online or in person, to learn about preparing for enrollment in an institution of higher education, including by providing instruction to students about— (I) choosing the appropriate courses to prepare for postsecondary education; (II) applying to an institution of higher education; (III) building a student portfolio, which may be used when applying to an institution of higher education; (IV) selecting an institution of higher education; (V) choosing a major for the student's postsecondary program of education or a career path, including specific instruction on pursuing science, technology, engineering, and mathematics majors; and (VI) adapting to life at an institution of higher education; and (v) provide opportunities for such students, either online or in person, to identify skills or interests, including career interests. (B) Access to american dream account (i) In general Subject to clause (iii) and (iv), and in accordance with applicable Federal laws and regulations relating to privacy of information and the privacy of children, an eligible entity that receives a grant under this subsection shall allow vested stakeholders described in clause (ii), to have secure access, through the Internet, to an American Dream Account. (ii) Vested stakeholders The vested stakeholders that an eligible entity shall permit to access an American Dream Account are individuals (such as the student's teachers, school counselors, counselors at an institution of higher education, school administrators, or other individuals) that are designated, in accordance with the Family Educational Rights and Privacy Act of 1974 ( 20 U.S.C. 1232g ), by the parent of a participating student in whose name such American Dream Account is held, as having permission to access the account. A student's parent may withdraw such designation from an individual at any time. (iii) Exception for college savings account An eligible entity that receives a grant under this subsection shall not be required to give vested stakeholders described in clause (ii), access to the college savings account portion of a student's American Dream Account. (iv) Adult students Notwithstanding clause (i) through (iii), if a participating student is age 18 or older, an eligible entity that receives a grant under this subsection shall not provide access to such participating student's American Dream Account without the student's consent, in accordance with the Family Educational Rights and Privacy Act of 1974 ( 20 U.S.C. 1232g ). (v) Input of student information Student data collected pursuant to subparagraph (A)(ii)(I) may only be entered into an American Dream Account by a school administrator or such administrator's designee. (C) Prohibition on use of student information An eligible entity that receives a grant under this subsection may not use any student-level information or data for the purpose of soliciting, advertising, or marketing any financial or nonfinancial consumer product or service that is offered by such eligible entity, or on behalf of any other person. (D) Limitation on the use of grant funds An eligible entity shall not use more than 25 percent of the grant funds provided under this subsection to provide the initial deposit into a college savings account portion of a student's American Dream Account. (5) Reports and evaluations (A) In general Not later than 1 year after the Secretary of Education has disbursed grants under this subsection, and annually thereafter, the Secretary of Education shall prepare and submit a report to the appropriate committees of Congress that includes an evaluation of the effectiveness of the grant program established under this subsection. (B) Contents The report described in subparagraph (A) shall— (i) list the grants that have been awarded under paragraph (2)(A); (ii) include the number of students who have an American Dream Account established through a grant awarded under paragraph (2)(A); (iii) provide data (including the interest accrued on college savings accounts that are part of an American Dream Account) in the aggregate, regarding students who have an American Dream Account established through a grant awarded under paragraph (2)(A), as compared to similarly situated students who do not have an American Dream Account; (iv) identify best practices developed by the eligible entities receiving grants under this subsection; (v) identify any issues related to student privacy and stakeholder accessibility to American Dream Accounts; (vi) provide feedback from participating students and the parents of such students about the grant program, including— (I) the impact of the program; (II) aspects of the program that are successful; (III) aspects of the program that are not successful; and (IV) any other data required by the Secretary of Education; and (vii) provide recommendations for expanding the American Dream Accounts program. (6) Eligibility to receive federal student financial aid Notwithstanding any other provision of law, any funds that are in the college savings account portion of a student's American Dream Account shall not affect such student's eligibility to receive Federal student financial aid, including any Federal student financial aid under the Higher Education Act of 1965 ( 20 U.S.C. 1001 ), and shall not be considered in determining the amount of any such Federal student aid. (f) Conforming amendment Section 480(j) of the Higher Education Act of 1965 ( 20 U.S.C. 1087vv(j) ) is amended by adding at the end the following: (5) Notwithstanding paragraph (1), amounts made available under the college savings account portion of an American Dream Account under section 4105(e)(4) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 shall not be treated as estimated financial assistance for purposes of section 471(3). . 4105. H–1B and L visa fees Section 281 ( 8 U.S.C. 1351 ) is amended— (1) by striking The fees and inserting the following: (a) In general The fees ; (2) by striking : Provided, That nonimmigrant visas and inserting the following: “. (b) United Nations visitors Nonimmigrant visas ; (3) by striking Subject to and inserting the following: (c) Fee waivers or reductions Subject to ; and (4) by adding at the end the following: (d) H–1B and L Visa fees In addition to the fees authorized under subsection (a), the Secretary of Homeland Security shall collect, from each employer (except for nonprofit research institutions and nonprofit educational institutions) filing a petition to hire nonimmigrants described in subparagraph (H)(i)(B) or (L) of section 101(a)(15), a fee in an amount equal to— (1) $1,250 for each such petition filed by any employer with not more than 25 full-time equivalent employees in the United States; and (2) $2,500 for each such petition filed by any employer with more than 25 such employees. . B H–1B visa fraud and abuse protections 1 H–1B Employer Application Requirements 4211. Modification of application requirements (a) General application requirements (1) Wage rates Section 212(n)(1)(A) ( 8 U.S.C. 1182(n)(1)(A) ) is amended— (A) in clause (i)— (i) in the matter preceding subclause (I), by inserting if the employer is not an H–1B-dependent employer, before is offering ; (ii) in subclause (I), by striking question, or and inserting question; or ; (iii) in subclause (II), by striking employment, and inserting employment; and (iv) in the undesignated material following subclause (II), by striking application, and and inserting application; ; and (B) by striking clause (ii) and inserting the following: (ii) if the employer is an H–1B-dependent employer, is offering and will offer to H–1B nonimmigrants, during the period of authorized employment for each H–1B nonimmigrant, wages that are not less than the level 2 wages set out in subsection (p); and (iii) will provide working conditions for H–1B nonimmigrants that will not adversely affect the working conditions of other workers similarly employed. . (2) Strengthening the prevailing wage system Section 212(p) ( 8 U.S.C. 1182(p) ) is amended to read as follows: (p) Computation of prevailing wage level (1) In general (A) Surveys For employers of nonimmigrants admitted pursuant to section 101(a)(15)(H)(i)(b), the Secretary of Labor shall make available to employers a governmental survey to determine the prevailing wage for each occupational classification by metropolitan statistical area in the United States. Such survey, or other survey approved by the Secretary of Labor, shall provide 3 levels of wages commensurate with experience, education, and level of supervision. Such wage levels shall be determined as follows: (i) The first level shall be the mean of the lowest two-thirds of wages surveyed, but in no case less than 80 percent of the mean of the wages surveyed. (ii) The second level shall be the mean of wages surveyed. (iii) The third level shall be the mean of the highest two-thirds of wages surveyed. (B) Educational, Nonprofit, research, and governmental entities In computing the prevailing wage level for an occupational classification in an area of employment for purposes of section 203(b)(1)(D) and subsections (a)(5)(A), (n)(1)(A)(i)(II), and (t)(1)(A)(i)(II) of this section in the case of an employee of— (i) an institution of higher education, or a related or affiliated nonprofit entity; or (ii) a nonprofit research organization or a governmental research organization; the prevailing wage level shall only take into account employees at such institutions and organizations in the area of employment. (2) Payment of prevailing wage The prevailing wage level required to be paid pursuant to section 203(b)(1)(D) and subsections (a)(5)(A), (n)(1)(A)(i)(II), and (t)(1)(A)(i)(II) of this section shall be 100 percent of the wage level determined pursuant to those sections. (3) Professional athlete With respect to a professional athlete (as defined in subsection (a)(5)(A)(iii)(II)) when the job opportunity is covered by professional sports league rules or regulations, the wage set forth in those rules or regulations shall be considered as not adversely affecting the wages of United States workers similarly employed and shall be considered the prevailing wage. (4) Wages for H–2B employees (A) In general The wages paid to H–2B nonimmigrants employed by the employer will be the greater of— (i) the actual wage level paid by the employer to other employees with similar experience and qualifications for such position; or (ii) the prevailing wage level for the occupational classification of the position in the geographic area of the employment, based on the best information available as of the time of filing the application. (B) Best information available In subparagraph (A), the term best information available , with respect to determining the prevailing wage for a position, means— (i) a controlling collective bargaining agreement or Federal contract wage, if applicable; (ii) if there is no applicable wage under clause (i), the wage level commensurate with the experience, training, and supervision required for the job based on Bureau of Labor Statistics data; or (iii) if the data referred to in clause (ii) is not available, a legitimate and recent private survey of the wages paid for such positions in the metropolitan statistical area. . (3) Wages for educational, nonprofit, research, and governmental entities Section 212 ( 8 U.S.C. 1182 ), as amended by sections 2312 and 2313, is further amended by adding at the end the following: (x) Determination of prevailing wage In the case of a nonprofit institution of higher education (as defined in section 101(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1001(a) )), a related or affiliated nonprofit entity, a nonprofit research organization, or a governmental research organization, the Secretary of Labor shall determine such wage levels as follows: (1) If the Secretary of Labor uses, or makes available to employers, a governmental survey to determine the prevailing wage, such survey shall provide at least 4 levels of wages commensurate with experience, education, and the level of supervision. (2) If an existing government survey has only 2 levels, 2 intermediate levels may be created by dividing by 3, the difference between the 2 levels offered, adding the quotient thus obtained to the first level and subtracting that quotient from the second level. (3) For institutions of higher education, only teaching positions and research positions may be paid using this special educational wage level. (4) In computing the prevailing wage level for an occupational classification in an area of employment for purposes of subsections (a)(5)(A), (n)(1)(A)(i)(II), and (t)(1)(A)(i)(II) and section 203(b)(1)(D) for an employee of an institution of higher education, or a related or affiliated nonprofit entity or a nonprofit research organization or a governmental research organization, the prevailing wage level shall only take into account employees at such institutions and organizations in the area of employment. . (b) Internet posting requirement Section 212(n)(1)(C) ( 8 U.S.C. 1182(n)(1)(C) ) is amended— (1) by redesignating clause (ii) as subclause (II); (2) by striking (i) has provided and inserting the following: (ii) (I) has provided ; (3) by striking sought, or and inserting sought; or ; and (4) by inserting before clause (ii), as redesignated by paragraph (2), the following: (i) has advertised on the Internet website maintained by the Secretary of Labor for the purpose of such advertising, for at least 30 calendar days, a detailed description of each position for which a nonimmigrant is sought that includes a description of— (I) the wage ranges and other terms and conditions of employment; (II) the minimum education, training, experience, and other requirements for the position; (III) the process for applying for the position; (IV) the title and description of the position, including the location where the work will be performed; and (V) the name, city, and zip code of the employer; and . (c) Application of requirements to all employers (1) Nondisplacement Section 212(n)(1)(E) ( 8 U.S.C. 1182(n)(1)(E) ) is amended to read as follows: (E) (i) (I) In the case of an application filed by an employer that is an H–1B skilled worker dependent employer, and is not an H–1B dependent employer, the employer did not displace and will not displace a United States worker employed by the employer during the period beginning 90 days before the date on which a visa petition supported by the application is filed and ending 90 days after such filing. (II) An employer that is not an H–1B skilled worker dependent employer shall not be subject to subclause (I) unless— (aa) the employer is filing the H–1B petition with the intent or purpose of displacing a specific United States worker from the position to be occupied by the beneficiary of the petition; or (bb) workers are displaced who— (AA) provide services, in whole or in part, at 1 or more worksites owned, operated, or controlled by a Federal, State, or local government entity, other than a public institution of higher education, that directs and controls the work of the H–1B worker; or (BB) are employed as public school kindergarten, elementary, middle school, or secondary school teachers. (ii) (I) In the case of an application filed by an H–1B-dependent employer, the employer did not displace and will not displace a United States worker employed by the employer within the period beginning 180 days before the date on which a visa petition supported by the application is filed and ending 180 days after such filing. (II) An application described in this clause is an application filed on or after the date final regulations are first promulgated to carry out this subparagraph, and before by an H–1B-dependent employer (as defined in paragraph (3)) or by an employer that has been found, on or after the date of the enactment of the American Competitiveness and Workforce Improvement Act of 1998, under paragraph (2)(C) or (5) to have committed a willful failure or misrepresentation during the 5-year period preceding the filing of the application. (iii) In this subparagraph, the term job zone means a zone assigned to an occupation by— (I) the Occupational Information Network Database (O*NET) on the date of the enactment of this Act; or (II) such database or a similar successor database, as designated by the Secretary of Labor, after the date of the enactment of Border Security, Economic Opportunity, and Immigration Modernization Act . . (2) Recruitment Section 212(n)(1)(G) ( 8 U.S.C. 1182(n)(1)(G) ) is amended to read as follows: (G) An employer, prior to filing the application— (i) has taken good faith steps to recruit United States workers for the occupational classification for which the nonimmigrant or nonimmigrants is or are sought, using procedures that meet industry-wide standards and offering compensation that is at least as great as that required to be offered to H–1B nonimmigrants under subparagraph (A); (ii) has advertised the job on an Internet website maintained by the Secretary of Labor for the purpose of such advertising; and (iii) if the employer is an H–1B skilled worker dependent employer, has offered the job to any United States worker who applies and is equally or better qualified for the job for which the nonimmigrant or nonimmigrants is or are sought. . (d) Outplacement Section 212(n)(1)(F) ( 8 U.S.C. 1182(n)(1)(F) ) is amended to read as follows: (F) (i) An H–1B-dependent employer may not place, outsource, lease, or otherwise contract for the services or placement of an H–1B nonimmigrant employee. (ii) An employer that is not an H–1B-dependent employer and not described in paragraph (3)(A)(i) may not place, outsource, lease, or otherwise contract for the services or placement of an H–1B nonimmigrant employee unless the employer pays a fee of $500 per outplaced worker. (iii) A fee collected under clause (ii) shall be deposited in the Comprehensive Immigration Reform Trust Fund established under section 9 of the Border Security, Economic Opportunity, and Immigration Modernization Act . (iv) An H–1B dependent employer shall be exempt from the prohibition on outplacement under clause (i) if the employer is a nonprofit institution of higher education, a nonprofit research organization, or primarily a health care business and is petitioning for a physician, a nurse, or a physical therapist or a substantially equivalent health care occupation. Such employer shall be subject to the fee set forth in clause (ii). . (e) H–1B-Dependent employer defined Section 212(n)(3) ( 8 U.S.C. 1182(n)(3) ) is amended to read as follows: (3) (A) The term H–1B-dependent employer means an employer (other than nonprofit education and research institutions) that— (i) in the case of an employer that has 25 or fewer full-time equivalent employees who are employed in the United States, employs more than 7 H–1B nonimmigrants; (ii) in the case of an employer that has at least 26 but not more than 50 full-time equivalent employees who are employed in the United States, employs more than 12 H–1B nonimmigrants; or (iii) in the case of an employer that has at least 51 full-time equivalent employees who are employed in the United States, employs H–1B nonimmigrants in a number that is equal to at least 15 percent of the number of such full-time equivalent employees. (B) In determining the number of employees who are H–1B nonimmigrants under subparagraph (A)(ii), an intending immigrant employee shall not count toward such number. . (f) H–1B skilled worker dependent defined Section 212(n)(3) ( 8 U.S.C. 1182(n)(3) ) is amended— (1) by redesignating subparagraph (B) as subparagraph (D); and (2) by inserting after subparagraph (A) the following: (B) (i) For purposes of this subsection, an H–1B skilled worker dependent employer means an employer (other than nonprofit education and research institutions) that employs H–1B nonimmigrants in the United States in a number that in total is equal to at least 15 percent of the number of its full-time equivalent employees in the United States employed in occupations contained within Occupational Information Network Database (O*NET) Job Zone 4 and Job Zone 5. (ii) An H–1B nonimmigrant who is an intending immigrant shall be counted as a United States worker in making a determination under clause (i). . (g) Intending immigrants defined Section 101(a) ( 8 U.S.C. 1101(a) ), as amended by section 3504(a), is further amended by adding at the end the following: (54) (A) The term intending immigrant means, with respect to the number of aliens employed by an employer, an alien who intends to work and reside permanently in the United States, as evidenced by— (i) a pending or approved application for a labor certification filed for such alien by a covered employer; or (ii) a pending or approved immigrant status petition filed for such alien by a covered employer. (B) In this paragraph: (i) The term covered employer means an employer that has filed immigrant status petitions for not less than 90 percent of current employees who were the beneficiaries of applications for labor certification that were approved during the 1-year period ending 6 months before the filing of an application or petition for which the number of intending immigrants is relevant. (ii) The term immigrant status petition means a petition filed under paragraph (1), (2), or (3) of section 203(b). (iii) The term labor certification means an employment certification under section 212(a)(5)(A). (C) Notwithstanding any other provision of law— (i) for all calculations under this Act, of the number of aliens admitted pursuant to subparagraph (H)(i)(b) or (L) of paragraph (15), an intending immigrant shall be counted as an alien lawfully admitted for permanent residence and shall not be counted as an employee admitted pursuant to such a subparagraph; and (ii) for all determinations of the number of employees or United States workers employed by an employer, all of the employees in any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414 of the Internal Revenue Code of 1986 shall be counted. . 4212. Requirements for admission of nonimmigrant nurses in health professional shortage areas (a) Extension of period of authorized admission Section 212(m)(3) ( 8 U.S.C. 1182(m)(3) ) is amended to read as follows: (3) The initial period of authorized admission as a nonimmigrant under section 101(a)(15)(H)(i)(c) shall be 3 years, and may be extended once for an additional 3-year period. . (b) Number of visas Section 212(m)(4) ( 8 U.S.C. 1182(m)(4) ) is amended by striking 500. and inserting 300. . (c) Portability Section 214(n) ( 8 U.S.C. 1184(n) ), as amended by section 4103(b), is further amended by adding at the end the following: (4) (A) A nonimmigrant alien described in subparagraph (B) who was previously issued a visa or otherwise provided nonimmigrant status under section 101(a)(15)(H)(i)(c) is authorized to accept new employment performing services as a registered nurse for a facility described in section 212(m)(6) upon the filing by the prospective employer of a new petition on behalf of such nonimmigrant as provided under subsection (c). Employment authorization shall continue for such alien until the new petition is adjudicated. If the new petition is denied, such authorization shall cease. (B) A nonimmigrant alien described in this paragraph is a nonimmigrant alien— (i) who has been lawfully admitted into the United States; (ii) on whose behalf an employer has filed a nonfrivolous petition for new employment before the date of expiration of the period of stay authorized by the Secretary of Homeland Security, except that, if a nonimmigrant described in section 101(a)(15)(H)(i)(c) is terminated or laid off by the nonimmigrant's employer, or otherwise ceases employment with the employer, such petition for new employment shall be filed during the 60-day period beginning on the date of such termination, lay off, or cessation; and (iii) who, subsequent to such lawful admission, has not been employed without authorization in the United States before the filing of such petition. . (d) Applicability (1) In general Beginning on the commencement date described in paragraph (2), the amendments made by section 2 of the Nursing Relief for Disadvantaged Areas Act of 1999 ( Public Law 106–95 ; 113 Stat. 1313), and the amendments made by this section, shall apply to classification petitions filed for nonimmigrant status. This period shall be in addition to the period described in section 2(e) of the Nursing Relief for Disadvantaged Areas Act of 1999 ( 8 U.S.C. 1182 note). (2) Commencement date Not later than 60 days after the date of the enactment of this Act, the Secretary shall determine whether regulations are necessary to implement the amendments made by this section. If the Secretary determines that no such regulations are necessary, the commencement date described in this paragraph shall be the date of such determination. If the Secretary determines that regulations are necessary to implement any amendment made by this section, the commencement date described in this paragraph shall be the date on which such regulations (in final form) take effect. 4213. New application requirements Section 212(n)(1) ( 8 U.S.C. 1182(n)(1) ) is amended by inserting after clause (iii) of subparagraph (G), as amended by section 4211(c)(2), the following: (H) (i) The employer has not advertised any available position specified in the application in an advertisement that states or indicates that— (I) such position is only available to an individual who is or will be an H–1B nonimmigrant or an alien participating in optional practical training pursuant to section 101(a)(15)(F)(i); or (II) an individual who is or will be an H–1B nonimmigrant or participant in such optional practical training shall receive priority or a preference in the hiring process for such position. (ii) The employer has not solely recruited individuals who are or who will be H–1B nonimmigrants or participants in optional practical training pursuant to section 101(a)(15)(F)(i) to fill such position. (I) (i) If the employer (other than an educational or research employer) employs 50 or more employees in the United States, the sum of the number of such employees who are H–1B nonimmigrants plus the number of such employees who are nonimmigrants described in section 101(a)(15)(L) may not exceed— (I) 75 percent of the total number of employees, for fiscal year 2015; (II) 65 percent of the total number of employees, for fiscal year 2016; and (III) 50 percent of the total number of employees, for each fiscal year after fiscal year 2016. (ii) In this subparagraph: (I) The term educational or research employer means an employer that is a nonprofit institution of higher education or a nonprofit research organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under 501(a) of that Code. (II) The term H–1B nonimmigrant means an alien admitted as a nonimmigrant pursuant to section 101(a)(15)(H)(i)(b). (III) The term L nonimmigrant means an alien admitted as a nonimmigrant pursuant to section 101(a)(15)(L) to provide services to his or her employer involving specialized knowledge. (iii) In determining the percentage of employees of an employer that are H–1B nonimmigrants or L nonimmigrants under clause (i), an intending immigrant employee shall not count toward such percentage. (J) The employer shall submit to the Secretary of Homeland Security an annual report that includes the Internal Revenue Service Form W–2 Wage and Tax Statement filed by the employer for each H–1B nonimmigrant employed by the employer during the previous year. . 4214. Application review requirements (a) Technical amendment Section 212(n)(1) ( 8 U.S.C. 1182(n)(1) ), as amended by section 4213, is further amended in the undesignated paragraph at the end, by striking The employer and inserting the following: (K) The employer . (b) Application review requirements Subparagraph (K) of such section 212(n)(1), as designated by subsection (a), is amended— (1) by inserting and through the Department of Labor’s website, without charge. after D.C. ; (2) by striking only for completeness and inserting for completeness and evidence of fraud or misrepresentation of material fact, ; (3) by striking or obviously inaccurate and inserting , presents evidence of fraud or misrepresentation of material fact, or is obviously inaccurate ; (4) by striking within 7 days of the and inserting not later than 14 days after ; and (5) by adding at the end the following: If the Secretary’s review of an application identifies evidence of fraud or misrepresentation of material fact, the Secretary may conduct an investigation and hearing in accordance with paragraph (2). . (c) Filing of petition for nonimmigrant worker Section 212(n)(1) ( 8 U.S.C. 1182(n)(1) ), as amended by section 4213, is further amended by adding at the end the following: (L) An I–129 Petition for Nonimmigrant Worker (or similar successor form)— (i) may be filed by an employer with the Secretary of Homeland Security prior to the date the employer receives an approved certification described in section 101(a)(15)(H)(i)(b) from the Secretary of Labor; and (ii) may not be approved by the Secretary of Homeland Security until the date such certification is approved. . 2 Investigation and Disposition of Complaints Against H–1B Employers 4221. General modification of procedures for investigation and disposition Section 212(n) ( 8 U.S.C. 1182(n) ) is amended— (1) in paragraph (2)(A)— (A) by striking (A) Subject and inserting (A)(i) Subject ; (B) by inserting after the first sentence the following: Such process shall include publicizing a dedicated toll-free number and publicly available Internet website for the submission of such complaints. ; (C) by striking 12 months and inserting 24 months ; (D) by striking the last sentence and inserting the following: The Secretary shall issue regulations requiring that employers that employ H–1B nonimmigrants, other than nonprofit institutions of higher education and nonprofit research organizations, through posting of notices or other appropriate means, inform their employees of such toll-free number and Internet website and of their right to file complaints pursuant to this paragraph. ; and (E) by adding at the end the following: (ii) (I) Upon the receipt of such a complaint, the Secretary may initiate an investigation to determine if such a failure or misrepresentation has occurred. (II) The Secretary may conduct voluntary surveys of the degree to which employers comply with the requirements of this subsection. (III) The Secretary shall— (aa) conduct annual compliance audits of each employer with more than 100 employees who work in the United States if more than 15 percent of such employees are H–1B nonimmigrants; and (bb) make available to the public an executive summary or report describing the general findings of the audits carried out pursuant to this subclause. ; and (2) by adding at the end the following new paragraph: (6) Report required Not later than 1 year after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act, and every 5 years thereafter, the Inspector General of the Department of Labor shall submit a report regarding the Secretary’s enforcement of the requirements of this section to the Committee on the Judiciary and the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on the Judiciary and the Committee on Education and the Workforce of the House of Representatives. . 4222. Investigation, working conditions, and penalties Subparagraph (C) of section 212(n)(2) ( 8 U.S.C. 1182(n)(2) ) is amended— (1) in clause (i)— (A) in the matter preceding subclause (I)— (i) by striking a condition of paragraph (1)(B), (1)(E), or (1)(F) and inserting a condition under subparagraph (A), (B), (C)(i), (E), (F), (G), (H), (I), or (J) of paragraph (1) ; and (ii) by striking (1)(C) and inserting (1)(C)(ii) ; (B) in subclause (I)— (i) by striking $1,000 and inserting $2,000 ; and (ii) by striking and at the end; (C) in subclause (II), by striking the period at the end and inserting a semicolon and and ; and (D) by adding at the end the following: (III) an employer that violates such subparagraph (A) shall be liable to any employee harmed by such violations for lost wages and benefits. ; and (2) in clause (ii)— (A) in subclause (I)— (i) by striking may and inserting shall ; and (ii) by striking $5,000 and inserting $10,000 ; (B) in subclause (II), by striking the period at the end and inserting a semicolon and and ; and (C) by adding at the end the following: (III) an employer that violates such subparagraph (A) shall be liable to any employee harmed by such violations for lost wages and benefits. ; (3) in clause (iii)— (A) in the matter preceding subclause (I), by striking 90 days both places it appears and inserting 180 days ; (B) in subclause (I)— (i) by striking may and inserting shall ; and (ii) by striking and at the end; (C) in subclause (II), by striking the period at the end and inserting a semicolon and and ; and (D) by adding at the end the following: (III) an employer that violates subparagraph (A) of such paragraph shall be liable to any employee harmed by such violations for lost wages and benefits. ; (4) in clause (iv)— (A) by inserting to take, or threaten to take, a personnel action, or before to intimidate ; (B) by inserting (I) after (iv) ; and (C) by adding at the end the following: (II) An employer that violates this clause shall be liable to any employee harmed by such violation for lost wages and benefits. ; and (5) in clause (vi)— (A) by amending subclause (I) to read as follows: (I) It is a violation of this clause for an employer who has filed an application under this subsection— (aa) to require an H–1B nonimmigrant to pay a penalty for ceasing employment with the employer prior to a date agreed to by the nonimmigrant and the employer (the Secretary shall determine whether a required payment is a penalty, and not liquidated damages, pursuant to relevant State law); and (bb) to fail to offer to an H–1B nonimmigrant, during the nonimmigrant's period of authorized employment, on the same basis, and in accordance with the same criteria, as the employer offers to similarly situated United States workers, benefits and eligibility for benefits, including— (AA) the opportunity to participate in health, life, disability, and other insurance plans; (BB) the opportunity to participate in retirement and savings plans; and (CC) cash bonuses and noncash compensation, such as stock options (whether or not based on performance). ; and (B) in subclause (III), by striking $1,000 and inserting $2,000 . 4223. Initiation of investigations Subparagraph (G) of section 212(n)(2) ( 8 U.S.C. 1182(n)(2) ) is amended— (1) in clause (i), by striking if the Secretary and all that follows and inserting with regard to the employer's compliance with the requirements of this subsection. ; (2) in clause (ii), by striking and whose identity and all that follows through failure or failures. and inserting the Secretary of Labor may conduct an investigation into the employer's compliance with the requirements of this subsection. ; (3) in clause (iii), by striking the last sentence; (4) by striking clauses (iv) and (v); (5) by redesignating clauses (vi), (vii), and (viii) as clauses (iv), (v), and (vi), respectively; (6) in clause (iv), as so redesignated, by striking meet a condition described in clause (ii), unless the Secretary of Labor receives the information not later than 12 months and inserting comply with the requirements under this subsection, unless the Secretary of Labor receives the information not later than 24 months ; (7) by amending clause (v), as so redesignated, to read as follows: (v) The Secretary of Labor shall provide notice to an employer of the intent to conduct an investigation. The notice shall be provided in such a manner, and shall contain sufficient detail, to permit the employer to respond to the allegations before an investigation is commenced. The Secretary is not required to comply with this clause if the Secretary determines that such compliance would interfere with an effort by the Secretary to investigate or secure compliance by the employer with the requirements of this subsection. A determination by the Secretary under this clause shall not be subject to judicial review. ; (8) in clause (vi), as so redesignated, by striking An investigation and all that follows through the determination. and inserting If the Secretary of Labor, after an investigation under clause (i) or (ii), determines that a reasonable basis exists to make a finding that the employer has failed to comply with the requirements under this subsection, the Secretary shall provide interested parties with notice of such determination and an opportunity for a hearing in accordance with section 556 of title 5, United States Code, not later than 120 days after the date of such determination. ; and (9) by adding at the end the following: (vii) If the Secretary of Labor, after a hearing, finds a reasonable basis to believe that the employer has violated the requirements under this subsection, the Secretary shall impose a penalty under subparagraph (C). . 4224. Information sharing Section 212(n)(2) ( 8 U.S.C. 1182(n)(2) ), as amended by sections 4222 and 4223, is further amended by adding at the end the following: (J) The Director of U.S. Citizenship and Immigration Services shall provide the Secretary of Labor with any information contained in the materials submitted by employers of H–1B nonimmigrants as part of the adjudication process that indicates that the employer is not complying with visa program requirements for H–1B nonimmigrants. The Secretary of Labor may initiate and conduct an investigation related to H–1B nonimmigrants and a hearing under this paragraph after receiving information of noncompliance under this subparagraph. This subparagraph may not be construed to prevent the Secretary of Labor from taking action related to wage and hour and workplace safety laws. (K) The Secretary of Labor shall facilitate the posting of the descriptions described in paragraph (1)(C)(i) on the Internet website of the State labor or workforce agency for the State in which the position will be primarily located during the same period as the posting under paragraph (1)(C)(i). . 4225. Transparency of high-skilled immigration programs Section 416(c) of the American Competitiveness and Workforce Improvement Act of 1998 ( 8 U.S.C. 1184 note) is amended— (1) by amending paragraph (2) to read as follows: (2) Annual h–1b nonimmigrant characteristics report The Bureau of Immigration and Labor Market Research shall submit an annual report to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives that contains— (A) information on the countries of origin of, occupations of, educational levels attained by, and compensation paid to, aliens who were issued visas or otherwise provided nonimmigrant status under section 101(a)(15)(H)(i)(b) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15)(H)(i)(b) ) during the previous fiscal year; (B) a list of all employers who petition for H–1B visas, the number of such petitions filed and approved for each such employer, the occupational classifications for the approved positions, and the number of H–1B nonimmigrants for whom each such employer files for adjustment to permanent resident status; (C) the number of immigrant status petitions filed during the prior year on behalf of H–1B nonimmigrants; (D) a list of all employers who are H–1B-dependent employers; (E) a list of all employers who are H–1B skilled worker dependent employers; (F) a list of all employers for whom more than 30 percent of their United States workforce is H–1B or L–1 nonimmigrants; (G) a list of all employers for whom more than 50 percent of their United States workforce is H–1B or L–1 nonimmigrants; (H) a gender breakdown by occupation and by country of H–1B nonimmigrants; (I) a list of all employers who have been approved to conduct outplacement of H–1B nonimmigrants; and (J) the number of H–1B nonimmigrants categorized by their highest level of education and whether such education was obtained in the United States or in a foreign country. ; (2) by redesignating paragraph (3) as paragraph (5); (3) by inserting after paragraph (2) the following: (3) Annual l–1 nonimmigrant characteristics report The Bureau of Immigration and Labor Market Research shall submit an annual report to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives that contains— (A) information on the countries of origin of, occupations of, educational levels attained by, and compensation paid to, aliens who were issued visas or otherwise provided –nonimmigrant status under section 101(a)(15)(L) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15)(L) ) during the previous fiscal year; (B) a list of all employers who petition for L–1 visas, the number of such petitions filed and approved for each such employer, the occupational classifications for the approved positions, and the number of L–1 nonimmigrants for whom each such employer files for adjustment to permanent resident status; (C) the number of immigrant status petitions filed during the prior year on behalf of L–1 nonimmigrants; (D) a list of all employers who are L–1 dependent employers; (E) a gender breakdown by occupation and by country of L–1 nonimmigrants; (F) a list of all employers who have been approved to conduct outplacement of L–1 nonimmigrants; and (G) the number of L–1 nonimmigrants categorized by their highest level of education and whether such education was obtained in the United States or in a foreign country. (4) Annual employer survey The Bureau of Immigration and Labor Market Research shall— (A) conduct an annual survey of employers hiring foreign nationals under the L–1 visa program; and (B) shall issue an annual report that— (i) describes the methods employers are using to meet the requirement of taking good faith steps to recruit United States workers for the occupational classification for which the nonimmigrants are sought, using procedures that meet industry-wide standards; (ii) describes the best practices for recruiting among employers; and (iii) contains recommendations on which recruiting steps employers can take to maximize the likelihood of hiring American workers. ; and (4) in paragraph (5), as redesignated, by striking paragraph (2) and inserting paragraphs (2) and (3) . 3 Other protections 4231. Posting available positions through the Department of Labor (a) Department of Labor website Section 212(n) ( 8 U.S.C. 1182(n) ), as amended by section 4221(2), is further amended by adding at the end following: (7) (A) Not later than 90 days after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act , the Secretary of Labor shall establish a searchable Internet website for posting positions as required by paragraph (1)(C). Such website shall be available to the public without charge. (B) The Secretary may work with private companies or nonprofit organizations to develop and operate the Internet website described in subparagraph (A). (C) The Secretary may promulgate rules, after notice and a period for comment, to carry out the requirements of this paragraph. . (b) Requirement for publication The Secretary of Labor shall submit to Congress and publish in the Federal Register and other appropriate media a notice of the date that the Internet website required by paragraph (6) of section 212(n) of the Immigration and Nationality Act, as amended by subsection (a), will be operational. (c) Application The amendments made by subsection (a) shall apply to an application filed on or after the date that is 30 days after the date described in subsection (b). 4232. Requirements for information for H–1B and L nonimmigrants (a) In general Section 214 ( 8 U.S.C. 1184 ), as amended by section 3608, is further amended by adding at the end the following: (t) Requirements for information for H–1B and L nonimmigrants (1) In general Upon issuing a visa to an applicant for nonimmigrant status pursuant to subparagraph (H)(i)(b) or (L) of section 101(a)(15) who is outside the United States, the issuing office shall provide the applicant with— (A) a brochure outlining the obligations of the applicant’s employer and the rights of the applicant with regard to employment under Federal law, including labor and wage protections; and (B) the contact information for appropriate Federal agencies or departments that offer additional information or assistance in clarifying such obligations and rights. (2) Provision of material Upon the approval of an application of an applicant referred to in paragraph (1), the applicant shall be provided with the material described in subparagraphs (A) and (B) of paragraph (1)— (A) by the issuing officer of the Department of Homeland Security, if the applicant is inside the United States; or (B) by the appropriate official of the Department of State, if the applicant is outside the United States. (3) Employer to provide immigration paperwork exchanged with federal agencies (A) In general Not later than 30 days after a labor condition application is filed under section 212(n)(1), an employer shall provide an employee or beneficiary of such application who is or seeking nonimmigrant status under subparagraph (H)(i)(b) or (L) of section 101(a)(15) with a copy the original of all applications and petitions filed by the employer with the Department of Labor or the Department of Homeland Security for such employee or beneficiary. (B) Withholding of financial or proprietary information If a document required to be provided to an employee or beneficiary under subparagraph (A) includes any financial or propriety information of the employer, the employer may redact such information from the copies provided to such employee or beneficiary. . (b) Report on job classification and wage determinations Not later than 1 year after the date of the enactment of this Act, the Comptroller General of the United States shall prepare a report analyzing the accuracy and effectiveness of the Secretary of Labor’s current job classification and wage determination system. The report shall— (1) specifically address whether the systems in place accurately reflect the complexity of current job types as well as geographic wage differences; and (2) make recommendations concerning necessary updates and modifications. 4233. Filing fee for H–1B-dependent employers (a) In general Notwithstanding any other provision of law, there shall be a fee required to be submitted by an employer with an application for admission of an H–1B nonimmigrant as follows: (1) For each fiscal year beginning in fiscal year 2015, $5,000 for applicants that employ 50 or more employees in the United States if more than 30 percent and less than 50 percent of the applicant's employees are H–1B nonimmigrants or L nonimmigrants. (2) For each of the fiscal years 2015 through 2017, $10,000 for applicants that employ 50 or more employees in the United States if more than 50 percent and less than 75 percent of the applicant's employees are H–1B nonimmigrants or L nonimmigrants. Fees collected under this paragraph shall be deposited in the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1). (b) Definitions In this section: (1) Employer The term employer — (A) means any entity or entities treated as a single employer under subsection (b), (c), (m), or (o) of section 414 of the Internal Revenue Code of 1986; and (B) does not include a nonprofit institution of higher education or a nonprofit research organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under 501(a) of that Code that is— (i) an institution of higher education (as defined in section 101(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1001(a) )); or (ii) a research organization. (2) H–1B nonimmigrant The term H–1B nonimmigrant means an alien admitted as a nonimmigrant pursuant to section 101(a)(15)(H)(i)(b) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15)(H)(i)(b) ). (3) Intending immigrant The term intending immigrant has the meaning given that term in paragraph (54)(A) of section 101(a)(54)(A) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a) ). (4) L nonimmigrant The term L nonimmigrant means an alien admitted as a nonimmigrant pursuant to section 101(a)(15)(L) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15)(L) ) to provide services to the alien's employer involving specialized knowledge. (c) Exception for intending immigrants In determining the percentage of employees of an employer that are H–1B nonimmigrants or L nonimmigrants under subsection (a), an intending immigrant employee shall not count toward such percentage. (d) Conforming amendment Section 402 of the Act entitled An Act making emergency supplemental appropriations for border security for the fiscal year ending September 30, 2010, and for other purposes , approved August 13, 2010 ( Public Law 111–230 ; 8 U.S.C. 1101 note) is amended by striking subsection (b). 4234. Providing premium processing of employment-based visa petitions Pursuant to section 286(u) of the Immigration and Nationality Act ( 8 U.S.C. 1356(u) ), the Secretary shall establish and collect— (1) a fee for premium processing of employment-based immigrant petitions; and (2) a fee for premium processing of an administrative appeal of any decision on a permanent employment-based immigrant petition. 4235. Technical correction Section 212 ( 8 U.S.C. 1182 ) is amended by redesignating the second subsection (t), as added by section 1(b)(2)(B) of the Act entitled An Act to amend and extend the Irish Peace Process Cultural and Training Program Act of 1998 ( Public Law 108–449 (118 Stat. 3470)), as subsection (u). 4236. Application (a) In general Except as otherwise specifically provided, the amendments made by this subtitle shall apply to applications filed on or after the date of the enactment of this Act. (b) Special requirements Notwithstanding any other provision of law, the amendments made by section 4211(c) shall not apply to any application or petition filed by an employer on behalf of an existing employee. 4237. Portability for beneficiaries of immigrant petitions (a) Increased portability Section 204(j) ( 8 U.S.C. 1154(j) ) is amended— (1) by amending the subsection heading to read as follows: (j) Increased portability ; (2) by striking A petition and inserting the following: (1) Long delayed applicants for adjustment of status A petition ; and (3) by adding at the end the following: (2) Portability for beneficiaries of immigrant petitions Regardless of whether an employer withdraws a petition approved under paragraph (1), (2), or (3) of section 203(b)— (A) the petition shall remain valid with respect to a new job if— (i) the beneficiary changes jobs or employers after the petition is approved; and (ii) the new job is in the same or a similar occupational classification as the job for which the petition was approved; and (B) the employer’s legal obligations with respect to the petition shall terminate at the time the beneficiary changes jobs or employers. (3) Documentation The Secretary of Labor shall develop a mechanism to provide the beneficiary or prospective employer with sufficient information to determine whether a new position or job is in the same or similar occupation as the job for which the petition was approved. The Secretary of Labor shall provide confirmation of application approval if required for eligibility under this subsection. The Secretary of Homeland Security shall provide confirmation of petition approval if required for eligibility under this subsection. . (b) Adjustment of status for employment-Based immigrants Section 245 of the Immigration and Nationality Act ( 8 U.S.C. 1255 ) is amended by adding at the end the following: (n) Adjustment of status for employment-Based immigrants (1) Petition An alien, and any eligible dependents of such alien, who has filed a petition for immigrant status, may concurrently, or at any time thereafter, file an application with the Secretary of Homeland Security for adjustment of status if such petition is pending or has been approved, regardless of whether an immigrant visa is immediately available at the time the application is filed. (2) Supplemental fee If a visa is not immediately available at the time an application is filed under paragraph (1), the beneficiary of such application shall pay a supplemental fee of $500, which shall be deposited in the STEM Education and Training Account established under section 286(w). This fee shall not be collected from any dependent accompanying or following to join such beneficiary. (3) Availability An application filed pursuant to paragraph (2) may not be approved until the date on which an immigrant visa becomes available. . C L visa fraud and abuse protections 4301. Prohibition on outplacement of L nonimmigrants Section 214(c)(2)(F) ( 8 U.S.C. 1184(c)(2)(F) ) is amended to read as follows: (F) (i) An employer who employs L–1 nonimmigrants in a number that is equal to at least 15 percent of the total number of full-time equivalent employees employed by the employer shall not place, outsource, lease, or otherwise contract for the services or placement of such alien with another employer. In determining the number of employees who are L–1 nonimmigrants, an intending immigrant shall count as a United States worker. (ii) The employer of an alien described in section 101(a)(15)(L) shall not place, outsource, lease, or otherwise contract for the services or placement of such alien with another employer unless— (I) such alien will not be controlled or supervised principally by the employer with whom such alien would be placed; (II) the placement of such alien at the worksite of the other employer is not essentially an arrangement to provide labor for hire for the other employer; and (III) the employer of such alien pays a fee of $500, which shall be deposited in the STEM Education and Training Account established under section 286(w). . 4302. L employer petition requirements for employment at new offices Section 214(c)(2) ( 8 U.S.C. 1184(c)(2) ) is amended by adding at the end the following: (G) (i) If the beneficiary of a petition under this paragraph is coming to the United States to open, or be employed in, a new office, the petition may be approved for up to 12 months only if— (I) the alien has not been the beneficiary of 2 or more petitions under this subparagraph during the immediately preceding 2 years; and (II) the employer operating the new office has— (aa) an adequate business plan; (bb) sufficient physical premises to carry out the proposed business activities; and (cc) the financial ability to commence doing business immediately upon the approval of the petition. (ii) An extension of the approval period under clause (i) may not be granted until the importing employer submits an application to the Secretary of Homeland Security that contains— (I) evidence that the importing employer meets the requirements of this subsection; (II) evidence that the beneficiary of the petition is eligible for nonimmigrant status under section 101(a)(15)(L); (III) a statement summarizing the original petition; (IV) evidence that the importing employer has complied with the business plan submitted under clause (i)(I); (V) evidence of the truthfulness of any representations made in connection with the filing of the original petition; (VI) evidence that the importing employer has been doing business at the new office through regular, systematic, and continuous provision of goods and services; (VII) a statement of the duties the beneficiary has performed at the new office during the approval period under clause (i) and the duties the beneficiary will perform at the new office during the extension period granted under this clause; (VIII) a statement describing the staffing at the new office, including the number of employees and the types of positions held by such employees; (IX) evidence of wages paid to employees; (X) evidence of the financial status of the new office; and (XI) any other evidence or data prescribed by the Secretary. (iii) A new office employing the beneficiary of an L–1 petition approved under this paragraph shall do business only through regular, systematic, and continuous provision of goods and services. (iv) Notwithstanding clause (ii), and subject to the maximum period of authorized admission set forth in subparagraph (D), the Secretary of Homeland Security, in the Secretary’s discretion, may approve a subsequently filed petition on behalf of the beneficiary to continue employment at the office described in this subparagraph for a period beyond the initially granted 12-month period if the importing employer has been doing business at the new office through regular, systematic, and continuous provision of goods and services for the 6 months immediately preceding the date of extension of petition filing and demonstrates that the failure to satisfy any of the requirements described in those subclauses was directly caused by extraordinary circumstances, as determined by the Secretary in the Secretary’s discretion. . 4303. Cooperation with Secretary of State Section 214(c)(2) ( 8 U.S.C. 1184(c)(2) ), as amended by section 4302, is further amended by adding at the end the following: (H) For purposes of approving petitions under this paragraph, the Secretary of Homeland Security shall work cooperatively with the Secretary of State to verify the existence or continued existence of a company or office in the United States or in a foreign country. . 4304. Limitation on employment of L nonimmigrants Section 214(c)(2) ( 8 U.S.C. 1184(c)(2) ), as amended by sections 4302 and 4303, is further amended by adding at the end the following: (I) (i) If the employer employs 50 or more employees in the United States, the sum of the number of such employees who are H–1B nonimmigrants plus the number of such employees who are L nonimmigrants may not exceed— (I) 75 percent of the total number of employees, for fiscal year 2015; (II) 65 percent of the total number of employees, for fiscal year 2016; and (III) 50 percent of the total number of employees, for each fiscal year after fiscal year 2016. (ii) In this subparagraph: (I) The term employer does not include a nonprofit institution of higher education or a nonprofit research organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under 501(a) of that Code that is— (aa) an institution of higher education (as defined in section 101(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1001(a) )); or (bb) a research organization. (II) The term H–1B nonimmigrant means an alien admitted as a nonimmigrant pursuant to section 101(a)(15)(H)(i)(b). (III) The term L nonimmigrant means an alien admitted as a nonimmigrant pursuant to section 101(a)(15)(L) to provide services to the alien's employer involving specialized knowledge. (iii) In determining the percentage of employees of an employer that are H–1B nonimmigrants or L nonimmigrants under clause (i), an intending immigrant employee shall not count toward such percentage. . 4305. Filing fee for L nonimmigrants (a) In general Notwithstanding any other provision of law, the filing fee for an application for admission of an L nonimmigrant shall be as follows: (1) For each of the fiscal years beginning in fiscal year 2014, $5,000 for applicants that employ 50 or more employees in the United States if more than 30 percent and less than 50 percent of the applicant's employees are H–1B nonimmigrants or L nonimmigrants. (2) For each of the fiscal years 2014 through 2017, $10,000 for applicants that employ 50 or more employees in the United States if more than 50 percent and less than 75 percent of the applicant's employees are H–1B nonimmigrants or L nonimmigrants. Fees collected under this paragraph shall be deposited in the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1). (b) Definitions In this section: (1) Employer The term employer does not include a nonprofit institution of higher education or a nonprofit research organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under 501(a) of that Code that is— (A) an institution of higher education (as defined in section 101(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1001(a) )); or (B) a research organization. (2) H–1B nonimmigrant The term H–1B nonimmigrant means an alien admitted as a nonimmigrant pursuant to section 101(a)(15)(H)(i)(b) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15)(H)(i)(b) ). (3) L nonimmigrant The term L nonimmigrant means an alien admitted as a nonimmigrant pursuant to section 101(a)(15)(L) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15)(L) ) to provide services to the alien's employer involving specialized knowledge. (c) Exception for intending immigrants In determining the percentage of employees of an employer that are H–1B nonimmigrants or L nonimmigrants under subsection (a), an intending immigrant employee (as defined in section 101(a)(54)(A) of the Immigration and Nationality Act shall not count toward such percentage. (d) Conforming amendment Section 402 of the Act entitled An Act making emergency supplemental appropriations for border security for the fiscal year ending September 30, 2010, and for other purposes , approved August 13, 2010 ( Public Law 111–230 ; 8 U.S.C. 1101 note), as amended by section 4233(d), is further amended by striking subsections (a) and (c). 4306. Investigation and disposition of complaints against L nonimmigrant employers Section 214(c)(2) ( 8 U.S.C. 1184(c)(2) ), as amended by sections 4302, 4303, and 4304 is further amended by adding at the end the following: (J) (i) The Secretary of Homeland Security may initiate an investigation of any employer that employs nonimmigrants described in section 101(a)(15)(L) with regard to the employer's compliance with the requirements of this subsection. (ii) (I) If the Secretary receives specific credible information from a source who is likely to have knowledge of an employer's practices, employment conditions, or compliance with the requirements under this subsection, the Secretary may conduct an investigation into the employer's compliance with the requirements of this subsection. (II) The Secretary may withhold the identity of a source referred to in subclause (I) from an employer and the identity of such source shall not be subject to disclosure under section 552 of title 5, United States Code. (iii) The Secretary shall establish a procedure for any person desiring to provide to the Secretary information described in clause (ii)(I) that may be used, in whole or in part, as the basis for the commencement of an investigation described in such clause, to provide the information in writing on a form developed and provided by the Secretary and completed by or on behalf of the person. (iv) No investigation described in clause (ii)(I) (or hearing described in clause (vi) based on such investigation) may be conducted with respect to information about a failure to comply with the requirements under this subsection, unless the Secretary receives the information not later than 24 months after the date of the alleged failure. (v) (I) Subject to subclause (III), before commencing an investigation of an employer under clause (i) or (ii), the Secretary shall provide notice to the employer of the intent to conduct such investigation. (II) The notice required by subclause (I) shall be provided in such a manner, and shall contain sufficient detail, to permit the employer to respond to the allegations before an investigation is commenced. (III) The Secretary is not required to comply with this clause if the Secretary determines that to do so would interfere with an effort by the Secretary to investigate or secure compliance by the employer with the requirements of this subsection. (IV) There shall be no judicial review of a determination by the Secretary under this clause. (vi) If the Secretary, after an investigation under clause (i) or (ii), determines that a reasonable basis exists to make a finding that the employer has failed to comply with the requirements under this subsection, the Secretary shall provide the interested parties with notice of such determination and an opportunity for a hearing in accordance with section 556 of title 5, United States Code, not later than 120 days after the date of such determination. If such a hearing is requested, the Secretary shall make a finding concerning the matter by not later than 120 days after the date of the hearing. (vii) If the Secretary, after a hearing, finds a reasonable basis to believe that the employer has violated the requirements under this subsection, the Secretary shall impose a penalty under subparagraph (K). (viii) (I) The Secretary may conduct voluntary surveys of the degree to which employers comply with the requirements under this section. (II) The Secretary shall— (aa) conduct annual compliance audits of each employer with more than 100 employees who work in the United States if more than 15 percent of such employees are nonimmigrants described in 101(a)(15)(L); and (bb) make available to the public an executive summary or report describing the general findings of the audits carried out pursuant to this subclause. . 4307. Penalties Section 214(c)(2) ( 8 U.S.C. 1184(c)(2) ), as amended by sections 4302, 4303, 4304, and 4306, is further amended by adding at the end the following: (K) (i) If the Secretary of Homeland Security finds, after notice and an opportunity for a hearing, a failure by an employer to meet a condition under subparagraph (F), (G), or (L) or a misrepresentation of material fact in a petition to employ 1 or more aliens as nonimmigrants described in section 101(a)(15)(L)— (I) the Secretary shall impose such administrative remedies (including civil monetary penalties in an amount not to exceed $2,000 per violation) as the Secretary determines to be appropriate; (II) the Secretary may not, during a period of at least 1 year, approve a petition for that employer to employ 1 or more aliens as such nonimmigrants; and (III) in the case of a violation of subparagraph (J), the employer shall be liable to the employees harmed by such violation for lost wages and benefits. (ii) If the Secretary finds, after notice and an opportunity for a hearing, a willful failure by an employer to meet a condition under subparagraph (F), (G), or (L) or a willful misrepresentation of material fact in a petition to employ 1 or more aliens as nonimmigrants described in section 101(a)(15)(L)— (I) the Secretary shall impose such administrative remedies (including civil monetary penalties in an amount not to exceed $10,000 per violation) as the Secretary determines to be appropriate; (II) the Secretary may not, during a period of at least 2 years, approve a petition filed for that employer to employ 1 or more aliens as such nonimmigrants; and (III) in the case of a violation of subparagraph (J), the employer shall be liable to the employees harmed by such violation for lost wages and benefits. . 4308. Prohibition on retaliation against L nonimmigrants Section 214(c)(2) ( 8 U.S.C. 1184(c)(2) ), as amended by sections 4302, 4303, 4303, 4306, and 4307, is further amended by adding at the end the following: (L) (i) It is a violation of this subparagraph for an employer who has filed a petition to import 1 or more aliens as nonimmigrants described in section 101(a)(15)(L) to take, fail to take, or threaten to take or fail to take, a personnel action, or to intimidate, threaten, restrain, coerce, blacklist, discharge, or discriminate in any other manner against an employee because the employee— (I) has disclosed information that the employee reasonably believes evidences a violation of this subsection, or any rule or regulation pertaining to this subsection; or (II) cooperates or seeks to cooperate with the requirements of this subsection, or any rule or regulation pertaining to this subsection. (ii) In this subparagraph, the term employee includes— (I) a current employee; (II) a former employee; and (III) an applicant for employment. . 4309. Reports on L nonimmigrants Section 214(c)(8) ( 8 U.S.C. 1184(c)(8) ) is amended by inserting (L), after (H), . 4310. Application The amendments made by this subtitle shall apply to applications filed on or after the date of the enactment of this Act. 4311. Report on L blanket petition process Not later than 6 months after the date of the enactment of this Act, the Inspector General of the Department shall submit to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives a report regarding the use of blanket petitions under section 214(c)(2)(A) of the Immigration and Nationality Act ( 8 U.S.C. 1184(c)(2)(A) ). Such report shall assess the efficiency and reliability of the process for reviewing such blanket petitions, including whether the process includes adequate safeguards against fraud and abuse. D Other nonimmigrant visas 4401. Nonimmigrant visas for students (a) Authorization of dual intent for F nonimmigrants seeking bachelor's or graduate degrees Section 101(a)(15)(F) ( 8 U.S.C. 1101(a)(15)(F) ) is amended to read as follows: (F) (i) an alien having a residence in a foreign country who is a bona fide student qualified to pursue a full course of study and who seeks to enter the United States temporarily and solely for the purpose of pursuing such a course of study consistent with section 214(m) at an accredited college, university, or language training program, or at an established seminary, conservatory, academic high school, elementary school, or other academic institution in the United States, particularly designated by the alien and approved by the Secretary of Homeland Security after consultation with the Secretary of Education, which institution or place of study shall have agreed to report to the Secretary of Homeland Security the termination of attendance of each nonimmigrant student, and if any such institution of learning or place of study fails to make reports promptly the approval shall be withdrawn, except that such an alien who is not seeking to pursue a degree that is a bachelor's degree or a graduate degree shall have a residence in a foreign country that the alien has no intention of abandoning; (ii) the alien spouse and minor children of any alien described in clause (i) if accompanying or following to join such an alien; and (iii) an alien who is a national of Canada or Mexico, who maintains actual residence and place of abode in the country of nationality, who is described in clause (i) except that the alien's qualifications for and actual course of study may be full or part-time, and who commutes to the United States institution or place of study from Canada or Mexico. . (b) Dual intent Section 214(h) ( 8 U.S.C. 1184(h) ) is amended to read as follows: (h) Dual intent The fact that an alien is, or intends to be, the beneficiary of an application for a preference status filed under section 204, seeks a change or adjustment of status after completing a legitimate period of nonimmigrant stay, or has otherwise sought permanent residence in the United States shall not constitute evidence of intent to abandon a foreign residence that would preclude the alien from obtaining or maintaining— (1) a visa or admission as a nonimmigrant described in subparagraph (E), (F)(i), (F)(ii), (H)(i)(b), (H)(i)(c), (L), (O), (P), (V), or (W) of section 101(a)(15); or (2) the status of a nonimmigrant described in any such subparagraph. . (c) Requirement of student visa data transfer and certification (1) In general The Secretary shall implement real-time transmission of data from the Student and Exchange Visitor Information System to databases used by U.S. Customs and Border Protection. (2) Certification (A) In general Not later than 120 days after the date of the enactment of this Act, the Secretary shall certify to Congress that the transmission of data referred to in paragraph (1) has been implemented. (B) Temporary suspension of visa issuance If the Secretary has not made the certification referred to in subparagraph (A) during the 120-day period, the Secretary shall suspend issuance of visas under subparagraphs (F) and (M) of section 101(a)(15) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15) ) until the certification is made. 4402. Classification for specialty occupation workers from free trade countries (a) Nonimmigrant status Section 101(a)(15)(E) ( 8 U.S.C. 1101(a)(15)(E) ) is amended— (1) in the matter preceding clause (i), by inserting , bilateral investment treaty, or free trade agreement after treaty of commerce and navigation ; (2) in clause (ii), by striking or at the end; and (3) by adding at the end the following: (iv) solely to perform services in a specialty occupation in the United States if the alien is a national of a country, other than Chile, Singapore, or Australia, with which the United States has entered into a free trade agreement (regardless of whether such an agreement is a treaty of commerce and navigation) and with respect to whom the Secretary of Labor determines and certifies to the Secretary of Homeland Security and the Secretary of State that the intending employer has filed with the Secretary of Labor an attestation under section 212(t); (v) solely to perform services in a specialty occupation in the United States if the alien is a national of the Republic of Korea and with respect to whom the Secretary of Labor determines and certifies to the Secretary of Homeland Security and the Secretary of State that the intending employer has filed with the Secretary of Labor an attestation under section 212(t); or (vi) solely to perform services as an employee and who has at least a high school education or its equivalent, or has, during the most recent 5-year period, at least 2 years of work experience in an occupation which requires at least 2 years of training or experience if the alien is a national of a country— (I) designated as an eligible sub-Saharan African country under section 104 of the African Growth and Opportunity Act ( 19 U.S.C. 3703 ); or (II) designated as a beneficiary country for purposes of the Caribbean Basin Economic Recovery Act ( 19 U.S.C. 2701 et seq. ); . (b) Numerical limitation Section 214(g)(11) ( 8 U.S.C. 1184(g)(11) ) is amended— (1) in subparagraph (A), by striking section 101(a)(15)(E)(iii) and inserting clauses (iii) and (vi) of section 101(a)(15)(E) ; and (2) by amending subparagraph (B) to read as follows: (B) The applicable numerical limitation referred to in subparagraph (A) for each fiscal year is— (i) 10,500 for each of the nationalities identified in clause (iii) of section 101(a)(15)(E); and (ii) 10,500 for all aliens described in clause (vi) of such section. . (c) Free trade agreements Section 214(g) ( 8 U.S.C. 1184(g) ) is amended by adding at the end the following: (12) (A) The free trade agreements referred to in section 101(a)(15)(E)(iv) are defined as any free trade agreement designated by the Secretary of Homeland Security with the concurrence of the United States Trade Representative and the Secretary of State. (B) The Secretary of State may not approve a number of initial applications submitted for aliens described in clause (iv) or (v) of section 101(a)(15)(E) that is more than 5,000 per fiscal year for each country with which the United States has entered into a Free Trade Agreement. (C) The applicable numerical limitation referred to in subparagraph (A) shall apply only to principal aliens and not to the spouses or children of such aliens. . (d) Nonimmigrant professionals Section 212(t) ( 8 U.S.C. 1182(t) ) is amended by striking section 101(a)(15)(E)(iii) each place that term appears and inserting clause (iv) or (v) of section 101(a)(15)(E) . 4403. E-visa reform (a) Nonimmigrant category Section 101(a)(15)(E)(iii) ( 8 U.S.C. 1101(a)(15)(E)(iii) ) is amended by inserting , or solely to perform services as an employee and who has at least a high school education or its equivalent, or has, within 5 years, at least 2 years of work experience in an occupation which requires at least 2 years of training or experience if the alien is a national of the Republic of Ireland, after Australia . (b) Temporary admission Section 212(d)(3)(A) ( 8 U.S.C. 1182(d)(3)(A) ) is amended to read as follows: (A) Except as otherwise provided in this subsection— (i) an alien who is applying for a nonimmigrant visa and who the consular officer knows or believes to be ineligible for such visa under subsection (a) (other than subparagraphs (A)(i)(I), (A)(ii), (A)(iii), (C), (E)(i), and (E)(ii) of paragraph (3) of such subsection)— (I) after approval by the Secretary of Homeland Security of a recommendation by the Secretary of State or by the consular officer that the alien be admitted temporarily despite the alien's inadmissibility, may be granted such a visa and may be admitted into the United States temporarily as a nonimmigrant, in the discretion of the Secretary of Homeland Security; or (II) absent such recommendation and approval, be granted a nonimmigrant visa pursuant to section 101(a)(15)(E) if such ineligibility is based solely on conduct in violation of paragraph (6), (7), or (9) of section 212(a) that occurred before the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act ; and (ii) an alien who is inadmissible under subsection (a) (other than subparagraphs (A)(i)(I), (A)(ii), (A)(iii), (C), (E)(i), and (E)(ii) of paragraph (3) of such subsection), is in possession of appropriate documents or was granted a waiver from such document requirement, and is seeking admission, may be admitted into the United States temporarily as a nonimmigrant, in the discretion of the Secretary of Homeland Security, who shall prescribe conditions, including exaction of such bonds as may be necessary, to control and regulate the admission and return of inadmissible aliens applying for temporary admission under this paragraph. . (c) Numerical limitation Section 214(g)(11)(B) ( 8 U.S.C. 1184(g)(11)(B) ) is amended by striking the period at the end and inserting for each of the nationalities identified under section 101(a)(15)(E)(iii). . 4404. Other changes to nonimmigrant visas (a) Portability Paragraphs (1) and (2) of section 214(n) ( 8 U.S.C. 1184(n) ) are amended to read as follows: (1) A nonimmigrant alien described in paragraph (2) who was previously issued a visa or otherwise provided nonimmigrant status under section 101(a)(15)(H)(i)(b) or 101(a)(15)(O)(i) is authorized to accept new employment pursuant to such section upon the filing by the prospective employer of a new petition on behalf of such nonimmigrant as provided under subsection (a). Employment authorization shall continue for such alien until the new petition is adjudicated. If the new petition is denied, such authorization shall cease. (2) A nonimmigrant alien described in this paragraph is a nonimmigrant alien— (A) who has been lawfully admitted into the United States; (B) on whose behalf an employer has filed a nonfrivolous petition for new employment before the date of expiration of the period of stay authorized by the Secretary of Homeland Security; and (C) who, subsequent to such lawful admission, has not been employed without authorization in the United States before the filing of such petition. . (b) Waiver The undesignated material at the end of section 214(c)(3) ( 8 U.S.C. 1184(c)(3) ) is amended to read as follows: The Secretary of Homeland Security shall provide by regulation for the waiver of the consultation requirement under subparagraph (A) in the case of aliens who have been admitted as nonimmigrants under section 101(a)(15)(O)(i) because of extraordinary ability in the arts or extraordinary achievement in motion picture or television production and who seek readmission to perform similar services within 3 years after the date of a consultation under such subparagraph provided that, in the case of aliens admitted because of extraordinary achievement in motion picture or television production, such waiver shall apply only if the prior consultations by the appropriate union and management organization were favorable or raised no objection to the approval of the petition. Not later than 5 days after such a waiver is provided, the Secretary shall forward a copy of the petition and all supporting documentation to the national office of an appropriate labor organization. In the case of an alien seeking entry for a motion picture or television production (i) any opinion under the previous sentence shall only be advisory; (ii) any such opinion that recommends denial must be in writing; (iii) in making the decision the Attorney General shall consider the exigencies and scheduling of the production; (iv) the Attorney General shall append to the decision any such opinion; and (v) upon making the decision, the Attorney General shall immediately provide a copy of the decision to the consulting labor and management organizations. . 4405. Treatment of nonimmigrants during adjudication of application Section 214 ( 8 U.S.C. 1184 ), as amended by sections 3609 and 4233, is further amended by adding at the end the following: (u) Treatment of nonimmigrants during adjudication of application A nonimmigrant alien granted employment authorization pursuant to sections 101(a)(15)(A), 101(a)(15)(E), 101(a)(15)(G), 101(a)(15)(H), 101(a)(15)(I), 101(a)(15)(J), 101(a)(15)(L), 101(a)(15)(O), 101(a)(15)(P), 101(a)(15)(Q), 101(a)(15)(R), 214(e), and such other sections as the Secretary of Homeland Security may by regulations prescribe whose status has expired but who has, or whose sponsoring employer or authorized agent has, filed a timely application or petition for an extension of such employment authorization and nonimmigrant status as provided under subsection (a) is authorized to continue employment with the same employer until the application or petition is adjudicated. Such authorization shall be subject to the same conditions and limitations as the initial grant of employment authorization. . 4406. Nonimmigrant elementary and secondary school students Section 214(m)(1)(B) ( 8 U.S.C. 1184(m)(1)(B) ) is amended striking unless— and all that follows through (ii) and inserting unless . 4407. J–1 Summer Work Travel Visa Exchange Visitor Program fee Section 281 ( 8 U.S.C. 1351 ), as amended by section 4105, is further amended by adding at the end the following: (e) J–1 visa exchange visitor program fee (1) In general In addition to the fees authorized under subsection (a), the Secretary of State shall collect from designated program sponsors, a $500 fee for each nonimmigrant entering under the Summer Work Travel program conducted by the Secretary of State pursuant to the Foreign Affairs Reform and Restructuring Act of 1998 (division G of Public Law 105–277 ; 112 Stat. 2681–761). Fees collected under this subsection shall be deposited into the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1) of the Border Security, Economic Opportunity, and Immigration Modernization Act. (2) Regulations and limitations The Secretary of Homeland Security, in conjunction with the Secretary of State, shall promulgate regulations ensuring that a fee required by paragraph (1) is paid on behalf of all summer work travel nonimmigrants under section 101(a)(15)(J) seeking entry into the United States. A fee related to the hiring of such a summer work travel nonimmigrant shall be paid by the designated program sponsor and may not be charged to such summer work travel nonimmigrant. There shall not be more than 1 fee collected per such summer work travel nonimmigrant. . 4408. J visa eligibility for speakers of certain foreign languages (a) In general Section 101(a)(15)(J) ( 8 U.S.C. 1101(a)(15)(J) ) is amended to read as follows: (J) an alien having a residence in a foreign country which he has no intention of abandoning who— (i) is a bona fide student, scholar, trainee, teacher, professor, research assistant, specialist, or leader in a field of specialized knowledge or skill, or other person of similar description, who is coming temporarily to the United States as a participant in a program designated by the Director of the United States Information Agency, for the purpose of teaching, instructing or lecturing, studying, observing, conducting research, consulting, demonstrating special skills, or receiving training and who, if such alien is coming to the United States to participate in a program under which such alien will receive graduate medical education or training, also meets the requirements of section 212(j), and the alien spouse and minor children of any such alien if accompanying such alien or following to join such alien; or (ii) is coming to the United States to perform work involving specialized knowledge or skill, including teaching on a full-time or part-time basis, that requires proficiency of languages spoken as a native language in countries of which fewer than 5,000 nationals were lawfully admitted for permanent residence in the United States in the previous year; . (b) Requirement for annual list of countries The Secretary of State shall publish an annual list of the countries described in clause (ii) of section 101(a)(15)(J) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15)(J) ), as added by subsection (a). 4409. F–1 visa fee Section 281 ( 8 U.S.C. 1351 ), as amended by sections 4105 and 4407, is further amended by adding at the end the following: (f) F–1 visa fee (1) In general In addition to the fees authorized under subsection (a), the Secretary of Homeland Security shall collect a $100 fee from each nonimmigrant admitted under section 101(a)(15)(F)(i). Fees collected under this subsection shall be deposited into the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1) of the Border Security, Economic Opportunity, and Immigration Modernization Act . (2) Rulemaking The Secretary of Homeland Security, in conjunction with the Secretary of State, shall promulgate regulations to ensure that— (A) the fee authorized under paragraph (1) is paid on behalf of all J–1 nonimmigrants seeking entry into the United States; (B) a fee related to the hiring of a J–1 nonimmigrant is not deducted from the wages or other compensation paid to the J–1 nonimmigrant; and (C) not more than 1 fee is collected per J–1 nonimmigrant. . 4410. Pilot program for remote B nonimmigrant visa interviews Section 222 ( 8 U.S.C. 1202 ) is amended by adding at the end the following: (i) (1) Except as provided in paragraph (3), the Secretary of State— (A) shall develop and conduct a pilot program for processing visas under section 101(a)(15)(B) using secure remote videoconferencing technology as a method for conducting any required in person interview of applicants; and (B) in consultation with the heads of other Federal agencies that use such secure communications, shall help ensure the security of the videoconferencing transmission and encryption conducted under subparagraph (A). (2) Not later than 90 days after the termination of the pilot program authorized under paragraph (1), the Secretary of State shall submit to the appropriate committees of Congress a report that contains— (A) a detailed description of the results of such program, including an assessment of the efficacy, efficiency, and security of the remote videoconferencing technology as a method for conducting visa interviews of applicants; and (B) recommendations for whether such program should be continued, broadened, or modified. (3) The pilot program authorized under paragraph (1) may not be conducted if the Secretary of State determines that such program— (A) poses an undue security risk; and (B) cannot be conducted in a manner consistent with maintaining security controls. (4) If the Secretary of State makes a determination under paragraph (3), the Secretary shall submit a report to the appropriate committees of Congress that describes the reasons for such determination. (5) In this subsection: (A) The term appropriate committees of Congress means— (i) the Committee on the Judiciary, the Committee on Foreign Relations, and the Committee on Appropriations of the Senate; and (ii) the Committee on the Judiciary, the Committee on Foreign Affairs, and the Committee on Appropriations of the House of Representatives. (B) The term in person interview includes interviews conducted using remote video technology. . 4411. Providing consular officers with access to all terrorist databases and requiring heightened scrutiny of applications for admission from persons listed on terrorist databases Section 222 ( 8 U.S.C. 1202 ), as amended by section 4410, is further amended by adding at the end the following: (j) Providing consular officers with access to all terrorist databases and requiring heightened scrutiny of applications for admission from persons listed on terrorist databases (1) Access to the Secretary of State (A) In general Except as provided in subparagraph (B), the Secretary of State shall have access to all terrorism records and databases maintained by any agency or department of the United States for the purposes of determining whether an applicant for admission poses a security threat to the United States. (B) Exception The head of such an agency or department may only withhold access to terrorism records and databases from the Secretary of State if such head is able to articulate that withholding is necessary to prevent the unauthorized disclosure of information that clearly identifies, or would reasonably permit ready identification of, intelligence or sensitive law enforcement sources, methods, or activities. (2) Biographic and biometric screening (A) Requirement for biographic and biometric screening Notwithstanding any other provision of this Act, the Secretary of State shall require every alien applying for admission to the United States to submit to biographic and biometric screening to determine whether the alien’s name or biometric information is listed in any terrorist watch list or database maintained by any agency or department of the United States. (B) Exclusions No alien applying for a visa to the United States shall be granted such visa by a consular officer if the alien's name or biometric information is listed in any terrorist watch list or database referred to in subparagraph (A) unless— (i) screening of the alien’s visa application against interagency counterterrorism screening systems which compare the applicant’s information against data in all counterterrorism watch lists and databases reveals no potentially pertinent links to terrorism; (ii) the consular officer submits the application for further review to the Secretary of State and the heads of other relevant agencies, including the Secretary of Homeland Security and the Director of National Intelligence; and (iii) the Secretary of State, after consultation with the Secretary of Homeland Security, the Director of National Intelligence, and the heads of other relevant agencies, certifies that the alien is admissible to the United States. . 4412. Visa revocation information Section 428 of the Homeland Security Act of 2002 ( 6 U.S.C. 236 ) is amended by adding at the end the following: (j) Visa revocation information If the Secretary of State or the Secretary of Homeland Security revoke a visa— (1) the fact of the revocation shall be immediately provided to the relevant consular officers, law enforcement, and terrorist screening databases; and (2) a notice of such revocation shall be posted to all Department of Homeland Security port inspectors and to all consular officers. . 4413. Status for certain battered spouses and children (a) Nonimmigrant status for certain battered spouses and children Section 101(a)(51) ( 8 U.S.C. 1101(a)(51) ), as amended by section 2305(d)(6)(B)(i)(III), is further amended— (1) in subparagraph (E), by striking or at the end; (2) in subparagraph (F), by striking the period at the end and inserting ; or ; and (3) by adding at the end the following: (G) section 106 as an abused derivative alien. . (b) Relief for abused derivative aliens (1) In general Section 106 ( 8 U.S.C. 1105a ) is amended to read as follows: 106. Relief for abused derivative aliens (a) Abused derivative alien defined In this section, the term abused derivative alien means an alien who— (1) is the spouse or child admitted under section 101(a)(15) or pursuant to a blue card status granted under section 2211 of the Border Security, Economic Opportunity, and Immigration Modernization Act ; (2) is accompanying or following to join a principal alien admitted under such a section; and (3) has been subjected to battery or extreme cruelty by such principal alien. (b) Relief for abused derivative aliens The Secretary of Homeland Security— (1) shall grant or extend the status of admission of an abused derivative alien under section 101(a)(15) or section 2211 of the Border Security, Economic Opportunity, and Immigration Modernization Act under which the principal alien was admitted for the longer of— (A) the same period for which the principal was initially admitted; or (B) a period of 3 years; (2) may renew a grant or extension of status made under paragraph (1); (3) shall grant employment authorization to an abused derivative alien; and (4) may adjust the status of the abused derivative alien to that of an alien lawfully admitted for permanent residence if— (A) the alien is admissible under section 212(a) or the Secretary of Homeland Security finds the alien's continued presence in the United States is justified on humanitarian grounds, to ensure family unity, or is otherwise in the public interest; and (B) the status under which the principal alien was admitted to the United States would have potentially allowed for eventual adjustment of status. (c) Effect of termination of relationship Termination of the relationship with principal alien shall not affect the status of an abused derivative alien under this section if battery or extreme cruelty by the principal alien was 1 central reason for termination of the relationship. (d) Procedures Requests for relief under this section shall be handled under the procedures that apply to aliens seeking relief under section 204(a)(1)(C). . (2) Table of contents amendment The table of contents in the first section is amended by striking the item relating to section 106 and inserting the following: Sec. 106. Relief for abused derivative aliens. . 4414. Nonimmigrant crewmen landing temporarily in Hawaii (a) In general Section 101(a)(15)(D)(ii) ( 8 U.S.C. 1101(a)(15)(D)(ii) ) is amended— (1) by striking Guam both places that term appears and inserting Hawaii, Guam, ; and (2) by striking the semicolon at the end and inserting or some other vessel or aircraft; . (b) Treatment of departures In the administration of section 101(a)(15)(D)(ii) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15)(D)(ii) ), an alien crewman shall be considered to have departed from Hawaii, Guam, or the Commonwealth of the Northern Mariana Islands after leaving the territorial waters of Hawaii, Guam, or the Commonwealth of the Northern Mariana Islands, respectively, without regard to whether the alien arrives in a foreign state before returning to Hawaii, Guam, or the Commonwealth of the Northern Mariana Islands. (c) Conforming amendment The Act entitled An Act to amend the Immigration and Nationality Act to permit nonimmigrant alien crewmen on fishing vessels to stop temporarily at ports in Guam , approved October 21, 1986 ( Public Law 99–505 ; 8 U.S.C. 1101 note) is amended by striking section 2. 4415. Treatment of compact of free association migrants (a) In general Title II ( 8 U.S.C. 1151 et seq. ) is amended by inserting after section 214 the following: 214A. Treatment of compact of free association migrants Notwithstanding any other provision of law, with respect to eligibility for benefits for the Federal program defined in 402(b)(3)(C) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 ( 8 U.S.C. 1612(b)(3)(C) ) (relating to the Medicaid program), sections 401(a), 402(b)(1), and 403(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 ( 8 U.S.C. 1611(a) , 1612(b)(1), 1613(a)) shall not apply to any individual who lawfully resides in the United States in accordance with the Compacts of Free Association between the Government of the United States and the Governments of the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau. Any individual to which the preceding sentence applies shall be considered to be a qualified alien for purposes of title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 ( 8 U.S.C. 1601 et seq. ), but only with respect to the designated Federal program defined in section 402(b)(3)(C) of such Act (relating to the Medicaid program) ( 8 U.S.C. 1612(b)(3)(C) ). . (b) Conforming amendments Section 1108 of the Social Security Act ( 42 U.S.C. 1308 ) is amended— (1) in subsection (f), in the matter preceding paragraph (1), by striking subsection (g) and inserting subsections (g) and (h) ; and (2) by adding at the end the following: (h) The limitations of subsections (f) and (g) shall not apply with respect to medical assistance provided to an individual described in section 214A of the Immigration and Nationality Act. . (c) Effective date The amendments made by this section shall apply to benefits for items and services furnished on or after the date of the enactment of this Act. E JOLT Act 4501. Short titles This subtitle may be cited as the Jobs Originated through Launching Travel Act of 2013 or the JOLT Act of 2013 . 4502. Premium processing Section 221 ( 8 U.S.C. 1201 ) is amended by inserting at the end the following: (j) Premium processing (1) Pilot processing service Recognizing that the best solution for expedited processing is low interview wait times for all applicants, the Secretary of State shall nevertheless establish, on a limited, pilot basis only, a fee-based premium processing service to expedite interview appointments. In establishing a pilot processing service, the Secretary may— (A) determine the consular posts at which the pilot service will be available; (B) establish the duration of the pilot service; (C) define the terms and conditions of the pilot service, with the goal of expediting visa appointments and the interview process for those electing to pay said fee for the service; and (D) resources permitting, during the pilot service, consider the addition of consulates in locations advantageous to foreign policy objectives or in highly populated locales. (2) Fees (A) Authority to collect The Secretary of State is authorized to collect, and set the amount of, a fee imposed for the premium processing service. The Secretary of State shall set the fee based on all relevant considerations including, the cost of expedited service. (B) Use of fees Fees collected under the authority of subparagraph (A) shall be deposited as an offsetting collection to any Department of State appropriation, to recover the costs of providing consular services. Such fees shall remain available for obligation until expended. (C) Relationship to other fees Such fee is in addition to any existing fee currently being collected by the Department of State. (D) Nonrefundable Such fee will be nonrefundable to the applicant. (3) Description of premium processing Premium processing pertains solely to the expedited scheduling of a visa interview. Utilizing the premium processing service for an expedited interview appointment does not establish the applicant’s eligibility for a visa. The Secretary of State shall, if possible, inform applicants utilizing the premium processing of potential delays in visa issuance due to additional screening requirements, including necessary security-related checks and clearances. (4) Report to Congress (A) Requirement for report Not later than 18 months after the date of the enactment of the JOLT Act of 2013 , the Secretary of State shall submit to the appropriate committees of Congress a report on the results of the pilot service carried out under this section. (B) Appropriate committees of Congress defined In this paragraph, the term appropriate committees of Congress means— (i) the Committee on the Judiciary, the Committee on Foreign Relations, and the Committee on Appropriations of the Senate; and (ii) the Committee on the Judiciary, the Committee on Foreign Affairs, and the Committee on Appropriations of the House of Representatives. . 4503. Encouraging Canadian tourism to the United States Section 214 ( 8 U.S.C. 1184 ), as amended by sections 3609, 4233, and 4405, is further amended by adding at the end the following: (v) Canadian retirees (1) In general The Secretary of Homeland Security may admit as a visitor for pleasure as described in section 101(a)(15)(B) any alien for a period not to exceed 240 days, if the alien demonstrates, to the satisfaction of the Secretary, that the alien— (A) is a citizen of Canada; (B) is at least 55 years of age; (C) maintains a residence in Canada; (D) owns a residence in the United States or has signed a rental agreement for accommodations in the United States for the duration of the alien's stay in the United States; (E) is not inadmissible under section 212; (F) is not described in any ground of deportability under section 237; (G) will not engage in employment or labor for hire in the United States; and (H) will not seek any form of assistance or benefit described in section 403(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 ( 8 U.S.C. 1613(a) ). (2) Spouse The spouse of an alien described in paragraph (1) may be admitted under the same terms as the principal alien if the spouse satisfies the requirements of paragraph (1), other than subparagraphs (B) and (D). (3) Immigrant intent In determining eligibility for admission under this subsection, maintenance of a residence in the United States shall not be considered evidence of intent by the alien to abandon the alien's residence in Canada. (4) Period of admission During any single 365-day period, an alien may be admitted as described in section 101(a)(15)(B) pursuant to this subsection for a period not to exceed 240 days, beginning on the date of admission. Unless an extension is approved by the Secretary, periods of time spent outside the United States during such 240-day period shall not toll the expiration of such 240-day period. . 4504. Retiree visa (a) Nonimmigrant status Section 101(a)(15), as amended, is further amended by inserting after subparagraph (X) the following: (Y) subject to section 214(w), an alien who, after the date of the enactment of the JOLT Act of 2013 — (i) (I) uses at least $500,000 in cash to purchase 1 or more residences in the United States, which each sold for more than 100 percent of the most recent appraised value of such residence, as determined by the property assessor in the city or county in which the residence is located; (II) maintains ownership of residential property in the United States worth at least $500,000 during the entire period the alien remains in the United States as a nonimmigrant described in this subparagraph; and (III) resides for more than 180 days per year in a residence in the United States that is worth at least $250,000; and (ii) the alien spouse and children of the alien described in clause (i) if accompanying or following to join the alien. . (b) Visa application procedures Section 214 ( 8 U.S.C. 1184 ), as amended by sections 3609, 4233, 4405, and 4503, is further amended by adding at the end the following: (w) Visas of nonimmigrants described in section 101( a )(15)(Y) (1) The Secretary of Homeland Security shall authorize the issuance of a nonimmigrant visa to any alien described in section 101(a)(15)(Y) who submits a petition to the Secretary that— (A) demonstrates, to the satisfaction of the Secretary, that the alien— (i) has purchased a residence in the United States that meets the criteria set forth in section 101(a)(15)(Y)(i); (ii) is at least 55 years of age; (iii) possesses health insurance coverage; (iv) is not inadmissible under section 212; and (v) will comply with the terms set forth in paragraph (2); and (B) includes payment of a fee in an amount equal to $1,000. (2) An alien who is issued a visa under this subsection— (A) shall reside in the United States at a residence that meets the criteria set forth in section 101(a)(15)(Y)(i) for more than 180 days per year; (B) is not authorized to engage in employment in the United States, except for employment that is directly related to the management of the residential property described in section 101(Y)(i)(II); (C) is not eligible for any form of assistance or benefit described in section 403(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 ( 8 U.S.C. 1613(a) ); and (D) may renew such visa every 3 years under the same terms and conditions. . (c) Use of fee Fees collected under section 214(w)(1)(B) of the Immigration and Nationality Act, as added by subsection (b), shall be deposited in the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1). 4505. Incentives for foreign visitors visiting the United States during low peak seasons The Secretary of State shall make publically available, on a monthly basis, historical data, for the previous 2 years, regarding the availability of visa appointments for each visa processing post, to allow applicants to identify periods of low demand, when wait times tend to be lower. 4506. Visa waiver program enhanced security and reform (a) Definitions Section 217(c)(1) ( 8 U.S.C. 1187(c)(1) ) is amended to read as follows: (1) Authority to designate; definitions (A) Authority to designate The Secretary of Homeland Security, in consultation with the Secretary of State, may designate any country as a program country if that country meets the requirements under paragraph (2). (B) Definitions In this subsection: (i) Appropriate congressional committees The term appropriate congressional committees means— (I) the Committee on Foreign Relations, the Committee on Homeland Security and Governmental Affairs, and the Committee on the Judiciary of the Senate; and (II) the Committee on Foreign Affairs, the Committee on Homeland Security, and the Committee on the Judiciary of the House of Representatives. (ii) Overstay rate (I) Initial designation The term overstay rate means, with respect to a country being considered for designation in the program, the ratio of— (aa) the number of nationals of that country who were admitted to the United States on the basis of a nonimmigrant visa under section 101(a)(15)(B) whose periods of authorized stay ended during a fiscal year but who remained unlawfully in the United States beyond such periods; to (bb) the number of nationals of that country who were admitted to the United States on the basis of a nonimmigrant visa under section 101(a)(15)(B) whose periods of authorized stay ended during that fiscal year. (II) Continuing designation The term overstay rate means, for each fiscal year after initial designation under this section with respect to a country, the ratio of— (aa) the number of nationals of that country who were admitted to the United States under this section or on the basis of a nonimmigrant visa under section 101(a)(15)(B) whose periods of authorized stay ended during a fiscal year but who remained unlawfully in the United States beyond such periods; to (bb) the number of nationals of that country who were admitted to the United States under this section or on the basis of a nonimmigrant visa under section 101(a)(15)(B) whose periods of authorized stay ended during that fiscal year. (III) Computation of overstay rate In determining the overstay rate for a country, the Secretary of Homeland Security may utilize information from any available databases to ensure the accuracy of such rate. (iii) Program country The term program country means a country designated as a program country under subparagraph (A). . (b) Technical and conforming amendments Section 217 ( 8 U.S.C. 1187 ) is amended— (1) by striking Attorney General each place the term appears (except in subsection (c)(11)(B)) and inserting Secretary of Homeland Security ; and (2) in subsection (c)— (A) in paragraph (2)(C)(iii), by striking Committee on the Judiciary and the Committee on International Relations of the House of Representatives and the Committee on the Judiciary and the Committee on Foreign Relations of the Senate and inserting appropriate congressional committees ; (B) in paragraph (5)(A)(i)(III), by striking Committee on the Judiciary, the Committee on Foreign Affairs, and the Committee on Homeland Security, of the House of Representatives and the Committee on the Judiciary, the Committee on Foreign Relations, and the Committee on Homeland Security and Governmental Affairs of the Senate and inserting appropriate congressional committees ; and (C) in paragraph (7), by striking subparagraph (E). (c) Designation of program countries based on overstay rates (1) In general Section 217(c)(2)(A) ( 8 U.S.C. 1187(c)(2)(A) ) is amended to read as follows: (A) General numerical limitations (i) Low nonimmigrant visa refusal rate The percentage of nationals of that country refused nonimmigrant visas under section 101(a)(15)(B) during the previous full fiscal year was not more than 3 percent of the total number of nationals of that country who were granted or refused nonimmigrant visas under such section during such year. (ii) Low nonimmigrant overstay rate The overstay rate for that country was not more than 3 percent during the previous fiscal year. . (2) Qualification criteria Section 217(c)(3) ( 8 U.S.C. 1187(c)(3) ) is amended to read as follows: (3) Qualification criteria After designation as a program country under section 217(c)(2), a country may not continue to be designated as a program country unless the Secretary of Homeland Security, in consultation with the Secretary of State, determines, pursuant to the requirements under paragraph (5), that the designation will be continued. . (3) Initial period Section 217(c) ( 8 U.S.C. 1187(c) ) is amended by striking paragraph (4). (4) Continuing designation Section 217(c)(5)(A)(i)(II) ( 8 U.S.C. 1187(c)(5)(A)(i)(II) ) is amended to read as follows: (II) shall determine, based upon the evaluation in subclause (I), whether any such designation under subsection (d) or (f), or probation under subsection (f), ought to be continued or terminated; . (5) Computation of visa refusal rates; judicial review Section 217(c)(6) ( 8 U.S.C. 1187(c)(6) ) is amended to read as follows: (6) Computation of visa refusal rates and judicial review (A) Computation of visa refusal rates For purposes of determining the eligibility of a country to be designated as a program country, the calculation of visa refusal rates shall not include any visa refusals which incorporate any procedures based on, or are otherwise based on, race, sex, or disability, unless otherwise specifically authorized by law or regulation. (B) Judicial review No court shall have jurisdiction under this section to review any visa refusal, the Secretary of State’s computation of a visa refusal rate, the Secretary of Homeland Security’s computation of an overstay rate, or the designation or nondesignation of a country as a program country. . (6) Visa waiver information Section 217(c)(7) ( 8 U.S.C. 1187(c)(7) ), as amended by subsection (b)(2)(C), is further amended— (A) by striking subparagraphs (B) through (D); and (B) by striking waiver information .— and all that follows through In refusing and inserting waiver information .—In refusing . (7) Waiver authority Section 217(c)(8) ( 8 U.S.C. 1187(c)(8) ) is amended to read as follows: (8) Waiver authority The Secretary of Homeland Security, in consultation with the Secretary of State, may waive the application of paragraph (2)(A)(i) for a country if— (A) the country meets all other requirements of paragraph (2); (B) the Secretary of Homeland Security determines that the totality of the country's security risk mitigation measures provide assurance that the country's participation in the program would not compromise the law enforcement, security interests, or enforcement of the immigration laws of the United States; (C) there has been a general downward trend in the percentage of nationals of the country refused nonimmigrant visas under section 101(a)(15)(B); (D) the country consistently cooperated with the Government of the United States on counterterrorism initiatives, information sharing, preventing terrorist travel, and extradition to the United States of individuals (including the country's own nationals) who commit crimes that violate United States law before the date of its designation as a program country, and the Secretary of Homeland Security and the Secretary of State assess that such cooperation is likely to continue; and (E) the percentage of nationals of the country refused a nonimmigrant visa under section 101(a)(15)(B) during the previous full fiscal year was not more than 10 percent of the total number of nationals of that country who were granted or refused such nonimmigrant visas. . (d) Termination of designation; probation Section 217(f) ( 8 U.S.C. 1187(f) ) is amended to read as follows: (f) Termination of designation; probation (1) Definitions In this subsection: (A) Probationary period The term probationary period means the fiscal year in which a probationary country is placed in probationary status under this subsection. (B) Program country The term program country has the meaning given that term in subsection (c)(1)(B). (2) Determination, notice, and initial probationary period (A) Determination of probationary status and notice of noncompliance As part of each program country’s periodic evaluation required by subsection (c)(5)(A), the Secretary of Homeland Security shall determine whether a program country is in compliance with the program requirements under subparagraphs (A)(ii) through (F) of subsection (c)(2). (B) Initial probationary period If the Secretary of Homeland Security determines that a program country is not in compliance with the program requirements under subparagraphs (A)(ii) through (F) of subsection (c)(2), the Secretary of Homeland Security shall place the program country in probationary status for the fiscal year following the fiscal year in which the periodic evaluation is completed. (3) Actions at the end of the initial probationary period At the end of the initial probationary period of a country under paragraph (2)(B), the Secretary of Homeland Security shall take 1 of the following actions: (A) Compliance during initial probationary period If the Secretary determines that all instances of noncompliance with the program requirements under subparagraphs (A)(ii) through (F) of subsection (c)(2) that were identified in the latest periodic evaluation have been remedied by the end of the initial probationary period, the Secretary shall end the country’s probationary period. (B) Noncompliance during initial probationary period If the Secretary determines that any instance of noncompliance with the program requirements under subparagraphs (A)(ii) through (F) of subsection (c)(2) that were identified in the latest periodic evaluation has not been remedied by the end of the initial probationary period— (i) the Secretary may terminate the country’s participation in the program; or (ii) on an annual basis, the Secretary may continue the country’s probationary status if the Secretary, in consultation with the Secretary of State, determines that the country’s continued participation in the program is in the national interest of the United States. (4) Actions at the end of additional probationary periods At the end of all probationary periods granted to a country pursuant to paragraph (3)(B)(ii), the Secretary shall take 1 of the following actions: (A) Compliance during additional period The Secretary shall end the country’s probationary status if the Secretary determines during the latest periodic evaluation required by subsection (c)(5)(A) that the country is in compliance with the program requirements under subparagraphs (A)(ii) through (F) of subsection (c)(2). (B) Noncompliance during additional periods The Secretary shall terminate the country's participation in the program if the Secretary determines during the latest periodic evaluation required by subsection (c)(5)(A) that the program country continues to be in noncompliance with the program requirements under subparagraphs (A)(ii) through (F) of subsection (c)(2). (5) Effective date The termination of a country's participation in the program under paragraph (3)(B) or (4)(B) shall take effect on the first day of the first fiscal year following the fiscal year in which the Secretary determines that such participation shall be terminated. Until such date, nationals of the country shall remain eligible for a waiver under subsection (a). (6) Treatment of nationals after termination For purposes of this subsection and subsection (d)— (A) nationals of a country whose designation is terminated under paragraph (3) or (4) shall remain eligible for a waiver under subsection (a) until the effective date of such termination; and (B) a waiver under this section that is provided to such a national for a period described in subsection (a)(1) shall not, by such termination, be deemed to have been rescinded or otherwise rendered invalid, if the waiver is granted prior to such termination. (7) Consultative role of the Secretary of State In this subsection, references to subparagraphs (A)(ii) through (F) of subsection (c)(2) and subsection (c)(5)(A) carry with them the consultative role of the Secretary of State as provided in those provisions. . (e) Review of overstay tracking methodology Not later than 180 days after the date of the enactment of this Act, the Comptroller General of the United States shall conduct a review of the methods used by the Secretary— (1) to track aliens entering and exiting the United States; and (2) to detect any such alien who stays longer than such alien's period of authorized admission. (f) Evaluation of electronic system for travel authorization Not later than 90 days after the date of the enactment of this Act, the Secretary shall submit to Congress— (1) an evaluation of the security risks of aliens who enter the United States without an approved Electronic System for Travel Authorization verification; and (2) a description of any improvements needed to minimize the number of aliens who enter the United States without the verification described in paragraph (1). (g) Sense of Congress on priority for review of program countries It is the sense of Congress that the Secretary, in the process of conducting evaluations of countries participating in the visa waiver program under section 217 of the Immigration and Nationality Act ( 8 U.S.C. 1187 ), should prioritize the reviews of countries in which circumstances indicate that such a review is necessary or desirable. (h) Eligibility of Hong Kong Special Administrative Region for designation for participation in visa waiver program for certain visitors to the United States Section 217(c) ( 8 U.S.C. 1187(c) ) is amended by adding at the end the following new paragraph: (12) Eligibility of certain region for designation as program country The Hong Kong Special Administrative Region of the People's Republic of China— (A) shall be eligible for designation as a program country for purposes of this subsection; and (B) may be designated as a program country for purposes of this subsection if such region meets requirements applicable for such designation in this subsection. . 4507. Expediting entry for priority visitors Section 7208(k)(4) of the Intelligence Reform and Terrorism Prevention Act of 2004 ( 8 U.S.C. 1365b(k)(4) ) is amended to read as follows: (4) Expediting entry for priority visitors (A) In general The Secretary of Homeland Security may expand the enrollment across registered traveler programs to include eligible individuals employed by international organizations, selected by the Secretary, which maintain strong working relationships with the United States. (B) Requirements An individual may not be enrolled in a registered traveler program unless— (i) the individual is sponsored by an international organization selected by the Secretary under subparagraph (A); and (ii) the government that issued the passport that the individual is using has entered into a Trusted Traveler Arrangement with the Department of Homeland Security to participate in a registered traveler program. (C) Security requirements An individual may not be enrolled in a registered traveler program unless the individual has successfully completed all applicable security requirements established by the Secretary, including cooperation from the applicable foreign government, to ensure that the individual does not pose a risk to the United States. (D) Discretion Except as provided in subparagraph (E), the Secretary shall retain unreviewable discretion to offer or revoke enrollment in a registered traveler program to any individual. (E) Ineligible travelers An individual who is a citizen of a state sponsor of terrorism (as defined in section 301(13) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 ( 22 U.S.C. 8541(13) ) may not be enrolled in a registered traveler program. . 4508. Visa processing (a) In general Notwithstanding any other provision of law and not later than 90 days after the date of the enactment of this Act, the Secretary of State shall— (1) require United States diplomatic and consular missions— (A) to conduct visa interviews for nonimmigrant visa applications determined to require a consular interview in an expeditious manner, consistent with national security requirements, and in recognition of resource allocation considerations, such as the need to ensure provision of consular services to citizens of the United States; (B) to set a goal of interviewing 80 percent of all nonimmigrant visa applicants, worldwide, within 3 weeks of receipt of application, subject to the conditions outlined in subparagraph (A); and (C) to explore expanding visa processing capacity in China and Brazil, with the goal of maintaining interview wait times under 15 work days on a consistent, year-round basis, recognizing that demand can spike suddenly and unpredictably and that the first priority of United States missions abroad is the protection of citizens of the United States; and (2) submit to the appropriate committees of Congress a detailed strategic plan that describes the resources needed to carry out paragraph (1)(A). (b) Appropriate committees of Congress In this section, the term appropriate committees of Congress means— (1) the Committee on the Judiciary, the Committee on Foreign Relations, and the Committee on Appropriations of the Senate; and (2) the Committee on the Judiciary, the Committee on Foreign Affairs, and the Committee on Appropriations of the House of Representatives. (c) Semi-Annual report Not later than 30 days after the end of the first 6 months after the implementation of subsection (a), and not later than 30 days after the end of each subsequent quarter, the Secretary of State shall submit to the appropriate committees of Congress a report that provides— (1) data substantiating the efforts of the Secretary of State to meet the requirements and goals described in subsection (a); (2) any factors that have negatively impacted the efforts of the Secretary to meet such requirements and goals; and (3) any measures that the Secretary plans to implement to meet such requirements and goals. (d) Savings provision (1) In general Nothing in subsection (a) may be construed to affect a consular officer’s authority— (A) to deny a visa application under section 221(g) of the Immigration and Nationality Act ( 8 U.S.C. 1201(g) ); or (B) to initiate any necessary or appropriate security-related check or clearance. (2) Security checks The completion of a security-related check or clearance shall not be subject to the time limits set out in subsection (a). 4509. B Visa fee Section 281 ( 8 U.S.C. 1351 ), as amended by sections 4105, 4407, and 4408, is further amended by adding at the end the following: (g) B visa fee In addition to the fees authorized under subsection (a), the Secretary of Homeland Security shall collect a $5 fee from each nonimmigrant admitted under section 101(a)(15)(B). Fees collected under this subsection shall be deposited into the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1) of the Border Security, Economic Opportunity, and Immigration Modernization Act. . F Reforms to the H–2B Visa Program 4601. Extension of returning worker exemption to H–2B numerical limitation (a) In general (1) In general Subparagraph (A) of paragraph (10) of section 214(g) ( 8 U.S.C. 1184(g) ), as redesignated by section 4101(a)(3), is amended by striking fiscal year 2004, 2005, or 2006 shall not again be counted toward such limitation during fiscal year 2007. and inserting fiscal year 2013 shall not again be counted toward such limitation during fiscal years 2014 through 2018. . (2) Effective period The amendment made by paragraph (1) shall be effective during the period beginning on the effective date described in subsection (c) and ending on September 30, 2018. (b) Technical and clarifying amendments (1) Nonimmigrant status Section 101(a)(15)(P) ( 8 U.S.C. 1101(a)(15)(P) ) is amended— (A) in clause (iii), by striking or at the end; (B) in clause (iv), by striking clause (i), (ii), or (iii), and inserting clause (i), (ii), (iii), or (iv) ; (C) by redesignating clause (iv) as clause (v); and (D) by inserting after clause (iii) the following: (iv) is a ski instructor, who has been certified as a level I, II, or III ski and snowboard instructor by the Professional Ski Instructors of America or the American Association of Snowboard Instructors, or received an equivalent certification in the alien's country of origin, and is seeking to enter the United States temporarily to perform instructing services; or . (2) Authorized period of stay; numerical limitation Section 214(a)(2)(B) ( 8 U.S.C. 1184(a)(2)(B) ) is amended in the second sentence— (A) by inserting or ski instructors after athletes ; and (B) by inserting or ski instructor after athlete . (3) Construction Nothing in the amendments made by this subsection may be construed as preventing an alien who is a ski instructor from obtaining nonimmigrant status under section 101(a)(15)(H)(ii)(b) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15)(H)(ii)(b) ) if such alien is otherwise qualified for such status. (c) Effective date The amendment made by subsection (a) shall take effect as if enacted on January 1, 2013. 4602. Other requirements for H–2B employers Section 214 ( 8 U.S.C. 1184 ), as amended by sections 3609, 4233, 4405, 4503, and 4504, is further amended by adding at the end the following: (x) Requirements for H–2B employers (1) H–2B nonimmigrant defined In this subsection the term H–2B nonimmigrant means an alien admitted to the United States pursuant to section 101(a)(15)(H)(ii)(B). (2) Non-displacement of United States workers An employer who seeks to employ an H–2B nonimmigrant admitted in an occupational classification shall certify and attest that the employer did not displace and will not displace a United States worker employed by the employer in the same metropolitan statistical area where such nonimmigrant will be hired within the period beginning 90 days before the start date and ending on the end date for which the employer is seeking the services of such nonimmigrant as specified on an application for labor certification under this Act. (3) Transportation costs The employer shall pay the transportation costs, including reasonable subsistence costs during the period of travel, for an H–2B nonimmigrant hired by the employer— (A) from the place of recruitment to the place of such nonimmigrant's employment; and (B) from the place of employment to such nonimmigrant's place of permanent residence or a subsequent worksite. (4) Payment of fees A fee related to the hiring of an H–2B nonimmigrant required to be paid by an employer under this Act shall be paid by the employer and may not be deducted from the wages or other compensation paid to an H–2B nonimmigrant. (5) H–2B nonimmigrant labor certification application fee (A) In general To recover costs of carrying out labor certification activities under the H–2B program, the Secretary of Labor shall impose a $500 fee on an employer that submits an application for an employment certification for aliens granted H–2B nonimmigrant status to the Secretary of Labor under this subparagraph on or after the date that is 30 days after the date of the enactment of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 . . (B) Use of fees The fees collected under subparagraph (A) shall be deposited in the Comprehensive Immigration Reform Trust Fund established under section 9 of the Border Security, Economic Opportunity, and Immigration Modernization Act. . 4603. Executives and managers Section 214(a)(1) ( 8 U.S.C. 1184(a)(1) ) is amended by adding at the end the following: “Aliens admitted under section 101(a)(15) should include— (A) executives and managers employed by a firm or corporation or other legal entity or an affiliate or subsidiary thereof who are principally stationed abroad and who seek to enter the United States for periods of 90 days or less to oversee and observe the United States operations of their related companies, and establish strategic objectives when needed; or (B) employees of multinational corporations who enter the United States to observe the operations of a related United States company and participate in select leadership and development training activities, whether or not the activity is part of a formal or classroom training program for a period not to exceed 180 days. Nonimmigrant aliens admitted pursuant to section 101(a)(15) and engaged in the activities described in the subparagraph (A) or (B) may not receive a salary from a United States source, except for incidental expenses for meals, travel, lodging and other basic services. . 4604. Honoraria Section 212(q) ( 8 U.S.C. 1182(q) ) is amended to read as follows: (q) (1) Any alien admitted under section 101(a)(15)(B) may accept an honorarium payment and associated incidental expenses, for a usual academic activity or activities (lasting not longer than 9 days at any single institution), as defined by the Attorney General in consultation with the Secretary of Education, or for a performance, appearance and participation in United States based programming, including scripted or unscripted programming (with services not rendered for more than 60 days in a 6 month period) if the alien has received a letter of invitation from the institution, organization, or media outlet, such payment is offered by an institution, organization, or media outlet described in paragraph (2) and is made for services conducted for the benefit of that institution, entity or media outlet and if the alien has not accepted such payment or expenses from more than 5 institutions, organizations, or media outlets in the previous 6-month period. Any alien who is admitted under section 101(a)(15)(B) or any other valid visa may perform services under this section without reentering the United States and without a letter of invitation, if the alien does not receive any remuneration including an honorarium payment or incidental expenses, but may receive prize money. (2) An institution, organization, or media outlet described in this paragraph— (A) an institution of higher education (as defined in section 101(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1001(a) )) or a related or affiliated nonprofit entity; (B) a nonprofit research organization or a governmental research organization; and (C) a broadcast network, cable entity, production company, new media, Internet and mobile based companies, who create or distribute programming content. . 4605. Nonimmigrants participating in relief operations Section 214 ( 8 U.S.C. 1184 ), as amended by sections 3609, 4233, 4405, 4503, 4504, and 4602, is further amended by adding at the end following: (y) Nonimmigrants participating in relief operations (1) In general An alien coming individually, or aliens coming as a group, to participate in relief operations, including critical infrastructure repairs or improvements, needed in response to a Federal or State declared emergency or disaster, may be admitted to the United States pursuant to section 101(a)(15)(B) for a period of not more than 90 days if each such alien has been employed in a foreign country by 1 employer for not less than 1 year prior to the date the alien is so admitted. (2) Prohibition on direct payments from a United States source During a period of admission pursuant to paragraph (1), an alien may not receive direct payments from a United States source, except for incidental expenses for meals, travel, lodging, and other basic services. . 4606. Nonimmigrants performing maintenance on common carriers Section 214 ( 8 U.S.C. 1184 ), as amended by sections 3609, 4233, 4405, 4503, 4504, 4602, and 4603, is further amended by adding at the end following: (z) Nonimmigrants performing maintenance on common carrier (1) In general An alien coming individually, or aliens coming as a group, who possess specialized knowledge to perform maintenance or repairs for common carriers, including to airlines, cruise lines, and railways, if such maintenance or repairs are occurring to equipment or machinery manufactured outside of the United States and are needed for purposes relating to life, health, and safety, may be admitted to the United States pursuant to section 101(a)(15)(B) for a period of not more than 90 days if each such alien has been employed in a foreign country by 1 employer for not less than 1 year prior to the date the alien is so admitted. (2) Prohibition on income from a United States source During a period of admission pursuant to paragraph (1), an alien may not receive income from a United States source, except for incidental expenses for meals, travel, lodging, and other basic services. (3) Fee (A) In general An alien admitted pursuant to paragraph (1) shall pay a fee of $500 in addition to any fee assessed to cover the costs to process an application under this subsection. (B) Use of fee The fees collected under subparagraph (A) shall be deposited in the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1) of the Border Security, Economic Opportunity, and Immigration Modernization Act. . 4607. American jobs in American forests (a) Short title This section may be cited as the American Jobs in American Forests Act of 2013 . (b) Definitions In this section: (1) Forestry The term forestry means— (A) propagating, protecting, and managing forest tracts; (B) felling trees and cutting them into logs; (C) using hand tools or operating heavy powered equipment to perform activities such as preparing sites for planting, tending crop trees, reducing competing vegetation, moving logs, piling brush, and yarding and trucking logs from the forest; and (D) planting seedlings and trees. (2) H–2B nonimmigrant The term H–2B nonimmigrant means a nonimmigrant described in section 101(a)(15)(H)(ii)(b) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15)(H)(ii)(b) ). (3) Prospective H–2B employer The term prospective H–2B employer means a United States business that is considering employing 1 or more nonimmigrants described in section 101(a)(15)(H)(ii)(b) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15)(H)(ii)(b) ). (4) State workforce agency Except as used in subsection (c), the term State workforce agency means the workforce agency of the State in which the prospective H–2B employer intends to employ H–2B nonimmigrants. (c) Department of Labor (1) Recruitment As a component of the labor certification process required before H–2B nonimmigrants are offered forestry employment in the United States, the Secretary of Labor shall require all prospective H–2B employers, before they submit a petition to hire H–2B nonimmigrants to work in forestry, to conduct a robust effort to recruit United States workers, including, to the extent the State workforce agency considers appropriate— (A) advertising at employment or job-placement events, such as job fairs; (B) advertising with State or local workforce agencies, nonprofit organizations, or other appropriate entities, and working with such entities to identify potential employees; (C) advertising in appropriate media, including local radio stations and commonly used, reputable Internet job-search sites; and (D) such other recruitment strategies as the State workforce agency considers appropriate for the sector or positions for which H–2B nonimmigrants would be considered. (2) Separate petitions A prospective H–2B employer shall submit a separate petition for each State in which the employer plans to employ H–2B nonimmigrants in forestry for a period of 7 days or longer. (d) State workforce agencies The Secretary of Labor may not grant a temporary labor certification to a prospective H–2B employer seeking to employ H–2B nonimmigrants in forestry until after the Director of the State workforce agency— (1) has, after formally consulting with the workforce agency director of each contiguous State listed on the prospective H–2B employer’s application, determined that— (A) the employer has complied with all recruitment requirements set forth in subsection (c) and there is a legitimate demand for the employment of H–2B nonimmigrants in each of those States; or (B) the employer has amended the application by removing or making appropriate modifications with respect to the States in which the criteria set forth in subparagraph (A) have not been met; (2) certifies that the prospective H–2B employer has complied with all recruitment requirements set forth in subsection (c) or any other applicable provision of law; and (3) makes a formal determination that nationals of the United States are not qualified or available to fill the employment opportunities offered by the prospective H–2B employer. G W nonimmigrant visas 4701. Bureau of Immigration and Labor Market Research (a) Definitions In this section: (1) Bureau Except as otherwise specifically provided, the term Bureau means the Bureau of Immigration and Labor Market Research established under subsection (b). (2) Commissioner The term Commissioner means the Commissioner of the Bureau. (3) Construction occupation The term construction occupation means an occupation classified by the Bureau of Labor Statistics as being within the construction industry for the purposes of publishing the Bureau's workforce statistics. (4) Metropolitan statistical area The term metropolitan statistical area means a geographic area designated as a metropolitan statistical area by the Director of the Office of Management and Budget. (5) Shortage occupation The term shortage occupation means an occupation that the Commissioner determines is experiencing a shortage of labor— (A) throughout the United States; or (B) in a specific metropolitan statistical area. (6) W visa program The term W Visa Program means the program for the admission of nonimmigrant aliens described in subparagraph (W)(i) of section 101(a)(15) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15) ), as added by section 4702. (7) Zone 1 occupation The term zone 1 occupation means an occupation that requires little or no preparation and is classified as a zone 1 occupation on— (A) the Occupational Information Network Database (O*NET) on the date of the enactment of this Act; or (B) such Database or a similar successor database, as designated by the Secretary of Labor, after the date of the enactment of this Act. (8) Zone 2 occupation The term zone 2 occupation means an occupation that requires some preparation and is classified as a zone 2 occupation on— (A) the Occupational Information Network Database (O*NET) on the date of the enactment of this Act; or (B) such Database or a similar successor database, as designated by the Secretary of Labor, after the date of the enactment of this Act. (9) Zone 3 occupation The term zone 3 occupation means an occupation that requires medium preparation and is classified as a zone 3 occupation on— (A) the Occupational Information Network Database (O*NET) on the date of the enactment of this Act; or (B) such Database or a similar successor database, as designated by the Secretary of Labor, after the date of the enactment of this Act. (b) Establishment There is established a Bureau of Immigration and Labor Market Research as an independent statistical agency within U.S. Citizenship and Immigration Services. (c) Commissioner The head of the Bureau of Immigration and Labor Market Research is the Commissioner, who shall be appointed by the President, by and with the advice and consent of the Senate. (d) Duties The duties of the Commissioner are limited to the following: (1) To devise a methodology subject to publication in the Federal Register and an opportunity for public comment regarding the calculation for the index referred to in section 220(g)(2)(C) of the Immigration and Nationality Act, as added by section 4703. (2) To determine and to publish in the Federal Register the annual change to the numerical limitation for nonimmigrant aliens described in subparagraph (W)(i) of section 101(a)(15) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15) ), as added by section 4702. (3) With respect to the W Visa Program, to supplement the recruitment methods employers may use to attract United States workers and current nonimmigrant aliens described in paragraph (2). (4) With respect to the W Visa Program, to devise a methodology subject to publication in the Federal Register and an opportunity for public comment to designate shortage occupations in zone 1 occupations, zone 2 occupations, and zone 3 occupations. (5) With respect to the W Visa Program, to designate shortage occupations in any zone 1 occupation, zone 2 occupation, or zone 3 occupation and publish such occupations in the Federal Register. (6) With respect to the W Visa Program, to conduct a survey once every 3 months of the unemployment rate of zone 1 occupations, zone 2 occupations, or zone 3 occupations that are construction occupations in each metropolitan statistical area. (7) To study and report to Congress on employment-based immigrant and nonimmigrant visa programs in the United States and to make annual recommendations to improve such programs. (8) To carry out any functions required to perform the duties described in paragraphs (1) through (7). (e) Determination of changes to numerical limitations The methodology required under subsection (d)(1) shall be published in the Federal Register not later than 18 months after the date of the enactment of this Act. (f) Designation of shortage occupations (1) Methods to determine The Commissioner shall— (A) establish the methodology to designate shortage occupations under subsection (d)(4); and (B) publish such methodology in the Federal Register not later than 18 months after the date of the enactment of this Act. (2) Petition by employer The methodology established under paragraph (1) shall permit an employer to petition the Commissioner for a determination that a particular occupation in a particular metropolitan statistical area is a shortage occupation. (3) Requirement for notice and comment The methodology established under paragraph (1) shall be effective only after publication in the Federal Register and an opportunity for public comment. (g) Employee expertise The employees of the Bureau shall have the expertise necessary to identify labor shortages in the United States and make recommendations to the Commissioner on the impact of immigrant and nonimmigrant aliens on labor markets in the United States, including expertise in economics, labor markets, demographics and methods of recruitment of United States workers. (h) Interagency cooperation At the request of the Commissioner, the Secretary of Commerce, the Director of the Bureau of the Census, the Secretary of Labor, and the Commissioner of the Bureau of Labor Statistics shall— (1) provide data to the Commissioner; (2) conduct appropriate surveys; and (3) assist the Commissioner in preparing the recommendations referred to subsection (d)(5). (i) Budget (1) Report Not later than 1 year after the date of the enactment of this Act, the Director of U.S. Citizenship and Immigration Services shall submit to Congress a report of the estimated budget that the Bureau will need to carry out the duties described in subsection (d). (2) Audit The Comptroller General of the United States shall submit to Congress a report that is an audit of the budget prepared by the Director under paragraph (1). (j) Funding (1) Appropriation of funds There is hereby appropriated, out of any money in the Treasury not otherwise appropriated, $20,000,000 to establish the Bureau. (2) Use of W nonimmigrant fees The amounts collected for fees under section 220(e)(6)(B) of the Immigration and Nationality Act, as added by section 4703, shall be used to establish and fund the Bureau. (3) Other fees The Secretary may establish other fees for the sole purpose of funding the W Visa Program, including the Bureau, that are related to the hiring of alien workers. 4702. Nonimmigrant classification for W nonimmigrants Section 101(a)(15)(W), as added by section 2211, is amended by inserting before clause (iii) the following: (i) to perform services or labor for a registered nonagricultural employer in a registered position (as those terms are defined in section 220(a)) in accordance with the requirements under section 220; (ii) to accompany or follow to join such an alien described in clause (i) as the spouse or child of such alien; . 4703. Admission of W nonimmigrant workers (a) In general Chapter 2 of title II ( 8 U.S.C. 1181 et seq. ) is amended by adding at the end the following: 220. Admission of W nonimmigrant workers (a) Definitions In this section: (1) Bureau The term Bureau means the Bureau of Immigration and Labor Market Research established by section 4701 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 . (2) Certified alien The term certified alien means an alien that the Secretary of State has certified is eligible to be a W nonimmigrant if the alien is hired by a registered employer for a registered position. (3) Commissioner The term Commissioner means the Commissioner of the Bureau. (4) Construction occupation The term construction occupation means an occupation defined by the Bureau of Labor Statistics as being within the construction industry for the purposes of publishing the Bureau's workforce statistics. (5) Department Except as otherwise provided, the term Department means the Department of Homeland Security. (6) Eligible occupation The term eligible occupation means an eligible occupation described in subsection (e)(3). (7) Employer (A) In general The term employer means any person or entity hiring an individual for employment in the United States. (B) Treatment of single employer For purposes of determining the number of employees or United States workers employed by an employer, a single entity shall be treated as 1 employer. (8) Excluded geographic location The term excluded geographic location means an excluded geographic location described in subsection (f). (9) Initial W nonimmigrant The term initial W nonimmigrant means a certified alien issued a W nonimmigrant visa by the Secretary of State pursuant to section 101(a)(15)(W)(i) in order to seek initial admission to the United States to commence employment for a registered employer in a registered position subject to the numerical limit at section 220(g). (10) Metropolitan statistical area The term metropolitan statistical area means a geographic area designated as a metropolitan statistical area by the Director of the Office of Management and Budget. (11) Registered employer The term registered employer means a nonagricultural employer that the Secretary has designated as a registered employer under subsection (d). (12) Secretary Except as otherwise specifically provided, the term Secretary means the Secretary of Homeland Security. (13) Single entity The term single entity means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414 of the Internal Revenue Code of 1986. (14) Shortage occupation The term shortage occupation means a shortage occupation designated by the Commissioner pursuant to section 4701(d)(4) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 . (15) Small business The term small business means an employer that employs 25 or fewer full-time equivalent employees. (16) United States worker The term United States worker means an individual who is— (A) employed or seeking employment in the United States; and (B) (i) a national of the United States; (ii) an alien lawfully admitted for permanent residence; (iii) an alien in Registered Provisional Immigrant Status; or (iv) any other alien authorized to work in the United States with no limitation as to the alien's employer. (17) W nonimmigrant The term W nonimmigrant means an alien admitted as a nonimmigrant pursuant to section 101(a)(15)(W)(i). (18) W nonimmigrant visa The term W nonimmigrant visa means a visa issued to a certified alien by the Secretary of State pursuant to section 101(a)(15)(W)(i). (19) W visa program The term W Visa Program means the program for the admission of nonimmigrant aliens described in section 101(a)(15)(W)(i). (20) Zone 1 occupation The term zone 1 occupation means an occupation that requires little or no preparation and is classified as a zone 1 occupation on— (A) the Occupational Information Network Database (O*NET) on the date of the enactment of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 ; or (B) such Database or a similar successor database, as designated by the Secretary of Labor, after the date of the enactment of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 . (21) Zone 2 occupation The term zone 2 occupation means an occupation that requires some preparation and is classified as a zone 2 occupation on— (A) the Occupational Information Network Database (O*NET) on the date of the enactment of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 ; or (B) such Database or a similar successor database, as designated by the Secretary of Labor, after the date of the enactment of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 . (22) Zone 3 occupation The term zone 3 occupation means an occupation that requires medium preparation and is classified as a zone 3 occupation on— (A) the Occupational Information Network Database (O*NET) on the date of the enactment of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 ; or (B) such Database or a similar successor database, as designated by the Secretary of Labor, after the date of the enactment of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 . (b) Admission into the United States (1) W nonimmigrants Subject to this section, a certified alien is eligible to be admitted to the United States as a W nonimmigrant if the alien is hired by a registered employer for employment in a registered position in a location that is not an excluded geographic location. (2) Spouse and minor children The— (A) alien spouse and minor children of a W nonimmigrant may be admitted to the United States pursuant to clause (ii) of section 101(a)(15)(W) during the period of the principal W nonimmigrant's admission; and (B) such alien spouse shall be— (i) authorized to engage in employment in the United States during such period of admission; and (ii) provided with an employment authorization document, stamp, or other appropriate work permit. (c) W nonimmigrants (1) Certified alien (A) Application An alien seeking to be a W nonimmigrant shall apply to the Secretary of State at a United States embassy or consulate in a foreign country to be a certified alien. (B) Criteria An alien is eligible to be a certified alien if the alien— (i) is not inadmissible under this Act; (ii) passes a criminal background check; (iii) agrees to accept only registered positions in the United States; and (iv) meets other criteria as established by the Secretary. (2) W nonimmigrant status Only an alien that is a certified alien may be admitted to the United States as a W nonimmigrant. (3) Initial employment A W nonimmigrant shall report to such nonimmigrant's initial employment in a registered position not later than 14 days after such nonimmigrant is admitted to the United States. (4) Term of admission (A) Initial term A certified alien may be granted W nonimmigrant status for an initial period of 3 years. (B) Renewal A W nonimmigrant may renew his or her status as a W nonimmigrant for additional 3-year periods. Such a renewal may be made while the W nonimmigrant is in the United States and shall not require the alien to depart the United States. (5) Periods of unemployment A W nonimmigrant— (A) may be unemployed for a period of not more than 60 consecutive days; and (B) shall depart the United States if such W nonimmigrant is unable to obtain employment during such period. (6) Travel A W nonimmigrant may travel outside the United States and be readmitted to the United States. Such travel may not extend the period of authorized admission of such W nonimmigrant. (d) Registered employer (1) Application An employer seeking to be a registered employer shall submit an application to the Secretary. Each such application shall include the following: (A) Documentation to establish that the employer is a bona-fide employer. (B) The employer's Federal tax identification number or employer identification number issued by the Internal Revenue Service. (C) The number of W nonimmigrants the employer estimates it will seek to employ annually. (2) Referral for fraud investigation The Secretary may refer an application submitted under paragraph (1) or subsection (e)(1)(A) to the Fraud Detection and National Security Directorate of U.S. Citizenship and Immigration Services if there is evidence of fraud for potential investigation. (3) Ineligible employers (A) In general Notwithstanding any other applicable penalties under law, the Secretary may deny an employer’s application to be a registered employer if the Secretary determines, after notice and an opportunity for a hearing, that the employer submitting such application— (i) has, with respect to the application required under paragraph (1), including any attestations required by law— (I) knowingly misrepresented a material fact; (II) knowingly made a fraudulent statement; or (III) knowingly failed to comply with the terms of such attestations; or (ii) failed to cooperate in the audit process in accordance with regulations promulgated by the Secretary; (iii) has been convicted of an offense set out in chapter 77 of title 18, United States Code, or any conspiracy to commit such offenses, or any human trafficking offense under State or territorial law; (iv) has, within 2 years prior to the date of application— (I) received a final adjudication of having committed any hazardous occupation orders violation resulting in injury or death under the child labor provisions contained in section 12 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 211 ) and any pertinent regulation; (II) received a final adjudication assessing a civil money penalty for any repeated or willful violation of the minimum wage provisions of section 6 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206 ); or (III) received a final adjudication assessing a civil money penalty for any willful violation of the overtime provisions of section 7 of the Fair Labor Standards Act of 1938 or any regulations thereunder; or (v) has, within 2 years prior to the date of application, received a final adjudication for a willful violation or repeated serious violations involving injury or death— (I) of section 5 of the Occupational Safety and Health Act of 1970 ( 29 U.S.C. 654 ); (II) of any standard, rule, or order promulgated pursuant to section 6 of the Occupational Safety and Health Act of 1970 ( 29 U.S.C. 655 ); or (III) of a plan approved under section 18 of the Occupational Safety and Health Act of 1970 ( 29 U.S.C. 667 ). (B) Length of ineligibility (i) Temporary ineligibility An employer described in subparagraph (A) may be ineligible to be a registered employer for a period that is not less than the time period determined by the Secretary and not more than 3 years. (ii) Permanent ineligibility An employer who has been convicted of any offense set out in chapter 77 of title 18, United States Code, or any conspiracy to commit such offenses, or any human trafficking offense under State or territorial law shall be permanently ineligible to be a registered employer. (4) Term of registration The Secretary shall approve applications meeting the criteria of this subsection for a term of 3 years. (5) Renewal An employer may submit an application to renew the employer's status as a registered employer for additional 3-year periods. (6) Fee At the time an employer's application to be a registered employer or to renew such status is approved, such employer shall pay a fee in an amount determined by the Secretary to be sufficient to cover the costs of the registry of such employers. (7) Continued eligibility Each registered employer shall submit to the Secretary an annual report that demonstrates that the registered employer has provided the wages and working conditions the registered employer agreed to provide to its employees. (e) Registered positions (1) In general (A) Application Each registered employer shall submit to the Secretary an application to designate a position for which the employer is seeking a W nonimmigrant as a registered position. The Secretary is authorized to determine if the wage to be paid by the employer complies with subparagraph (B)(iv). Each such application shall include a description of each such position. (B) Attestation An application submitted under subparagraph (A) shall include an attestation of the following: (i) The number of full-time equivalent employees of the employer. (ii) The occupational category, as classified by the Secretary of Labor, for which the registered position is sought. (iii) Whether the occupation for which the registered position is sought is a shortage occupation. (iv) Except as provided in subsection (g)(4)(C)(i), the wages to be paid to W nonimmigrants employed by the employer in the registered position, including a position in a shortage occupation, will be the greater of— (I) the actual wage level paid by the employer to other employees with similar experience and qualifications for such position; or (II) the prevailing wage level for the occupational classification of the position in the metropolitan statistical area of the employment, as determined by the Secretary, based on the best information available as of the time of filing the application. (v) The working conditions for W nonimmigrants will not adversely affect the working conditions of other workers employed in similar positions. (vi) The employer has carried out the recruiting activities required by paragraph (2)(B). (vii) There is no qualified United States worker who has applied for the position and who is ready, willing, and able to fill such position pursuant to the requirements in subparagraphs (B) and (C) of paragraph (2). (viii) There is not a strike, lockout, or work stoppage in the course of a labor dispute in the occupation at the place of employment at which the W nonimmigrant will be employed. If such strike, lockout, or work stoppage occurs following submission of the application, the employer will provide notification in accordance with all applicable regulations. (ix) (I) The employer has not laid off and will not layoff a United States worker during the period beginning 90 days prior to and ending 90 days after the date the employer files an application for designation of a position for which the W nonimmigrant is sought or hires such W nonimmigrant, unless the employer has notified such United States worker of the position and documented the legitimate reasons that such United States worker is not qualified or available for the position. (II) A United States worker is not laid off for purposes of this subparagraph if, at the time such worker’s employment is terminated, such worker is not employed in the same occupation and in the same metropolitan statistical area where the registered position referred to in subclause (I) is located. (C) Best information available In subparagraph (B)(iv)(II), the term best information available , with respect to determining the prevailing wage for a position, means— (i) a controlling collective bargaining agreement or Federal contract wage, if applicable; (ii) if there is no applicable wage under clause (i), the wage level commensurate with the experience, training, and supervision required for the job based on Bureau of Labor Statistics data; or (iii) if the data referred to in clause (ii) is not available, a legitimate and recent private survey of the wages paid for such positions in the metropolitan statistical area. (D) Permit The Secretary shall provide each registered employer whose application submitted under subparagraph (A) is approved with a permit that includes the number and description of such employer's approved registered positions. (E) Term of registration The approval of a registered position under subparagraph (A) is for a term that begins on the date of such approval and ends on the earlier of— (i) the date the employer's status as a registered employer is terminated; (ii) 3 years after the date of such approval; or (iii) upon proper termination of the registered position by the employer. (F) Registry of registered positions (i) Maintenance of registry The Secretary shall develop and maintain a registry of approved registered positions for which the Secretary has issued a permit under subparagraph (D). (ii) Availability on website The registry required by clause (i) shall be accessible on a website maintained by the Secretary. (iii) Availability on State workforce agency websites Each State workforce agency shall be linked to such registry and provide access to such registry through the website maintained by such agency. (iv) Conditions of availability on website (I) In general Each approved registered position for which the Secretary has issued a permit shall be included in the registry of registered positions maintained by the Secretary and shall remain available for viewing on such registry throughout the term of registration referred to in subparagraph (E) or paragraph (5). (II) Indication of vacancy The Secretary shall ensure that such registry indicates whether each approved registered position in the registry is filled or unfilled. (III) Requirement for 10-day posting If a W nonimmigrant’s employment in a registered position ends, either voluntarily or involuntarily, the Secretary shall ensure that such registry indicates that the registered position is unfilled for a period of 10 calendar days, unless such registered position is filled by a United States worker. (2) Requirements (A) Eligible occupation Each registered position shall be for a position in an eligible occupation as described in paragraph (3). (B) Recruitment of United States workers (i) Requirements A position may not be a registered position unless the registered employer— (I) advertises the position for a period of 30 days, including the wage range, location, and proposed start date— (aa) on the Internet website maintained by the Secretary of Labor for the purpose of such advertising; and (bb) with the workforce agency of the State where the position will be located; and (II) except as provided for in subsection (g)(4)(B)(i), carries out not less than 3 of the recruiting activities described in subparagraph (C). (ii) Duration of advertising The 30-day periods required by item (aa) or (bb) of clause (i)(I) may occur at the same time. (C) Recruiting activities The recruiting activities described in this subparagraph, with respect to a position for which the employer is seeking a W nonimmigrant, shall consist of any combination of the following as defined by the Secretary of Homeland Security: (i) Advertising such position at job fairs. (ii) Advertising such position on the employer’s external website. (iii) Advertising such position on job search Internet websites. (iv) Advertising such position using presentations or postings at vocational, career technical schools, community colleges, high schools, or other educational or training sites. (v) Posting such position with trade associations. (vi) Utilizing a search firm to seek applicants for such position. (vii) Advertising such position through recruitment programs with placement offices at vocational schools, career technical schools, community colleges, high schools, or other educational or training sites. (viii) Advertising such position through advertising or postings with local libraries, journals, or newspapers. (ix) Seeking a candidate for such position through an employee referral program with incentives. (x) Advertising such position on radio or television. (xi) Advertising such position through advertising, postings, or presentations with newspapers, Internet websites, job fairs, or community events targeted to constituencies designed to increase employee diversity. (xii) Advertising such position through career day presentations at local high schools or community organizations. (xiii) Providing in-house training. (xiv) Providing third-party training. (xv) Advertising such position through recruitment, educational, or other cooperative programs offered by the employer and a local economic development authority. (xvi) Advertising such position twice in the Sunday ads in the primary daily circulation newspaper in the area. (xvii) Any other recruitment activities determined to be appropriate to be added by the Commissioner. (3) Eligible occupation (A) In general An occupation is an eligible occupation if the occupation— (i) is a zone 1 occupation, a zone 2 occupation, or zone 3 occupation; and (ii) is not an excluded occupation under subparagraph (B). (B) Excluded occupations (i) Occupations requiring college degrees An occupation that is listed in the Occupational Outlook Handbook published by the Bureau of Labor Statistics (or similar successor publication) that is classified as requiring an individual with a bachelor’s degree or higher level of education may not be an eligible occupation. (ii) Computer occupations An occupation in the field of computer operation, computer programming, or computer repair may not be an eligible occupation. (C) Publication The Secretary of Labor shall publish the eligible occupations, designated as zone 1 occupations, zone 2 occupations, or zone 3 occupations, on an on-going basis on a publicly available website. (4) Filling of vacancies If a W nonimmigrant’s employment in a registered position ends, such employer may fill that vacancy— (A) by hiring a United States worker; or (B) after the 10 calendar day posting period in subsection (e)(1)(F)(iv)(III) by hiring— (i) a W nonimmigrant; or (ii) if available under subsection (g)(4), a certified alien. (5) Period of approval (A) In general Except as provided in subparagraph (B), a registered position shall be approved by the Secretary for a period of 3 years. (B) Returning W nonimmigrants (i) Extension of period A registered position shall continue to be a registered position at the end of the 3-year period referred to in subparagraph (A) if the W nonimmigrant hired for such position is the beneficiary of a petition for immigrant status filed by the registered employer pursuant to this Act or is returning to the same registered employer. (ii) Termination of period The term of a registration position extended under clause (i) shall terminate on the date that is the earlier of— (I) the date an application or petition by or for a W nonimmigrant to obtain immigrant status is approved or denied by the Secretary; or (II) the date of the termination of such W nonimmigrant’s employment with the registered employer. (6) Fees (A) Registration fee (i) In general At the time a W nonimmigrant commences employment in the registered position for a registered employer, such employer shall pay a registration fee in an amount determined by the Secretary. (ii) Use of fee A fee collected under clause (i) shall be used to fund any aspect of the operation of the W Visa Program. (B) Additional fee (i) In general In addition to the fee required by subparagraph (A), a registered employer, at the time a W nonimmigrant commences employment in the registered position for the registered employer, shall pay an additional fee for each such approved registered position as follows: (I) A fee of $1,750 for the registered position if the registered employer, at the time of filing the application for the registered position, is a small business and more than 50 percent and less than 75 percent of the employees of the registered employer are not United States workers. (II) A fee of $3,500 for the registered position if the registered employer, at the time of filing the application for the registered position, is a small business and more than 75 percent of the employees of the registered employer are not United States workers. (III) A fee of $3,500 for the registered position if the registered employer, at the time of filing the application for the registered position, is not a small business and more than 15 percent and less than 30 percent of the employees of the registered employer are not United States workers. (ii) Use of fee A fee collected under clause (i) shall be used to fund the operations of the Bureau. (C) Prohibition on other fees A registered employer may not be required to pay an additional fee other than any fees specified in this Act if the registered employer is a small business. (7) Prohibition on registered positions for certain employers The Secretary may not approve an application for a registered position for an employer if the employer is not a small business and 30 percent or more of the employees of the employer are not United States workers. (f) Excluded geographic location No application for a registered position filed by a registered employer for an eligible occupation may be approved if the registered position is located in a metropolitan statistical area that has an unemployment rate that is more than 8 1/2 percent as reported in the most recent month preceding the date that the application is submitted to the Secretary unless— (1) the Commissioner has identified the eligible occupation as a shortage occupation; or (2) the Secretary approves the registered position under subsection (g)(4). (g) Numerical limitation (1) Registered positions (A) In general Subject to paragraphs (3) and (4), the maximum number of registered positions that may be approved by the Secretary for a year is as follows: (i) For the first year aliens are admitted as W nonimmigrants, 20,000. (ii) For the second such year, 35,000. (iii) For the third such year, 55,000. (iv) For the fourth such year, 75,000. (v) For each year after the fourth such year, the level calculated for that year under paragraph (2). (B) Dates The first year referred to in subparagraph (A)(i) shall begin on April 1, 2015, and end on March 31, 2016, unless the Secretary determines that such first year shall begin on October 1, 2015, and end on September 30, 2016. (2) Years after year 4 (A) Current year and preceding year In this paragraph— (i) the term current year shall refer to the 12-month period for which the calculation of the numerical limits under this paragraph is being performed; and (ii) the term preceding year shall refer to the 12-month period immediately preceding the current year. (B) Numerical limitation Subject to subparagraph (D), the number of registered positions that may be approved by the Secretary for a year after the fourth year referred to in paragraph (1)(A)(iv) shall be equal to the sum of— (i) the number of such registered positions available under this paragraph for the preceding year; and (ii) the product of— (I) the number of such registered positions available under this paragraph for the preceding year; multiplied by (II) the index for the current year calculated under subparagraph (C). (C) Index The index calculated under this subparagraph for a current year equals the sum of— (i) one-fifth of a fraction— (I) the numerator of which is the number of registered positions that registered employers applied to have approved under subsection (e)(1) for the preceding year minus the number of registered positions approved under subsection (e) for the preceding year; and (II) the denominator of which is the number of registered positions approved under subsection (e) for the preceding year; (ii) one-fifth of a fraction— (I) the numerator of which is the number of registered positions the Commissioner recommends be available under this subparagraph for the current year minus the number of registered positions available under this subsection for the preceding year; and (II) the denominator of which is the number of registered positions available under this subsection for the preceding year; (iii) three-tenths of a fraction— (I) the numerator of which is the number of unemployed United States workers for the preceding year minus the number of unemployed United States workers for the current year; and (II) the denominator of which is the number of unemployed United States workers for the preceding year; and (iv) three-tenths of a fraction— (I) the numerator of which is the number of job openings as set out in the Job Openings and Labor Turnover Survey of the Bureau of Labor Statistics for the current year minus such number of job openings for the preceding year; and (II) the denominator of which is the number of such job openings for the preceding year; (D) Minimum and maximum levels The number of registered positions calculated under subparagraph (B) for a 12-month period may not be less than 20,000 nor more than 200,000. (3) Additional registered positions for shortage occupations In addition to the number of registered positions made available for a year under paragraph (1), the Secretary shall make available for a year an additional number of registered positions for shortage occupations in a particular metropolitan statistical area. (4) Special allocations of registered positions (A) Authority to make available In addition to the number of registered positions made available for a year under paragraph (1) or (3), the Secretary shall make additional registered positions available for the year for a specific registered employer as described in this paragraph, if— (i) the maximum number of registered positions available under paragraph (1) have been approved for the year and none remain available for allocation; or (ii) such registered employer is located in a metropolitan statistical area that has an unemployment rate that is more than 8 1/2 percent as reported in the most recent month preceding the date that the application is submitted to the Secretary. (B) Recruitment (i) In general Except as provided in clause (ii), an initial W nonimmigrant may only enter the United States for initial employment pursuant to a special allocation under this paragraph if the registered employer has carried out at least 7 of the recruiting activities described in subsection (e)(2)(C). (ii) Requirement to recruit W nonimmigrants in the United States A registered employer may register a position pursuant to a special allocation under this paragraph by conducting at least 3 of the recruiting activities described in subsection (e)(2)(C), however a position registered pursuant to this clause may not be filled by an initial W nonimmigrant entering the United States for initial employment. (iii) 30-day posting (I) Requirement Any registered employer registering any position under the special allocation authority shall post the position, including the wage range, location, and initial date of employment, for not less than 30 days— (aa) on the Internet website maintained by the Secretary of Labor for the purpose of such advertising; and (bb) with the workforce agency of the State where the position will be located. (II) Contemporaneous posting The 30-day periods required by items (aa) and (bb) of subclause (I) may occur at the same time. (C) Wages (i) Initial W nonimmigrants An initial W nonimmigrant entering the United States for initial employment pursuant to a registered position made available under this paragraph may not be paid less than the greater of— (I) the level 4 wage set out in the Foreign Labor Certification Data Center Online Wage Library (or similar successor website) maintained by the Secretary of Labor for such occupation in that metropolitan statistical area; or (II) the mean of the highest two-thirds of wages surveyed for such occupation in that metropolitan statistical area. (ii) Other W nonimmigrants A W nonimmigrant employed in a registered position referred to in subsection (g)(4)(B)(ii) may not be paid less than the wages required under subsection (e)(1)(B)(iv). (D) Reduction of future registered positions Each registered position made available for a year subject to the wage conditions of subparagraph (C)(i) shall reduce by 1 the number of registered positions made available under paragraph (g)(1) for the following year or the earliest possible year for which a registered position is available. The limitation contained in subsection (h)(4) shall not be reduced by any registered position made available under this paragraph. (h) Allocation of registered positions (1) In general (A) First 6-month period The number of registered positions available for the 6-month period beginning on the first day of a year is 50 percent of the maximum number of registered positions available for such year under paragraph (1) or (2) of subsection (g). Such registered positions shall be allocated as described in this subsection. (B) Second 6-month period The number of registered positions available for the 6-month period ending on the last day of a year is the maximum number of registered positions available for such year under paragraph (1) or (2) of subsection (g) minus the number of registered positions approved during the 6-month period referred to in subsection (A). Such registered positions shall be allocated as described in this subsection. (2) Shortage occupations (A) In general For the first month of each 6-month period referred to in subparagraph (A) or (B) of paragraph (1) a registered position may not be created in an occupation that is not a shortage occupation. (B) Initial designations Subparagraph (A) shall not apply in any period for which the Commissioner has not designated any shortage occupations. (3) Small businesses During the second, third, and fourth months of each 6-month period referred to in subparagraph (A) or (B) of paragraph (1), one-third of the number of registered positions allocated for such period shall be approved only for a registered employer that is a small business. Any such registered positions not approved for such small businesses during such months shall be available for any registered employer during the last 2 months of each such 6-month period. (4) Animal production subsectors In addition to the number of registered positions made available for a year under paragraph (1) or (3) of such section (g), the Secretary shall make additional registered positions available for the year for occupations designated by the Secretary of Labor as Animal Production Subsectors. The numerical limitation for such additional registered positions shall be no more than 10 percent of the annual numerical limitation provided for in such paragraph (1). (5) Limitation for construction occupations (A) In general Subject to subparagraph (B), not more than 33 percent of the registered positions made available under paragraph (1) or (2) of subsection (g) for a year may be granted to perform work in a construction occupation. (B) Maximum level Notwithstanding subparagraph (A), the number of registered positions granted to perform work in a construction occupation under subsection (g)(1) may not exceed 15,000 for a year and 7,500 for any 6-month period. (C) Prohibition for occupations with high unemployment (i) In general A registered employer may not hire a certified alien for a registered position to perform work in a construction occupation if the unemployment rate for construction occupations in the corresponding occupational job zone in that metropolitan statistical area was more than 8 1/2 percent. (ii) Determination of unemployment rate The unemployment rate used in clause (i) shall be determined— (I) using the most recent survey taken by the Bureau; or (II) if a survey referred to in subclause (I) is not available, using a recent and legitimate private survey. (i) Portability A W nonimmigrant who is admitted to the United States for employment by a registered employer may— (1) terminate such employment for any reason; and (2) seek and accept employment with another registered employer in any other registered position within the terms and conditions of the W nonimmigrant’s visa. (j) Promotion A registered employer may promote a W nonimmigrant if the W nonimmigrant has been employed with that employer for a period of not less than 12 months. Such a promotion shall not increase the total number of registered positions available to that employer. (k) Prohibition on outplacement A registered employer may not place, outsource, lease, or otherwise contract for the services or placement of a W nonimmigrant employee with another employer if more than 15 percent of the employees of the registered employer are W nonimmigrants. (l) W nonimmigrant protections (1) Applicability of laws A W nonimmigrant shall not be denied any right or any remedy under Federal, State, or local labor or employment law that would be applicable to a United States worker employed in a similar position with the employer because of the alien's status as a nonimmigrant worker. (2) Waiver of rights prohibited (A) In general A W nonimmigrant may not be required to waive any substantive rights or protections under this Act. (B) Construction Nothing under this paragraph may be construed to affect the interpretation of any other law. (3) Prohibition on treatment as independent contractors (A) In general Notwithstanding any other provision of law— (i) a W nonimmigrant is prohibited from being treated as an independent contractor under any Federal or State law; and (ii) no person, including an employer or labor contractor and any persons who are affiliated with or contract with an employer or labor contractor, may treat a W nonimmigrant as an independent contractor. (B) Construction Subparagraph (A) may not be construed to prevent registered employers who operate as independent contractors from employing W nonimmigrants. (4) Payment of fees (A) In general A fee related to the hiring of a W nonimmigrant required to be paid by an employer under this Act shall be paid by the employer and may not be deducted from the wages or other compensation paid to a W nonimmigrant. (B) Excluded costs The cost of round trip transportation from a certified alien's home to the location of a registered position and the cost of obtaining a foreign passport are not fees required to be paid by the employer. (5) Tax responsibilities An employer shall comply with all applicable Federal, State, and local tax laws with respect to each W nonimmigrant employed by the employer. (6) Prohibited activities It shall be unlawful for an employer of a W nonimmigrant to intimidate, threaten, restrain, coerce, retaliate, discharge, or in any other manner, discriminate against an employee or former employee because the employee or former employee— (A) discloses information to the employer or any other person that the employee or former employee reasonably believes demonstrates a violation of this section; or (B) cooperates or seeks to cooperate in an investigation or other proceeding concerning compliance with the requirements of this section. (m) Complaint process The Secretary shall establish a process for the receipt, investigation, and disposition of complaints by an aggrieved applicant, employee, or nonimmigrant (or a person acting on behalf of such applicant, employee, or nonimmigrant) with respect to— (1) the failure of a registered employer to meet a condition of this section; or (2) the lay off or nonhiring of a United States worker as prohibited under this section. (n) Enforcement (1) In general The Secretary shall promulgate regulations for the receipt, investigation, and disposition of complaints by an aggrieved W nonimmigrant respecting a violation of this section. (2) Filing deadline No investigation or hearing shall be conducted on a complaint concerning a violation under this section unless the complaint was filed not later than 6 months after the date of such violation. (3) Reasonable basis The Secretary shall conduct an investigation under this subsection if there is reasonable basis to believe that a violation of this section has occurred. The process established under this subsection shall provide that, not later than 30 days after a complaint is filed, the Secretary shall determine if there is reasonable cause to find such a violation. (4) Notice and hearing (A) In general Not later than 60 days after the Secretary makes a determination of reasonable basis under paragraph (3), the Secretary shall issue a notice to the interested parties and offer an opportunity for a hearing on the complaint, in accordance with section 556 of title 5, United States Code. (B) Hearing deadline Not later than 60 days after the date of a hearing under this paragraph, the Secretary shall make a finding on the matter. (5) Attorney's fees (A) Award A complainant who prevails in an action under this subsection with respect to a claim related to wages or compensation for employment, or a claim for a violation of subsection (l) or (m), shall be entitled to an award of reasonable attorney's fees and costs. (B) Frivolous complaints A complainant who files a frivolous complaint for an improper purpose under this subsection shall be liable for the reasonable attorney’s fees and costs of the person named in the complaint. (6) Power of the Secretary The Secretary may bring an action in any court of competent jurisdiction— (A) to seek remedial action, including injunctive relief; (B) to recover the damages described in this subsection and subsection (o); or (C) to ensure compliance with terms and conditions described in subsection (l)(6). (7) Other rights of employees The rights and remedies provided to W nonimmigrants under this section are in addition to any other contractual or statutory rights and remedies of the workers, and are not intended to alter or affect such rights and remedies. (o) Penalties (1) In general If, after notice and an opportunity for a hearing, the Secretary finds a violation of this section, the Secretary may impose administrative remedies and penalties, including— (A) back wages; (B) benefits; and (C) civil monetary penalties. (2) Civil penalties The Secretary may impose, as a civil penalty— (A) for a violation of this subsection— (i) a fine in an amount not more than $2,000 per violation per affected worker and $4,000 per violation per affected worker for each subsequent violation; (ii) if the violation was willful, a fine in an amount not more than $5,000 per violation per affected worker; and (iii) if the violation was willful and if in the course of such violation a United States worker was harmed, a fine in an amount not more than $25,000 per violation per affected worker; or (B) for knowingly failing to materially comply with the terms of representations made in petitions, applications, certifications, or attestations under this section— (i) a fine in an amount not more than $4,000 per aggrieved worker; and (ii) upon the occasion of a third offense of failure to comply with representations, a fine in an amount not to exceed $5,000 per affected worker and designation as an ineligible employer, recruiter, or broker for purposes of any immigrant or nonimmigrant program. (3) Criminal penalty Any person who knowingly misrepresents the number of full-time equivalent employees of an employer or the number of employees of a person who are United States workers for the purpose of reducing a fee under subsection (e)(6) or avoiding the limitation in subsection (e)(7), shall be fined in accordance with title 18, United States Code, in an amount up to $25,000 or imprisoned not more than 1 year, or both. (p) Monitoring (1) Requirement to monitor The Secretary shall monitor the movement of W nonimmigrants in registered positions through— (A) the Employment Verification System described in section 274A(d); and (B) the electronic monitoring system described in paragraph (2). (2) Electronic monitoring system (A) Requirement for system The Secretary, through U.S. Citizenship and Immigration Services, shall implement an electronic monitoring system to monitor presence and employment of W nonimmigrants, including a requirement that registered employers update the system when W nonimmigrants start and end employment in registered positions. (B) System description Such system shall be modeled on the Student and Exchange Visitor Information System (SEVIS) and SEVIS II tracking system of U.S. Immigration and Customs Enforcement. (C) Interaction with registry Such system shall interact with the registry referred to in subsection (e)(1)(F) to ensure that the Secretary designates and updates approved registered positions as being filled or unfilled. . (b) Table of contents amendment The table of contents in the first section ( 8 U.S.C. 1101 et seq. ) is amended by adding after the item relating to section 219 the following: Sec. 220. Admission of W nonimmigrant workers. . H Investing in new venture, entrepreneurial startups, and technologies 4801. Nonimmigrant INVEST visas (a) INVEST nonimmigrant category Section 101(a)(15) ( 8 U.S.C. 1101(a)(15) ), as amended by sections 2231, 2308, 2309, 3201, 4402, 4504, 4601, and 4702, is further amended by inserting after subparagraph (W) the following: (X) in accordance with the definitions in section 203(b)(6)(A), a qualified entrepreneur who has demonstrated that, during the 3-year period ending on the date on which the alien filed an initial petition for nonimmigrant status described in this clause— (i) a qualified venture capitalist, a qualified super angel investor, a qualified government entity, a qualified community development financial institution, qualified startup accelerator, or such other type of entity or investors, as determined by the Secretary, or any combination of such entities or investors, has made a qualified investment or combination of qualified investments of not less than $100,000 in total in the alien’s United States business entity; or (ii) the alien’s United States business entity has created no fewer than 3 qualified jobs and during the 2-year period ending on such date has generated not less than $250,000 in annual revenue arising from business conducted in the United States; or . (b) Admission of INVEST nonimmigrants Section 214 ( 8 U.S.C. 1184 ), as amended by sections 3608, 4232, 4405, 4503, 4504, 4602, 4605, and 4606, is further amended by adding at the end the following: (aa) INVEST nonimmigrant visas (1) Definitions The definitions in section 203(b)(6)(A) apply to this subsection. (2) Initial period of authorized admission The initial period of authorized status as a nonimmigrant described in section 101(a)(15)(X) shall be for an initial 3-year period. (3) Renewal of admission Subject to paragraph (4), the initial period of authorized nonimmigrant status described in paragraph (2) may be renewed for additional 3-year periods if during the most recent 3-year period that the alien was granted such status— (A) the alien’s United States business entity has created no fewer than 3 qualified jobs and a qualified venture capitalist, a qualified super angel investor, a qualified government entity, a qualified community development financial institution, qualified startup accelerator, or such other type of entity or investors, as determined by the Secretary, or any combination of such entities or investors, has made a qualified investment or combination of qualified investments of not less than $250,000 in total to the alien's United States business entity; or (B) the alien’s United States business entity has created no fewer than 3 qualified jobs and, during the 2-year period ending on the date that the alien petitioned for an extension, has generated not less than $250,000 in annual revenue arising from business conducted within the United States. (4) Waiver of renewal requirements The Secretary may renew an alien's status as a nonimmigrant described in section 101(a)(15)(X) for not more than 1 year at a time, up to an aggregate of 2 years if the alien— (A) does not meet the criteria under paragraph (3); and (B) meets the criteria established by the Secretary, in consultation with the Secretary of Commerce, for approving renewals under this subsection, which shall include a finding that— (i) the alien has made substantial progress in meeting such criteria; and (ii) such renewal is economically beneficial to the United States. (5) Attestation The Secretary may require an alien seeking status as a nonimmigrant described in section 101(a)(15)(X) to attest, under penalty of perjury, that the alien meets the application criteria. (6) X–1 visa fee In addition to processing fees, the Secretary shall collect a $1,000 fee from each nonimmigrant admitted under section 101(a)(15)(X). Fees collected under this paragraph shall be deposited into the Comprehensive Immigration Reform Trust Fund established under section 9(a)(1) of the Border Security, Economic Opportunity, and Immigration Modernization Act. . 4802. INVEST immigrant visa Section 203(b) ( 8 U.S.C. 1153(b) ) is amended— (1) by redesignating paragraph (6) as paragraph (7); and (2) by inserting after paragraph (5) the following: (6) INVEST immigrants (A) Definitions In this paragraph, section 101(a)(15)(X), and section 214(s): (i) Qualified community development financial institution The term qualified community development financial institution is defined as provided under section 1805.201 45D(c) of title 12, Code of Federal Regulations, or any similar successor regulations. (ii) Qualified entrepreneur The term qualified entrepreneur means an individual who— (I) has a significant ownership interest, which need not constitute a majority interest, in a United States business entity; (II) is employed in a senior executive position of such United States business entity; (III) submits a business plan to U.S. Citizenship and Immigration Services; and (IV) had a substantial role in the founding or early-stage growth and development of such United States business entity. (iii) Qualified government entity The term qualified government entity means an agency or instrumentality of the United States or of a State, local, or tribal government. (iv) Qualified investment The term qualified investment — (I) means an investment in a qualified entrepreneur's United States business entity that is— (aa) a purchase from the United States business entity or equity or convertible debt issued by such entity; (bb) a secured loan; (cc) a convertible debt note; (dd) a public securities offering; (ee) a research and development award from a qualified government entity to the United States entity; (ff) other investment determined appropriate by the Secretary; or (gg) a combination of the investments described in items (aa) through (ff); and (II) may not include an investment from such qualified entrepreneur, the parents, spouse, son, or daughter of such qualified entrepreneur, or from any corporation, company, association, firm, partnership, society, or joint stock company over which such qualified entrepreneur has a substantial ownership interest. (v) Qualified job The term qualified job means a full-time position of a United States business entity owned by a qualified entrepreneur that— (I) is located in the United States; (II) has been filled for at least 2 years by an individual who is not the qualified entrepreneur or the spouse, son, or daughter of the qualified entrepreneur; and (III) pays a wage that is not less than 250 percent of the Federal minimum wage. (vi) Qualified startup accelerator The term qualified startup accelerator means a corporation, company, association, firm, partnership, society, or joint stock company that— (I) is organized under the laws of the United States or any State and conducts business in the United States; (II) in the ordinary course of business, provides a program of training, mentorship, and logistical support to assist entrepreneurs in growing their businesses; (III) is managed by individuals, the majority of whom are citizens of the United States or aliens lawfully admitted for permanent residence; (IV) (aa) regularly acquires an equity interest in companies that participate in its programs, where the majority of the capital so invested is committed from individuals who are United States citizens or aliens lawfully admitted for permanent residence, or from entities organized under the laws of the United States or any State; or (bb) is an entity that has received not less than $250,000 in funding from a qualified government entity or entities during the previous 5 years and regularly makes grants to companies that participate in its programs (in which case, such grant shall be treated as a qualified investment for purposes of clause (iv)); (V) during the previous 5 years, has acquired an equity interest in, or, in the case of an entity described in subclause (IV)(bb), regularly made grants to, not fewer than 10 United States business entities that have participated in its programs and that have— (aa) each secured at least $100,000 in initial investments; or (bb) during any 2-year period following the date of such acquisition, generated not less than $500,000 in aggregate annual revenue within the United States; (VI) has its primary location in the United States; and (VII) satisfies such other criteria as may be established by the Secretary. (vii) Qualified super angel investor The term qualified super angel investor means an individual or organized group of individuals investing directly or through a legal entity— (I) each of whom is an accredited investor, as defined in section 230.501(a) of title 17, Code of Federal Regulations, or any similar successor regulation, investing the funds owned by such individual or organized group in a qualified entrepreneur's United States business entity; (II) (aa) if an individual, is a citizen of the United States or an alien lawfully admitted for permanent residence; or (bb) if an organized group or legal entity, a majority of the individuals investing through such group or entity are citizens of the United States or aliens lawfully admitted for permanent residence; and (III) each of whom in the previous 3 years has made qualified investments in a total amount determined to be appropriate by the Secretary, that is not less than $50,000, in United States business entities which are less than 5 years old. (viii) Qualified venture capitalist The term qualified venture capitalist means an entity— (I) that— (aa) is a venture capital operating company (as defined in section 2510.3–101(d) of title 29, Code of Federal Regulations (or any successor to such regulation)); or (bb) has management rights, as defined in, and to the extent required by, such section 2510.3–101(d) (or successor regulation), in its portfolio companies; (II) that has capital commitments of not less than $10,000,000; and (III) the investment adviser, that is registered under the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–2 ), for which— (aa) has its primary office location in the United States; (bb) is owned, directly or indirectly, by individuals, the majority of whom are citizens of the United States or aliens lawfully admitted for permanent residence in the United States; (cc) has been advising such entity or other similar funds or entities for at least 2 years; and (dd) has advised such entity or a similar fund or entity with respect to at least 2 investments of not less than $500,000 made by such entity or similar fund or entity during each of the most recent 2 years. (ix) Secretary Except as otherwise specifically provided, the term Secretary means the Secretary of Homeland Security. (x) Senior executive position The term senior executive position includes the position of chief executive officer, chief technology officer, and chief operating officer. (xi) United States business entity The term United States business entity means any corporation, company, association, firm, partnership, society, or joint stock company that is organized under the laws of the United States or any State and that conducts business in the United States that is not— (I) a private fund, as defined in 202(a) of the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–2 ); (II) a commodity pool, as defined in section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a ); (III) an investment company, as defined in section 3 of the Investment Company Act of 1940 ( 15 U.S.C. 80a–3 ); or (IV) an issuer that would be an investment company but for an exemption provided in— (aa) section 3(c) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–3(c) ; or (bb) section 270.3a–7 of title 17 of the Code of Federal Regulations or any similar successor regulation. (B) In general Visas shall be available, in a number not to exceed 10,000 for each fiscal year, to qualified immigrants seeking to enter the United States for the purpose of creating new businesses, as described in this paragraph. (C) Eligibility An alien is eligible for a visa under this paragraph if— (i) (I) the alien is a qualified entrepreneur; (II) the alien maintained valid nonimmigrant status in the United States for at least 2 years; (III) during the 3-year period ending on the date the alien files an initial petition for such status under this section— (aa) (AA) the alien has a significant ownership in a United States business entity that has created no fewer than 5 qualified jobs; and (BB) a qualified venture capitalist, a qualified super angel investor, a qualified government entity, a qualified community development financial institution, qualified startup accelerator, or such other entity or type of investors, as determined by the Secretary, or any combination of such entities or investors, has devoted a qualified investment or combination of qualified investments of not less than $500,000 in total to the alien's United States business entity; or (bb) (AA) the alien has a significant ownership interest in a United States business entity that has created no fewer than 5 qualified jobs; and (BB) during the 2-year period ending on such date has generated not less than $750,000 in annual revenue within the United States; and (IV) no more than 2 other aliens have received nonimmigrant status under this section on the basis of an alien's ownership of such United States business entity; (ii) (I) the alien is a qualified entrepreneur; (II) the alien maintained valid nonimmigrant status in the United States for at least 3 years prior to the date of filing an application for such status; (III) the alien holds an advanced degree in a field of science, technology, engineering, or mathematics, approved by the Secretary; and (IV) during the 3-year period ending on the date the alien files an initial petition for such status under this section— (aa) (AA) the alien has a significant ownership interest in a United States business entity that has created no fewer than 4 qualified jobs; and (BB) a qualified venture capitalist, a qualified super angel investor, a qualified government entity, a qualified community development financial institution, qualified startup accelerator, or such other entity or type of investors, as determined by the Secretary, or any combination of such entities or investors, has devoted a qualified investment or combination of qualified investments of not less than $500,000 in total to the alien's United States business entity; or (bb) (AA) the alien has a significant ownership interest in a United States business entity that has created no fewer than 3 qualified jobs; and (BB) during the 2-year period ending on such date has generated not less than $500,000 in annual revenue within the United States; and (V) no more than 3 other aliens have received nonimmigrant status under this section on the basis of an alien's ownership of such United States business entity. (D) Attestation The Secretary may require an alien seeking a visa under this paragraph to attest, under penalties of perjury, to the alien's qualifications. . 4803. Administration and oversight (a) Regulations Not later than 16 months after the date of the enactment of this Act, the Secretary, in consultation with the Secretary of Commerce, the Administrator of the Small Business Administration, and other heads of other relevant Federal agencies and departments, shall promulgate regulations to carry out the amendments made by this subtitle. Such regulations shall ensure that such amendments are implemented in a manner that is consistent with the protection of national security and promotion of United States economic growth, job creation, and competitiveness. (b) Modification of dollar amounts (1) In general The Secretary may from time to time prescribe regulations increasing or decreasing any dollar amount specified in section 203(b)(6) of the Immigration and Nationality Act, as added by section 4802, section 101(a)(15)(X) of such Act, as added by section 4801, or section 214(s), as added by section 4801. (2) Automatic adjustment Unless a dollar amount referred to in paragraph (1) is adjusted by the Secretary under paragraph (1), such dollar amount shall automatically adjust on January 1, 2016, by the percentage change in the Consumer Price Index (CPI–U) during fiscal year 2015, and on every fifth subsequent January 1 by the percentage change in the CPI–U during the previous 5 fiscal years, for any petition filed to classify an alien under this paragraph on or after the date of each automatic adjustment. (c) Other authority The Secretary, in the Secretary's unreviewable discretion, may deny or revoke the approval of a petition seeking classification of an alien under paragraph (6) of section 203(b) of the Immigration and Nationality Act, as added by section 4802, or any other petition, application, or benefit based upon the previous or concurrent filing or approval of a petition for classification of an alien under such paragraph (6), if the Secretary determines, in the Secretary's sole and unreviewable discretion, that the approval or continuation of such petition, application, or benefit is contrary to the national interest of the United States or for other good cause. (d) Reports Once every 3 years, the Secretary shall submit to Congress a report on this subtitle and the amendments made by this subtitle. Each such report shall include— (1) the number and percentage of entrepreneurs able to meet thresholds for nonimmigrant renewal and adjustment to green card status under the amendments made by this subtitle; (2) an analysis of the program’s economic impact including job and revenue creation, increased investments and growth within business sectors and regions; (3) a description and breakdown of types of businesses that entrepreneurs granted nonimmigrant or immigrant status are creating; (4) for each report following the Secretary’s initial report submitted under this subsection, a description of the percentage of the businesses initially created by the entrepreneurs granted immigrant and nonimmigrant status under this subtitle and the amendments made by this subtitle, that are still in operation; and (5) any recommendations for improving the program established by this subtitle and the amendments made by this subtitle. 4804. Permanent authorization of EB–5 Regional Center Program (a) Repeal Section 610 of the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1993 ( 8 U.S.C. 1153 note) is repealed. (b) Authorization Section 203(b)(5) ( 8 U.S.C. 1153(b)(5) ) is amended by adding at the end the following: (E) Regional center program (i) In general Visas under this paragraph shall be made available to qualified immigrants participating in a program implementing this paragraph that involves a regional center in the United States, which has been designated by the Secretary of Homeland Security, in consultation with the Secretary of Commerce, on the basis of a general proposal for the promotion of economic growth, including— (I) increased export sales; (II) improved regional productivity; (III) job creation; or (IV) increased domestic capital investment. (ii) Establishment of a regional center A regional center shall have jurisdiction over a defined geographic area, which shall be described in the proposal and consistent with the purpose of concentrating pooled investment in defined economic zones. The establishment of a regional center may be based on general predictions, contained in the proposal, concerning— (I) the kinds of commercial enterprises that will receive investments from aliens; (II) the jobs that will be created directly or indirectly as a result of such investments; and (III) other positive economic effects such investments will have. (iii) Compliance In determining compliance with subparagraph (A)(ii), the Secretary of Homeland Security shall permit aliens admitted under the program described in this subparagraph to establish reasonable methodologies for determining the number of jobs created by the program, including jobs estimated to have been created indirectly through— (I) revenues generated from increased exports, improved regional productivity, job creation; or (II) increased domestic capital investment resulting from the program, including jobs created outside of the geographic boundary of the regional center as a result of the immigrant’s investment in regional center-affiliated commercial enterprises. (iv) Indirect job creation The Secretary shall permit immigrants admitted under this paragraph to satisfy the requirements under subparagraph (A)(ii) with jobs that are estimated to be created indirectly through investment under this paragraph in accordance with this subparagraph. (F) Preapproval of business plans for regional center investments (i) Petition Before the filing of a petition under this subparagraph by an alien investor, a commercial enterprise affiliated with a regional center may file a petition with the Secretary of Homeland Security to preapprove a particular investment in the commercial enterprise, as provided in— (I) a business plan for a specific capital investment project; (II) investment documents, such as subscription, investment, partnership, and operating agreements; and (III) a credible economic analysis regarding estimated job creation that is based upon reasonable methodologies. (ii) Preapproval procedure The Secretary shall establish a process to facilitate the preapproval of business plans under this subparagraph related to investment in a regional center commercial enterprise, which shall include an opportunity for the applicant to address and cure any deficiencies identified by the Secretary in the applicant’s business plan, investment documents, or statement regarding job creation prior to a final determination. The Secretary shall impose a fee for the use of the process described in this clause sufficient to recover the costs of its administration. (iii) Effect of preapproval of business plan for investment in regional center commercial enterprise The preapproval of a petition under this subparagraph shall be binding for purposes of the adjudication of petitions filed under this subparagraph by immigrants investing in the commercial enterprise unless the Secretary determines that there is evidence of fraud, misrepresentation, criminal misuse, a threat to national security, or other evidence affecting program eligibility that was not disclosed by the petitioner during the preapproval process. (iv) Expedited processing option for alien investor petitions affiliated with preapproved business plans The Secretary may establish a premium processing option for alien investors who are investing in a commercial enterprise that has received preapproval under this subparagraph and may impose a fee for the use of that option sufficient to recover all costs of the option. (v) Consideration of criminal activity in establishing eligibility criteria The Secretary shall consider the potential for fraud, misrepresentation, criminal misuse, and threats to national security in establishing eligibility criteria for any program the Secretary may establish under this subparagraph. (G) Regional center financial statements (i) In general Each regional center designated under subparagraph (E) shall annually submit, to the Director of U.S. Citizenship and Immigration Services (referred to in this subparagraph as the Director ), in a manner prescribed by the Secretary of Homeland Security, financial statements, including— (I) an accounting of all foreign investor money invested through the regional center; and (II) for each capital investment project— (aa) an accounting of the aggregate capital invested through the regional center or affiliated commercial enterprises by immigrants under this paragraph; (bb) a description of how such funds are being used to execute the approved business plan; (cc) evidence that 100 percent of such investor funds have been dedicated to the project; (dd) detailed evidence of the progress made toward the completion of the project; (ee) an accounting of the aggregate direct and indirect jobs created or preserved; and (ff) a certification by the regional center that such statements are accurate. (ii) Amendment of financial statements If the Director determines that a financial statement required under clause (i) is deficient, the Director may require the regional center to amend or supplement such financial statement. (iii) Sanctions (I) Effect of violation If the Director determines, after reviewing the financial statements submitted under clause (i), that a regional center, director, or other individual involved with a regional center (other than an alien investor) has violated any requirement under clause (i) or that the regional center is conducting itself in a manner inconsistent with its designation, the Director may sanction the violating entity or individual under subclause (II). (II) Authorized sanctions The Director shall establish a graduated set of sanctions for violations referred to in subclause (I), including— (aa) fines equal to not more than 5 percent of the total capital invested by immigrant investors in the commercial enterprise’s approved business plan; (bb) temporary suspension from participation in the program described in subparagraph (E), which may be lifted by the Director if the individual or entity cures the alleged violation after being provided such an opportunity by the Director; (cc) permanent bar from program participation for 1 or more individuals affiliated with the regional center; and (dd) termination of regional center status. (H) Bona fides of persons involved in regional centers (i) In general No person shall be permitted by any regional center to be involved with the regional center as its principal, representative, administrator, owner, officer, board member, manager, executive, general partner, fiduciary, marketer, promoter, or other similar position of substantive authority for the operations, management or promotion of the regional center if the Secretary of Homeland Security— (I) determines such person has been found liable within the previous 5 years for any criminal or civil violation of any law relating to fraud or deceit, or at any time if such violation involved a criminal conviction with a term of imprisonment of at least 1 year or a criminal or civil violation of any law or agency regulation in connection with the purchase or sale of a security; or (II) knows or has reasonable cause to believe that the person is engaged in, has ever been engaged in, or seeks to engage in any— (aa) illicit trafficking in any controlled substance; (bb) activity relating to espionage or sabotage; (cc) activity related to money laundering (as described in section 1956 or 1957 of title 18, United States Code); (dd) terrorist activity (as defined in clauses (iii) and (iv) of section 212(a)(3)(B)); (ee) human trafficking or human rights offense; or (ff) violation of any statute, regulation, or Executive Order regarding foreign financial transactions or foreign asset control. (ii) Information required The Secretary shall require such attestations and information, including, the submission of fingerprints to the Federal Bureau of Investigation, and shall perform such criminal record checks and other background checks with respect to a regional center, and persons involved in a regional center as described in clause (i), as the Secretary considers appropriate to determine whether the regional center is in compliance with clause (i). The Secretary may require the information and attestations described in this clause from such regional center, and any person involved in the regional center, at any time on or after the date of the enactment of the Border Security, Economic Opportunity, and Immigration Modernization Act . (iii) Termination The Secretary is authorized, in his or her unreviewable discretion, to terminate any regional center from the program under this paragraph if he or she determines that— (I) the regional center is in violation of clause (i); (II) the regional center or any person involved with the regional center has provided any false attestation or information under clause (ii); (III) the regional center or any person involved with the regional center fails to provide an attestation or information requested by the Secretary under clause (ii); or (IV) the regional center or any person involved with the regional center is engaged in fraud, misrepresentation, criminal misuse, or threats to national security. (I) Regional center compliance with securities laws (i) Certification required The Secretary of Homeland Security shall not approve an application for regional center designation or regional center amendment that does not certify that the regional center and, to the best knowledge of the applicant, all parties to the regional center are in, and will maintain, compliance with the securities laws of the United States. (ii) Termination or suspension The Secretary shall terminate the designation of any regional center that does not provide the certification described in subclause (i) on an annual basis. In addition to any other authority provided to the Secretary regarding the regional center program described in subparagraph (E), the Secretary may, in his or her unreviewable discretion, suspend or terminate the designation of any regional center if he or she determines that the regional center or any party to the regional center— (I) is permanently or temporarily enjoined by order, judgment, or decree of any court of competent jurisdiction in connection with the purchase or sale of a security; (II) is subject to any final order of the Securities and Exchange Commission that— (aa) bars such person from association with an entity regulated by the Securities and Exchange Commission; or (bb) constitutes a final order based on violations in connection with the purchase or sale of a security; or (III) knowingly submitted or caused to be submitted a certification described in clause (i) that contained an untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading. (iii) Savings provision Nothing in this subparagraph may be construed to impair or limit the authority of the Securities and Exchange Commission under the Federal securities laws. (iv) Defined term For the purpose of this subparagraph, the term party to the regional center shall include the regional center, its agents, employees, and attorneys, and any persons in active concert or participation with the regional center. (J) Denial or revocation If the Secretary of Homeland Security determines, in his or her unreviewable discretion, that the approval of a petition, application, or benefit described in this subparagraph is contrary to the national interest of the United States for reasons relating to fraud, misrepresentation, criminal misuse, or threats to national security, the Secretary may deny or revoke the approval of— (i) a petition seeking classification of an alien as an alien investor under this paragraph; (ii) a petition to remove conditions under section 216A before granting lawful permanent resident status or any other petition, application, or benefit based upon the previous or concurrent filing or approval of a petition for classification of an alien under this paragraph; or (iii) an application for designation as a regional center. . (c) Assistance by the Secretary of Commerce (1) In general The Secretary of Commerce, upon the request of the Secretary, shall provide consultation assistance for determining whether— (A) a proposed regional center should be designated, terminated, or subject to other adjudicative action; or (B) a petitioner or applicant for a benefit under section 203(b)(5) of the Immigration and Nationality Act, as amended by subsection (b), has met the requirements under such paragraph with respect to job creation. (2) Rulemaking The Secretary and the Secretary of Commerce may each adopt such rules and regulations as are necessary to carry out the consultation process provided for in paragraph (1). (3) Savings provision Nothing in this subsection shall be construed to require consultation with the Secretary of Commerce to continue the designation of a regional center approved before the date of the enactment of this Act. (d) Effective date The amendments made by this section— (1) shall be effective upon the enactment of this Act; and (2) shall apply to— (A) any application to designate a regional center, and any person involved with the regional center, that is pending or approved on or after the date of the enactment of this Act; and (B) any regional center approved before the date of the enactment of this Act, on or after a delayed effective date that is 1 year after such date of enactment with respect to any person involved in the regional center on or after such delayed effective date. 4805. Conditional permanent resident status for certain employment-based immigrants, spouses, and children (a) In general Section 216A ( 8 U.S.C. 1186b ) is amended to read as follows: 216A. Conditional permanent resident status for certain employment-based immigrants, spouses, and children (a) In general (1) Conditional basis for status Notwithstanding any other provision of this Act, employment-based immigrants (as defined in subsection (f) (1) or (2)), alien spouses, and alien children (as defined in subsection (f)(3)) shall be considered, at the time of obtaining the status of an alien lawfully admitted for permanent residence, to have obtained such status on a conditional basis subject to the provisions of this section. (2) Notice of requirements (A) At time of obtaining permanent residence At the time an employment-based immigrant, alien spouse, or alien child obtains permanent resident status on a conditional basis under paragraph (1), the Secretary of Homeland Security shall provide for notice to the alien, spouse, or child respecting the provisions of this section and the requirements of subsection (c)(1) to have the conditional basis of such status removed. (B) At time of required petition In addition, the Secretary of Homeland Security shall attempt to provide notice to an employment-based immigrant, alien spouse, or alien child, at or about the beginning of the 90-day period described in subsection (d)(3), of the requirements of subsection (c)(1). (C) Effect of failure to provide notice The failure of the Secretary of Homeland Security to provide a notice under this paragraph shall not affect the enforcement of the provisions of this section with respect to an employment-based immigrant, alien spouse, or alien child. (b) Termination of status if finding that qualifying employment improper (1) Alien investor In the case of an alien investor with permanent resident status on a conditional basis under subsection (a), if the Secretary of Homeland Security determines, before the second anniversary of the alien's obtaining the status of lawful admission for permanent residence, that— (A) the investment in the commercial enterprise was intended as a means of evading the immigration laws of the United States; (B) (i) the alien did not invest, or was not actively in the process of investing, the requisite capital; or (ii) the alien was not sustaining the actions described in clause (i) throughout the period of the alien's residence in the United States; or (C) subject to the exception in subsection (d)(4), the alien was otherwise not conforming to the requirements under section 203(b)(5), the Secretary shall so notify the alien investor and, subject to paragraph (3), shall terminate the permanent resident status of the alien (and the alien spouse and alien child) involved as of the date of the determination. (2) Employee of a Federal national security, science, and technology laboratory, center or agency In the case of an employee of a Federal national security, science, and technology laboratory, center, or agency (as defined pursuant to section 203(b)(2)(C)) with permanent resident status on a conditional basis under subsection (a), if the Secretary of Homeland Security, in consultation with the relevant employing department or agency, determines, before the first anniversary of the alien's obtaining the status of lawful admission for permanent residence, that— (A) the qualifying employment was intended as a means of evading the immigration laws of the United States; (B) the alien has not completed or is not likely to complete 12 months of qualifying continuous employment; or (C) the alien did not otherwise conform with the requirements of section 203(b)(2), the Secretary shall so notify the alien involved and, subject to paragraph (3), shall terminate the permanent resident status of the alien (and the alien spouse and alien child) involved as of the date of the determination. (3) Hearing in removal proceeding Any alien whose permanent resident status is terminated under paragraph (1) or (2) may request a review of such determination in a proceeding to remove the alien. In such proceeding, the burden of proof shall be on the Secretary of Homeland Security to establish, by a preponderance of the evidence, that a condition described in paragraph (1) or (2), as appropriate, is met. (c) Requirements of timely petition and interview for removal of condition (1) In general (A) Petition and interview In order for the conditional basis established under subsection (a) for an employment-based immigrant, alien spouse, or alien child to be removed— (i) the employment-based immigrant shall submit to the Secretary of Homeland Security, during the period described in subsection (d)(3), a petition which requests the removal of such conditional basis and which states, under penalty of perjury, the facts and information described in paragraph (1) or (2) of subsection (d), as appropriate; and (ii) in accordance with subsection (d)(3), the employment-based immigrant must appear for a personal interview before an officer or employee of U.S. Citizenship and Immigration Services respecting such facts and information. (B) Separate petition not required An alien spouse or alien child shall not be required to file separate petitions under subparagraph (A)(i) if the employment-based immigrant’s petition includes such alien spouse or alien child. (C) Effect on spouse or child If the alien spouse or alien child obtains permanent residence on a conditional basis after the employment-based immigrant files a petition under subparagraph (A)(i)— (i) the conditional basis of the permanent residence of the alien spouse or alien child shall be removed upon approval of the employment-based immigrant’s petition under this subsection; (ii) the permanent residence of the alien spouse or alien child shall be unconditional if— (I) the employment-based immigrant’s petition is approved before the date on which the spouse or child obtains permanent residence; or (II) the employment-based immigrant dies after the approval of a petition under section 203(b)(5); and (iii) the alien child shall not be deemed ineligible for approval under section 203(b)(5) or removal of conditions under this section if the alien child reaches 21 years of age during— (I) the pendency of the employment-based immigrant’s petition under section 203(b)(5); or (II) conditional residency under such section. (D) Additional fee Notwithstanding any other provision under this section, the Secretary may require the employment-based immigrant to pay an additional fee for a petition filed under subparagraph (A)(i) that includes the alien’s spouse and child or children. (2) Termination of permanent resident status for failure to file petition or have personal interview (A) In general In the case of an alien with permanent resident status on a conditional basis under subsection (a), if— (i) no petition is filed with respect to the alien in accordance with the provisions of paragraph (1)(A); or (ii) unless there is good cause shown, the employment-based immigrant fails to appear at the interview described in paragraph (1)(B) (if required under subsection (d)(4)), the Secretary of Homeland Security shall terminate the permanent resident status of the alien (and the alien's spouse and children if it was obtained on a conditional basis under this section or section 216) as of the second anniversary of the alien's lawful admission for permanent residence. (B) Hearing in removal proceeding In any removal proceeding with respect to an alien whose permanent resident status is terminated under subparagraph (A), the burden of proof shall be on the alien to establish compliance with the conditions of paragraphs (1)(A) and (1)(B). (3) Determination after petition and interview (A) In general If— (i) a petition is filed in accordance with the provisions of paragraph (1)(A); and (ii) the employment-based immigrant appears at any interview described in paragraph (1)(B), the Secretary of Homeland Security shall make a determination, not later than 90 days after the date of such filing or interview (whichever is later), as to whether the facts and information described in paragraph (1) or (2) of subsection (d), as appropriate, and alleged in the petition are true. (B) Removal of conditional basis if favorable determination (i) Header If the Secretary of Homeland Security determines with respect to a petition filed by an alien investor that such facts and information are true, the Secretary shall so notify the alien investor and shall remove the conditional basis of the alien's status effective as of the second anniversary of the alien's lawful admission for permanent residence. (ii) Removal of conditional basis for employee of a Federal national security, science, and technology laboratory, center or agency If the Secretary of Homeland Security determines with respect to a petition filed by an employee of a Federal national security, science, and technology laboratory, center, or agency that such facts and information are true, the Secretary shall so notify the alien and shall remove the conditional basis of the alien's status effective as of the first anniversary of the alien's lawful admission for permanent residence. (C) Termination if adverse determination If the Secretary of Homeland Security determines that such facts and information are not true, the Secretary shall so notify the alien involved and, subject to subparagraph (D), shall terminate the permanent resident status of an employment-based immigrant, alien spouse, or alien child as of the date of the determination. (D) Hearing in removal proceeding Any alien whose permanent resident status is terminated under subparagraph (C) may request a review of such determination in a proceeding to remove the alien. In such proceeding, the burden of proof shall be on the Secretary of Homeland Security to establish, by a preponderance of the evidence, that the facts and information described in subsection (d)(1) and alleged in the petition are not true. (d) Details of petition and interview (1) Contents of petition by alien investor Each petition filed by an alien investor under section (c)(1)(A) shall contain facts and information demonstrating that the alien— (A) (i) invested, or is actively in the process of investing, the requisite capital; and (ii) sustained the actions described in clause (i) throughout the period of the alien's residence in the United States; and (B) except as provided in paragraph (4), is otherwise conforming to the requirements under section 203(b)(5). (2) Contents of petition by employee of a Federal national security, science, and technology laboratory, center, or agency Each petition under subsection (c)(1)(A) filed by an employee of a Federal national security, science, and technology laboratory, center, or agency shall contain facts and information demonstrating that the alien is conforming to the requirements of section 203(b)(2). (3) Period for filing petition (A) 90-day period before anniversary Except as provided in subparagraph (B), the petition under subsection (c)(1)(A) must be filed as follows: (i) In the case of an alien investor, during the 90-day period before the second anniversary of the alien's lawful admission for permanent residence. (ii) In the case of an employee of a Federal national security, science, and technology laboratory, center, or agency, during the 90-day period before the first anniversary of the alien's lawful admission for permanent residence. (B) Late petitions Such a petition may be considered if filed after such date, but only if the alien establishes to the satisfaction of the Secretary of Homeland Security good cause and extenuating circumstances for failure to file the petition during the period described in subparagraph (A). (C) Filing of petitions during removal In the case of an alien who is the subject of removal hearings as a result of failure to file a petition on a timely basis in accordance with subparagraph (A), the Secretary of Homeland Security may stay such removal proceedings against an alien pending the filing of the petition under subparagraph (B). (4) Personal interview The interview under subsection (c)(1)(B) shall be conducted within 90 days after the date of submitting a petition under subsection (c)(1)(A) and at a local office of U.S. Citizenship and Immigration Services, designated by the Secretary of Homeland Security, which is convenient to the parties involved. The Secretary, in the discretion of the Secretary, may waive the deadline for such an interview or the requirement for such an interview in such cases as may be appropriate. (5) Special rule for alien investors in a regional center Each petition under subsection (c)(1)(A) filed by an alien investor who invests in accordance with section 203(b)(5)(E) shall contain facts and information demonstrating that the alien is complying with the requirements under section 203(b)(5), except— (A) the alien shall not be subject to the requirements under section 203(b)(5)(A)(ii); and (B) the petition shall contain the most recent financial statement filed by the regional center in which the alien has invested in accordance with section 203(b)(5)(G). (e) Treatment of period for purposes of naturalization For purposes of title III, in the case of an alien who is in the United States as a lawful permanent resident on a conditional basis under this section, the alien shall be considered to have been admitted as an alien lawfully admitted for permanent residence and to be in the United States as an alien lawfully admitted to the United States for permanent residence, if the alien has had the conditional basis removed pursuant to this section. (f) Fraud, misrepresentation, criminal misuse, or threats to the public safety or national security If the Secretary of Homeland Security determines, in his or her sole and unreviewable discretion, that the conditional permanent resident status granted to an employment-based immigrant under subsection (a), or to an alien researcher described in section 203(b)(2)(A)(ii) is contrary to the national interest of the United States for reasons relating to fraud, misrepresentation, criminal misuse, or threats to national security, the Secretary shall— (1) notify the immigrant involved of such determination; and (2) terminate the permanent resident status of the immigrant involved (and the alien spouse and alien children of such immigrant) as of the date of such determination. (g) Definitions In this section: (1) The term alien investor means an alien who obtains the status of an alien lawfully admitted for permanent residence (whether on a conditional basis or otherwise) under section 203(b)(5). (2) The term alien spouse and the term alien child mean an alien who obtains the status of an alien lawfully admitted for permanent residence (whether on a conditional basis or otherwise) by virtue of being the spouse or child, respectively, of an alien investor or an employee of a Federal national security, science, and technology laboratory, center, or agency. (3) The term commercial enterprise includes a limited partnership. (4) The term employment-based immigrant means an alien described in paragraph (1) or (5). (5) The term employee of a Federal national security, science, and technology laboratory, center, or agency means an alien who obtains the status of an alien lawfully admitted for permanent residence (whether on a conditional basis or otherwise) under section 203(b)(2)(A)(ii). . (b) Conforming amendment Section 216(e) ( 8 U.S.C. 1186a(e) ) is amended by inserting before the period at the end the following: , if the alien has had the conditional basis removed pursuant to this section . (c) Clerical amendment The table of contents is amended by striking the item relating to section 216A and inserting the following: Sec. 216A. Conditional permanent resident status for certain employment-based immigrants, spouses, and children. . 4806. EB–5 visa reforms (a) Aliens not subject to direct numerical limitation Section 201(b)(1) ( 8 U.S.C. 1151(b)(1) ), as amended by sections 2103(c)(2), 2212(d)(2), 2307(b), and 2402, is further amended by adding at the end the following: (P) Aliens who are the spouse or a child of an alien admitted as an employment-based immigrant under section 203(b)(5). . (b) Technical amendment Section 203(b)(5), as amended by this Act, is further amended by striking Attorney General each place it appears and inserting Secretary of Homeland Security . (c) Targeted employment areas (1) In general Section 203(b)(5)(B) ( 8 U.S.C. 1153(b)(5)(B) ) is amended to read as follows: (B) Set-aside for targeted employment areas (i) In general Not fewer than 5,000 of the visas made available under this paragraph in each fiscal year shall be reserved for qualified immigrants who invest in a new commercial enterprise described in subparagraph (A), which— (I) is investing such capital in a targeted employment area; and (II) will create employment in such targeted employment area. (ii) Duration of high unemployment and poverty area designation A designation of a high unemployment or poverty area as a targeted employment area shall be valid for 5 years and may be renewed for additional 5-year periods if the area continues to meet the definition of a high unemployment or poverty area. An investor who has made the required amount of investment in such a targeted employment area during its period of designation shall not be required to increase the amount of investment based upon expiration of the designation. . (d) Adjustment of minimum EB–5 investment amount Section 203(b)(5)(C)(i) ( 8 U.S.C. 1153(b)(5)(C)(i) ) is amended— (1) by striking The Attorney General and inserting The Secretary of Commerce ; (2) by striking Secretary of State and inserting Secretary of Homeland Security ; and (3) by adding at the end the following: Unless adjusted by the Secretary of Commerce, the amount specified in this clause shall automatically adjust, on January 1, 2016, by the percentage change in the Consumer Price Index (CPI–U) during fiscal year 2015, and on every fifth subsequent January 1 by the cumulative percentage change in the CPI–U during the previous 5 fiscal years, for any petition filed to classify an alien under this paragraph on or after the date of each automatic adjustment. . (e) Definitions (1) In general Section 203(b)(5) ( 8 U.S.C. 1153(b)(5) ), as amended by subsections (b) and (c) and section 4804, is further amended— (A) by striking subparagraph (D) and inserting following: (D) Calculation of full-time employment Job creation under this paragraph may consist of employment measured in full-time equivalents, such as intermittent or seasonal employment opportunities and construction jobs. A full-time employment position is not a requirement for indirect job creation. ; and (B) by adding at the end the following: (K) Definitions In this paragraph: (i) The term capital means all real, personal, or mixed assets, whether tangible or intangible, owned or controlled by the investor, or held in trust for the benefit of the investor, to which the investor has unrestricted access, which shall be valued at fair market value in United States dollars, in accordance with Generally Accepted Accounting Principles, at the time it is invested under this paragraph. (ii) The term full-time employment means employment in a position that requires at least 35 hours of service per week, regardless of how many employees fill the position. (iii) The term high unemployment and poverty area means— (I) an area consisting of a census tract or contiguous census tracts that has an unemployment rate that is at least 150 percent of the national average unemployment rate and includes at least 1 census tract with 20 percent of its residents living below the poverty level as determined by the Bureau of the Census; or (II) an area that is within the boundaries established for purposes of a Federal or State economic development incentive program, including areas defined as Enterprise Zones, Renewal Communities, Promise Zones, and Empowerment Zones. (iv) The term rural area means— (I) any area other than an area within a metropolitan statistical area or within the outer boundary of any city or town having a population of 20,000 or more (based on the most recent decennial census of the United States); or (II) any city or town having a population of fewer than 20,000 (based on the most recent decennial census of the United States) that is located within a State having a population of fewer than 1,500,000 (based on the most recent decennial census of the United States). (v) The term targeted employment area means a rural area or a high unemployment and poverty area. . (2) Effective date The amendment made by paragraph (1) shall apply to any application for a visa under section 203(b)(5) of the Immigration and Nationality Act that is filed on or after the date that is 1 year after the date of the enactment of this Act. (f) Age determination for children of alien investors Section 203(h) ( 8 U.S.C. 1153(h) ) is amended by adding at the end the following: (5) Age determination for children of alien investors An alien admitted under subsection (d) as a lawful permanent resident on a conditional basis as the child of an alien lawfully admitted for permanent residence under subsection (b)(5), whose lawful permanent resident status on a conditional basis is terminated under section 216A, shall continue to be considered a child of the principal alien for the purpose of a subsequent immigrant petition by such alien under subsection (b)(5) if the alien remains unmarried and the subsequent petition is filed by the principal alien not later than 1 year after the termination of conditional lawful permanent resident status. No alien shall be considered a child under this paragraph with respect to more than 1 petition filed after the alien’s 21st birthday. . (g) Enhanced pay scale for certain Federal employees administering the EB–5 Program The Secretary may establish, fix the compensation of, and appoint individuals to, designated critical administrative, technical, and professional positions needed to administer sections 203(b)(5) and 216A of the Immigration and Nationality Act ( 8 U.S.C. 1153(b)(5) and 1186b). (h) Delegation of certain EB–5 authority (1) In general The Secretary of Homeland Security may delegate to the Secretary of Commerce authority and responsibility for determinations under sections 203(b)(5) and 216A (with respect to alien entrepreneurs) of the Immigration and Nationality Act ( 8 U.S.C. 1153(b)(5) and 1186a), including determining whether an alien has met employment creation requirements. (2) Regulations The Secretary of Homeland Security and the Secretary of Commerce may each adopt such rules and regulations as are necessary to carry out the delegation authorized under paragraph (1), including regulations governing the eligibility criteria for obtaining benefits pursuant to the amendments made by this section. (3) Use of fees Adjudication fees described in section 286(m) of the Immigration and Nationality Act ( 8 U.S.C. 1356(m) ) shall remain available until expended to reimburse the Secretary of Commerce for the costs of any determinations made by the Secretary of Commerce under paragraph (1). (i) Concurrent filing of EB–5 petitions and applications for adjustment of status Section 245 ( 8 U.S.C. 1255 ), as amended by section 4237(b), is further amended— (1) in subsection (k), in the matter preceding paragraph (1), by striking or (3) and inserting (3), (5), or (7) ; and (2) by adding at the end the following: (o) At the time a petition is filed for classification under section 203(b)(5), if the approval of such petition would make a visa immediately available to the alien beneficiary, the alien beneficiary’s application for adjustment of status under this section shall be considered to be properly filed whether the application is submitted concurrently with, or subsequent to, the visa petition. . 4807. Authorization of appropriations (a) Funding There are authorized to be appropriated from the Trust Fund established under section 9(a) such sums as may be necessary to carry out sections 1110, 2101, 2104, 2212, 2213, 2221, 2232, 3301, 3501, 3502, 3503, 3504, 3505, 3506, 3605, 3610, 4221, and 4401 of this Act. (b) Availability of funds Amounts appropriated pursuant to this section shall remain available until expended unless otherwise specified in this Act. I Student and Exchange Visitor Programs 4901. Short title This subtitle may be cited as the Student Visa Integrity Act . 4902. SEVIS and SEVP defined In this subtitle: (1) SEVIS The term SEVIS means the Student and Exchange Visitor Information System of the Department of Homeland Security. (2) SEVP The term SEVP means the Student and Exchange Visitor Program of the Department of Homeland Security. 4903. Increased criminal penalties Section 1546(a) of title 18, United States Code, is amended by striking 10 years and inserting 15 years (if the offense was committed by an owner, official, employee, or agent of an educational institution with respect to such institution's participation in the Student and Exchange Visitor Program), 10 years . 4904. Accreditation requirement Section 101(a)(52) ( 8 U.S.C. 1101(a)(52) ) is amended to read as follows: (52) Except as provided in section 214(m)(4), the term accredited college, university, or language training program means a college, university, or language training program that is accredited by an accrediting agency recognized by the Secretary of Education. . 4905. Other academic institutions Section 214(m) ( 8 U.S.C. 1184(m) ) is amended by adding at the end the following: (3) The Secretary of Homeland Security shall require accreditation of an academic institution (except for seminaries or other religious institutions) for purposes of section 101(a)(15)(F) if— (A) that institution is not already required to be accredited under section 101(a)(15)(F)(i); and (B) an appropriate accrediting agency recognized by the Secretary of Education is able to provide such accreditation. (4) The Secretary of Homeland Security, in the Secretary’s discretion, may waive the accreditation requirement in section 101(a)(15)(F)(i) with respect to an accredited college, university, or language training program if the academic institution— (A) is otherwise in compliance with the requirements of such section; and (B) is, on the date of the enactment of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 , a candidate for accreditation or, after such date, has been a candidate for accreditation for at least 1 year and continues to progress toward accreditation by an accreditation agency recognized by the Secretary of Education. . 4906. Penalties for failure to comply with SEVIS reporting requirements Section 641 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 ( 8 U.S.C. 1372 ) is amended— (1) in subsection (c)(1)— (A) by striking institution,, each place it appears and inserting institution, ; and (B) in subparagraph (D), by striking and at the end; (2) in subsection (d)(2), by striking fails to provide the specified information and all that follows and inserting “does not comply with the reporting requirements set forth in this section, the Secretary of Homeland Security may— (A) impose a monetary fine on such institution in an amount to be determined by the Secretary; and (B) suspend the authority of such institution to issue a Form I–20 to any alien. . 4907. Visa fraud (a) Immediate withdrawal of SEVP certification Section 641(d) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 ( 8 U.S.C. 1372(d) ) is amended— (1) in paragraph (1)(A), by striking institution,, and inserting institution, ; and (2) by adding at the end the following: (3) Effect of reasonable suspicion of fraud If the Secretary of Homeland Security has reasonable suspicion that an owner of, or a designated school official at, an approved institution of higher education, an other approved educational institution, or a designated exchange visitor program has committed fraud or attempted to commit fraud relating to any aspect of the Student and Exchange Visitor Program, or if such owner or designated school official is indicted for such fraud, the Secretary may immediately— (A) suspend such certification without prior notification; and (B) suspend such official’s or such school’s access to the Student and Exchange Visitor Information System (SEVIS). . (b) Effect of conviction for visa fraud Section 641(d) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 , as amended by subsection (a), is further amended by adding at the end the following: (5) Permanent disqualification for fraud A designated school official at, or an owner of, an approved institution of higher education, an other approved educational institution, or a designated exchange visitor program who is convicted for fraud relating to any aspect of the Student and Exchange Visitor Program shall be permanently disqualified from filing future petitions and from having an ownership interest or a management role (including serving as a principal, owner, officer, board member, general partner, designated school official, or any other position of substantive authority for the operations or management of the institution) in any United States educational institution that enrolls nonimmigrant alien students described in subparagraph (F) or (M) of section 101(a)(15) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15) ). . 4908. Background checks (a) In general Section 641(d) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 ( 8 U.S.C. 1372(d) ), as amended by section 4907 of this Act, is further amended by adding at the end the following: (6) Background check requirement (A) In general An individual may not serve as a designated school official or be granted access to SEVIS unless the individual is a national of the United States or an alien lawfully admitted for permanent residence and during the most recent 3-year period— (i) the Secretary of Homeland Security has— (I) conducted a thorough background check on the individual, including a review of the individual’s criminal and sex offender history and the verification of the individual’s immigration status; and (II) determined that the individual— (aa) has not been convicted of any violation of United States immigration law; and (bb) is not a risk to the national security of the United States; and (ii) the individual has successfully completed an on-line training course on SEVP and SEVIS, which has been developed by the Secretary. (B) Interim designated school official (i) In general An individual may serve as an interim designated school official during the period that the Secretary is conducting the background check required by subparagraph (A)(i)(I). (ii) Reviews by the Secretary If an individual serving as an interim designated school official under clause (i) does not successfully complete the background check required by subparagraph (A)(i)(I), the Secretary shall review each Form I–20 issued by such interim designated school official. (7) Fee The Secretary is authorized to collect a fee from an approved school for each background check conducted under paragraph (6)(A)(i). The amount of such fee shall be equal to the average amount expended by the Secretary to conduct such background checks. . (b) Effective date The amendment made by subsection (a) shall take effect on the date that is 1 year after the date of the enactment of this Act. 4909. Revocation of authority to issue Form I–20 of flight schools not certified by the Federal Aviation Administration Immediately upon the enactment of this Act, the Secretary shall prohibit any flight school in the United States from accessing SEVIS or issuing a Form I–20 to an alien seeking a student visa pursuant to subparagraph (F)(i) or (M)(i) of section 101(a)(15) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15) ) if the flight school has not been certified to the satisfaction of the Secretary and by the Federal Aviation Administration pursuant to part 141 or part 142 of title 14, Code of Federal Regulations (or similar successor regulations). 4910. Revocation of accreditation At the time an accrediting agency or association is required to notify the Secretary of Education and the appropriate State licensing or authorizing agency of the final denial, withdrawal, suspension, or termination of accreditation of an institution pursuant to section 496 of the Higher Education Act of 1965 ( 20 U.S.C. 1099b ), such accrediting agency or association shall notify the Secretary of Homeland Security of such determination and the Secretary of Homeland Security shall immediately withdraw the school from the SEVP and prohibit the school from accessing SEVIS. 4911. Report on risk assessment Not later than 180 days after the date of the enactment of this Act, the Secretary shall submit to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives a report that contains the risk assessment strategy that will be employed by the Secretary to identify, investigate, and take appropriate action against schools and school officials that are facilitating the issuance of Form I–20 and the maintenance of student visa status in violation of the immigration laws of the United States. 4912. Implementation of GAO recommendations Not later than 180 days after the date of the enactment of this Act, the Secretary shall submit to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives a report that describes— (1) the process in place to identify and assess risks in the SEVP; (2) a risk assessment process to allocate SEVP’s resources based on risk; (3) the procedures in place for consistently ensuring a school’s eligibility, including consistently verifying in lieu of letters; (4) how SEVP identified and addressed missing school case files; (5) a plan to develop and implement a process to monitor State licensing and accreditation status of all SEVP-certified schools; (6) whether all flight schools that have not been certified to the satisfaction of the Secretary and by the Federal Aviation Administration have been removed from the program and have been restricted from accessing SEVIS; (7) the standard operating procedures that govern coordination among SEVP, Counterterrorism and Criminal Exploitation Unit, and U.S. Immigration and Customs Enforcement field offices; and (8) the established criteria for referring cases of a potentially criminal nature from SEVP to the counterterrorism and intelligence community. 4913. Implementation of SEVIS II Not later than 2 years after the date of the enactment of this Act, the Secretary shall complete the deployment of both phases of the second generation Student and Exchange Visitor Information System (commonly known as SEVIS II ).

https://www.govinfo.gov/content/pkg/BILLS-113hr15ih/xml/BILLS-113hr15ih.xml

113-hr-20

I 113th CONGRESS 2d Session H. R. 20 IN THE HOUSE OF REPRESENTATIVES February 5, 2014 Mr. Sarbanes (for himself, Ms. Pelosi , Mr. Barber , Mrs. Beatty , Mr. Bera of California , Mr. Bishop of New York , Mr. Blumenauer , Ms. Bonamici , Mr. Brady of Pennsylvania , Mr. Braley of Iowa , Mr. Carney , Mr. Cartwright , Mr. Castro of Texas , Mr. Cicilline , Ms. Clarke of New York , Mr. Clay , Mr. Cleaver , Mr. Clyburn , Mr. Cohen , Mr. Conyers , Mr. Cooper , Mr. Courtney , Mr. Crowley , Mr. Cummings , Mrs. Davis of California , Mr. DeFazio , Mr. Delaney , Ms. DeLauro , Ms. DelBene , Mr. Deutch , Mr. Dingell , Mr. Doggett , Ms. Edwards , Mr. Ellison , Mr. Engel , Ms. Eshoo , Ms. Esty , Mr. Farr , Ms. Frankel of Florida , Ms. Fudge , Ms. Gabbard , Mr. Garcia , Mr. Grayson , Mr. Gene Green of Texas , Mr. Al Green of Texas , Mr. Grijalva , Mr. Gutiérrez , Mr. Hastings of Florida , Mr. Himes , Mr. Holt , Mr. Honda , Mr. Horsford , Mr. Hoyer , Mr. Huffman , Mr. Israel , Ms. Jackson Lee , Mr. Jeffries , Mr. Johnson of Georgia , Ms. Eddie Bernice Johnson of Texas , Mr. Jones , Ms. Kaptur , Ms. Kelly of Illinois , Mr. Kilmer , Mr. Kind , Mrs. Kirkpatrick , Ms. Kuster , Mr. Langevin , Mr. Larson of Connecticut , Ms. Lee of California , Mr. Lewis , Mr. Loebsack , Ms. Lofgren , Mr. Lowenthal , Mr. Ben Ray Luján of New Mexico , Ms. Michelle Lujan Grisham of New Mexico , Mr. Maffei , Mr. Sean Patrick Maloney of New York , Mrs. Carolyn B. Maloney of New York , Ms. Matsui , Ms. McCollum , Mr. McDermott , Mr. McGovern , Ms. Meng , Mr. Michaud , Mr. George Miller of California , Ms. Moore , Mr. Moran , Mr. Murphy of Florida , Mr. Nadler , Mr. Nolan , Ms. Norton , Mr. O'Rourke , Mr. Pallone , Mr. Pascrell , Mr. Payne , Mr. Perlmutter , Mr. Peters of California , Mr. Peters of Michigan , Ms. Pingree of Maine , Mr. Pocan , Mr. Polis , Mr. Quigley , Mr. Rangel , Mr. Rush , Ms. Linda T. Sánchez of California , Ms. Schakowsky , Ms. Schwartz , Mr. Scott of Virginia , Mr. Serrano , Ms. Shea-Porter , Mr. Sherman , Mr. Sires , Ms. Slaughter , Mr. Smith of Washington , Ms. Speier , Mr. Swalwell of California , Mr. Takano , Mr. Tierney , Mr. Tonko , Mr. Van Hollen , Mr. Vargas , Ms. Velázquez , Mr. Walz , Ms. Wasserman Schultz , Mr. Waxman , Mr. Welch , Mr. Yarmuth , Ms. Brownley of California , and Ms. Castor of Florida ) introduced the following bill; which was referred to the Committee on House Administration , and in addition to the Committees on Energy and Commerce and Ways and Means , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To reform the financing of Congressional elections by broadening participation by small dollar donors, and for other purposes. 1. Short title; table of contents (a) Short Title This Act may be cited as the Government By the People Act of 2014 . (b) Table of contents The table of contents of this Act is as follows: Sec. 1. Short title; table of contents. Title I—Participation in Funding of Elections Subtitle A—My Voice Tax Credit Sec. 101. Refundable tax credit for congressional House campaign contributions. Subtitle B—My Voice Voucher Pilot Program Sec. 111. Establishment of pilot program. Sec. 112. Voucher program described. Sec. 113. Reports. Sec. 114. Election cycle defined. Title II—Small Dollar Financing of Congressional Election Campaigns Sec. 201. Benefits and eligibility requirements for candidates. Title V—Small Dollar Financing of Congressional Election Campaigns Subtitle A—Benefits Sec. 501. Benefits for participating candidates. Sec. 502. Procedures for making payments. Sec. 503. Use of funds. Sec. 504. Qualified small dollar contributions described. Subtitle B—Eligibility and Certification Sec. 511. Eligibility. Sec. 512. Qualifying requirements. Sec. 513. Certification. Subtitle C—Requirements for Candidates Certified as Participating Candidates Sec. 521. Contribution and expenditure requirements. Sec. 522. Administration of campaign. Sec. 523. Preventing unnecessary spending of public funds. Sec. 524. Remitting unspent funds after election. Subtitle D—Enhanced Match Support Sec. 531. Enhanced support for general election. Sec. 532. Eligibility. Sec. 533. Amount. Sec. 534. Waiver of authority to retain portion of unspent funds after election. Subtitle E—Administrative Provisions Sec. 541. Freedom From Influence Fund. Sec. 542. Government by the People Oversight Commission. Sec. 543. Administration by Commission. Sec. 544. Violations and penalties. Sec. 545. Appeals process. Sec. 546. Indexing of amounts. Sec. 547. Election cycle defined. Sec. 202. Contributions and expenditures by multicandidate and political party political committees on behalf of participating candidates. Sec. 203. Prohibiting use of contributions by participating candidates for purposes other than campaign for election. Title III—Other Administrative Reforms Sec. 301. Expanding requirement to disclose bundlers who are registered lobbyists to all bundlers. Sec. 302. Petition for certiorari. Sec. 303. Filing by all candidates with Commission. Sec. 304. Electronic filing of FEC reports. Sec. 305. Effective date. Title IV—Expanding Candidate Access to Advertising Sec. 401. Broadcasts by candidates. Title V—Contributions to Freedom From Influence Fund Sec. 501. Voluntary contributions to the Freedom From Influence Fund. Title VI—Miscellaneous Provisions Sec. 601. Severability. I Participation in Funding of Elections A My Voice Tax Credit 101. Refundable tax credit for congressional House campaign contributions (a) In general Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by inserting after section 36B the following new section: 36C. Credit for congressional House campaign contributions (a) In general In the case of an individual, there shall be allowed as a credit against the tax imposed by this subtitle an amount equal to 50 percent of the qualified My Voice Federal congressional House campaign contributions paid or incurred by the taxpayer during the taxable year. (b) Limitations (1) Dollar limitation The amount of qualified My Voice Federal congressional House campaign contributions taken into account under subsection (a) for the taxable year shall not exceed $50 (twice such amount in the case of a joint return). (2) Limitation on contributions to Federal congressional House candidates No credit shall be allowed under this section to any taxpayer for any taxable year if such taxpayer made aggregate contributions in excess of $300 during the taxable year to— (A) any single Federal congressional House candidate, or (B) any political committee established and maintained by a national political party. (3) Provision of information No credit shall be allowed under this section to any taxpayer unless the taxpayer provides the Secretary with such information as the Secretary may require to verify the taxpayer’s eligibility for the credit and the amount of the credit for the taxpayer. (4) Ineligibility of individuals receiving My Voice Vouchers (A) In general No credit shall be allowed under this section with respect to any individual for any taxable year which occurs during an election cycle in which such individual received a My Voice Voucher under subtitle B of title I of the Government By the People Act of 2014. In the case of a joint return with respect to which this paragraph applies to one of the spouses, such return shall not be treated as a joint return for purposes of determining the dollar limitation under paragraph (1). (B) Election cycle defined In subparagraph (A), the term election cycle has the meaning given such term in section 114 of the Government By the People Act of 2014. (c) Qualified My Voice Federal congressional House campaign contributions For purposes of this section, the term My Voice Federal congressional House campaign contribution means any contribution of cash by an individual to a Federal congressional House candidate or to a political committee established and maintained by a national political party if such contribution is not prohibited under the Federal Election Campaign Act of 1971. (d) Federal congressional House candidate For purposes of this section— (1) In general The term Federal congressional House candidate means any candidate for election to the office of Representative in, or Delegate or Resident Commissioner to, the Congress. (2) Treatment of authorized committees Any contribution made to an authorized committee of a Federal congressional House candidate shall be treated as made to such candidate. (e) Inflation adjustment (1) In general In the case of a taxable year beginning after 2015, the $50 amount under subsection (b)(1) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2014 for calendar year 1992 in subparagraph (B) thereof. (2) Rounding If any amount as adjusted under subparagraph (A) is not a multiple of $5, such amount shall be rounded to the nearest multiple of $5. . (b) Conforming amendments (1) Section 6211(b)(4)(A) of such Code is amended by inserting 36C, after 36B, . (2) Section 1324(b)(2) of title 31, United States Code, is amended by inserting 36C, after 36B, . (3) The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B the following new item: Sec. 36C. Credit for congressional House campaign contributions. . (c) Forms The Secretary of the Treasury, or his designee, shall ensure that the credit for contributions to Federal congressional House candidates allowed under section 36C of the Internal Revenue Code of 1986, as added by this section, may be claimed on Forms 1040EZ and 1040A. (d) Administration At the request of the Secretary of the Treasury, the Federal Election Commission shall provide the Secretary of the Treasury with such information and other assistance as the Secretary may reasonably require to administer the credit allowed under section 36C of the Internal Revenue Code of 1986, as added by this section. (e) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. B My Voice Voucher Pilot Program 111. Establishment of pilot program (a) Establishment The Government by the People Oversight Commission established under section 542 of the Federal Election Campaign Act of 1971 (as added by section 201) (hereafter in this subtitle referred to as the Commission ) shall establish a pilot program under which the Commission shall select 3 eligible States to operate a voucher pilot program which is described in section 112. (b) Eligibility of States A State is eligible to be selected to operate a voucher pilot program under this subtitle if the State submits to the Commission (at such time during the application period and in such form as the Commission may require) an application containing— (1) information and assurances that the State will operate a voucher program which contains the elements described in section 112(a); (2) information and assurances that the State will establish fraud prevention mechanisms described in section 112(b); (3) information and assurances that the State will establish a commission to oversee and implement the program as described in section 112(c); (4) information and assurances that the State will submit reports as required under section 113; and (5) such other information and assurances as the Commission may require. (c) Timing of Program (1) Issuance of initial guidance Not later than 90 days after the appointment of a quorum of its members, the Commission shall issue initial guidance regarding the process by which States may apply to operate voucher pilot programs under this subtitle and initial guidance regarding the implementation of such programs. (2) Selection of participating States The Commission shall select the 3 States which will operate voucher pilot programs under this subtitle not later than 90 days before the end of the application period. (3) Period of operation of program Each State selected to operate a voucher pilot program under this subtitle shall operate such program during each of the 3 election cycles which begin after the application period, and shall ensure that the program is ready to be operated not later than the first January 1 of the first election cycle which begins after the application period. (4) Termination Each voucher pilot program under this subtitle shall terminate as of the first day after the third election cycle during which the State operated the program. (d) Reimbursement of Costs Upon receiving the report submitted by a State under section 113 with respect to an election cycle, the Commission shall transmit a payment to the State in an amount equal to the reasonable costs incurred by the State in operating the voucher pilot program under this subtitle during the cycle. (e) Application Period Defined In this section, the term application period means the first election cycle which begins after the date of the enactment of this Act. 112. Voucher program described (a) General Elements of Program (1) Elements described The elements of a voucher pilot program operated by a State under this subtitle are as follows: (A) The State shall provide each qualified individual upon the individual’s request with a voucher worth $50 to be known as a My Voice Voucher during the election cycle which will be assigned a routing number and which at the option of the individual will be provided in either paper or electronic form. (B) Using the routing number assigned to the My Voice Voucher, the individual may submit the My Voice Voucher in either electronic or paper form to qualified candidates for election for Federal office and allocate such portion of the value of the My Voice Voucher in increments of $5 as the individual may select to any such candidate. (C) If the candidate transmits the My Voice Voucher to the Commission, the Commission shall pay the candidate the portion of the value of the My Voice Voucher that the individual allocated to the candidate, which shall be considered a contribution by the individual to the candidate for purposes of the Federal Election Campaign Act of 1971. (2) Designation of qualified individuals For purposes of paragraph (1)(A), a qualified individual with respect to a State means an individual— (A) who is a resident of the State; (B) who will be of voting age as of the date of the election for the candidate to whom the individual submits a My Voice Voucher; (C) who is not prohibited under Federal law from making contributions to candidates for election for Federal office; and (D) who meets such other requirements as the State may impose, except that the State may not require the individual to be a registered voter in the State as a condition of being a qualified individual. (b) Fraud Prevention Mechanism In addition to the elements described in subsection (a), a State operating a voucher pilot program under this subtitle shall permit an individual to revoke a My Voice Voucher not later than 2 days after submitting the My Voice Voucher to a candidate. (c) Oversight Commission In addition to the elements described in subsection (a), a State operating a voucher pilot program under this subtitle shall establish a commission or designate an existing entity to oversee and implement the program in the State, except that no such commission or entity may be comprised of elected officials. 113. Reports (a) Election Cycle Reports Not later than 6 months after each election cycle during which a State operates a voucher pilot program under this subtitle, the State shall submit a report to the Commission analyzing the operation and effectiveness of the program during the cycle and including such other information as the Commission may require. (b) Final Report Not later than 6 months after the termination of the voucher pilot programs under this subtitle, each State which operated such a program shall submit a final report to the Commission on the operation of the program during the previous election cycles, and shall include in each such report such recommendations as the State considers appropriate regarding the expansion of the pilot program to all States and territories, along with such other recommendations and other information as the Commission may require. 114. Election cycle defined In this subtitle, the term election cycle means the period beginning on the day after the date of the most recent regularly scheduled general election for Federal office and ending on the date of the next regularly scheduled general election for Federal office. II Small Dollar Financing of Congressional Election Campaigns 201. Benefits and eligibility requirements for candidates The Federal Election Campaign Act of 1971 ( 2 U.S.C. 431 et seq. ) is amended by adding at the end the following: V Small Dollar Financing of Congressional Election Campaigns A Benefits 501. Benefits for participating candidates (a) In general If a candidate for election to the office of Representative in, or Delegate or Resident Commissioner to, the Congress is certified as a participating candidate under this title with respect to an election for such office, the candidate shall be entitled to payments as provided under this title. (b) Amount of payment (1) In general The amount of a payment made under this title shall be equal to 600 percent of the amount of qualified small dollar contributions received by the candidate since the most recent payment made to the candidate under this title during the election cycle, without regard to whether or not the candidate received any of the contributions before, during, or after the Small Dollar Democracy qualifying period applicable to the candidate under section 511(c). (2) Increase in payment for candidates accepting greater restrictions In the case of a candidate who exercises the option described in section 521(a)(2) to accept greater restrictions on the permissible sources of contributions and expenditures, the amount of the payment under this subsection shall be the amount otherwise determined under paragraph (1) increased by 50 percent. (c) Limit on aggregate amount of payments The aggregate amount of payments made to a participating candidate with respect to an election cycle under this title may not exceed 50% (or, in the case of a candidate who exercises the option described in section 521(a)(2) to accept greater restrictions on the permissible sources of contributions and expenditures, 100 percent) of the average of the 20 greatest amounts of disbursements made by the authorized committees of any winning candidate for the office of Representative in, or Delegate or Resident Commissioner to, the Congress during the most recent election cycle, rounded to the nearest $100,000. 502. Procedures for making payments (a) In general The Commission shall make a payment under section 501 to a candidate who is certified as a participating candidate upon receipt from the candidate of a request for a payment which includes— (1) a statement of the number and amount of qualified small dollar contributions received by the candidate since the most recent payment made to the candidate under this title during the election cycle; (2) a statement of the amount of the payment the candidate anticipates receiving with respect to the request; (3) a statement of the total amount of payments the candidate has received under this title as of the date of the statement; and (4) such other information and assurances as the Commission may require. (b) Restrictions on submission of requests A candidate may not submit a request under subsection (a) unless each of the following applies: (1) The amount of the qualified small dollar contributions in the statement referred to in subsection (a)(1) is equal to or greater than $5,000, unless the request is submitted during the 30-day period which ends on the date of a general election. (2) Of the total number of individuals who have made qualified small dollar contributions to the candidate as of the date of the request (including individuals whose contributions were included in a previous request under subsection (a) and individuals who made such contributions during the Small Dollar Democracy qualifying period described in section 511(c)), at least 50 percent are residents of the State in which the candidate seeks election. (3) The candidate did not receive a payment under this title during the 7-day period which ends on the date the candidate submits the request. (c) Time of payment The Commission shall ensure that payments under this section are made from the Treasury not later than 2 business days after the receipt of a request submitted under subsection (a). 503. Use of funds A candidate shall use payments made under this title, including payments provided with respect to a previous election cycle which are withheld from remittance to the Commission in accordance with section 524(a)(2), only for making direct payments for the receipt of goods and services (including legal fees related to the election or a legal challenge to the results of the election) which constitute authorized expenditures (as determined in accordance with title III) in connection with the election cycle involved. 504. Qualified small dollar contributions described (a) In general In this title, the term qualified small dollar contribution means, with respect to a candidate and the authorized committees of a candidate, a contribution that meets the following requirements: (1) The contribution is in an amount that is— (A) not less than $1; and (B) not more than $150. (2) The contribution is made by an individual, either directly or through an intermediary or conduit (as described in section 315(a)(8)), who is not otherwise prohibited from making a contribution under this Act. (3) The individual who makes the contribution does not make contributions to the candidate or the authorized committees of the candidate with respect to the election involved in an aggregate amount that exceeds the amount described in paragraph (1)(B), or any contribution to the candidate or the authorized committees of the candidate with respect to the election involved that otherwise is not a qualified small dollar contribution. (b) Treatment of my voice tax credits and my voice vouchers Any payment received by a candidate and the authorized committees of a candidate which is treated as a qualified My Voice Federal congressional House campaign contribution under section 36C of the Internal Revenue Code of 1986 or which consists of a My Voice Voucher under subtitle B of title I of the Government By the People Act of 2014 shall be considered a qualified small dollar contribution for purposes of this title, so long as the individual making the payment meets the requirements of paragraphs (2) and (3) of subsection (a). (c) Restriction on subsequent contributions (1) Prohibiting donor from making subsequent non-qualified contributions during election cycle (A) In general An individual who makes a qualified small dollar contribution to a candidate or the authorized committees of a candidate with respect to an election may not make any subsequent contribution to such candidate or the authorized committees of such candidate with respect to the election cycle which is not a qualified small dollar contribution. (B) Exception for contributions to candidates who voluntarily withdraw from participation during qualifying period Subparagraph (A) does not apply with respect to a contribution made to a candidate who, during the Small Dollar Democracy qualifying period described in section 511(c), submits a statement to the Commission under section 513(c) to voluntarily withdraw from participating in the program under this title. (2) Treatment of subsequent non-qualified contributions If, notwithstanding the prohibition described in paragraph (1), an individual who makes a qualified small dollar contribution to a candidate or the authorized committees of a candidate with respect to an election makes a subsequent contribution to such candidate or the authorized committees of such candidate with respect to the election which is prohibited under paragraph (1) because it is not a qualified small dollar contribution, the candidate may take one of the following actions: (A) Not later than 2 weeks after receiving the contribution, the candidate may return the subsequent contribution to the individual. (B) Unless the candidate has exercised the option described in section 521(a)(2) to accept greater restrictions on the permissible sources of contributions and expenditures, the candidate may retain the subsequent contribution, so long as not later than 2 weeks after receiving the subsequent contribution, the candidate remits to the Commission for deposit in the Freedom From Influence Fund under section 541 an amount equal to any payments received by the candidate under this title which are attributable to the qualified small dollar contribution made by the individual involved. (3) No effect on ability to make multiple contributions Nothing in this section may be construed to prohibit an individual from making multiple qualified small dollar contributions to any candidate or any number of candidates, so long as each contribution meets each of the requirements of paragraphs (1), (2), and (3) of subsection (a). (d) Notification requirements for candidates (1) Notification Each authorized committee of a candidate who seeks to be a participating candidate under this title shall provide the following information in any materials for the solicitation of contributions, including any Internet site through which individuals may make contributions to the committee: (A) A statement that if the candidate is certified as a participating candidate under this title, the candidate will receive matching payments in an amount which is based on the total amount of qualified small dollar contributions received. (B) A statement that a contribution which meets the requirements set forth in subsection (a) shall be treated as a qualified small dollar contribution under this title unless the contributor notifies the committee not later than 48 hours after making the contribution that the contribution is not to be so treated. (C) A statement that if a contribution is treated as qualified small dollar contribution under this title, the individual who makes the contribution may not make any contribution to the candidate or the authorized committees of the candidate during the election cycle which is not a qualified small dollar contribution. (2) Alternative methods of meeting requirements An authorized committee may meet the requirements of paragraph (1)— (A) by including the information described in paragraph (1) in the receipt provided under section 512(b)(3) to a person making a qualified small dollar contribution; or (B) by modifying the information it provides to persons making contributions which is otherwise required under title III (including information it provides through the Internet). B Eligibility and Certification 511. Eligibility (a) In general A candidate for the office of Representative in, or Delegate or Resident Commissioner to, the Congress is eligible to be certified as a participating candidate under this title with respect to an election if the candidate meets the following requirements: (1) The candidate files with the Commission a statement of intent to seek certification as a participating candidate, and specifies in the statement whether the candidate intends to exercise the option described in section 521(a)(2) to accept greater restrictions on the permissible sources of contributions and expenditures. (2) The candidate meets the qualifying requirements of section 512. (3) The candidate files with the Commission a statement certifying that the authorized committees of the candidate meet the requirements of section 504(d). (4) Not later than the last day of the Small Dollar Democracy qualifying period, the candidate files with the Commission an affidavit signed by the candidate and the treasurer of the candidate's principal campaign committee declaring that the candidate— (A) has complied and, if certified, will comply with the contribution and expenditure requirements of section 521; (B) if certified, will run only as a participating candidate for all elections for the office that such candidate is seeking during that election cycle; and (C) has either qualified or will take steps to qualify under State law to be on the ballot. (b) General election Notwithstanding subsection (a), a candidate shall not be eligible to be certified as a participating candidate under this title for a general election or a general runoff election unless the candidate’s party nominated the candidate to be placed on the ballot for the general election or the candidate is otherwise qualified to be on the ballot under State law. (c) Small Dollar Democracy qualifying period Defined The term Small Dollar Democracy qualifying period means, with respect to any candidate for an office, the 180-day period (during the election cycle for such office) which begins on the date on which the candidate files a statement of intent under section 511(a)(1), except that such period may not continue after the date that is 30 days before the date of the general election for the office. 512. Qualifying requirements (a) Receipt of qualified small dollar contributions from in-State residents A candidate for the office of Representative in, or Delegate or Resident Commissioner to, the Congress meets the requirement of this section if, during the Small Dollar Democracy qualifying period described in section 511(c), each of the following occurs: (1) Not fewer than 1,000 individuals who are residents of the State in which the candidate seeks election make a qualified small dollar contribution to the candidate. (2) The candidate obtains a total dollar amount of qualified small dollar contributions from individuals who are residents of the State in which the candidate seeks election which is equal to or greater than $50,000. (b) Requirements relating to receipt of qualified small dollar contribution Each qualified small dollar contribution— (1) may be made by means of a personal check, money order, debit card, credit card, electronic payment account, or any other method deemed appropriate by the Commission; (2) shall be accompanied by a signed statement (or, in the case of a contribution made online or through other electronic means, an electronic equivalent) containing— (A) the contributor’s name and the contributor's address in the State in which the primary residence of the contributor is located, and (B) an oath declaring that the contributor— (i) understands that the purpose of the contribution is to show support for the candidate so that the candidate may qualify for financing under this title, (ii) is making the contribution in his or her own name and from his or her own funds, (iii) has made the contribution willingly, and (iv) has not received any thing of value in return for the contribution; and (3) shall be acknowledged by a receipt that is sent to the contributor with a copy (in paper or electronic form) kept by the candidate for the Commission and a copy (in paper or electronic form) kept by the candidate for the election authorities in the State with respect to which the candidate is seeking election. (c) Verification of qualified small dollar contributions The Commission shall establish procedures for the auditing and verification of qualified small dollar contributions, including procedures for random audits, to ensure that such contributions meet the requirements of this section. 513. Certification (a) Deadline and Notification (1) In general Not later than 5 days after a candidate files an affidavit under section 511(a)(3), the Commission shall— (A) determine whether or not the candidate meets the requirements for certification as a participating candidate; (B) if the Commission determines that the candidate meets such requirements, certify the candidate as a participating candidate; and (C) notify the candidate of the Commission's determination. (2) Deemed certification for all elections in election cycle If the Commission certifies a candidate as a participating candidate with respect to the first election of the election cycle involved, the Commissioner shall be deemed to have certified the candidate as a participating candidate with respect to all subsequent elections of the election cycle. (b) Revocation of certification (1) In general The Commission may revoke a certification under subsection (a) if— (A) a candidate fails to qualify to appear on the ballot at any time after the date of certification (other than a candidate certified as a participating candidate with respect to a primary election who fails to qualify to appear on the ballot for a subsequent election in that election cycle); (B) a candidate ceases to be a candidate for the office involved, as determined on the basis of an official announcement by an authorized committee of the candidate or on the basis of a reasonable determination by the Commission; or (C) a candidate otherwise fails to comply with the requirements of this title, including any regulatory requirements prescribed by the Commission. (2) Existence of repeated or serious violations The Commission shall revoke a certification under subsection (a) if a penalty is assessed against the candidate under section 309(d) with respect to the election. (3) Effect of revocation If a candidate’s certification is revoked under this subsection— (A) the candidate shall repay to the Freedom From Influence Fund established under section 541 an amount equal to the payments received under this title with respect to the election cycle involved plus interest (at a rate determined by the Commission on the basis of an appropriate annual percentage rate for the month involved) on any such amount received; (B) the candidate may not receive payments under this title during the remainder of the election cycle involved; and (C) the candidate may not be certified as a participating candidate under this title with respect to the next election cycle. (4) Prohibiting participation in future elections for candidates with multiple revocations If the Commission revokes the certification of an individual as a participating candidate under this title 3 times, the individual may not be certified as a participating candidate under this title with respect to any subsequent election. (c) Voluntary withdrawal from participating during qualifying period At any time during the Small Dollar Democracy qualifying period described in section 511(c), a candidate may withdraw from participation in the program under this title by submitting to the Commission a statement of withdrawal (without regard to whether or not the Commission has certified the candidate as a participating candidate under this title as of the time the candidate submits such statement), so long as the candidate has not submitted a request for payment under section 502. (d) Participating Candidate defined In this title, a participating candidate means a candidate for the office of Representative in, or Delegate or Resident Commissioner to, the Congress who is certified under this section as eligible to receive benefits under this title. C Requirements for Candidates Certified as Participating Candidates 521. Contribution and expenditure requirements (a) Permitted sources of contributions and expenditures (1) In general Except as provided in subsection (c), a participating candidate with respect to an election shall, with respect to all elections occurring during the election cycle for the office involved, accept no contributions from any source and make no expenditures from any amounts, other than the following: (A) Qualified small dollar contributions. (B) Payments under this title. (C) Contributions from political committees established and maintained by a national or State political party, subject to the applicable limitations of section 315. (D) Subject to subsection (b), personal funds of the candidate or of any immediate family member of the candidate (other than funds received through qualified small dollar contributions). (E) Contributions from individuals who are otherwise permitted to make contributions under this Act, subject to the applicable limitations of section 315, except that the aggregate amount of contributions a participating candidate may accept from any individual with respect to any election during the election cycle may not exceed $1,000. (F) Contributions from multicandidate political committees, subject to the applicable limitations of section 315. (2) Option to accept stricter limits A participating candidate with respect to an election may, at the time of submitting the first request for payment under section 502(a), exercise an option to accept no contributions from any source and make no expenditures from any amounts with respect to all elections occurring during the election cycle for the office involved, other than the following: (A) Qualified small dollar contributions. (B) Payments under this title. (C) Subject to subsection (b), personal funds of the candidate or of any immediate family member of the candidate (other than funds received through qualified small dollar contributions). (D) Contributions from individuals who are otherwise permitted to make contributions under this Act, subject to the applicable limitations of section 315, except that— (i) the aggregate amount of contributions the candidate may accept from any individual with respect to any election during the election cycle may not exceed $1,000; (ii) the aggregate amount of contributions a candidate may accept from all individuals under this subparagraph with respect to the election cycle may not exceed $50,000; and (iii) the candidate may not accept any contributions under this subparagraph after the date on which the Commission notifies the candidate under section 513(a) that the candidate is certified as a participating candidate under this title. (b) Special rules for personal funds (1) Limit on amount A candidate who is certified as a participating candidate may use personal funds (including personal funds of any immediate family member of the candidate) so long as— (A) the aggregate amount used with respect to the election cycle (including any period of the cycle occurring prior to the candidate’s certification as a participating candidate) does not exceed $10,000; and (B) the funds are used only for making direct payments for the receipt of goods and services which constitute authorized expenditures in connection with the election cycle involved. (2) Immediate family member defined In this subsection, the term immediate family means, with respect to a candidate— (A) the candidate’s spouse; (B) a child, stepchild, parent, grandparent, brother, half-brother, sister, or half-sister of the candidate or the candidate’s spouse; and (C) the spouse of any person described in subparagraph (B). (c) Exceptions (1) Exception for contributions received prior to filing of statement of intent A candidate who has accepted contributions that are not described in paragraph (1) of subsection (a) (or, in the case of a candidate who has exercised the option described in paragraph (2) of subsection (a), that are not described in paragraph (2) of subsection (a)) is not in violation of subsection (a), but only if all such contributions are— (A) returned to the contributor; (B) submitted to the Commission for deposit in the Freedom From Influence Fund established under section 541; or (C) spent in accordance with paragraph (2). (2) Exception for expenditures made prior to filing of statement of intent If a candidate has made expenditures prior to the date the candidate files a statement of intent under section 511(a)(1) that the candidate is prohibited from making under subsection (a) or subsection (b), the candidate is not in violation of such subsection if the aggregate amount of the prohibited expenditures is less than the amount referred to in section 512(a)(2) (relating to the total dollar amount of qualified small dollar contributions which the candidate is required to obtain) which is applicable to the candidate. (3) Exception for campaign surpluses from a previous election Notwithstanding paragraph (1), unexpended contributions received by the candidate or an authorized committee of the candidate with respect to a previous election may be retained, but only if the candidate places the funds in escrow and refrains from raising additional funds for or spending funds from that account during the election cycle in which a candidate is a participating candidate. (4) Exception for contributions received before the effective date of this title Contributions received and expenditures made by the candidate or an authorized committee of the candidate prior to the effective date of this title shall not constitute a violation of subsection (a) or (b). Unexpended contributions shall be treated the same as campaign surpluses under paragraph (3), and expenditures made shall count against the limit in paragraph (2). (d) Special Rule for Coordinated Party Expenditures For purposes of this section, a payment made by a political party in coordination with a participating candidate shall not be treated as a contribution to or as an expenditure made by the participating candidate. (e) Prohibition on joint fundraising committees (1) Prohibition An authorized committee of a candidate who is certified as a participating candidate under this title with respect to an election may not establish a joint fundraising committee with a political committee other than another authorized committee of the candidate. (2) Status of existing committees for prior elections If a candidate established a joint fundraising committee described in paragraph (1) with respect to a prior election for which the candidate was not certified as a participating candidate under this title and the candidate does not terminate the committee, the candidate shall not be considered to be in violation of paragraph (1) so long as that joint fundraising committee does not receive any contributions or make any disbursements during the election cycle for which the candidate is certified as a participating candidate under this title. (f) Prohibition on Leadership PACs (1) Prohibition A candidate who is certified as a participating candidate under this title with respect to an election may not establish, finance, maintain, or control a leadership PAC. (2) Status of existing leadership PACs If a candidate established, financed, maintained, or controlled a leadership PAC prior to being certified as a participating candidate under this title and the candidate does not terminate the leadership PAC, the candidate shall not be considered to be in violation of paragraph (1) so long as the leadership PAC does not receive any contributions or make any disbursements during the election cycle for which the candidate is certified as a participating candidate under this title. (3) Leadership PAC defined In this subsection, the term leadership PAC has the meaning given such term in section 304(i)(8)(B). 522. Administration of campaign (a) Separate accounting for various permitted contributions Each authorized committee of a candidate certified as a participating candidate under this title— (1) shall provide for separate accounting of each type of contribution described in paragraph (1) of section 521(a) (or described in paragraph (2) of section 521(a) in the case of a candidate who exercises the option described in such paragraph) which is received by the committee; and (2) shall provide for separate accounting for the payments received under this title. (b) Enhanced disclosure of information on donors (1) Mandatory identification of individuals making qualified small dollar contributions Each authorized committee of a participating candidate under this title shall elect, in accordance with section 304(b)(3)(A), to include in the reports the committee submits under section 304 the identification of each person who makes a qualified small dollar contribution to the committee. (2) Mandatory disclosure through Internet Each authorized committee of a participating candidate under this title shall ensure that all information reported to the Commission under this Act with respect to contributions and expenditures of the committee is available to the public on the Internet (whether through a site established for purposes of this subsection, a hyperlink on another public site of the committee, or a hyperlink on a report filed electronically with the Commission) in a searchable, sortable, and downloadable manner. 523. Preventing unnecessary spending of public funds (a) Mandatory spending of available private funds An authorized committee of a candidate certified as a participating candidate under this title may not make any expenditure of any payments received under this title in any amount unless the committee has made an expenditure in an equivalent amount of funds received by the committee which are described in subparagraphs (C), (D), and (E) of paragraph (1) of section 521(a) (or described in subparagraph (C) of paragraph (2) of section 521(a) in the case of a candidate who exercises the option described in such paragraph). (b) Limitation Subsection (a) applies to an authorized committee only to the extent that the funds referred to in such subsection are available to the committee at the time the committee makes an expenditure of a payment received under this title. 524. Remitting unspent funds after election (a) Remittance required (1) In general Not later than the date that is 180 days after the last election for which a candidate certified as a participating candidate qualifies to be on the ballot during the election cycle involved, such participating candidate shall remit to the Commission for deposit in the Freedom From Influence Fund established under section 541 an amount equal to the balance of the payments received under this title by the authorized committees of the candidate which remain unexpended as of such date. (2) Permitting candidates participating in next election cycle to retain portion of unspent funds Notwithstanding paragraph (1), a participating candidate may withhold not more than $100,000 (or, in the case of a candidate who exercises the option described in section 521(a)(2) to accept greater restrictions on the permissible sources of contributions and expenditures, not more than $200,000) from the amount required to be remitted under paragraph (1) if the candidate files a signed affidavit with the Commission that the candidate will seek certification as a participating candidate with respect to the next election cycle, except that the candidate may not use any portion of the amount withheld until the candidate is certified as a participating candidate with respect to that next election cycle. If the candidate fails to seek certification as a participating candidate prior to the last day of the Small Dollar Democracy qualifying period for the next election cycle (as described in section 511), or if the Commission notifies the candidate of the Commission’s determination does not meet the requirements for certification as a participating candidate with respect to such cycle, the candidate shall immediately remit to the Commission the amount withheld. (b) Exception for expenses incurred as a result of contested election (1) In general A candidate may withhold from the amount required to be remitted under subsection (a) the amount of any authorized expenditures which were incurred as the result of a legal challenge to the results of the election, except that any amount withheld pursuant to this paragraph shall be remitted to the Commission not later than 120 days after the date of the election to which such subsection applies. (2) Documentation required A candidate may withhold an amount of an expenditure pursuant to paragraph (1) only if the candidate submits documentation of the expenditure and the amount to the Commission not later than the deadline applicable to the candidate under subsection (a). D Enhanced Match Support 531. Enhanced support for general election (a) Availability of Enhanced Support In addition to the payments made under subtitle A, the Commission shall make an additional payment to an eligible candidate under this subtitle. (b) Use of funds A candidate shall use the additional payment under this subtitle only for authorized expenditures in connection with the election involved. 532. Eligibility (a) In General A candidate is eligible to receive an additional payment under this subtitle if the candidate meets each of the following requirements: (1) The candidate is on the ballot for the general election for the office the candidate seeks. (2) The candidate is certified as a participating candidate under this title with respect to the election. (3) During the enhanced support qualifying period, the candidate receives qualified small dollar contributions in a total amount of not less than $50,000. (4) During the enhanced support qualifying period, the candidate submits to the Commission a request for the payment which includes— (A) a statement of the number and amount of qualified small dollar contributions received by the candidate during the enhanced support qualifying period; (B) a statement of the amount of the payment the candidate anticipates receiving with respect to the request; and (C) such other information and assurances as the Commission may require. (5) After submitting a request for the additional payment under paragraph (4), the candidate does not submit any other application for an additional payment under this subtitle. (b) Enhanced Support Qualifying Period Described In this subtitle, the term enhanced support qualifying period means, with respect to a general election, the period which begins 60 days before the date of the election and ends 14 days before the date of the election. 533. Amount (a) In General Subject to subsection (b), the amount of the additional payment made to an eligible candidate under this subtitle shall be an amount equal to 50 percent of— (1) the amount of the payment made to the candidate under section 501(b) with respect to the qualified small dollar contributions which are received by the candidate during the enhanced support qualifying period (as included in the request submitted by the candidate under section 532(a)(4)); or (2) in the case of a candidate who is not eligible to receive a payment under section 501(b) with respect to such qualified small dollar contributions because the candidate has reached the limit on the aggregate amount of payments under subtitle A for the election cycle under section 501(c), the amount of the payment which would have been made to the candidate under section 501(b) with respect to such qualified small dollar contributions if the candidate had not reached such limit. (b) Limit The amount of the additional payment determined under subsection (a) with respect to a candidate may not exceed $500,000. (c) No Effect on Aggregate Limit The amount of the additional payment made to a candidate under this subtitle shall not be included in determining the aggregate amount of payments made to a participating candidate with respect to an election cycle under section 501(c). 534. Waiver of authority to retain portion of unspent funds after election Notwithstanding section 524(a)(2), a candidate who receives an additional payment under this subtitle with respect to an election is not permitted to withhold any portion from the amount of unspent funds the candidate is required to remit to the Commission under section 524(a)(1). E Administrative Provisions 541. Freedom From Influence Fund (a) Establishment There is established in the Treasury a fund to be known as the Freedom From Influence Fund . (b) Amounts held by Fund The Fund shall consist of the following amounts: (1) Appropriated amounts Amounts appropriated to the Fund, including trust fund amounts appropriated pursuant to applicable provisions of the Internal Revenue Code of 1986. (2) Voluntary contributions Voluntary contributions to the Fund, including contributions made pursuant to section 6098 of the Internal Revenue Code of 1986. (3) Other deposits Amounts deposited into the Fund under— (A) section 521(c) (relating to exceptions to contribution requirements); (B) section 523 (relating to remittance of unused payments from the Fund); (C) section 544 (relating to violations); and (D) any other section of this Act. (4) Investment returns Interest on, and the proceeds from, the sale or redemption of, any obligations held by the Fund under subsection (c). (c) Investment The Commission shall invest portions of the Fund in obligations of the United States in the same manner as provided under section 9602(b) of the Internal Revenue Code of 1986. (d) Use of Fund (1) In general Amounts in the Fund shall be available without further appropriation or fiscal year limitation to make payments to participating candidates as provided in this title. (2) Insufficient amounts Under regulations established by the Commission, rules similar to the rules of section 9006(c) of the Internal Revenue Code of 1986 shall apply. 542. Government by the People Oversight Commission (a) Establishment There is established within the Federal Election Commission an entity to be known as the Government by the People Oversight Commission (in this title referred to as the Oversight Commission ). (b) Structure and membership (1) In general The Oversight Commission shall be composed of 5 members appointed by the President with the advice and consent of the Senate, of whom— (A) 2 shall be appointed after consultation with the Majority Leader of the House of Representatives; (B) 2 shall be appointed after consultation with the Minority Leader of the House of Representatives; and (C) 1 shall be appointed upon the recommendation of the members appointed under subparagraphs (A) and (B). (2) Qualifications (A) In general The members shall be individuals who by reason of their education, experience, and attainments, are exceptionally qualified to perform the duties of members of the Oversight Commission. (B) Prohibition No individual may be appointed to the Oversight Commission who is— (i) an employee of the Federal Government; (ii) a registered lobbyist or an individual who was a registered lobbyist at any time during the 2-year period preceding appointment to the Oversight Commission; or (iii) an officer or employee of a political party or political campaign. (3) Date Members of the Oversight Commission shall be appointed not later than 60 days after the date of the enactment of this Act. (4) Terms A member of the Oversight Commission shall be appointed for a term of 5 years. (5) Vacancies A vacancy on the Oversight Commission shall be filled not later than 30 calendar days after the date on which the Oversight Commission is given notice of the vacancy, in the same manner as the original appointment. The individual appointed to fill the vacancy shall serve only for the unexpired portion of the term for which the individual’s predecessor was appointed. (6) Chairperson The Oversight Commission shall designate a Chairperson from among the members of the Board. (c) Duties and powers (1) Administration The Oversight Commission shall have such duties and powers as the Commission may prescribe, including the power to administer the provisions of this title. (2) Review of Small Dollar financing (A) In general After each regularly scheduled general election for Federal office, the Oversight Commission shall conduct a comprehensive review of the Small Dollar financing program under this title, including— (i) the maximum and minimum dollar amounts of qualified small dollar contributions under section 504; (ii) the number and value of qualified small dollar contributions a candidate is required to obtain under section 512(a) to be eligible for certification as a participating candidate; (iii) the maximum amount of payments a candidate may receive under this title; (iv) the overall satisfaction of participating candidates and the American public with the program; and (v) such other matters relating to financing of campaigns as the Oversight Commission determines are appropriate. (B) Criteria for review In conducting the review under subparagraph (A), the Oversight Commission shall consider the following: (i) Qualified small dollar contributions The Oversight Commission shall consider whether the number and dollar amounts of qualified small dollar contributions required strikes an appropriate balance regarding the importance of voter involvement, the need to assure adequate incentives for participating, and fiscal responsibility, taking into consideration the number of primary and general election participating candidates, the electoral performance of those candidates, program cost, and any other information the Oversight Commission determines is appropriate. (ii) Review of payment levels The Oversight Commission shall consider whether the totality of the amount of funds allowed to be raised by participating candidates (including through qualified small dollar contributions) and payments under this title are sufficient for voters in each State to learn about the candidates to cast an informed vote, taking into account the historic amount of spending by winning candidates, media costs, primary election dates, and any other information the Oversight Commission determines is appropriate. (C) Recommendations for adjustment of amounts Based on the review conducted under subparagraph (A), the Oversight Commission may recommend to Congress adjustments of the following amounts: (i) The number and value of qualified small dollar contributions a candidate is required to obtain under section 512(a) to be eligible for certification as a participating candidate. (ii) The maximum amount of payments may receive under this title. (d) Meetings and hearings (1) Meetings The Oversight Commission may hold such hearings, sit and act at such times and places, take such testimony, and receive such evidence as the Oversight Commission considers advisable to carry out the purposes of this Act. (2) Quorum Three members of the Oversight Commission shall constitute a quorum for purposes of voting, but a quorum is not required for members to meet and hold hearings. (e) Reports Not later than each June 1 which follows a regularly scheduled general election for Federal office for which payments were made under this title, the Oversight Commission shall submit to the Committee on House Administration of the House of Representatives a report— (1) containing an analysis of the review conducted under subsection (c)(2), including a detailed statement of Commission’s findings, conclusions, and recommendations based on such review, including any recommendations for adjustments of amounts described in subsection (c)(2)(C); and (2) documenting, evaluating, and making recommendations relating to the administrative implementation and enforcement of the provisions of this title. (f) Administration (1) Compensation of members (A) In general Each member, other than the Chairperson, shall be paid at a rate equal to the daily equivalent of the minimum annual rate of basic pay prescribed for level IV of the Executive Schedule under section 5315 of title 5, United States Code. (B) Chairperson The Chairperson shall be paid at a rate equal to the daily equivalent of the minimum annual rate of basic pay prescribed for level III of the Executive Schedule under section 5314 of title 5, United States Code. (2) Personnel (A) Director The Oversight Commission shall have a staff headed by an Executive Director. The Executive Director shall be paid at a rate equivalent to a rate established for the Senior Executive Service under section 5382 of title 5, United States Code. (B) Staff appointment With the approval of the Chairperson, the Executive Director may appoint such personnel as the Executive Director and the Oversight Commission determines to be appropriate. (C) Experts and consultants With the approval of the Chairperson, the Executive Director may procure temporary and intermittent services under section 3109(b) of title 5, United States Code. (D) Detail of government employees Upon the request of the Chairperson, the head of any Federal agency may detail, without reimbursement, any of the personnel of such agency to the Oversight Commission to assist in carrying out the duties of the Oversight Commission. Any such detail shall not interrupt or otherwise affect the civil service status or privileges of the Federal employee. (E) Other resources The Oversight Commission shall have reasonable access to materials, resources, statistical data, and other information from the Library of Congress and other agencies of the executive and legislative branches of the Federal Government. The Chairperson of the Oversight Commission shall make requests for such access in writing when necessary. (g) Authorization of appropriations There are authorized to be appropriated such sums as are necessary to carry out the purposes of this subtitle. 543. Administration by Commission The Commission shall prescribe regulations to carry out the purposes of this title, including regulations— (1) to establish procedures for— (A) verifying the amount of qualified small dollar contributions with respect to a candidate, (B) effectively and efficiently monitoring and enforcing the limits on the raising of qualified small dollar contributions, (C) effectively and efficiently monitoring and enforcing the limits on the use of personal funds by participating candidates, and (D) monitoring the use of allocations from the Freedom From Influence Fund established under section 541 and matching contributions under this title through audits of not fewer than 1/10 (or, in the case of the first 3 election cycles during which the program under this title is in effect, not fewer than 1/3 ) of all participating candidates or other mechanisms; and (2) regarding the conduct of debates in a manner consistent with the best practices of States that provide public financing for elections. 544. Violations and penalties (a) Civil penalty for violation of contribution and expenditure requirements If a candidate who has been certified as a participating candidate accepts a contribution or makes an expenditure that is prohibited under section 521, the Commission may assess a civil penalty against the candidate in an amount that is not more than 3 times the amount of the contribution or expenditure. Any amounts collected under this subsection shall be deposited into the Freedom From Influence Fund established under section 541. (b) Repayment for improper use of Freedom From Influence Fund (1) In general If the Commission determines that any payment made to a participating candidate was not used as provided for in this title or that a participating candidate has violated any of the dates for remission of funds contained in this title, the Commission shall so notify the candidate and the candidate shall pay to the Fund an amount equal to— (A) the amount of payments so used or not remitted, as appropriate; and (B) interest on any such amounts (at a rate determined by the Commission). (2) Other action not precluded Any action by the Commission in accordance with this subsection shall not preclude enforcement proceedings by the Commission in accordance with section 309(a), including a referral by the Commission to the Attorney General in the case of an apparent knowing and willful violation of this title. (c) Prohibiting certain candidates from qualifying as participating candidates (1) Candidates with multiple civil penalties If the Commission assesses 3 or more civil penalties under subsection (a) against a candidate (with respect to either a single election or multiple elections), the Commission may refuse to certify the candidate as a participating candidate under this title with respect to any subsequent election, except that if each of the penalties were assessed as the result of a knowing and willful violation of any provision of this Act, the candidate is not eligible to be certified as a participating candidate under this title with respect to any subsequent election. (2) Candidates subject to criminal penalty A candidate is not eligible to be certified as a participating candidate under this title with respect to an election if a penalty has been assessed against the candidate under section 309(d) with respect to any previous election. 545. Appeals process (a) Review of Actions Any action by the Commission in carrying out this title shall be subject to review by the United States Court of Appeals for the District of Columbia upon petition filed in the Court not later than 30 days after the Commission takes the action for which the review is sought. (b) Procedures The provisions of chapter 7 of title 5, United States Code, apply to judicial review under this section. 546. Indexing of amounts (a) Indexing In any calendar year after 2015, section 315(c)(1)(B) shall apply to each amount described in subsection (b) in the same manner as such section applies to the limitations established under subsections (a)(1)(A), (a)(1)(B), (a)(3), and (h) of such section, except that for purposes of applying such section to the amounts described in subsection (b), the base period shall be 2014. (b) Amounts described The amounts described in this subsection are as follows: (1) The amount referred to in section 502(b)(1) (relating to the minimum amount of qualified small dollar contributions included in a request for payment). (2) The amounts referred to in section 504(a)(1) (relating to the amount of a qualified small dollar contribution). (3) The amount referred to in section 512(a)(2) (relating to the total dollar amount of qualified small dollar contributions). (4) The amount referred to in section 521(a)(1)(E) (relating to the aggregate amount of contributions a participating candidate may accept from any individual with respect to an election). (5) The amount referred to in section 521(a)(2)(D)(i) (relating to the aggregate amount of contributions that may be accepted from any individual with respect to an election by a participating candidate who exercises the option described in such section to accept greater restrictions on the permissible sources of contributions and expenditures). (6) The amount referred to in section 521(a)(2)(D)(ii) (relating to the aggregate amount of contributions that may be accepted from all individuals with respect to an election cycle by a participating candidate who exercises the option described in such section to accept greater restrictions on the permissible sources of contributions and expenditures). (7) The amount referred to in section 521(b)(1) (relating to the amount of personal funds that may be used by a candidate who is certified as a participating candidate). (8) The amounts referred to in section 524(a)(2) (relating to the amount of unspent funds a candidate may retain for use in the next election cycle). (9) The amount referred to in section 532(a)(3)(B) (relating to the total dollar amount of qualified small dollar contributions for a candidate seeking an additional payment under subtitle D). (10) The amount referred to in section 533(b) (relating to the limit on the amount of an additional payment made to a candidate under subtitle D). 547. Election cycle defined In this title, the term election cycle means, with respect to an election for an office, the period beginning on the day after the date of the most recent general election for that office (or, if the general election resulted in a runoff election, the date of the runoff election) and ending on the date of the next general election for that office (or, if the general election resulted in a runoff election, the date of the runoff election). . 202. Contributions and expenditures by multicandidate and political party political committees on behalf of participating candidates (a) Authorizing Contributions Only From Separate Accounts Consisting of Qualified small dollar contributions Section 315(a) of the Federal Election Campaign Act of 1971 ( 2 U.S.C. 441a(a) ) is amended by adding at the end the following new paragraph: (9) In the case of a multicandidate political committee or any political committee of a political party, the committee may make a contribution to a candidate who is a participating candidate under title V with respect to an election only if the contribution is paid from a separate, segregated account of the committee which consists solely of contributions which meet the following requirements: (A) Each such contribution is in an amount which meets the requirements for the amount of a qualified small dollar contribution under section 504(a)(1) with respect to the election involved. (B) Each such contribution is made by an individual who is not otherwise prohibited from making a contribution under this Act. (C) The individual who makes the contribution does not make contributions to the committee during the year in an aggregate amount that exceeds the limit described in section 504(a)(1). . (b) Permitting Unlimited Coordinated Expenditures From Small Dollar Sources by Political Parties Section 315(d) of such Act ( 2 U.S.C. 441a(d) ) is amended— (1) in paragraph (3), by striking The national committee and inserting Except as provided in paragraph (5), the national committee ; and (2) by adding at the end the following new paragraph: (5) The limits described in paragraph (3) do not apply in the case of expenditures in connection with the general election campaign of a candidate for the office of Representative in, or Delegate or Resident Commissioner to, the Congress who is a participating candidate under title V with respect to the election, but only if— (A) the expenditures are paid from a separate, segregated account of the committee which is described in subsection (a)(9); and (B) the expenditures are the sole source of funding provided by the committee to the candidate. . 203. Prohibiting use of contributions by participating candidates for purposes other than campaign for election Section 313 of the Federal Election Campaign Act of 1971 ( 2 U.S.C. 439a ) is amended by adding at the end the following new subsection: (d) Restrictions on Permitted Uses of Funds by Candidates Receiving Small Dollar Financing Notwithstanding paragraph (2), (3), or (4) of subsection (a), if a candidate for election for the office of Representative in, or Delegate or Resident Commissioner to, the Congress is certified as a participating candidate under title V with respect to the election, any contribution which the candidate is permitted to accept under such title may be used only for authorized expenditures in connection with the candidate’s campaign for such office. . III Other Administrative Reforms 301. Expanding requirement to disclose bundlers who are registered lobbyists to all bundlers (a) Expanding bundler disclosure requirements to all bundlers Section 304(i)(1) of the Federal Election Campaign Act of 1971 ( 2 U.S.C. 434(i)(1) ) is amended by striking reasonably known by the committee to be a person described in paragraph (7) . (b) Conforming amendments Section 304(i) of such Act ( 2 U.S.C. 434(i) ) is amended— (1) in paragraph (2)(C), by striking described in paragraph (7) ; (2) in paragraph (3)(A), by striking a person described in paragraph (7) and inserting any person ; (3) in paragraph (5)— (A) by striking subparagraph (B) and redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), (B) in subparagraph (B) (as so redesignated), by striking described in paragraph (7) , and (C) in subparagraph (C) (as so redesignated), by striking by persons described in paragraph (7) ; (4) by striking paragraph (7) and redesignating paragraph (8) as paragraph (7); and (5) in paragraph (7)(A) (as so redesignated), by striking a person described in paragraph (7), and inserting a person, . 302. Petition for certiorari Section 307(a)(6) of the Federal Election Campaign Act of 1971 ( 2 U.S.C. 437d(a)(6) ) is amended by inserting (including a proceeding before the Supreme Court on certiorari) after appeal . 303. Filing by all candidates with Commission Section 302(g) of the Federal Election Campaign Act of 1971 ( 2 U.S.C. 432(g) ) is amended to read as follows: (g) Filing with the commission All designations, statements, and reports required to be filed under this Act shall be filed with the Commission. . 304. Electronic filing of FEC reports Section 304(a)(11) of the Federal Election Campaign Act of 1971 ( 2 U.S.C. 434(a)(11) ) is amended— (1) in subparagraph (A), by striking under this Act— and all that follows and inserting under this Act shall be required to maintain and file such designation, statement, or report in electronic form accessible by computers. ; (2) in subparagraph (B), by striking 48 hours and all that follows through filed electronically) and inserting 24 hours ; and (3) by striking subparagraph (D). 305. Effective date The amendments made by this title shall apply with respect to reports filed on or after the date of the enactment of this Act. IV Expanding Candidate Access to Advertising 401. Broadcasts by candidates (a) Lowest unit charge Section 315(b)(1)(A) of the Communications Act of 1934 ( 47 U.S.C. 315(b)(1)(A) ) is amended by inserting for preemptible use thereof after station . (b) Preemption; audits Section 315 of the Communications Act of 1934 ( 47 U.S.C. 315 ) is amended— (1) by redesignating subsection (c) as subsection (g) and transferring such subsection, as redesignated, to the end; (2) by redesignating subsection (d) as subsection (f) and transferring such subsection, as redesignated, so that it appears after subsection (e); and (3) by inserting after subsection (b) the following: (c) Preemption (1) In general Except as provided in paragraph (2) and notwithstanding the requirements of subsection (b)(1)(A), a licensee may not preempt the use of a broadcasting station by a legally qualified candidate that has purchased and paid for such use under circumstances entitling such candidate to receive the rate under such subsection for such use. (2) Circumstances beyond control of licensee If a program to be broadcast by a broadcasting station is preempted because of circumstances beyond the control of the licensee, an advertisement that is scheduled to be broadcast during such program and the broadcast of which constitutes use of the broadcasting station described in paragraph (1) shall be treated in the same fashion as a comparable commercial advertisement. (d) Audits During the 45-day period preceding the date of a primary or primary runoff election and during the 60-day period preceding the date of a general election or special election, the Commission shall conduct such audits as it considers necessary to ensure that the licensee of each broadcasting station is allocating use of the station in accordance with this section and in a manner that does not warrant revocation of the station license under section 312(a)(7). . (c) Revocation of license for failure To allow access by Federal candidates Section 312 of the Communications Act of 1934 ( 47 U.S.C. 312 ) is amended— (1) in subsection (a)(7)— (A) by inserting in accordance with subsection (h), before for willful ; (B) by striking or repeated ; (C) by inserting or a cable system after non-commercial educational broadcast station, ; and (D) by striking his candidacy and inserting the candidacy of the candidate, under the same terms, conditions, and business practices as apply to the most-favored advertiser of the broadcasting station or cable system ; and (2) by adding at the end the following: (h) Conditions for revocation for failure To allow access by Federal candidates (1) Three-strikes rule The Commission may revoke a station license or construction permit under subsection (a)(7) only if the Commission finds that the licensee or permittee has engaged in at least 3 failures described in such subsection with respect to the broadcasting station or cable system to which the license or permit relates. (2) Duration In the case of a person whose station license or construction permit with respect to a broadcasting station or cable system has been revoked under subsection (a)(7)— (A) the Commission may not grant a station license or construction permit to such person with respect to such broadcasting station or cable system during the 5-year period following the revocation; and (B) if the Commission grants such a station license or construction permit to such person after such 5-year period, the number of failures described in subsection (a)(7) shall be calculated for purposes of paragraph (1) without regard to any such failures that occurred while a previous license or permit was in effect. . (d) Technical amendments Section 315 of the Communications Act of 1934 ( 47 U.S.C. 315 ), as amended by subsection (b), is further amended— (1) in subsection (a), by striking If any licensee and inserting Equal opportunities for candidates for same office.— If any licensee ; (2) in subsection (b)(1), by moving subparagraphs (A) and (B) 2 ems to the right; (3) in subsection (f), as redesignated, by striking The Commission and inserting Regulations.— The Commission ; and (4) in subsection (g), as redesignated, by striking For purposes and inserting Definitions.— For purposes . V Contributions to Freedom From Influence Fund 501. Voluntary contributions to the Freedom From Influence Fund (a) In general Subchapter A of chapter 61 of the Internal Revenue Code of 1986 is amended by adding at the end the following new part: IX Contributions to Freedom From Influence Fund Sec. 6098. Contributions to Freedom From Influence Fund. 6098. Contributions to Freedom From Influence Fund (a) In general Every individual, with respect to the taxpayer’s return for the taxable year of the tax imposed by chapter 1, may designate that a specified portion (not less than $1) of any overpayment of tax shall be contributed to the Freedom From Influence Fund established under section 541 of the Federal Election Campaign Act of 1971. (b) Manner and time of designation (1) Time of designation A designation under subsection (a) may be made with respect to any taxable year— (A) at the time of filing the return of the tax imposed by chapter 1 for such taxable year, or (B) at any other time (after such time of filing) specified in regulations prescribed by the Secretary. (2) Manner of designation Such designation shall be made in such manner as the Secretary prescribes by regulations except that, if such designation is made at the time of filing the return of the tax imposed by chapter 1 for such taxable year, such designation shall be made either on the first page of the return or on the page bearing the taxpayer’s signature. (c) Overpayments treated as refunded For purposes of this title, any portion of an overpayment of tax designated under subsection (a) shall be treated as— (1) being refunded to the taxpayer as of the last date prescribed for filing the return of tax imposed by chapter 1 (determined without regard to extensions) or, if later, the date the return is filed, and (2) a contribution made by such taxpayer on such date to the United States. (d) On-Line contributions The Secretary shall establish and maintain a Web site through which persons may make contributions to the Freedom From Influence Fund. Any such contribution shall not be treated as an overpayment of tax but shall be treated as a contribution made by such person to the United States. . (b) Clerical amendment The table of parts for subchapter A of chapter 61 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item: Part IX. Contributions to Freedom From Influence Fund. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. VI Miscellaneous Provisions 601. Severability If any provision of this Act or any amendment made by this Act, or the application of a provision of this Act or an amendment made by this Act to any person or circumstance, is held to be unconstitutional, the remainder of this Act, and the application of the provisions to any person or circumstance, shall not be affected by the holding.

https://www.govinfo.gov/content/pkg/BILLS-113hr20ih/xml/BILLS-113hr20ih.xml

113-hr-21

I 113th CONGRESS 1st Session H. R. 21 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mr. Moran introduced the following bill; which was referred to the Committee on the Judiciary A BILL To provide for greater safety in the use of firearms. 1. Short title This Act may be cited as the NRA Members’ Gun Safety Act of 2013 . I Requiring a background check for every firearm sale 101. Purpose The purpose of this title is to extend the Brady Law background check procedures to all sales and transfers of firearms. 102. Firearms transfers (a) In general Chapter 44 of title 18, United States Code, is amended by adding at the end the following: 932. Background checks for firearm transfers by unlicensed persons (a) Definitions In this section— (1) the term unlicensed transferee means a person who— (A) is not licensed under this chapter; and (B) desires to receive a firearm from an unlicensed transferor; and (2) the term unlicensed transferor means a person who— (A) is not licensed under this chapter; and (B) desires to transfer a firearm to an unlicensed transferee. (b) Responsibilities of transferors other than licensees (1) In general It shall be unlawful for an unlicensed transferor to transfer a firearm to an unlicensed transferee, unless the firearm is transferred— (A) (i) through a licensed dealer under subsection (d); (ii) through a law enforcement agency under subsection (e); (iii) after inspecting a permit that confirms a background check under subsection (f); or (iv) in accordance with an exception described in subsection (g); and (B) in accordance with paragraph (2). (2) Criminal background checks Except as provided in subsection (g), an unlicensed transferor— (A) subject to subparagraph (B), may not transfer a firearm to an unlicensed transferee until— (i) the licensed dealer through which the transfer is made under subsection (d) makes a notification described in subsection (d)(3)(A); (ii) the law enforcement agency through which the transfer is made under subsection (e) makes a notification described in subsection (e)(4)(A); or (iii) the unlicensed transferee has presented a permit that confirms that a background check has been conducted, as described in subsection (f); and (B) may not transfer a firearm to an unlicensed transferee if— (i) the licensed dealer through which the transfer is made under subsection (d) makes the notification described in subsection (d)(3)(B); or (ii) the law enforcement agency through which the transfer is made under subsection (e) makes the notification described in subsection (e)(3)(B). (3) Absence of recordkeeping requirements Nothing in this section shall permit or authorize the Attorney General to impose recordkeeping requirements on any unlicensed transferor. (c) Responsibilities of transferees other than licensees (1) In general It shall be unlawful for an unlicensed transferee to receive a firearm from an unlicensed transferor, unless the firearm is transferred— (A) (i) through a licensed dealer under subsection (d); (ii) through a law enforcement agency under subsection (e); (iii) after inspecting a permit that confirms a background check in accordance with subsection (f); or (iv) in accordance with an exception described in subsection (g); and (B) in accordance with paragraph (2). (2) Criminal background checks Except as provided in subsection (g), an unlicensed transferee— (A) subject to subparagraph (B), may not receive a firearm from an unlicensed transferor until— (i) the licensed dealer through which the transfer is made under subsection (d) makes a notification described in subsection (d)(3)(A); (ii) the law enforcement agency through which the transfer is made under subsection (e) makes a notification described in subsection (e)(4)(A); or (iii) the unlicensed transferee has presented a permit that confirms that a background check described in subsection (f) has been conducted; and (B) may not receive a firearm from another unlicensed transferor if— (i) the licensed dealer through which the transfer is made under subsection (d) makes a notification described in subsection (d)(3)(B); or (ii) the law enforcement agency through which the transfer is made under subsection (e) makes a notification described in subsection (e)(4)(B). (d) Background checks through licensed dealers A licensed dealer who agrees to assist in the transfer of a firearm between unlicensed transferor and an unlicensed transferee shall— (1) enter such information about the firearm as the Attorney General may require by regulation into a separate bound record; (2) record the transfer on a form specified by the Attorney General; (3) comply with section 922(t) as if transferring the firearm from the inventory of the licensed dealer to the unlicensed transferee (except that a licensed dealer assisting in the transfer of a firearm under this subsection shall not be required to comply again with the requirements of section 922(t) in delivering the firearm to the unlicensed transferee) and notify the unlicensed transferor and unlicensed transferee— (A) of such compliance; and (B) if the transfer is subject to the requirements of section 922(t)(1), of any receipt by the licensed dealer of a notification from the national instant criminal background check system that the transfer would violate section 922 or State law; (4) not later than 31 days after the date on which the transfer occurs, submit to the Attorney General a report of the transfer, which— (A) shall be on a form specified by the Attorney General by regulation; and (B) shall not include the name of or other identifying information relating to the unlicensed transferor or unlicensed transferee; (5) if the licensed dealer assists an unlicensed transferor in transferring, at the same time or during any 5 consecutive business days, two or more pistols or revolvers, or any combination of pistols and revolvers totaling two or more, to the same unlicensed transferee, in addition to the reports required under paragraph (4), prepare a report of the multiple transfers, which shall— (A) be prepared on a form specified by the Attorney General; and (B) not later than the close of business on the date on which the transfer requiring the report under this paragraph occurs, be submitted to— (i) the office specified on the form described in subparagraph (A); and (ii) the appropriate State law enforcement agency of the jurisdiction in which the transfer occurs; and (6) retain a record of the transfer as part of the permanent business records of the licensed dealer. (e) Background checks through law enforcement agencies A State or local law enforcement agency that agrees to assist an unlicensed transferor in carrying out the responsibilities of the unlicensed transferor under subsection (b) with respect to the transfer of a firearm shall— (1) (A) contact the national instant criminal background check system under section 922(t); and (B) (i) receive an identification number as described in section 922(t)(1)(B)(i); or (ii) wait the period described in 922(t)(1)(B)(ii); (2) conduct such other checks as the agency considers appropriate to determine whether the receipt or possession of the firearm by the unlicensed transferee would violate section 922 or State law; (3) verify the identity of the unlicensed transferee by— (A) examining a valid identification document (as defined in section 1028(d)) of the unlicensed transferee containing a photograph of the unlicensed transferee; or (B) confirming that the unlicensed transferor has examined a valid identification document described in subparagraph (A); (4) notify the unlicensed transferor and transferee— (A) of the compliance by the law enforcement agency with the requirements under paragraphs (1), (2), and (3); and (B) of any receipt by the law enforcement agency of a notification from the national instant criminal background check system or other information that the transfer would violate section 922 or would violate State law; (5) not later than 31 days after the date on which the transfer occurs, submit to the Attorney General a report of the transfer, which— (A) shall be on a form specified by the Attorney General by regulation; and (B) shall not include the name of or other identifying information relating to the unlicensed transferor or unlicensed transferee; (6) if the law enforcement agency assists an unlicensed transferor in transferring, at the same time or during any 5 consecutive business days, two or more pistols or revolvers, or any combination of pistols and revolvers totaling two or more, to the same unlicensed transferee, in addition to the reports required under paragraph (5), prepare a report of the multiple transfers, which shall be— (A) prepared on a form specified by the Attorney General; and (B) not later 24 hours after the transfer requiring the report under this paragraph occurs, submitted to— (i) the office specified on the form described in subparagraph (A); and (ii) the appropriate State law enforcement agency of the jurisdiction in which the transfer occurs; and (7) maintain records of the transfer at such place, and in such form, as the Attorney General may prescribe. (f) Purchase permits confirming background checks An unlicensed transferor may transfer a firearm to an unlicensed transferee if the unlicensed transferor verifies that— (1) the unlicensed transferee has presented to a licensed dealer or a law enforcement official a permit or license that allows the unlicensed transferee to possess, acquire, or carry a firearm, and the licensed dealer or law enforcement official, as the case may be, has verified to the unlicensed transferor that the permit or license is valid; (2) the permit or license was issued not more than 5 years before the date on which the permit or license is presented under paragraph (1) by a law enforcement agency in the State in which the transfer is to take place; (3) the law of the State provides that the permit or license is to be issued only after a law enforcement official has verified that neither the national instant criminal background check system nor other information indicates that possession of a firearm by the unlicensed transferee would be in violation of Federal, State, or local law; and (4) if the permit or license does not include a photograph of the unlicensed transferee, the unlicensed transferor has examined a valid identification document (as defined in section 1028(d)) of the unlicensed transferee containing a photograph of the unlicensed transferee. (g) Exceptions Unless prohibited by any other provision of law, subsections (b) and (c) shall not apply to any transfer of a firearm between an unlicensed transferor and unlicensed transferee, if— (1) the transfer is a bona fide gift between immediate family members, including spouses, parents, children, siblings, grandparents, and grandchildren; (2) the transfer occurs by operation of law, or because of the death of another person for whom the unlicensed transferor is an executor or administrator of an estate or a trustee of a trust created in a will; (3) the transfer is temporary and occurs while in the home of the unlicensed transferee, if— (A) the unlicensed transferee is not otherwise prohibited from possessing firearms; and (B) the unlicensed transferee believes that possession of the firearm is necessary to prevent imminent death or great bodily harm to the unlicensed transferee; (4) the transfer is approved by the Attorney General under section 5812 of the Internal Revenue Code of 1986; or (5) upon application of the unlicensed transferor, the Attorney General determined that compliance with subsection (b) is impracticable because— (A) the ratio of the number of law enforcement officers of the State in which the transfer is to occur to the number of square miles of land area of the State does not exceed 0.0025; (B) the location at which the transfer is to occur is extremely remote in relation to the chief law enforcement officer (as defined in section 922(s)(8)); and (C) there is an absence of telecommunications facilities in the geographical area in which the unlicensed transferor is located; or (6) the transfer is a temporary transfer of possession without transfer of title that takes place— (A) at a shooting range located in or on premises owned or occupied by a duly incorporated organization organized for conservation purposes or to foster proficiency in firearms; (B) at a target firearm shooting competition under the auspices of or approved by a State agency or nonprofit organization; or (C) while hunting, fishing, or trapping, if— (i) the activity is legal in all places where the unlicensed transferee possesses the firearm; and (ii) the unlicensed transferee holds any required license or permit. (h) Processing fees A licensed dealer or law enforcement agency that processes the transfer of a firearm under this section may assess and collect a fee, in an amount not to exceed $15, with respect to each firearm transfer processed. (i) Records Nothing in subsection (e)(7) shall be construed to authorize the Attorney General to inspect records described in such subsection or to require that the records be transferred to a facility owned, managed, or controlled by the United States. . (b) Penalties Section 924(a)(5) of title 18, United States Code, is amended by inserting or section 932 after section 922 . (c) Conforming amendment The table of sections for chapter 44 of title 18, United States Code, is amended by adding at the end the following: 932. Background checks for firearm transfers by unlicensed persons. . 103. Effective date The amendments made by this title shall take effect 180 days after the date of enactment of this Act. II Background checks for gun shop employees 201. Background checks required for employees authorized to possess or transfer firearms or ammunition in the course of a licensed firearm business (a) In general Section 923 of title 18, United States Code, is amended by adding at the end the following: (m) (1) (A) It shall be unlawful for a licensed dealer to authorize an employee hired by the employer on or after the effective date of this subsection to possess or transfer a firearm or ammunition in the course of employment with the licensed dealer, unless the licensed dealer has received from the Attorney General a notice that the Attorney General has determined that receipt of a firearm by the employee would not be unlawful. (B) Beginning 3 months after the effective date of this subsection, it shall be unlawful for a licensed dealer to authorize an employee hired by the employer before the effective date of this subsection, to possess or transfer a firearm or ammunition in the course of employment with the licensed dealer, unless the licensed dealer has received from the Attorney General a notice that the Attorney General has determined that receipt of a firearm by the employee would not be unlawful. (2) The Attorney General may temporarily waive the applicability of paragraph (1) to an employer with respect to an employee about whom the employer has submitted to the Attorney General the information described in paragraph (3) if the Attorney General determines that the Attorney General will be unable to make a determination under paragraph (3) with respect to the employee in a timely manner. (3) (A) If the Attorney General receives from a licensed dealer the name and other identifying information of an employee who will be authorized by the licensed dealer to possess or transfer a firearm in the course of employment with the licensed dealer, the Attorney General shall determine whether it would be unlawful for the employee to receive a firearm under Federal law or under the law of any State or locality in which the employee may be so authorized. In making the determination, the Attorney General may take into account a letter or document issued under subparagraph (B). (B) (i) If the Attorney General determines that such a receipt of a firearm by the employee would not be unlawful, the Attorney General shall notify the licensed dealer in writing or electronically of the determination, and issue to the employee a letter of clearance, which confirms the determination. (ii) If the Attorney General determines that such a receipt of a firearm by the employee would be unlawful, the Attorney General shall notify the licensed dealer in writing or electronically of the determination, and issue to the employee a document that— (I) confirms the determination; (II) explains the grounds for the determination; (III) provides information on how the disability may be relieved; and (IV) explains how the determination may be appealed. . (b) Penalties (1) Administrative Section 923(e) of such title is amended by inserting knowingly violated subsection (m)(1) or before willfully violated . (2) Criminal Section 924(a)(1)(D) of such title is amended by inserting knowingly violates section 923(m)(1) or before willfully . (c) Correction of erroneous system information Section 103(g) of the Brady Handgun Violence Prevention Act ( 18 U.S.C. 922 note) is amended— (1) by inserting or by an employee of the individual after transferee the first place it appears; and (2) by inserting or employee, as the case may be, after transferee each subsequent place it appears. (d) Effective date The amendment made by this section shall apply to conduct engaged in after the 3-month period that begins with the date of the enactment of this Act. III Prevention of terrorists from obtaining firearms or explosives 301. Granting the attorney general the authority to deny the sale, delivery, or transfer of a firearm or the issuance of a firearms or explosives license or permit to dangerous terrorists (a) Standard for exercising attorney general discretion regarding transferring firearms or issuing firearms permits to dangerous terrorists Chapter 44 of title 18, United States Code, is amended— (1) by inserting the following new section after section 922: 922A. Attorney General’s discretion to deny transfer of a firearm The Attorney General may deny the transfer of a firearm pursuant to section 922(t)(1)(B)(ii) if the Attorney General determines that the transferee is known (or appropriately suspected) to be or have been engaged in conduct constituting, in preparation for, in aid of, or related to terrorism, or providing material support thereof, and the Attorney General has a reasonable belief that the prospective transferee may use a firearm in connection with terrorism. ; (2) by inserting the following new section after section 922A: 922B. Attorney General’s discretion regarding applicants for firearm permits which would qualify for the exemption provided under section 922(t)(3) The Attorney General may determine that an applicant for a firearm permit which would qualify for an exemption under section 922(t) is known (or appropriately suspected) to be or have been engaged in conduct constituting, in preparation for, in aid of, or related to terrorism, or providing material support thereof, and the Attorney General has a reasonable belief that the applicant may use a firearm in connection with terrorism. ; and (3) in section 921(a), by adding at the end the following: (36) The term terrorism means international terrorism as defined in section 2331(1), and domestic terrorism as defined in section 2331(5). (37) The term material support means material support or resources within the meaning of section 2339A or 2339B. (38) The term responsible person means an individual who has the power, directly or indirectly, to direct or cause the direction of the management and policies of the applicant or licensee pertaining to firearms. . (b) Effect of attorney general discretionary denial through the national instant criminal background check system (NICS) on firearms permits Section 922(t) of such title is amended— (1) in paragraph (1)(B)(ii), by inserting or State law, or that the Attorney General has determined to deny the transfer of a firearm pursuant to section 922A before the semicolon; (2) in paragraph (2), by inserting after or State law the following: or if the Attorney General has not determined to deny the transfer of a firearm pursuant to section 922A ; (3) in paragraph (3)(A)(i)— (A) by striking and at the end of subclause (I); and (B) by adding at the end the following: (III) was issued after a check of the system established pursuant to paragraph (1); ; (4) in paragraph (3)(A)— (A) by adding and at the end of clause (ii); and (B) by adding after and below the end the following: (iii) the State issuing the permit agrees to deny the permit application if such other person is the subject of a determination by the Attorney General pursuant to section 922B; ; (5) in paragraph (4), by inserting after or State law, the following: or if the Attorney General has not determined to deny the transfer of a firearm pursuant to section 922A, ; and (6) in paragraph (5), by inserting after or State law, the following: or if the Attorney General has determined to deny the transfer of a firearm pursuant to section 922A, . (c) Unlawful sale or disposition of firearm based on attorney general discretionary denial Section 922(d) of such title is amended— (1) by striking or at the end of paragraph (8); (2) by striking the period at the end of paragraph (9) and inserting ; or ; and (3) by inserting after paragraph (9) the following: (10) has been the subject of a determination by the Attorney General pursuant to section 922A, 922B, 923(d)(1)(H), or 923(e) of this title. . (d) Attorney general discretionary denial as prohibitor Section 922(g) of such title is amended— (1) by striking or at the end of paragraph (8); (2) by striking the comma at the end of paragraph (9) and inserting; ; or ; and (3) by inserting after paragraph (9) the following: (10) who has received actual notice of the Attorney General’s determination made pursuant to section 922A, 922B, 923(d)(1)(H), or 923(e) of this title. . (e) Attorney general discretionary denial of federal firearms licenses Section 923(d)(1) of such title is amended— (1) by striking Any and inserting Except as provided in subparagraph (H), any ; (2) in subparagraph (F)(iii), by striking and at the end; (3) in subparagraph (G), by striking the period and inserting ; and ; and (4) by adding at the end the following: (H) The Attorney General may deny a license application if the Attorney General determines that the applicant (including any responsible person) is known (or appropriately suspected) to be or have been engaged in conduct constituting, in preparation for, in aid of, or related to terrorism, or providing material support thereof, and the Attorney General has a reasonable belief that the applicant may use a firearm in connection with terrorism. . (f) Discretionary revocation of federal firearms licenses Section 923(e) of such title is amended— (1) in the first sentence— (A) by inserting after revoke the following: —(1) ; and (B) by striking the period and inserting a semicolon; (2) in the second sentence— (A) by striking The Attorney General may, after notice and opportunity for hearing, revoke and insert (2) ; and (B) by striking the period and inserting ; or ; and (3) by adding at the end the following: (3) any license issued under this section if the Attorney General determines that the holder of the license (including any responsible person) is known (or appropriately suspected) to be or have been engaged in conduct constituting, in preparation for, in aid of, or related to terrorism, or providing material support thereof, and the Attorney General has a reasonable belief that the applicant may use a firearm in connection with terrorism. . (g) Attorney general’s ability To withhold information in firearms license denial and revocation suit Section 923(f) of such title is amended— (1) in the first sentence of paragraph (1), by inserting , except that if the denial or revocation is pursuant to subsection (d)(1)(H) or (e)(3), then any information on which the Attorney General relied for this determination may be withheld from the petitioner if the Attorney General determines that disclosure of the information would likely compromise national security before the period; and (2) in paragraph (3), by inserting after the third sentence the following: With respect to any information withheld from the aggrieved party under paragraph (1), the United States may submit, and the court may rely on, summaries or redacted versions of documents containing information the disclosure of which the Attorney General has determined would likely compromise national security. . (h) Attorney general’s ability To withhold information in relief from disabilities lawsuits Section 925(c) of such title is amended by inserting after the third sentence the following: If receipt of a firearms by the person would violate section 922(g)(10), any information which the Attorney General relied on for this determination may be withheld from the applicant if the Attorney General determines that disclosure of the information would likely compromise national security. In responding to the petition, the United States may submit, and the court may rely on, summaries or redacted versions of documents containing information the disclosure of which the Attorney General has determined would likely compromise national security. . (i) Penalties Section 924(k) of such title is amended— (1) by striking or at the end of paragraph (2); (2) in paragraph (3), by striking , or and inserting ; or ; and (3) by inserting after paragraph (3) the following: (4) constitutes an act of terrorism (as defined in section 921(a)(36)), or material support thereof (as defined in section 921(a)(37)), or . (j) Remedy for erroneous denial of firearm or firearm permit exemption Section 925A of such title is amended— (1) in the section heading, by striking Remedy for erroneous denial of firearm and inserting Remedies ; (2) by striking Any person denied a firearm pursuant to subsection (s) or (t) of section 922 and inserting the following: (a) Except as provided in subsection (b), any person denied a firearm pursuant to section 922(t) or pursuant to a determination made under section 922B, ; and (3) by adding after and below the end the following: (b) In any case in which the Attorney General has denied the transfer of a firearm to a prospective transferee pursuant to section 922A or has made a determination regarding a firearm permit applicant pursuant to section 922B, an action challenging the determination may be brought against the United States. The petition must be filed not later than 60 days after the petitioner has received actual notice of the Attorney General’s determination made pursuant to section 922A or 922B. The court shall sustain the Attorney General’s determination on a showing by the United States by a preponderance of evidence that the Attorney General’s determination satisfied the requirements of section 922A or 922B. To make this showing, the United States may submit, and the court may rely on, summaries or redacted versions of documents containing information the disclosure of which the Attorney General has determined would likely compromise national security. On request of the petitioner or the court’s own motion, the court may review the full, undisclosed documents ex parte and in camera. The court shall determine whether the summaries or redacted versions, as the case may be, are fair and accurate representations of the underlying documents. The court shall not consider the full, undisclosed documents in deciding whether the Attorney General’s determination satisfies the requirements of section 922A or 922B. . (k) Provision of grounds underlying ineligibility determination by the national instant criminal background check system Section 103 of the Brady Handgun Violence Prevention Act ( Public Law 103–159 ) is amended— (1) in subsection (f)— (A) by inserting after is ineligible to receive a firearm, the following: or the Attorney General has made a determination regarding an applicant for a firearm permit pursuant to section 922B of title 18, United States Code ; and (B) by inserting after the system shall provide such reasons to the individual, the following: except for any information the disclosure of which the Attorney General has determined would likely compromise national security ; and (2) in subsection (g)— (A) in the first sentence, by inserting after subsection (g) or (n) of section 922 of title 18, United States Code or State law the following: or if the Attorney General has made a determination pursuant to section 922A or 922B of such title, ; (B) by inserting , except any information the disclosure of which the Attorney General has determined would likely compromise national security before the period; and (C) by adding at the end the following: Any petition for review of information withheld by the Attorney General under this subsection shall be made in accordance with section 925A of title 18, United States Code. . (l) Unlawful distribution of explosives based on attorney general discretionary denial Section 842(d) of such title is amended— (1) by striking the period at the end of paragraph (9) and inserting ; or ; and (2) by adding at the end the following: (10) has received actual notice of the Attorney General’s determination made pursuant to section 843(b)(8) or (d)(2) of this title. . (m) Attorney General discretionary denial as prohibitor Section 842(i) of such title is amended— (1) by adding or at the end of paragraph (7); and (2) by inserting after paragraph (7) the following: (8) who has received actual notice of the Attorney General’s determination made pursuant to section 843(b)(8) or (d)(2), . (n) Attorney General discretionary denial of Federal explosives licenses and permits Section 843(b) of such title is amended— (1) by striking Upon and inserting the following: Except as provided in paragraph (8), on ; and (2) by inserting after paragraph (7) the following: (8) The Attorney General may deny the issuance of a permit or license to an applicant if the Attorney General determines that the applicant or a responsible person or employee possessor thereof is known (or appropriately suspected) to be or have been engaged in conduct constituting, in preparation of, in aid of, or related to terrorism, or providing material support thereof, and the Attorney General has a reasonable belief that the person may use explosives in connection with terrorism. . (o) Attorney General discretionary revocation of Federal explosives licenses and permits Section 843(d) of such title is amended— (1) by inserting (1) in the first sentence after if ; and (2) by striking the period at the end of the first sentence and inserting the following: ; or (2) the Attorney General determines that the licensee or holder (or any responsible person or employee possessor thereof) is known (or appropriately suspected) to be or have been engaged in conduct constituting, in preparation for, in aid of, or related to terrorism, or providing material support thereof, and that the Attorney General has a reasonable belief that the person may use explosives in connection with terrorism. . (p) Attorney General’s ability To withhold information in explosives license and permit denial and revocation suits Section 843(e) of such title is amended— (1) in the first sentence of paragraph (1), by inserting except that if the denial or revocation is based on a determination under subsection (b)(8) or (d)(2), then any information which the Attorney General relied on for the determination may be withheld from the petitioner if the Attorney General determines that disclosure of the information would likely compromise national security before the period; and (2) in paragraph (2), by adding at the end the following: In responding to any petition for review of a denial or revocation based on a determination under section 843(b)(8) or (d)(2), the United States may submit, and the court may rely on, summaries or redacted versions of documents containing information the disclosure of which the Attorney General has determined would likely compromise national security. . (q) Ability To withhold information in communications to employers Section 843(h)(2) of such title is amended— (1) in subparagraph (A), by inserting or section 843(b)(1) (on grounds of terrorism) of this title, after section 842(i), ; and (2) in subparagraph (B)— (A) by inserting or section 843(b)(8) after section 842(i) ; and (B) in clause (ii), by inserting , except that any information that the Attorney General relied on for a determination pursuant to section 843(b)(8) may be withheld if the Attorney General concludes that disclosure of the information would likely compromise national security before the semicolon. (r) Conforming amendment to immigration and nationality act Section 101(a)(43)(E)(ii) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(43)(E)(ii)) is amended by striking or (5) and inserting (5), or (10) . IV Reporting of lost or stolen firearms to state or local police 401. Requirement that gun owners report lost or stolen firearms to state or local police Section 923(g)(6) of title 18, United States Code, is amended— (1) by inserting (A) after (6) ; and (2) by adding after and below the end the following: (B) Each person who owns or possesses a firearm shall report the theft or loss of the firearm, within 48 hours after the theft or loss is discovered, to the appropriate local authorities. . V Concealed firearms permits 501. Concealed firearms permits (a) In general Chapter 44 of title 18, United States Code, is amended by inserting after section 926C the following: 926D. Concealed firearms permits (a) In general Each State that allows residents of the State to carry concealed firearms in or affecting interstate or foreign commerce shall— (1) establish a process to issue permits to residents of the State to carry concealed firearms in or affecting interstate or foreign commerce; and (2) require that each resident of the State seeking to carry a concealed firearm in or affecting interstate or foreign commerce in the State obtain a permit through the process established under paragraph (1). (b) Requirements In establishing a process to issue permits to carry concealed firearms under subsection (a), a State shall— (1) ensure that a local law enforcement agency participates in the process; and (2) at a minimum, require that an applicant for a permit to carry a concealed firearm in or affecting interstate or foreign commerce— (A) be a legal resident of the United States; (B) be not less than 21 years of age; (C) demonstrate good cause for requesting a concealed firearm permit; (D) demonstrate that the applicant is worthy of the public trust to carry a concealed firearm in public; (E) complete a firearm safety training course certified by the State; and (F) not have been convicted of a crime of violence. (c) Law enforcement agency report If a State establishes a process under subsection (a) that allows for an agency other than a law enforcement agency to issue permits to carry concealed firearms, the process shall require that— (1) a local law enforcement agency submit to the agency responsible for issuing permits a written report that describes whether the applicant meets the standards of the State to carry a concealed firearm; and (2) the agency responsible for issuing permits maintain a report submitted under paragraph (1) in the file of the applicant. (d) Definition In this section, the term local law enforcement agency means a law enforcement agency of the unit of local government with jurisdiction of the area in which the applicant for a permit to carry a concealed firearm resides. (e) Compliance Not later than 270 days after the date of enactment of this section, each State described in subsection (a) shall be in compliance with this section. . (b) Technical and conforming amendment The table of sections for such chapter is amended by inserting after the item relating to section 926C the following: 926D. Concealed firearms permits. .

https://www.govinfo.gov/content/pkg/BILLS-113hr21ih/xml/BILLS-113hr21ih.xml

113-hr-22

I 113th CONGRESS 1st Session H. R. 22 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mr. Poe of Texas (for himself, Ms. Lofgren , Mr. Chabot , Mr. McKeon , Mr. Keating , Ms. Linda T. Sánchez of California , and Mr. McCaul ) introduced the following bill; which was referred to the Committee on the Judiciary A BILL To provide for the exchange of information related to trade enforcement, and for other purposes. 1. Short title This Act may be cited as the Foreign Counterfeit Merchandise Prevention Act . 2. Exchange of information related to trade enforcement Section 1905 of title 18, United States Code, is amended— (1) by striking Whoever and inserting (a) In general.— Whoever ; and (2) by adding at the end the following: (b) Provision of information relating to merchandise presented to Customs It shall not be a violation of this section for an officer or employee of U.S. Customs and Border Protection, upon detention and thereafter, to provide to the owner of a copyright or a registered mark, or to any person who may be injured by a violation of section 1201 of title 17— (1) any information appearing on the merchandise, including its retail packaging, (2) a sample of the merchandise and its retail packaging, or (3) digital images of the merchandise and its retail packaging, as it was presented to U.S. Customs and Border Protection, without redaction, whether imported into or exported from the United States, or attempted to be exported from the United States, for purposes of determining whether the merchandise or its retail packaging infringes the copyright, bears or consists of a counterfeit mark of the registered mark, or is in violation of section 1201 of title 17, as the case may be. (c) Provision of information relating to seized merchandise It shall not be a violation of this section for an officer or employee of U.S. Customs and Border Protection, after seizing merchandise pursuant to a determination that the merchandise is in violation of section 1201 of title 17, to provide, to persons injured by the violation, information with respect to the merchandise, including, but not limited to, the following: (1) The date of importation. (2) The port of entry. (3) The description of the merchandise from the entry. (4) The quantity involved. (5) The country of origin of the merchandise. (6) The name and address of the foreign manufacturer. (7) The name and address of the exporter. (8) The name and address of the importer. (9) Photographic or digital images of the merchandise. (d) Definitions As used in this section— (1) the term registered mark has the meaning given that term in section 45 of the Lanham Act ( 15 U.S.C. 1127 ); (2) the term Lanham Act has the meaning given that term in section 2320(f) of this title; (3) the term counterfeit mark has the meaning given that term in section 2320(f) of this title; and (4) the term without redaction means, with respect to merchandise, without removing, revising, or otherwise obscuring any information, codes, marks, numbers, or any other markings that appear on the merchandise or its retail packaging. (e) Rule of construction Subsections (b), (c), and (d) apply only with respect to tangible goods presented to U.S. Customs and Border Protection for importation into, or exportation from, the United States. . 3. Prevention of importation of manufactured goods bearing infringing marks (a) In general Section 42 of the Lanham Act ( 15 U.S.C. 1124 ), is amended— (1) in the first sentence, by striking Except as and inserting (a) In general.— Except as ; (2) by striking of the Treasury each place it appears and inserting of Homeland Security ; and (3) by adding at the end the following: (b) Detention of critical merchandise With respect to critical merchandise that bears a registered trademark recorded under subsection (a), if U.S. Customs and Border Protection detains the merchandise because the merchandise is suspected of bearing a counterfeit mark, then, upon such detention, the Secretary— (1) shall provide to the owner of the registered trademark any information on the critical merchandise and its packaging and labels, including, without redaction, photographs or digital images of the critical merchandise, packaging, and labels; and (2) may, at any time, subject to any applicable bonding and return requirements, provide to the owner of the registered trademark samples of the critical merchandise, without redaction. (c) Definitions In this section: (1) Critical merchandise (A) In general The term critical merchandise includes— (i) aircraft engines, appliances, propellers, and spare parts; (ii) motor vehicle equipment; (iii) semiconductors; and (iv) any other article of manufacture that the Secretary determines could, if permitted entry into the United States in violation of the laws of the United States pose a danger to the health, safety, or welfare of consumers, or to the national security of the United States. (B) Other definitions For purposes of subparagraph (A)— (i) the terms aircraft engine , appliance , propeller , and spare part have the meanings given those terms in section 40102(a) of title 49, United States Code; (ii) the term motor vehicle equipment has the meaning given that term in section 30102(a) of title 49, United States Code; and (iii) the term semiconductor means semiconductor chip product as defined in section 901 of title 17, United States Code. (2) Secretary The term Secretary means the Secretary of Homeland Security. (3) Without redaction The term without redaction means, with respect to merchandise, without removing, revising, or otherwise obscuring any information, codes, marks, numbers, or any other markings that appear on the merchandise or its retail packaging. (d) Rule of construction This section applies only with respect to tangible goods presented to U.S. Customs and Border Protection for importation into the United States. . (b) Definition In this section, the term Lanham Act means the Act entitled An Act to provide for the registration and protection of trademarks used in commerce, to carry out the provisions of certain international conventions, and for other purposes , approved July 5, 1946 (15 U.S.C. 1051 et seq.). (c) Effective date The amendments made by this section shall take effect upon the expiration of the 60-day period beginning on the date of the enactment of this Act.

https://www.govinfo.gov/content/pkg/BILLS-113hr22ih/xml/BILLS-113hr22ih.xml

113-hr-23

I 113th CONGRESS 1st Session H. R. 23 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mr. Broun of Georgia (for himself, Mr. Franks of Arizona , Mr. Palazzo , Mr. Huelskamp , Mr. Rogers of Kentucky , Mr. Terry , Mr. Carter , Mr. Westmoreland , Mr. Farenthold , Mr. Jones , Mr. Roe of Tennessee , Mr. Gibbs , Mr. Gingrey of Georgia , Mrs. Roby , Mr. Pearce , Mr. Ryan of Wisconsin , Mr. Conaway , and Mr. Fleming ) introduced the following bill; which was referred to the Committee on the Judiciary A BILL To provide that human life shall be deemed to begin with fertilization. 1. Short title This Act may be cited as the Sanctity of Human Life Act . 2. Declaration In the exercise of the powers of the Congress, including Congress’ power under article I, section 8 of the Constitution, to make necessary and proper laws, and Congress’ power under section 5 of the 14th article of amendment to the Constitution of the United States— (1) the Congress declares that— (A) the right to life guaranteed by the Constitution is vested in each human being, and is the paramount and most fundamental right of a person; and (B) the life of each human being begins with fertilization, cloning, or its functional equivalent, irrespective of sex, health, function or disability, defect, stage of biological development, or condition of dependency, at which time every human being shall have all the legal and constitutional attributes and privileges of personhood; and (2) the Congress affirms that the Congress, each State, the District of Columbia, and all United States territories have the authority to protect the lives of all human beings residing in its respective jurisdictions. 3. Definitions For purposes of this Act: (1) Fertilization The term fertilization means the process of a human spermatozoan penetrating the cell membrane of a human oocyte to create a human zygote, a one-celled human embryo, which is a new unique human being. (2) Cloning The term cloning means the process called somatic cell nuclear transfer, that combines an enucleated egg and the nucleus of a somatic cell to make a human embryo. (3) Human; human being The terms human and human being include each and every member of the species homo sapiens at all stages of life, beginning with the earliest stage of development, created by the process of fertilization, cloning, or its functional equivalent.

https://www.govinfo.gov/content/pkg/BILLS-113hr23ih/xml/BILLS-113hr23ih.xml

113-hr-24

I 113th CONGRESS 1st Session H. R. 24 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mr. Broun of Georgia introduced the following bill; which was referred to the Committee on Oversight and Government Reform , and in addition to the Committee on Financial Services , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To require a full audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks by the Comptroller General of the United States, and for other purposes. 1. Short title This Act may be cited as the Federal Reserve Transparency Act of 2013 . 2. Audit reform and transparency for the Board of Governors of the Federal Reserve System (a) In general Notwithstanding section 714 of title 31, United States Code, or any other provision of law, an audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks under subsection (b) of such section 714 shall be completed within 12 months after the date of the enactment of this Act. (b) Report (1) In general A report on the audit required under subsection (a) shall be submitted by the Comptroller General to the Congress before the end of the 90-day period beginning on the date on which such audit is completed and made available to the Speaker of the House, the majority and minority leaders of the House of Representatives, the majority and minority leaders of the Senate, the Chairman and Ranking Member of the committee and each subcommittee of jurisdiction in the House of Representatives and the Senate, and any other Member of Congress who requests the report. (2) Contents The report under paragraph (1) shall include a detailed description of the findings and conclusion of the Comptroller General with respect to the audit that is the subject of the report, together with such recommendations for legislative or administrative action as the Comptroller General may determine to be appropriate. (c) Repeal of certain limitations Subsection (b) of section 714 of title 31, United States Code, is amended by striking all after in writing. . (d) Technical and conforming amendment Section 714 of title 31, United States Code, is amended by striking subsection (f). 3. Audit of loan file reviews required by enforcement actions (a) In general The Comptroller General of the United States shall conduct an audit of the review of loan files of homeowners in foreclosure in 2009 or 2010, required as part of the enforcement actions taken by the Board of Governors of the Federal Reserve System against supervised financial institutions. (b) Content of audit The audit carried out pursuant to subsection (a) shall consider, at a minimum— (1) the guidance given by the Board of Governors of the Federal Reserve System to independent consultants retained by the supervised financial institutions regarding the procedures to be followed in conducting the file reviews; (2) the factors considered by independent consultants when evaluating loan files; (3) the results obtained by the independent consultants pursuant to those reviews; (4) the determinations made by the independent consultants regarding the nature and extent of financial injury sustained by each homeowner as well as the level and type of remediation offered to each homeowner; and (5) the specific measures taken by the independent consultants to verify, confirm, or rebut the assertions and representations made by supervised financial institutions regarding the contents of loan files and the extent of financial injury to homeowners. (c) Report Not later than the end of the 6-month period beginning on the date of the enactment of this Act, the Comptroller General shall issue a report to the Congress containing all findings and determinations made in carrying out the audit required under subsection (a).

https://www.govinfo.gov/content/pkg/BILLS-113hr24ih/xml/BILLS-113hr24ih.xml

113-hr-25

I 113th CONGRESS 1st Session H. R. 25 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mr. Woodall (for himself, Mr. Price of Georgia , Mr. Duncan of South Carolina , Mr. King of Iowa , Mr. Conaway , Mr. Brooks of Alabama , Mr. Brady of Texas , Mr. Westmoreland , Mr. Gingrey of Georgia , Mr. McCaul , Mr. Pearce , Mr. Long , Ms. Foxx , Mr. Young of Alaska , Mr. Graves of Georgia , Mr. Collins of Georgia , Mr. Bishop of Utah , Mr. Flores , Mr. Thornberry , Mr. Broun of Georgia , Mr. Walberg , Mr. Olson , Mr. Nugent , Mr. Culberson , Mr. Roe of Tennessee , Mr. Lankford , Mr. Posey , Mr. Benishek , Mr. Harris , Mr. Hensarling , Mr. Ross , Mr. Huelskamp , Mr. Franks of Arizona , Mr. Mica , Mr. Stutzman , Mr. McClintock , Mr. Carter , Mr. Duncan of Tennessee , Mr. Bonner , Mr. Crenshaw , Mr. Issa , Ms. Jenkins , Mr. Kingston , Mr. Lucas , Mr. Pompeo , Mr. Bilirakis , Mr. Neugebauer , Mr. Poe of Texas , Mr. Farenthold , Ms. Granger , Mr. Rigell , Mr. Hall , Mr. Miller of Florida , and Mr. Hunter ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States. 1. Short title; table of contents (a) Short Title This Act may be cited as the Fair Tax Act of 2013 . (b) Table of Contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Congressional findings. Title I—Repeal of the Income Tax, Payroll Taxes, and Estate and Gift Taxes Sec. 101. Income taxes repealed. Sec. 102. Payroll taxes repealed. Sec. 103. Estate and gift taxes repealed. Sec. 104. Conforming amendments; effective date. Title II—Sales Tax Enacted Sec. 201. Sales tax. Sec. 202. Conforming and technical amendments. Title III—Other Matters Sec. 301. Phase-out of administration of repealed Federal taxes. Sec. 302. Administration of other Federal taxes. Sec. 303. Sales tax inclusive Social Security benefits indexation. Title IV—Sunset of Sales Tax if Sixteenth Amendment not Repealed Sec. 401. Elimination of sales tax if Sixteenth Amendment not repealed. 2. Congressional findings (a) Findings Relating to Federal Income Tax Congress finds the Federal income tax— (1) retards economic growth and has reduced the standard of living of the American public; (2) impedes the international competitiveness of United States industry; (3) reduces savings and investment in the United States by taxing income multiple times; (4) slows the capital formation necessary for real wages to steadily increase; (5) lowers productivity; (6) imposes unacceptable and unnecessary administrative and compliance costs on individual and business taxpayers; (7) is unfair and inequitable; (8) unnecessarily intrudes upon the privacy and civil rights of United States citizens; (9) hides the true cost of government by embedding taxes in the costs of everything Americans buy; (10) is not being complied with at satisfactory levels and therefore raises the tax burden on law abiding citizens; and (11) impedes upward social mobility. (b) Findings Relating to Federal Payroll Taxes Congress finds further that the Social Security and Medicare payroll taxes and self-employment taxes— (1) raise the cost of employment; (2) destroy jobs and cause unemployment; and (3) have a disproportionately adverse impact on lower income Americans. (c) Findings Relating to Federal Estate and Gift Taxes Congress finds further that the Federal estate and gift taxes— (1) force family businesses and farms to be sold by the family to pay such taxes; (2) discourage capital formation and entrepreneurship; (3) foster the continued dominance of large enterprises over small family-owned companies and farms; and (4) impose unacceptably high tax planning costs on small businesses and farms. (d) Findings Relating to National Sales Tax Congress finds further that a broad-based national sales tax on goods and services purchased for final consumption— (1) is similar in many respects to the sales and use taxes in place in 45 of the 50 States; (2) will promote savings and investment; (3) will promote fairness; (4) will promote economic growth; (5) will raise the standard of living; (6) will increase investment; (7) will enhance productivity and international competitiveness; (8) will reduce administrative burdens on the American taxpayer; (9) will improve upward social mobility; and (10) will respect the privacy interests and civil rights of taxpayers. (e) Findings Relating to Administration of National Sales Tax Congress further finds that— (1) most of the practical experience administering sales taxes is found at the State governmental level; (2) it is desirable to harmonize Federal and State collection and enforcement efforts to the maximum extent possible; (3) it is sound tax administration policy to foster administration and collection of the Federal sales tax at the State level in return for a reasonable administration fee to the States; and (4) businesses that must collect and remit taxes should receive reasonable compensation for the cost of doing so. (f) Findings Relating To Repeal of Present Federal Tax System Congress further finds that the 16th amendment to the United States Constitution should be repealed. I Repeal of the Income Tax, Payroll Taxes, and Estate and Gift Taxes 101. Income taxes repealed Subtitle A of the Internal Revenue Code of 1986 (relating to income taxes and self-employment taxes) is repealed. 102. Payroll taxes repealed (a) In General Subtitle C of the Internal Revenue Code of 1986 (relating to payroll taxes and withholding of income taxes) is repealed. (b) Funding of Social Security For funding of the Social Security Trust Funds from general revenue, see section 201 of the Social Security Act ( 42 U.S.C. 401 ). 103. Estate and gift taxes repealed Subtitle B of the Internal Revenue Code of 1986 (relating to estate and gift taxes) is repealed. 104. Conforming amendments; effective date (a) Conforming Amendments The Internal Revenue Code of 1986 is amended— (1) by striking subtitle H (relating to financing of Presidential election campaigns), and (2) by redesignating— (A) subtitle D (relating to miscellaneous excise taxes) as subtitle B, (B) subtitle E (relating to alcohol, tobacco, and certain other excise taxes) as subtitle C, (C) subtitle F (relating to procedure and administration) as subtitle D, (D) subtitle G (relating to the Joint Committee on Taxation) as subtitle E, (E) subtitle I (relating to the Trust Fund Code) as subtitle F, (F) subtitle J (relating to coal industry health benefits) as subtitle G, and (G) subtitle K (relating to group health plan portability, access, and renewability requirements) as subtitle H. (b) Redesignation of 1986 Code (1) In general The Internal Revenue Code of 1986 enacted on October 22, 1986, as heretofore, hereby, or hereafter amended, may be cited as the Internal Revenue Code of 2013. (2) References in laws, etc Except when inappropriate, any reference in any law, Executive order, or other document— (A) to the Internal Revenue Code of 1986 shall include a reference to the Internal Revenue Code of 2013, and (B) to the Internal Revenue Code of 2013 shall include a reference to the provisions of law formerly known as the Internal Revenue Code of 1986. (c) Additional Amendments For additional conforming amendments, see section 202 of this Act. (d) Effective Date Except as otherwise provided in this Act, the amendments made by this Act shall take effect on January 1, 2015. II Sales Tax Enacted 201. Sales tax (a) In General The Internal Revenue Code of 2013 is amended by inserting before subtitle B (as redesignated by section 104(a)(2)(A)) the following new subtitle: A Sales Tax Sec. 1. Principles of interpretation. Sec. 2. Definitions. Chapter 1. Interpretation; Definitions; Imposition Of Tax; Etc. Chapter 2. Credits; refunds Chapter 3. Family consumption allowance Chapter 4. Federal and state cooperative tax administration Chapter 5. Other administrative provisions Chapter 6. Collections; appeals; taxpayer rights Chapter 7. Special rules Chapter 8. Financial intermediation services Chapter 9. Additional matters 1. Principles of interpretation (a) In General Any court, the Secretary, and any sales tax administering authority shall consider the purposes of this subtitle (as set forth in subsection (b)) as the primary aid in statutory construction. (b) Purposes The purposes of this subtitle are as follows: (1) To raise revenue needed by the Federal Government in a manner consistent with the other purposes of this subtitle. (2) To tax all consumption of goods and services in the United States once, without exception, but only once. (3) To prevent double, multiple, or cascading taxation. (4) To simplify the tax law and reduce the administration costs of, and the costs of compliance with, the tax law. (5) To provide for the administration of the tax law in a manner that respects privacy, due process, individual rights when interacting with the government, the presumption of innocence in criminal proceedings, and the presumption of lawful behavior in civil proceedings. (6) To increase the role of State governments in Federal tax administration because of State government expertise in sales tax administration. (7) To enhance generally cooperation and coordination among State tax administrators; and to enhance cooperation and coordination among Federal and State tax administrators, consistent with the principle of intergovernmental tax immunity. (c) Secondary Aids to Statutory Construction As a secondary aid in statutory construction, any court, the Secretary, and any sales tax administering authority shall consider— (1) the common law canons of statutory construction; (2) the meaning and construction of concepts and terms used in the Internal Revenue Code of 1986 as in effect before the effective date of this subtitle; and (3) construe any ambiguities in this Act in favor of reserving powers to the States respectively, or to the people. 2. Definitions (a) In General For purposes of this subtitle— (1) Affiliated firms A firm is affiliated with another if 1 firm owns 50 percent or more of— (A) the voting shares in a corporation, or (B) the capital interests of a business firm that is not a corporation. (2) Conforming state sales tax The term conforming State sales tax means a sales tax imposed by a State that adopts the same definition of taxable property and services as adopted by this subtitle. (3) Designated commercial private courier service The term designated commercial private courier service means a firm designated as such by the Secretary or any sales tax administering authority, upon application of the firm, if the firm— (A) provides its services to the general public, (B) records electronically to its data base kept in the regular course of its business the date on which an item was given to such firm for delivery, and (C) has been operating for at least 1 year. (4) Education and training The term education and training means tuition for primary, secondary, or postsecondary level education, and job-related training courses. Such term does not include room, board, sports activities, recreational activities, hobbies, games, arts or crafts or cultural activities. (5) Gross payments The term gross payments means payments for taxable property or services, including Federal taxes imposed by this title. (6) Intangible property (A) In general The term intangible property includes copyrights, trademarks, patents, goodwill, financial instruments, securities, commercial paper, debts, notes and bonds, and other property deemed intangible at common law. The Secretary shall, by regulation resolve differences among the provisions of common law of the several States. (B) Certain types of property Such term does not include tangible personal property (or rents or leaseholds of any term thereon), real property (or rents or leaseholds of any term thereon) and computer software. (7) Person The term person means any natural person, and unless the context clearly does not allow it, any corporation, partnership, limited liability company, trust, estate, government, agency, administration, organization, association, or other legal entity (foreign or domestic.) (8) Produce, provide, render, or sell taxable property or services (A) In general A taxable property or service is used to produce, provide, render, or sell a taxable property or service if such property or service is purchased by a person engaged in a trade or business for the purpose of employing or using such taxable property or service in the production, provision, rendering, or sale of other taxable property or services in the ordinary course of that trade or business. (B) Research, experimentation, testing, and development Taxable property or services used in a trade or business for the purpose of research, experimentation, testing, and development shall be treated as used to produce, provide, render, or sell taxable property or services. (C) Insurance payments Taxable property or services purchased by an insurer on behalf of an insured shall be treated as used to produce, provide, render, or sell taxable property or services if the premium for the insurance contract giving rise to the insurer’s obligation was subject to tax pursuant to section 801 (relating to financial intermediation services). (D) Education and training Education and training shall be treated as services used to produce, provide, render, or sell taxable property or services. (9) Registered seller The term registered seller means a person registered pursuant to section 502. (10) Sales tax administering authority The term sales tax administering authority means— (A) the State agency designated to collect and administer the sales tax imposed by this subtitle, in an administering State, or (B) the Secretary, in a State that is neither— (i) an administering State, nor (ii) a State that has elected to have its sales tax administered by an administering State. (11) Secretary The term Secretary means the Secretary of the Treasury. (12) Taxable employer (A) In general The term taxable employer includes— (i) any household employing domestic servants, and (ii) any government except for government enterprises (as defined in section 704). (B) Exceptions The term taxable employer does not include any employer which is— (i) engaged in a trade or business, (ii) a not-for-profit organization (as defined in section 706), or (iii) a government enterprise (as defined in section 704). (C) Cross reference For rules relating to collection and remittance of tax on wages by taxable employers, see section 103(b)(2). (13) Tax inclusive fair market value The term tax inclusive fair market value means the fair market value of taxable property or services plus the tax imposed by this subtitle. (14) Taxable property or service (A) General rule The term taxable property or service means— (i) any property (including leaseholds of any term or rents with respect to such property) but excluding— (I) intangible property, and (II) used property, and (ii) any service (including any financial intermediation services as determined by section 801). (B) Service For purposes of subparagraph (A), the term service — (i) shall include any service performed by an employee for which the employee is paid wages or a salary by a taxable employer, and (ii) shall not include any service performed by an employee for which the employee is paid wages or a salary— (I) by an employer in the regular course of the employer’s trade or business, (II) by an employer that is a not-for-profit organization (as defined in section 706), (III) by an employer that is a government enterprise (as defined in section 704), and (IV) by taxable employers to employees directly providing education and training. (15) United states The term United States , when used in the geographical sense, means each of the 50 states, the District of Columbia, and any commonwealth, territory, or possession of the United States. (16) Used property The term used property means— (A) property on which the tax imposed by section 101 has been collected and for which no credit has been allowed under section 202, 203, or 205, or (B) property that was held other than for a business purpose (as defined in section 102(b)) on December 31, 2014. (17) Wages and salary The terms wage and salary mean all compensation paid for employment service including cash compensation, employee benefits, disability insurance, or wage replacement insurance payments, unemployment compensation insurance, workers’ compensation insurance, and the fair market value of any other consideration paid by an employer to an employee in consideration for employment services rendered. (b) Cross References (1) For the definition of business purposes, see section 102(b). (2) For the definition of insurance contract, see section 206(e). (3) For the definition of qualified family, see section 302. (4) For the definition of monthly poverty level, see section 303. (5) For the definition of large seller, see section 501(e)(3). (6) For the definition of hobby activities, see section 701. (7) For the definition of gaming sponsor, see section 701(a). (8) For the definition of a chance, see section 701(b). (9) For the definition of government enterprise, see section 704(b). (10) For the definition of mixed use property, see section 705. (11) For the definition of qualified not-for-profit organization, see section 706. (12) For the definition of financial intermediation services, see section 801. 1 Interpretation; definitions; imposition of tax; etc. Sec. 101. Imposition of sales tax. Sec. 102. Intermediate and export sales. Sec. 103. Rules relating to collection and remittance of tax. 101. Imposition of sales tax (a) In General There is hereby imposed a tax on the use or consumption in the United States of taxable property or services. (b) Rate (1) For 2015 In the calendar year 2015, the rate of tax is 23 percent of the gross payments for the taxable property or service. (2) For years after 2015 For years after the calendar year 2015, the rate of tax is the combined Federal tax rate percentage (as defined in paragraph (3)) of the gross payments for the taxable property or service. (3) Combined federal tax rate percentage The combined Federal tax rate percentage is the sum of— (A) the general revenue rate (as defined in paragraph (4)), (B) the old-age, survivors and disability insurance rate, and (C) the hospital insurance rate. (4) General revenue rate The general revenue rate shall be 14.91 percent. (c) Coordination With Import Duties The tax imposed by this section is in addition to any import duties imposed by chapter 4 of title 19, United States Code. The Secretary shall provide by regulation that, to the maximum extent practicable, the tax imposed by this section on imported taxable property and services is collected and administered in conjunction with any applicable import duties imposed by the United States. (d) Liability for Tax (1) In general The person using or consuming taxable property or services in the United States is liable for the tax imposed by this section, except as provided in paragraph (2) of this subsection. (2) Exception where tax paid to seller A person using or consuming a taxable property or service in the United States is not liable for the tax imposed by this section if the person pays the tax to a person selling the taxable property or service and receives from such person a purchaser’s receipt within the meaning of section 509. 102. Intermediate and export sales (a) In General For purposes of this subtitle— (1) Business and export purposes No tax shall be imposed under section 101 on any taxable property or service purchased for a business purpose in a trade or business. (2) Investment purpose No tax shall be imposed under section 101 on any taxable property or service purchased for an investment purpose and held exclusively for an investment purpose. (3) State government functions No tax shall be imposed under section 101 on State government functions that do not constitute the final consumption of property or services. (b) Business Purposes For purposes of this section, the term purchased for a business purpose in a trade or business means purchased by a person engaged in a trade or business and used in that trade or business— (1) for resale, (2) to produce, provide, render, or sell taxable property or services, or (3) in furtherance of other bona fide business purposes. (c) Investment Purposes For purposes of this section, the term purchased for an investment purpose means property purchased exclusively for purposes of appreciation or the production of income but not entailing more than minor personal efforts. 103. Rules relating to collection and remittance of tax (a) Liability for Collection and Remittance of the Tax Except as provided otherwise by this section, any tax imposed by this subtitle shall be collected and remitted by the seller of taxable property or services (including financial intermediation services). (b) Tax To Be Remitted by Purchaser in Certain Circumstances (1) In general In the case of taxable property or services purchased outside of the United States and imported into the United States for use or consumption in the United States, the purchaser shall remit the tax imposed by section 101. (2) Certain wages or salary In the case of wages or salary paid by a taxable employer which are taxable services, the employer shall remit the tax imposed by section 101. (c) Conversion of Business or Export Property or Services Property or services purchased for a business purpose in a trade or business or for export (sold untaxed pursuant to section 102(a)) that is subsequently converted to personal use shall be deemed purchased at the time of conversion and shall be subject to the tax imposed by section 101 at the fair market value of the converted property as of the date of conversion. The tax shall be due as if the property had been sold at the fair market value during the month of conversion. The person using or consuming the converted property is liable for and shall remit the tax. (d) Barter Transactions If gross payment for taxable property or services is made in other than money, then the person responsible for collecting and remitting the tax shall remit the tax to the sales tax administering authority in money as if gross payment had been made in money at the tax inclusive fair market value of the taxable property or services purchased. 2 CREDITS; REFUNDS Sec. 201. Credits and refunds. Sec. 202. Business use conversion credit. Sec. 203. Intermediate and export sales credit. Sec. 204. Administration credit. Sec. 205. Bad debt credit. Sec. 206. Insurance proceeds credit. Sec. 207. Refunds. 201. Credits and refunds (a) In General Each person shall be allowed a credit with respect to the taxes imposed by section 101 for each month in an amount equal to the sum of— (1) such person’s business use conversion credit pursuant to section 202 for such month, (2) such person’s intermediate and export sales credit pursuant to section 203 for such month, (3) the administration credit pursuant to section 204 for such month, (4) the bad debt credit pursuant to section 205 for such month, (5) the insurance proceeds credit pursuant to section 206 for such month, (6) the transitional inventory credit pursuant to section 902, and (7) any amount paid in excess of the amount due. (b) Credits Not Additive Only one credit allowed by chapter 2 may be taken with respect to any particular gross payment. 202. Business use conversion credit (a) In General For purposes of section 201, a person’s business use conversion credit for any month is the aggregate of the amounts determined under subsection (b) with respect to taxable property and services— (1) on which tax was imposed by section 101 (and actually paid), and (2) which commenced to be 95 percent or more used during such month for business purposes (within the meaning of section 102(b)). (b) Amount of Credit The amount determined under this paragraph with respect to any taxable property or service is the lesser of— (1) the product of— (A) the rate imposed by section 101, and (B) the quotient that is— (i) the fair market value of the property or service when its use is converted, divided by (ii) the quantity that is one minus the tax rate imposed by section 101, or (2) the amount of tax paid with respect to such taxable property or service, including the amount, if any, determined in accordance with section 705 (relating to mixed use property). 203. Intermediate and export sales credit For purposes of section 201, a person’s intermediate and export sales credit is the amount of sales tax paid on the purchase of any taxable property or service purchased for— (1) a business purpose in a trade or business (as defined in section 102(b)), or (2) export from the United States for use or consumption outside the United States. 204. Administration credit (a) In General Every person filing a timely monthly report (with regard to extensions) in compliance with section 501 shall be entitled to a taxpayer administrative credit equal to the greater of— (1) $200, or (2) one-quarter of 1 percent of the tax remitted. (b) Limitation The credit allowed under this section shall not exceed 20 percent of the tax due to be remitted prior to the application of any credit or credits permitted by section 201. 205. Bad debt credit (a) Financial Intermediation Services Any person who has experienced a bad debt (other than unpaid invoices within the meaning of subsection (b)) shall be entitled to a credit equal to the product of— (1) the rate imposed by section 101, and (2) the quotient that is— (A) the amount of the bad debt (as defined in section 802), divided by (B) the quantity that is one minus the rate imposed by section 101. (b) Unpaid Invoices Any person electing the accrual method pursuant to section 503 that has with respect to a transaction— (1) invoiced the tax imposed by section 101, (2) remitted the invoiced tax, (3) actually delivered the taxable property or performed the taxable services invoiced, and (4) not been paid 180 days after date the invoice was due to be paid, shall be entitled to a credit equal to the amount of tax remitted and unpaid by the purchaser. (c) Subsequent Payment Any payment made with respect to a transaction subsequent to a section 205 credit being taken with respect to that transaction shall be subject to tax in the month the payment was received as if a tax inclusive sale of taxable property and services in the amount of the payment had been made. (d) Partial Payments Partial payments shall be treated as pro rata payments of the underlying obligation and shall be allocated proportionately— (1) for fully taxable payments, between payment for the taxable property and service and tax, and (2) for partially taxable payments, among payment for the taxable property and service, tax and other payment. (e) Related Parties The credit provided by this section shall not be available with respect to sales made to related parties. For purposes of this section, related party means affiliated firms and family members (as defined in section 302(b)). 206. Insurance proceeds credit (a) In General A person receiving a payment from an insurer by virtue of an insurance contract shall be entitled to a credit in an amount determined by subsection (b), less any amount paid to the insured by the insurer pursuant to subsection (c), if the entire premium (except that portion allocable to the investment account of the underlying policy) for the insurance contract giving rise to the insurer’s obligation to make a payment to the insured was subject to the tax imposed by section 101 and said tax was paid. (b) Credit Amount The amount of the credit shall be the product of— (1) the rate imposed by section 101, and (2) the quotient that is— (A) the amount of the payment made by the insurer to the insured, divided by (B) the quantity that is one minus the rate imposed by section 101. (c) Administrative Option The credit determined in accordance with subsection (b) shall be paid by the insurer to the insured and the insurer shall be entitled to the credit in lieu of the insured, except that the insurer may elect, in a form prescribed by the Secretary, to not pay the credit and require the insured to make application for the credit. In the event of such election, the insurer shall provide to the Secretary and the insured the name and tax identification number of the insurer and of the insured and indicate the proper amount of the credit. (d) Coordination With Respect to Exemption If taxable property or services purchased by an insurer on behalf of an insured are purchased free of tax by virtue of section 2(a)(8)(C), then the credit provided by this section shall not be available with respect to that purchase. (e) Insurance Contract For purposes of subsection (a), the term insurance contract shall include a life insurance contract, a health insurance contract, a property and casualty loss insurance contract, a general liability insurance contract, a marine insurance contract, a fire insurance contract, an accident insurance contract, a disability insurance contract, a long-term care insurance contract, and an insurance contract that provides a combination of these types of insurance. 207. Refunds (a) Registered Sellers If a registered seller files a monthly tax report with an overpayment, then, upon application by the registered seller in a form prescribed by the sales tax administering authority, the overpayment shown on the report shall be refunded to the registered seller within 60 days of receipt of said application. In the absence of such application, the overpayment may be carried forward, without interest, by the person entitled to the credit. (b) Other Persons If a person other than a registered seller has an overpayment for any month, then, upon application by the person in a form prescribed by the sales tax administering authority, the credit balance due shall be refunded to the person within 60 days of receipt of said application. (c) Interest No interest shall be paid on any balance due from the sales tax administering authority under this subsection for any month if such balance due is paid within 60 days after the application for refund is received. Balances due not paid within 60 days after the application for refund is received shall bear interest from the date of application. Interest shall be paid at the Federal short-term rate (as defined in section 511). (d) Suspension of Period To Pay Refund Only if Federal or State Court Ruling The 60-day periods under subsections (a) and (b) shall be suspended with respect to a purported overpayment (or portion thereof) only during any period that there is in effect a preliminary, temporary, or final ruling from a Federal or State court that there is reasonable cause to believe that such overpayment may not actually be due. 3 Family consumption allowance Sec. 301. Family consumption allowance. Sec. 302. Qualified family. Sec. 303. Monthly poverty level. Sec. 304. Rebate mechanism. Sec. 305. Change in family circumstances. 301. Family consumption allowance Each qualified family shall be eligible to receive a sales tax rebate each month. The sales tax rebate shall be in an amount equal to the product of— (1) the rate of tax imposed by section 101, and (2) the monthly poverty level. 302. Qualified family (a) General Rule For purposes of this chapter, the term qualified family shall mean one or more family members sharing a common residence. All family members sharing a common residence shall be considered as part of 1 qualified family. (b) Family Size Determination (1) In general To determine the size of a qualified family for purposes of this chapter, family members shall mean— (A) an individual, (B) the individual’s spouse, (C) all lineal ancestors and descendants of said individual (and such individual’s spouse), (D) all legally adopted children of such individual (and such individual’s spouse), and (E) all children under legal guardianship of such individual (or such individual’s spouse). (2) Identification requirements In order for a person to be counted as a member of the family for purposes of determining the size of the qualified family, such person must— (A) have a bona fide Social Security number; and (B) be a lawful resident of the United States. (c) Children Living Away From Home (1) Students living away from home Any person who was a registered student during not fewer than 5 months in a calendar year while living away from the common residence of a qualified family but who receives over 50 percent of such person’s support during a calendar year from members of the qualified family shall be included as part of the family unit whose members provided said support for purposes of this chapter. (2) Children of divorced or separated parents If a child’s parents are divorced or legally separated, a child for purposes of this chapter shall be treated as part of the qualified family of the custodial parent. In cases of joint custody, the custodial parent for purposes of this chapter shall be the parent that has custody of the child for more than one-half of the time during a given calendar year. A parent entitled to be treated as the custodial parent pursuant to this paragraph may release this claim to the other parent if said release is in writing. (d) Annual Registration In order to receive the family consumption allowance provided by section 301, a qualified family must register with the sales tax administering authority in a form prescribed by the Secretary. The annual registration form shall provide— (1) the name of each family member who shared the qualified family’s residence on the family determination date, (2) the Social Security number of each family member on the family determination date who shared the qualified family’s residence on the family determination date, (3) the family member or family members to whom the family consumption allowance should be paid, (4) a certification that all listed family members are lawful residents of the United States, (5) a certification that all family members sharing the common residence are listed, (6) a certification that no family members were incarcerated on the family determination date (within the meaning of subsection (l)), and (7) the address of the qualified family. Said registration shall be signed by all members of the qualified family that have attained the age of 21 years as of the date of filing. (e) Registration Not Mandatory Registration is not mandatory for any qualified family. (f) Effect of Failure To Provide Annual Registration Any qualified family that fails to register in accordance with this section within 30 days of the family determination date, shall cease receiving the monthly family consumption allowance in the month beginning 90 days after the family determination date. (g) Effect of Curing Failure To Provide Annual Registration Any qualified family that failed to timely make its annual registration in accordance with this section but subsequently cures its failure to register, shall be entitled to up to 6 months of lapsed sales tax rebate payments. No interest on lapsed payment amount shall be paid. (h) Effective Date of Annual Registrations Annual registrations shall take effect for the month beginning 90 days after the family registration date. (i) Effective Date of Revised Registrations A revised registration made pursuant to section 305 shall take effect for the first month beginning 60 days after the revised registration was filed. The existing registration shall remain in effect until the effective date of the revised registration. (j) Determination of Registration Filing Date An annual or revised registration shall be deemed filed when— (1) deposited in the United States mail, postage prepaid, to the address of the sales tax administering authority; (2) delivered and accepted at the offices of the sales tax administering authority; or (3) provided to a designated commercial private courier service for delivery within 2 days to the sales tax administering authority at the address of the sales tax administering authority. (k) Proposed Registration To Be Provided Thirty or more days before the family registration date, the sales tax administering authority shall mail to the address shown on the most recent rebate registration or change of address notice filed pursuant to section 305(d) a proposed registration that may be simply signed by the appropriate family members if family circumstances have not changed. (l) Incarcerated Individuals An individual shall not be eligible under this chapter to be included as a member of any qualified family if that individual— (1) is incarcerated in a local, State, or Federal jail, prison, mental hospital, or other institution on the family determination date, and (2) is scheduled to be incarcerated for 6 months or more in the 12-month period following the effective date of the annual registration or the revised registration of said qualified family. (m) Family Determination Date The family determination date is a date assigned to each family by the Secretary for purposes of determining qualified family size and other information necessary for the administration of this chapter. The Secretary shall promulgate regulations regarding the issuance of family determination dates. In the absence of any regulations, the family determination date for all families shall be October 1. The Secretary may assign family determination dates for administrative convenience. Permissible means of assigning family determination dates include a method based on the birthdates of family members. (n) Cross Reference For penalty for filing false rebate claim, see section 504(i). 303. Monthly poverty level (a) In General The monthly poverty level for any particular month shall be one-twelfth of the annual poverty level . For purposes of this section the annual poverty level shall be the sum of— (1) the annual level determined by the Department of Health and Human Services poverty guidelines required by sections 652 and 673(2) of the Omnibus Reconciliation Act of 1981 for a particular family size, and (2) in case of families that include a married couple, the annual marriage penalty elimination amount . (b) Annual Marriage Penalty Elimination Amount The annual marriage penalty elimination amount shall be the amount that is— (1) the amount that is two times the annual level determined by the Department of Health and Human Services poverty guidelines required by sections 652 and 673(2) of the Omnibus Reconciliation Act of 1981 for a family of one, less (2) the annual level determined by the Department of Health and Human Services poverty guidelines required by sections 652 and 673(2) of the Omnibus Reconciliation Act of 1981 for a family of two. 304. Rebate mechanism (a) General Rule The Social Security Administration shall provide a monthly sales tax rebate to duly registered qualified families in an amount determined in accordance with section 301. (b) Persons Receiving Rebate The payments shall be made to the persons designated by the qualifying family in the annual or revised registration for each qualified family in effect with respect to the month for which payment is being made. Payments may only be made to persons 18 years or older. If more than 1 person is designated in a registration to receive the rebate, then the rebate payment shall be divided evenly between or among those persons designated. (c) When Rebates Mailed Rebates shall be mailed on or before the first business day of the month for which the rebate is being provided. (d) Smartcards and Direct Electronic Deposit Permissible The Social Security Administration may provide rebates in the form of smartcards that carry cash balances in their memory for use in making purchases at retail establishments or by direct electronic deposit. 305. Change in family circumstances (a) General Rule In the absence of the filing of a revised registration in accordance with this chapter, the common residence of the qualified family, marital status and number of persons in a qualified family on the family registration date shall govern determinations required to be made under this chapter for purposes of the following calendar year. (b) No Double Counting In no event shall any person be considered part of more than 1 qualified family. (c) Revised Registration Permissible A qualified family may file a revised registration for purposes of section 302(d) to reflect a change in family circumstances. A revised registration form shall provide— (1) the name of each family member who shared the qualified family’s residence on the filing date of the revised registration, (2) the Social Security number of each family member who shared the qualified family’s residence on the filing date of the revised registration, (3) the family member or family members to whom the family consumption allowance should be paid, (4) a certification that all listed family members are lawful residents of the United States, (5) a certification that all family members sharing the commoner residence are listed, (6) a certification that no family members were incarcerated on the family determination date (within the meaning of section 302(1)), and (7) the address of the qualified family. Said revised registration shall be signed by all members of the qualified family that have attained the age of 21 years as of the filing date of the revised registration. (d) Change of Address A change of address for a qualified family may be filed with the sales tax administering authority at any time and shall not constitute a revised registration. (e) Revised Registration Not Mandatory Revised registrations reflecting changes in family status are not mandatory. 4 Federal and State cooperative tax administration Sec. 401. Authority for States to collect tax. Sec. 402. Federal administrative support for States. Sec. 403. Federal-State tax conferences. Sec. 404. Federal administration in certain States. Sec. 405. Interstate allocation and destination determination. Sec. 406. General administrative matters. Sec. 407. Jurisdiction. 401 Authority for States to collect tax (a) In General The tax imposed by section 101 on gross payments for the use or consumption of taxable property or services within a State shall be administered, collected, and remitted to the United States Treasury by such State if the State is an administering State. (b) Administering State For purposes of this section, the term administering State means any State— (1) which maintains a sales tax, and (2) which enters into a cooperative agreement with the Secretary containing reasonable provisions governing the administration by such State of the taxes imposed by the subtitle and the remittance to the United States in a timely manner of taxes collected under this chapter. (c) Cooperative Agreements The agreement under subsection (b)(2) shall include provisions for the expeditious transfer of funds, contact officers, dispute resolution, information exchange, confidentiality, taxpayer rights, and other matters of importance. The agreement shall not contain extraneous matters. (d) Timely Remittance of Tax (1) In general Administering States shall remit and pay over taxes collected under this subtitle on behalf of the United States (less the administration fee allowable under paragraph (2)) not later than 5 days after receipt. Interest at 150 percent of the Federal short-term rate shall be paid with respect to amounts remitted after the due date. (2) Administration fee An administering State may retain an administration fee equal to one-quarter of 1 percent of the amounts otherwise required to be remitted to the United States under this chapter by the administering State. (e) Limitation on Administration of Tax by United States The Secretary may administer the tax imposed by this subtitle in an administering State only if— (1) (A) such State has failed on a regular basis to timely remit to the United States taxes collected under this chapter on behalf of the United States; or (B) such State has on a regular basis otherwise materially breached the agreement referred to in subsection (b)(2); (2) the State has failed to cure such alleged failures and breaches within a reasonable time; (3) the Secretary provides such State with written notice of such alleged failures and breaches; and (4) a District Court of the United States within such State, upon application of the Secretary, has rendered a decision— (A) making findings of fact that— (i) such State has failed on a regular basis to timely remit to the United States taxes collected under this chapter on behalf of the United States, or such State has on a regular basis otherwise materially breached the agreement referred to in subsection (b)(2); (ii) the Secretary has provided such State with written notice of such alleged failures and breaches; and (iii) the State has failed to cure such alleged failures and breaches within a reasonable time; and (B) making a determination that it is in the best interest of the citizens of the United States that the administering State’s authority to administer the tax imposed by this subtitle be revoked and said tax be administered directly by the Secretary. The order of the District Court revoking the authority of an Administering State shall contain provisions governing the orderly transfer of authority to the Secretary. (f) Reinstitution A State that has had its authority revoked pursuant to subsection (e) shall not be an administering State for a period of not less than 5 years after the date of the order of revocation. For the first calendar year commencing 8 years after the date of the order of revocation, the State shall be regarded without prejudice as eligible to become an administering State. (g) Third State Administration Permissible It shall be permissible for a State to contract with an administering State to administer the State’s sales tax for an agreed fee. In this case, the agreement contemplated by subsection (c) shall have both the State and the Federal Government as parties. (h) Investigations and Audits Administering States shall not conduct investigations or audits at facilities in other administering States in connection with the tax imposed by section 101 or conforming State sales tax but shall instead cooperate with other administering States using the mechanisms established by section 402, by compact or by other agreement. 402. Federal administrative support for States (a) In General The Secretary shall administer a program to facilitate information sharing among States. (b) State Compacts The Secretary shall facilitate, and may be a party to a compact among States for purposes of facilitating the taxation of interstate purchases and for other purposes that may facilitate implementation of this subtitle. (c) Agreement With Conforming States The Secretary is authorized to enter into and shall enter into an agreement among conforming States enabling conforming States to collect conforming State sales tax on sales made by sellers without a particular conforming State to a destination within that particular conforming State. (d) Secretary’s Authority The Secretary shall have the authority to promulgate regulations, to provide guidelines, to assist States in administering the national sales tax, to provide for uniformity in the administration of the tax and to provide guidance to the public. 403. Federal-State tax conferences Not less than once annually, the Secretary shall host a conference with the sales tax administrators from the various administering States to evaluate the state of the national sales tax system, to address issues of mutual concern and to develop and consider legislative, regulatory, and administrative proposals to improve the tax system. 404. Federal administration in certain States The Secretary shall administer the tax imposed by this subtitle in any State or other United States jurisdiction that— (1) is not an administering State, or (2) elected to have another State administer its tax in accordance with section 401(g). 405. Interstate allocation and destination determination (a) Destination Generally The tax imposed by this subtitle is a destination principle tax. This section shall govern for purposes of determining— (1) whether the destination of taxable property and services is within or without the United States, and (2) which State or territory within the United States is the destination of taxable property and services. (b) Tangible Personal Property Except as provided in subsection (g) (relating to certain leases), the destination of tangible personal property shall be the State or territory in which the property was first delivered to the purchaser (including agents and authorized representatives). (c) Real Property The destination of real property, or rents or leaseholds on real property, shall be the State or territory in which the real property is located. (d) Other Property The destination of any other taxable property shall be the residence of the purchaser. (e) Services (1) General rule The destination of services shall be the State or territory in which the use or consumption of the services occurred. Allocation of service invoices relating to more than 1 jurisdiction shall be on the basis of time or another method determined by regulation. (2) Telecommunications services The destination of telecommunications services shall be the residence of the purchaser. Telecommunications services include telephone, telegraph, beeper, radio, cable television, satellite, and computer on-line or network services. (3) Domestic transportation services For transportation services where all of the final destinations are within the United States, the destination of transportation services shall be the final destination of the trip (in the case of round or multiple trip fares, the services amount shall be equally allocated among each final destination). (4) International transportation services For transportation services where the final destination or origin of the trip is without the United States, the service amount shall be deemed 50 percent attributable to the United States destination or origin. (5) Electrical service The destination of electrical services shall be the residence of the purchaser. (f) Financial Intermediation Services The destination of financial intermediation services shall be the residence of the purchaser. (g) Rents Paid for the Lease of Tangible Property (1) General rule Except as provided in paragraph (2), the destination of rents paid for the lease of tangible property and leaseholds on such property shall be where the property is located while in use. (2) Land vehicles; aircraft, water craft The destination of rental and lease payments on land vehicles, aircraft and water craft shall be— (A) in the case of rentals and leases of a term of 1 month or less, the location where the land vehicle, aircraft, or water craft was originally delivered to the renter or lessee; and (B) in the case of rentals and leases of a term greater than 1 month, the residence of the renter or lessee. (h) Allocation Rules For purposes of allocating revenue— (1) between or among administering States from taxes imposed by this subtitle or from State sales taxes administered by third-party administering States, or (2) between or among States imposing conforming State sales taxes, the revenue shall be allocated to those States that are the destination of the taxable property or service. (i) Federal Office of Revenue Allocation The Secretary shall establish an Office of Revenue Allocation to arbitrate any claims or disputes among administering States as to the destination of taxable property and services for purposes of allocating revenue between or among the States from taxes imposed by this subtitle. The determination of the Administrator of the Office of Revenue Allocation shall be subject to judicial review in any Federal court with competent jurisdiction. The standard of review shall be abuse of discretion. 406. General administrative matters (a) In General The Secretary and each sales tax administering authority may employ such persons as may be necessary for the administration of this subtitle and may delegate to employees the authority to conduct interviews, hearings, prescribe rules, promulgate regulations, and perform such other duties as are required by this subtitle. (b) Resolution of Any Inconsistent Rules and Regulations In the event that the Secretary and any sales tax administering authority have issued inconsistent rules or regulations, any lawful rule or regulation issued by the Secretary shall govern. (c) Adequate Notice To Be Provided Except in the case of an emergency declared by the Secretary (and not his designee), no rule or regulation issued by the Secretary with respect to any internal revenue law shall take effect before 90 days have elapsed after its publication in the Federal Register. Upon issuance, the Secretary shall provide copies of all rules or regulations issued under this title to each sales tax administering authority. (d) No Rules, Rulings, or Regulations With Retroactive Effect No rule, ruling, or regulation issued or promulgated by the Secretary relating to any internal revenue law or by a sales tax administering authority shall apply to a period prior to its publication in the Federal Register (or State equivalent) except that a regulation may take retroactive effect to prevent abuse. (e) Review of Impact of Regulations, Rules, and Rulings on Small Business (1) Submission to small business administration After publication of any proposed or temporary regulation by the Secretary relating to internal revenue laws, the Secretary shall submit such regulation to the Chief Counsel for Advocacy of the Small Business Administration for comment on the impact of such regulation on small businesses. Not later than the date 30 days after the date of such submission, the Chief Counsel for Advocacy of the Small Business Administration shall submit comments on such regulation to the Secretary. (2) Consideration of comments In prescribing any final regulation which supersedes a proposed or temporary regulation which had been submitted under this subsection to the Chief Counsel for Advocacy of the Small Business Administration, the Secretary shall— (A) consider the comments of the Chief Counsel for Advocacy of the Small Business Administration on such proposed or temporary regulation, and (B) in promulgating such final regulation, include a narrative that describes the response to such comments. (3) Submission of certain final regulation In the case of promulgation by the Secretary of any final regulations (other than a temporary regulation) which do not supersede a proposed regulation, the requirements of paragraphs (1) and (2) shall apply, except that the submission under paragraph (1) shall be made at least 30 days before the date of such promulgation, and the consideration and discussion required under paragraph (2) shall be made in connection with the promulgation of such final regulation. (f) Small Business Regulatory Safeguards The Small Business Regulatory Enforcement Fairness Act ( Public Law 104–121 ; 110 Stat. 857 ( SBREFA )) and the Regulatory Flexibility Act (5 U.S.C. 601–612 ( RFA )) shall apply to regulations promulgated under this subtitle. 407. Jurisdiction (a) State Jurisdiction A sales tax administering authority shall have jurisdiction over any gross payments made which have a destination (as determined in accordance with section 405) within the State of said sales tax administering authority. This grant of jurisdiction is not exclusive of any other jurisdiction that such sales tax administering authority may have. (b) Federal Jurisdiction The grant of jurisdiction in subsection (a) shall not be in derogation of Federal jurisdiction over the same matter. The Federal Government shall have the right to exercise preemptive jurisdiction over matters relating to the taxes imposed by this subtitle. 5 OTHER ADMINISTRATIVE PROVISIONS Sec. 501. Monthly reports and payments. Sec. 502. Registration. Sec. 503. Accounting. Sec. 504. Penalties. Sec. 505. Burden of persuasion and burden of production. Sec. 506. Attorneys’ and accountancy fees. Sec. 507. Summons, examinations, audits, etc. Sec. 508. Records. Sec. 509. Tax to be separately stated and charged. Sec. 510. Coordination with title 11. Sec. 511. Applicable interest rate. 501. Monthly reports and payments (a) Tax Reports and Filing Dates (1) In general On or before the 15th day of each month, each person who is— (A) liable to collect and remit the tax imposed by this subtitle by reason of section 103(a), or (B) liable to pay tax imposed by this subtitle which is not collected pursuant to section 103(a), shall submit to the appropriate sales tax administering authority (in a form prescribed by the Secretary) a report relating to the previous calendar month. (2) Contents of report The report required under paragraph (1) shall set forth— (A) the gross payments referred to in section 101, (B) the tax collected under chapter 4 in connection with such payments, (C) the amount and type of any credit claimed, and (D) other information reasonably required by the Secretary or the sales tax administering authority for the administration, collection, and remittance of the tax imposed by this subtitle. (b) Tax Payments Date (1) General rule The tax imposed by this subtitle during any calendar month is due and shall be paid to the appropriate sales tax administering authority on or before the 15th day of the succeeding month. Both Federal tax imposed by this subtitle and conforming State sales tax (if any) shall be paid in 1 aggregate payment. (2) Cross reference See subsection (e) relating to remitting of separate segregated funds for sellers that are not small sellers. (c) Extensions for Filing Reports (1) Automatic extensions for not more than 30 days On application, an extension of not more than 30 days to file reports under subsection (a) shall be automatically granted. (2) Other extensions On application, extensions of 30 to 60 days to file such reports shall be liberally granted by the sales tax administering authority for reasonable cause. Extensions greater than 60 days may be granted by the sales tax administering authority to avoid hardship. (3) No extension for payment of taxes Notwithstanding paragraphs (1) and (2), no extension shall be granted with respect to the time for paying or remitting the taxes under this subtitle. (d) Telephone Reporting of Violations The Secretary shall establish a system under which a violation of this subtitle can be brought to the attention of the sales tax administering authority for investigation through the use of a toll-free telephone number and otherwise. (e) Separate Segregated Accounts (1) In general Any registered seller that is not a small seller shall deposit all sales taxes collected pursuant to section 103 in a particular week in a separate segregated account maintained at a bank or other financial institution within 3 business days of the end of such week. Said registered seller shall also maintain in that account sufficient funds to meet the bank or financial institution minimum balance requirements, if any, and to pay account fees and costs. (2) Small seller For purposes of this subsection, a small seller is any person that has not collected $20,000 or more of the taxes imposed by this subtitle in any of the previous 12 months. (3) Large sellers Any seller that has collected $100,000 or more of the taxes imposed by this subtitle in any of the previous 12 months is a large seller. A large seller shall remit to the sales tax administering authority the entire balance of deposited taxes in its separate segregated account on the first business day following the end of the calendar week. The Secretary may by regulation require the electronic transfer of funds due from large sellers. (4) Week For purposes of this subsection, the term week shall mean the 7-day period ending on a Friday. (f) Determination of Report Filing Date A report filed pursuant to subsection (a) shall be deemed filed when— (1) deposited in the United States mail, postage prepaid, addressed to the sales tax administering authority, (2) delivered and accepted at the offices of the sales tax administering authority, (3) provided to a designated commercial private courier service for delivery within 2 days to the sales tax administering authority at the address of the sales tax administering authority, or (4) by other means permitted by the Secretary. (g) Security Requirements A large seller (within the meaning of subsection (e)(3)) shall be required to provide security in an amount equal to the greater of $100,000 or one and one-half times the seller’s average monthly tax liability during the previous 6 calendar months. Security may be a cash bond, a bond from a surety company approved by the Secretary, a certificate of deposit, or a State or United States Treasury bond. A bond qualifying under this subsection must be a continuing instrument for each calendar year (or portion thereof) that the bond is in effect. The bond must remain in effect until the surety or sureties are released and discharged. Failure to provide security in accordance with this section shall result in revocation of the seller’s section 502 registration. If a person who has provided security pursuant to this subsection— (1) fails to pay an amount indicated in a final notice of amount due under this subtitle (within the meaning of section 605(d)), (2) no Taxpayer Assistance Order is in effect relating to the amount due, (3) either the time for filing an appeal pursuant to section 604 has passed or the appeal was denied, and (4) the amount due is not being litigated in any judicial forum, then the security or part of the security, as the case may be, may be forfeited in favor of the Secretary to the extent of such tax due (plus interest if any). (h) Rewards Program The Secretary is authorized to maintain a program of awards wherein individuals that assist the Secretary or sales tax administering authorities in discovering or prosecuting tax fraud may be remunerated. (i) Cross Reference For interest due on taxes remitted late, see section 6601. 502. Registration (a) In General Any person liable to collect and remit taxes pursuant to section 103(a) who is engaged in a trade or business shall register as a seller with the sales tax administering authority administering the taxes imposed by this subtitle. (b) Affiliated Firms Affiliated firms shall be treated as 1 person for purposes of this section. Affiliated firms may elect, upon giving notice to the Secretary in a form prescribed by the Secretary, to treat separate firms as separate persons for purposes of this subtitle. (c) Designation of Tax Matters Person Every person registered pursuant to subsection (a) shall designate a tax matters person who shall be an individual whom the sales tax administering authority may contact regarding tax matters. Each person registered must provide notice of a change in the identity of the tax matters person within 30 days of said change. (d) Effect of Failure To Register Any person that is required to register and who fails to do so is prohibited from selling taxable property or services. The Secretary or a sales tax administering authority may bring an action seeking a temporary restraining order, an injunction, or such other order as may be appropriate to enforce this section. 503. Accounting (a) Cash Method To Be Used Generally Registered sellers and other persons shall report transactions using the cash method of accounting unless an election to use the accrual method of accounting is made pursuant to subsection (b). (b) Election To Use Accrual Method A person may elect with respect to a calender year to remit taxes and report transactions with respect to the month where a sale was invoiced and accrued. (c) Cross Reference See section 205 for rules relating to bad debts for sellers electing the accrual method. 504. Penalties (a) Failure To Register Each person who is required to register pursuant to section 502 but fails to do so prior to notification by the sales tax administering authority shall be liable for a penalty of $500. (b) Reckless or Willful Failure To Collect Tax (1) Civil penalty; fraud Each person who is required to and recklessly or willfully fails to collect taxes imposed by this subtitle shall be liable for a penalty equal to the greater of $500 or 20 percent of tax not collected. (2) Criminal penalty Each person who is required to and willfully fails as part of a trade or business to collect taxes imposed by this subtitle may be fined an amount up to the amount determined in accordance with paragraph (1) or imprisoned for a period of not more than 1 year or both. (c) Reckless or Willful Assertion of Invalid Exemption (1) Civil penalty; fraud Each person who recklessly or willfully asserts an invalid intermediate or export sales exemption from the taxes imposed by this subtitle shall be liable for a penalty equal to the greater of $500 or 20 percent of the tax not collected or remitted. (2) Criminal penalty Each person who willfully asserts an invalid intermediate or export sales exemption from the taxes imposed by this subtitle may be fined an amount up to the amount determined in accordance with paragraph (1) or imprisoned for a period of not more than 1 year or both. (d) Reckless or Willful Failure To Remit Tax Collected (1) Civil penalty; fraud Each person who is required to and recklessly or willfully fails to remit taxes imposed by this subtitle and collected from purchasers shall be liable for a penalty equal to the greater of $1,000 or 50 percent of the tax not remitted. (2) Criminal penalty Each person who willfully fails to remit taxes imposed by this subtitle and collected from purchasers may be fined an amount up to the amount determined in accordance with paragraph (1) or imprisoned for a period of not more than 2 years or both. (e) Reckless or Willful Failure To Pay Tax Each person who is required to and recklessly or willfully fails to pay taxes imposed by this subtitle shall be liable for a penalty equal to the greater of $500 or 20 percent of the tax not paid. (f) Penalty for Late Filing (1) In general In the case of a failure by any person who is required to and fails to file a report required by section 501 on or before the due date (determined with regard to any extension) for such report, such person shall pay a penalty for each month or fraction thereof that said report is late equal to the greater of— (A) $50, or (B) 0.5 percent of the gross payments required to be shown on the report. (2) Increased penalty on returns filed after written inquiry The amount of the penalty under paragraph (1) shall be doubled with respect to any report filed after a written inquiry with respect to such report is received by the taxpayer from the sales tax administering authority. (3) Limitation The penalty imposed under this subsection shall not exceed 12 percent. (4) Exceptions (A) Reasonable cause No penalty shall be imposed under this subsection with respect to any failure if it is shown that such failure is due to reasonable cause. (B) Other waiver authority In addition to penalties not imposed by reason of subparagraph (A), the sales tax administering authority, on application, shall waive the penalty imposed by paragraph (1) once per registered person per 24-month period. The preceding sentence shall not apply to a penalty determined under paragraph (2). (g) Penalty for Willfully or Recklessly Accepting a False Intermediate or Export Sales Certificate A person who willingly or recklessly accepts a false intermediate or export sales certificate shall pay a penalty equal to 20 percent of the tax not collected by reason of said acceptance. (h) Penalty for Late Remittance of Taxes (1) In general A person who is required to timely remit taxes imposed by this subtitle and remits taxes more than 1 month after such taxes are due shall pay a penalty equal to 1 percent per month (or fraction thereof) from the due date. (2) Limitation The penalty imposed under this subsection shall not exceed 24 percent. (3) Exceptions for reasonable cause No penalty shall be imposed under paragraph (1) with respect to any late remittance if it is shown that such late remittance is due to reasonable cause. (i) Penalty for Filing False Rebate Claim (1) Civil penalty; fraud A person who willingly or recklessly files a false claim for a family consumption allowance rebate (within the meaning of chapter 3) shall— (A) pay a penalty equal to the greater of $500 or 50 percent of the claimed annual rebate amount not actually due, and (B) repay any rebates received as a result of the false rebate claim (together with interest). (2) Criminal penalty A person who willingly files a false claim for a family consumption allowance rebate (within the meaning of chapter 3) may be fined an amount up to the amount determined in accordance with paragraph (1) or imprisoned for a period not more than 1 year or both. (j) Penalty for Bad Check If any check or money order in payment of any amount receivable under this subtitle is not duly paid, in addition to other penalties provided by law, the person who tendered such check shall pay a penalty equal to the greater of— (1) $25, or (2) two percent of the amount of such check. (k) Penalty for Failure To Maintain a Separate Segregated Account Any person required to maintain a separate segregated account pursuant to section 501(e) that fails to maintain such a separate segregated account shall pay a penalty of $1,000. (l) Penalty for Failure To Deposit Collected Taxes in a Separate Segregated Account Any person required to deposit collected taxes into a separate segregated account maintained pursuant to section 501(e) that fails to timely deposit said taxes into the separate segregated account shall pay a penalty equal to 1 percent of the amount required to be deposited. The penalty imposed by the previous sentence shall be tripled unless said taxes have been deposited in the separate segregated account or remitted to the sales tax administering authority within 16 days of the date said deposit was due. (m) Joint and Several Liability for Tax Matters Person and Responsible Officers The tax matters person (designated pursuant to section 502(c)) and responsible officers or partners of a firm shall be jointly and severally liable for the tax imposed by this subtitle and penalties imposed by this subtitle. (n) Right of Contribution If more than 1 person is liable with respect to any tax or penalty imposed by this subtitle, each person who paid such tax or penalty shall be entitled to recover from other persons who are liable for such tax or penalty an amount equal to the excess of the amount paid by such person over such person’s proportionate share of the tax or penalty. (o) Civil Penalties and Criminal Fines Not Exclusive (1) Civil penalty The fact that a civil penalty has been imposed shall not prevent the imposition of a criminal fine. (2) Criminal fine The fact that a criminal fine has been imposed shall not prevent the imposition of a civil penalty. (p) Confidentiality Any person who violates the requirements relating to confidentiality of tax information (as provided in section 605(e)) may be fined up to $10,000 or imprisoned for a period of not more than 1 year, or both. (q) Cross Reference For interest due on late payments, see section 6601. 505. Burden of persuasion and burden of production In all disputes concerning taxes imposed by this subtitle, the person engaged in a dispute with the sales tax administering authority or the Secretary, as the case may be, shall have the burden of production of documents and records but the sales tax administering authority or the Secretary shall have the burden of persuasion. In all disputes concerning an exemption claimed by a purchaser, if the seller has on file an intermediate sale or export sale certificate from the purchaser and did not have reasonable cause to believe that the certificate was improperly provided by the purchaser with respect to such purchase (within the meaning of section 103), then the burden of production of documents and records relating to that exemption shall rest with the purchaser and not with the seller. 506. Attorneys’ and accountancy fees In all disputes concerning taxes imposed by this subtitle, the person engaged in a dispute with the sales tax administering authority or the Secretary, as the case may be, shall be entitled to reasonable attorneys’ fees, accountancy fees, and other reasonable professional fees incurred in direct relation to the dispute unless the sales tax administering authority or the Secretary establishes that its position was substantially justified. 507. Summons, examinations, audits, etc (a) Summons Persons are subject to administrative summons by the sales tax administering authority for records, documents, and testimony required by the sales tax administering authority to accurately determine liability for tax under this subtitle. A summons shall be served by the sales tax administering authority by an attested copy delivered in hand to the person to whom it is directed or left at his last known address. The summons shall describe with reasonable certainty what is sought. (b) Examinations and Audits The sales tax administering authority has the authority to conduct at a reasonable time and place examinations and audits of persons who are or may be liable to collect and remit tax imposed by this subtitle and to examine the books, papers, records, or other data of such persons which may be relevant or material to the determination of tax due. (c) Limitation on Authority in Case of Referral No administrative summons may be issued by the sales tax administering authority and no action be commenced to enforce an administrative summons with respect to any person if a Justice Department referral or referral to a State Attorney General’s Office is in effect with respect to such person relating to a tax imposed by this subtitle. Such referral is in effect with respect to any person if the sales tax administering authority or the Secretary has recommended to the Justice Department or a State Attorney General’s Office a grand jury investigation of such person or a criminal prosecution of such person that contemplates criminal sanctions under this title. A referral shall be terminated when— (1) the Justice Department or a State Attorney General’s Office notifies the sales tax administering authority or the Secretary that he will not— (A) prosecute such person for any offense connected with the internal revenue laws, (B) authorize a grand jury investigation of such person with respect to such offense, or (C) continue such a grand jury investigation, or (2) a final disposition has been made of any criminal proceeding connected with the internal revenue laws, or conforming State sales tax, against such person. 508. Records Any person liable to remit taxes pursuant to this subtitle shall keep records (including a record of all section 509 receipts provided, complete records of intermediate and export sales, including purchaser’s intermediate and export sales certificates and tax number and the net of tax amount of purchase) sufficient to determine the amounts reported, collected, and remitted for a period of 6 years after the latter of the filing of the report for which the records formed the basis or when the report was due to be filed. Any purchaser who purchased taxable property or services but did not pay tax by reason of asserting an intermediate and export sales exemption shall keep records sufficient to determine whether said exemption was valid for a period of 7 years after the purchase of taxable property or services. 509. Tax to be separately stated and charged (a) In General For each purchase of taxable property or services for which a tax is imposed by section 101, the seller shall charge the tax imposed by section 101 separately from the purchase. For purchase of taxable property or services for which a tax is imposed by section 101, the seller shall provide to the purchaser a receipt for each transaction that includes— (1) the property or services price exclusive of tax; (2) the amount of tax paid; (3) the property or service price inclusive of tax; (4) the tax rate (the amount of tax paid (per paragraph (2)) divided by the property or service price inclusive of tax (per paragraph (3)); (5) the date that the good or service was sold; (6) the name of the vendor; and (7) the vendor registration number. (b) Vending Machine Exception The requirements of subsection (a) shall be inapplicable in the case of sales by vending machines. Vending machines for purposes of this subsection are machines— (1) that dispense taxable property in exchange for coins or currency; and (2) that sell no single item exceeding $10 per unit in price. (c) Financial Intermediation Services Exception The requirements of subsection (a) shall be inapplicable in the case of sales financial intermediation service. Receipts shall be issued when the tax is imposed (in accordance with section 803 (relating to timing of tax on financial intermediation services)). 510. Coordination with title 11 No addition to tax shall be made under section 504 with respect to a period during which a case is pending under title 11, United States Code— (1) if such tax was incurred by the estate and the failure occurred pursuant to an order of the court finding probable insufficiency of funds of the estate to pay administrative expenses; or (2) if— (A) such tax was incurred by the debtor before the earlier of the order for relief or (in the involuntary case) the appointment of a trustee; and (B) the petition was filed before the due date prescribed by law (including extensions) for filing a return of such tax, or the date for making the addition to tax occurs on or after the date the petition was filed. 511. Applicable interest rate (a) In General (1) Federal short-term rate In the case of a debt instrument, investment, financing lease, or account with a term of not over 3 years, the applicable interest rate is the Federal short-term rate. (2) Federal mid-term rate In the case of a debt instrument, investment, financing lease, or account with a term of over 3 years but not over 9 years, the applicable interest rate is the Federal mid-term rate. (3) Federal long-term rate In the case of a debt instrument, investment, financing lease, or account with a term of over 9 years, the applicable interest rate is the Federal long-term rate. (b) Federal Short-Term Rate The Federal short-term rate shall be the rate determined by the Secretary based on the average market yield (selected by the Secretary and ending in the calendar month in which the determination is made during any one month) on outstanding marketable obligations of the United States with remaining periods to maturity of 3 years or fewer. (c) Federal Mid-Term Rate The Federal mid-term rate shall be the rate determined by the Secretary based on the average market yield (selected by the Secretary and ending in the calendar month in which the determination is made during any 1 month) on outstanding marketable obligations of the United States with remaining periods to maturity of more than 3 years and not over 9 years. (d) Federal Long-Term Rate The Federal long-term rate shall be the rate determined by the Secretary based on the average market yield (selected by the Secretary and ending in the calendar month in which the determination is made during any 1 month) on outstanding marketable obligations of the United States with remaining periods to maturity of over 9 years. (e) Determination of Rates During each calendar month, the Secretary shall determine the Federal short-term rate, the Federal mid-term rate and the Federal long-term rate which shall apply during the following calendar month. 6 COLLECTIONS; APPEALS; TAXPAYER RIGHTS Sec. 601. Collections. Sec. 602. Power to levy, etc. Sec. 603. Problem resolution offices. Sec. 604. Appeals. Sec. 605. Taxpayer rights. Sec. 606. Installment agreements compromises. 601. Collections The sales tax administering authority shall collect the taxes imposed by this subtitle, except as provided in section 404 (relating to Federal administration in certain States). 602. Power to levy, etc (a) In General The sales tax administering authority may levy and seize property, garnish wages or salary and file liens to collect amounts due under this subtitle, pursuant to enforcement of— (1) a judgment duly rendered by a court of law; (2) an amount due if the taxpayer has failed to exercise his appeals rights under section 604; or (3) an amount due if the appeals process determined that an amount remained due and the taxpayer has failed to timely petition the Tax Court for relief. (b) Exemption From Levy, Seizure, and Garnishments There shall be exempt from levy, seizure, and garnishment or penalty in connection with any tax imposed by this subtitle— (1) wearing apparel, school books, fuel, provisions, furniture, personal effects, tools of a trade or profession, livestock in a household up to an aggregate value of $15,000; and (2) monthly money income equal to 150 percent of the monthly poverty level (as defined in section 303). (c) Liens To Be Timely Released Subject to such reasonable regulations as the Secretary may provide, any lien imposed with respect to a tax imposed by this title shall be released not later than 30 days after— (1) the liability was satisfied or became unenforceable; or (2) a bond was accepted as security. 603. Problem Resolution Offices (a) Problem Resolution Office To Be Established Each sales tax administering authority shall establish an independent Problem Resolution Office and appoint an adequate number of problem resolution officers. The head of the problem resolution office must be appointed by, and serve at the pleasure of either the State Governor (in the case of an administering State) or the President of the United States. (b) Authority of Problem Resolution Officers Problem resolution officers shall have the authority to investigate complaints and issue a Taxpayer Assistance Order to administratively enjoin any collection activity if, in the opinion of the problem resolution officer, said collection activity is reasonably likely to not be in compliance with law or to prevent hardship (other than by reason of having to pay taxes lawfully due). Problem resolution officers shall also have the authority to issue Taxpayer Assistance Orders releasing or returning property that has been levied upon or seized, ordering that a lien be released and that garnished wages be returned. A Taxpayer Assistance Order may only be rescinded or modified by the problem resolution officer that issued it, by the highest official in the relevant sales tax administering authority or by its general counsel upon a finding that the collection activity is justified by clear and convincing evidence. The authority to reverse this Taxpayer Assistance Order may not be delegated. (c) Form of Request for Taxpayer Assistance Order The Secretary shall establish a form and procedure to aid persons requesting the assistance of the Problem Resolution Office and to aid the Problem Resolution Office in understanding the needs of the person seeking assistance. The use of this form, however, shall not be a prerequisite to a problem resolution officer taking action, including issuing a Taxpayer Assistance Order. (d) Content of Taxpayer Assistance Order A Taxpayer Assistance Order shall contain the name of the problem resolution officer, any provision relating to the running of any applicable period of limitation, the name of the person that the Taxpayer Assistance Order assists, the government office (or employee or officer of said government office) to whom it is directed and the action or cessation of action that the Taxpayer Assistance Order requires of said government officer (or employee or officer of said government office). The Taxpayer Assistance Order need not contain findings of fact or its legal basis; however, the problem resolution officer must provide findings of fact and the legal basis for the issuance of the Taxpayer Assistance Order to the sales tax administering authority upon the request of an officer of said authority within 2 weeks of the receipt of such request. (e) Independence Protected Problem resolution officers shall not be disciplined or adversely affected for the issuance of administrative injunctions unless a pattern of issuing injunctions that are manifestly unreasonable is proven in an administrative hearing by a preponderance of the evidence. (f) Other Rights Not Limited Nothing in this section shall limit the authority of the sales tax administering authority, the registered person or other person from pursuing any legal remedy in any court with jurisdiction over the dispute at issue. (g) Limitations The running of any applicable period of limitation shall be suspended for a period of 8 weeks following the issuance of a Taxpayer Assistance Order or, if specified, for a longer period set forth in the Taxpayer Assistance Order provided the suspension does not exceed 6 months. 604. Appeals (a) Administrative Appeals The sales tax administering authority shall establish an administrative appeals process wherein the registered person or other person in disagreement with a decision of the sales tax administering authority asserting liability for tax is provided a full and fair hearing in connection with any disputes said person has with the sales tax administering authority. (b) Timing of Administrative Appeals Said administrative appeal must be made within 60 days of receiving a final notice of amount due pursuant to section 605(d) unless leave for an extension is granted by the appeals officer in a form prescribed by the Secretary. Leave shall be granted to avoid hardship. 605. Taxpayer rights (a) Rights To Be Disclosed The sales tax administering authority shall provide to any person against whom it has— (1) commenced an audit or investigation; (2) issued a final notice of amount due; (3) filed an administrative lien, levy, or garnishment; (4) commenced other collection action; (5) commenced an action for civil penalties; or (6) any other legal action, a document setting forth in plain English the rights of the person. The document shall explain the administrative appeals process, the authority of the Problem Resolution Office (established pursuant to section 603) and how to contact that Office, the burden of production and persuasion that the person and the sales tax administering authority bear (pursuant to section 505), the right of the person to professional fees (pursuant to section 506), the right to record interviews and such other rights as the person may possess under this subtitle. Said document will also set forth the procedures for entering into an installment agreement. (b) Right to Professional Assistance In all dealings with the sales tax administering authority, a person shall have the right to assistance, at their own expense, of one or more professional advisors. (c) Right To Record Interviews Any person who is interviewed by an agent of the sales tax administering authority shall have the right to video or audio tape the interview at the person’s own expense. (d) Right to Final Notice of Amount Due No collection or enforcement action will be commenced against a person until 30 days after they have been provided with a final notice of amount due under this subtitle by the sales tax administering authority. The final notice of amount due shall set forth the amount of tax due (along with any interest and penalties due) and the factual and legal basis for such amounts being due with sufficient specificity that such basis can be understood by a reasonable person who is not a tax professional reading the notice. The final notice shall be sent by certified mail, return receipt requested, to— (1) the address last provided by a registered seller; or (2) the best available address to a person who is not a registered seller. (e) Confidentiality of Tax Information (1) In general All reports and report information (related to any internal revenue law) shall be confidential and except as authorized by this title— (A) no officer or employee (including former officers and employees) of the United States; (B) no officer or employee (including former officers and employees) of any State or local agency who has had access to returns or return information; and (C) no other person who has had access to returns or return information; shall disclose any report or report information obtained by him in any manner in connection with his service as such officer or employee or otherwise. (2) Designees The sales tax administering authority may, subject to such requirements as the Secretary may impose, disclose the report and report information of a person to that person or persons as that person may designate to receive said information or return. (3) Other sales tax administering authorities A sales tax administering authority may impose, disclose the report and report information to another sales tax administering authority. (4) Incompetency A sales tax administering authority may, subject to such requirements as the Secretary may impose, disclose the report and report information to the committee, trustee, or guardian of a person who is incompetent. (5) Deceased persons A sales tax administering authority may, subject to such requirements as the Secretary may impose, disclose the report and report information to the decedent’s— (A) administrator, executor, estate trustee, or (B) heir at law, next of kin, or beneficiary under a will who has a material interest that will be affected by the information. (6) Bankruptcy A sales tax administering authority may, subject to such requirements as the Secretary may impose, disclose the report and report information to a person’s trustee in bankruptcy. (7) Congress Upon written request from the Chairman of the Committee on Ways and Means, the Chairman of the Committee on Finance of the Senate, or the Chairman or Chief of Staff of the Joint Committee on Taxation, a sales tax administering authority shall disclose the report and report information, except that any report or report information that can be associated with or otherwise identify a particular person shall be furnished to such committee only when sitting in closed executive session unless such person otherwise consents in writing to such disclosure. (8) Waiver of privacy rights A person may waive confidentiality rights provided by this section. Such waiver must be in writing. (9) Internal use Disclosure of the report or report information by officers or employees of a sales tax administering authority to other officers or employees of a sales tax administering authority in the ordinary course of tax administration activities shall not constitute unlawful disclosure of the report or report information. (10) Statistical use Upon request in writing by the Secretary of Commerce, the Secretary shall furnish such reports and report information to officers and employees of the Department of Commerce as the Secretary may prescribe by regulation for the purposes of, and only to the extent necessary in, the structuring of censuses and national economic accounts and conducting related statistical activities authorized by law. (11) Department of the treasury Returns and return information shall be open for inspection by officers and employees of the Department of the Treasury whose official duties require such inspection or disclosure for the purpose of, and only to the extent necessary for, preparing economic or financial forecasts, projections, analyses, or estimates. Such inspection or disclosure shall be permitted only upon written request that sets forth the reasons why such inspection or disclosure is necessary and is signed by the head of the bureau or office of the Department of the Treasury requesting the inspection or disclosure. 606. Installment agreements; compromises The sales tax administering authority is authorized to enter into written agreements with any person under which the person is allowed to satisfy liability for payment of any tax under this subtitle (and penalties and interest relating thereto) in installment payments if the sales tax administering authority determines that such agreement will facilitate the collection of such liability. The agreement shall remain in effect for the term of the agreement unless the information that the person provided to the sales tax administering authority was materially inaccurate or incomplete. The sales tax administering authority may compromise any amounts alleged to be due. 7 Special rules Sec. 701. Hobby activities. Sec. 702. Gaming activities. Sec. 703. Government purchases. Sec. 704. Government enterprises. Sec. 705. Mixed use property. Sec. 706. Not-for-profit organizations. 701. Hobby activities (a) Hobby Activities Neither the exemption afforded by section 102 for intermediate sales nor the credits available pursuant to section 202 or 203 shall be available for any taxable property or service purchased for use in an activity if that activity is not engaged in for-profit. (b) Status Deemed If the activity has received gross payments for the sale of taxable property or services that exceed the sum of— (1) taxable property and services purchased; (2) wages and salary paid; and (3) taxes (of any type) paid, in two or more of the most recent 3 calendar years during which it operated then the business activity shall be conclusively deemed to be engaged in for profit. 702. Gaming activities (a) Registration Any person selling one or more chances is a gaming sponsor and shall register, in a form prescribed by the Secretary, with the sales tax administering authority as a gaming sponsor. (b) Chance Defined For purposes of this section, the term chance means a lottery ticket, a raffle ticket, chips, other tokens, a bet or bets placed, a wager or wagers placed, or any similar device where the purchase of the right gives rise to an obligation by the gaming sponsor to pay upon the occurrence of— (1) a random or unpredictable event; or (2) an event over which neither the gaming sponsor nor the person purchasing the chance has control over the outcome. (c) Chances Not Taxable Property or Service Notwithstanding any other provision in this subtitle, a chance is not taxable property or services for purposes of section 101. (d) Tax on Gaming Services Imposed A 23-percent tax is hereby imposed on the taxable gaming services of a gaming sponsor. This tax shall be paid and remitted by the gaming sponsor. The tax shall be remitted by the 15th day of each month with respect to taxable gaming services during the previous calendar month. (e) Taxable Gaming Services Defined For purposes of this section, the term taxable gaming services means— (1) gross receipts of the gaming sponsor from the sale of chances, minus (2) the sum of— (A) total gaming payoffs to chance purchasers (or their designees); and (B) gaming specific taxes (other than the tax imposed by this section) imposed by the Federal, State, or local government. 703. Government purchases (a) Government Purchases (1) Purchases by the federal government Purchases by the Federal Government of taxable property and services shall be subject to the tax imposed by section 101. (2) Purchase by state governments and their political subdivisions Purchases by State governments and their political subdivisions of taxable property and services shall be subject to the tax imposed by section 101. (b) Cross References For purchases by government enterprises see section 704. 704. Government enterprises (a) Government Enterprises To Collect and Remit Taxes on Sales Nothing in this subtitle shall be construed to exempt any Federal, State, or local governmental unit or political subdivision (whether or not the State is an administering State) operating a government enterprise from collecting and remitting tax imposed by this subtitle on any sale of taxable property or services. Government enterprises shall comply with all duties imposed by this subtitle and shall be liable for penalties and subject to enforcement action in the same manner as private persons that are not government enterprises. (b) Government Enterprise Any entity owned or operated by a Federal, State, or local governmental unit or political subdivision that receives gross payments from private persons is a government enterprise, except that a government-owned entity shall not become a government enterprise for purposes of this section unless in any quarter it has revenues from selling taxable property or services that exceed $2,500. (c) Government Enterprises Intermediate Sales (1) In general Government enterprises shall not be subject to tax on purchases that would not be subject to tax pursuant to section 102(b) if the government enterprise were a private enterprise. (2) Exception Government enterprises may not use the exemption afforded by section 102(b) to serve as a conduit for tax-free purchases by government units that would otherwise be subject to taxation on purchases pursuant to section 703. Transfers of taxable property or services purchased exempt from tax from a government enterprise to such government unit shall be taxable. (d) Separate Books of Account Any government enterprise must maintain books of account, separate from the nonenterprise government accounts, maintained in accordance with generally accepted accounting principles. (e) Trade or Business A government enterprise shall be treated as a trade or business for purposes of this subtitle. (f) Enterprise Subsidies Constitute Taxable Purchase A transfer of funds to a government enterprise by a government entity without full consideration shall constitute a taxable government purchase with the meaning of section 703 to the extent that the transfer of funds exceeds the fair market value of the consideration. 705. Mixed use property (a) Mixed Use Property or Service (1) Mixed use property or service defined For purposes of this section, the term mixed use property or service is a taxable property or taxable service used for both taxable use or consumption and for a purpose that would not be subject to tax pursuant to section 102(a)(1). (2) Taxable threshold Mixed use property or service shall be subject to tax notwithstanding section 102(a)(1) unless such property or service is used more than 95 percent for purposes that would give rise to an exemption pursuant to section 102(a)(1) during each calendar year (or portions thereof) it is owned. (3) Mixed use property or services credit A person registered pursuant to section 502 is entitled to a business use conversion credit (pursuant to section 202) equal to the product of— (A) the mixed use property amount; and (B) the business use ratio; and (C) the rate of tax imposed by section 101. (4) Mixed use property amount The mixed use property amount for each month (or fraction thereof) in which the property was owned shall be— (A) one-three-hundred-sixtieth of the gross payments for real property for 360 months or until the property is sold; (B) one-eighty-fourth of the gross payments for tangible personal property for 84 months or until the property is sold; (C) one-sixtieth of the gross payments for vehicles for 60 months or until the property is sold; or (D) for other types of taxable property or services, a reasonable amount or in accordance with regulations prescribed by the Secretary. (5) Business use ratio For purposes of this section, the term business use ratio means the ratio of business use to total use for a particular calendar month (or portion thereof if the property was owned for only part of said calendar month). For vehicles, the business use ratio will be the ratio of business purpose miles to total miles in a particular calendar month. For real property, the business use ratio is the ratio of floor space used primarily for business purposes to total floor space in a particular calendar month. For tangible personal property (except for vehicles), the business use ratio is the ratio of total time used for business purposes to total time used in a particular calendar year. For other property or services, the business ratio shall be calculated using a reasonable method. Reasonable records must be maintained to support a person’s business use of the mixed use property or service. (b) Timing of Business Use Conversion Credit Arising Out of Ownership of Mixed Use Property A person entitled to a credit pursuant to subsection (a)(3) arising out of the ownership of mixed use property must account for the mixed use on a calendar year basis, and may file for the credit with respect to mixed use property in any month following the calendar year giving rise to the credit. (c) Cross Reference For business use conversion credit, see section 202. 706. Not-for-Profit organizations (a) Not-for-Profit Organizations Dues, contributions, and similar payments to qualified not-for-profit organizations shall not be considered gross payments for taxable property or services for purposes of this subtitle. (b) Definition For purposes of this section, the term qualified not-for-profit organization means a not-for-profit organization organized and operated exclusively— (1) for religious, charitable, scientific, testing for public safety, literary, or educational purposes; (2) as civic leagues or social welfare organizations; (3) as labor, agricultural, or horticultural organizations; (4) as chambers of commerce, business leagues, or trade associations; or (5) as fraternal beneficiary societies, orders, or associations; no part of the net earnings of which inures to the benefit of any private shareholder or individual. (c) Qualification Certificates Upon application in a form prescribed by the Secretary, the sales tax administering authority shall provide qualification certificates to qualified not-for-profit organizations. (d) Taxable Transactions If a qualified not-for-profit organization provides taxable property or services in connection with contributions, dues, or similar payments to the organization, then it shall be required to treat the provision of said taxable property or services as a purchase taxable pursuant to this subtitle at the fair market value of said taxable property or services. (e) Exemptions Taxable property and services purchased by a qualified not-for-profit organization shall be eligible for the exemptions provided in section 102. 8 Financial Intermediation Services Sec. 801. Determination of financial intermediation services amount. Sec. 802. Bad debts. Sec. 803. Timing of tax on financial intermediation services. Sec. 804. Financing leases. Sec. 805. Basic interest rate. Sec. 806. Foreign financial intermediation services. 801. Determination of financial intermediation services amount (a) Financial Intermediation Services For purposes of this subtitle— (1) In general The term financial intermediation services means the sum of— (A) explicitly charged fees for financial intermediation services, and (B) implicitly charged fees for financial intermediation services. (2) Explicitly charged fees for financial intermediation services The term explicitly charged fees for financial intermediation services includes— (A) brokerage fees; (B) explicitly stated banking, loan origination, processing, documentation, credit check fees, or other similar fees; (C) safe-deposit box fees; (D) insurance premiums, to the extent such premiums are not allocable to the investment account of the underlying insurance policy; (E) trustees’ fees; and (F) other financial services fees (including mutual fund management, sales, and exit fees). (3) Implicitly charged fees for financial intermediation services (A) In general The term implicitly charged fees for financial intermediation services includes the gross imputed amount in relation to any underlying interest-bearing investment, account, or debt. (B) Gross imputed amount For purposes of subparagraph (A), the term gross imputed amount means— (i) with respect to any underlying interest-bearing investment or account, the product of— (I) the excess (if any) of the basic interest rate (as defined in section 805) over the rate paid on such investment; and (II) the amount of the investment or account; and (ii) with respect to any underlying interest-bearing debt, the product of— (I) the excess (if any) of the rate paid on such debt over the basic interest rate (as defined in section 805); and (II) the amount of the debt. (b) Seller of Financial Intermediation Services For purposes of section 103(a), the seller of financial intermediation services shall be— (1) in the case of explicitly charged fees for financial intermediation services, the seller shall be the person who receives the gross payments for the charged financial intermediation services; (2) in the case of implicitly charged fees for financial intermediation services with respect to any underlying interest-bearing investment or account, the person making the interest payments on the interest-bearing investment or account; and (3) in the case of implicitly charged fees for financial intermediation services with respect to any interest-bearing debt, the person receiving the interest payments on the interest-bearing debt. 802. Bad debts (a) In General For purposes of section 205(a), a bad debt shall be a business debt that becomes wholly or partially worthless to the payee. (b) Business Loan For purposes of subsection (a), a business loan or debt is a bona fide loan or debt made for a business purpose that both parties intended be repaid. (c) Determination of Worthlessness (1) In general No loan or debt shall be considered wholly or partially worthless unless it has been in arrears for 180 days or more, except that if a debt is discharged wholly or partially in bankruptcy before 180 days has elapsed, then it shall be deemed wholly or partially worthless on the date of discharge. (2) Determination by holder A loan or debt that has been in arrears for 180 days or more may be deemed wholly or partially worthless by the holder unless a payment schedule has been entered into between the debtor and the lender. (d) Cross Reference See section 205(c) for tax on subsequent payments. 803. Timing of tax on financial intermediation services The tax on financial intermediation services provided by section 801 with respect to an underlying investment account or debt shall be imposed and collected with the same frequency that statements are rendered by the financial institution in connection with the investment account or debt but not less frequently than quarterly. 804. Financing leases (a) Definition For purposes of this section, the term financing lease means any lease under which the lessee has the right to acquire the property for 50 percent or less of its fair market value at the end of the lease term. (b) General Rule Financing leases shall be taxed in the method set forth in this section. (c) Determination of Principal and Interest Components of Financing Lease The Secretary shall promulgate rules for disaggregating the principal and interest components of a financing lease. The principal amount shall be determined to the extent possible by examination of the contemporaneous sales price or prices of property the same or similar as the leased property. (d) Alternative Method In the event that contemporaneous sales prices or property the same or similar as the leased property are not available, the principal and interest components of a financing lease shall be disaggregated using the applicable interest rate (as defined in section 511) plus 4 percent. (e) Principal Component The principal component of the financing lease shall be subject to tax as if a purchase in the amount of the principal component had been made on the day on which said lease was executed. (f) Interest Component The financial intermediation services amount with respect to the interest component of the financing lease shall be subject to tax under this subtitle. (g) Coordination If the principal component and financial intermediation services amount with respect to the interest component of a lease have been taxed pursuant to this section, then the gross lease or rental payments shall not be subject to additional tax. 805. Basic interest rate For purposes of this chapter, the basic interest rate with respect to a debt instrument, investment, financing lease, or account shall be the applicable interest rate (as determined in section 511). For debt instruments, investments, or accounts of contractually fixed interest, the applicable interest rate of the month of issuance shall apply. For debt instruments, investments, or accounts of variable interest rates and which have no reference interest rate, the applicable interest shall be the Federal short-term interest rate for each month. For debt instruments, investments, or accounts of variable interest rates and which have a reference interest rate, the applicable interest shall be the applicable interest rate for the reference interest rate for each month. 806. Foreign financial intermediation services (a) Special Rules Relating to International Financial Intermediation Services Financial intermediation services shall be deemed as used or consumed within the United States if the person (or any related party as defined in section 205(e)) purchasing the services is a resident of the United States. (b) Designation of Tax Representative Any person that provides financial intermediation services to United States residents must, as a condition of lawfully providing such services, designate, in a form prescribed by the Secretary, a tax representative for purposes of this subtitle. The tax representative shall be responsible for ensuring that the taxes imposed by this subtitle are collected and remitted and shall be jointly and severally liable for collecting and remitting these taxes. The Secretary may require reasonable bond of the tax representative. The Secretary or a sales tax administering authority may bring an action seeking a temporary restraining order, an injunction, or such other order as may be appropriate to enforce this section. (c) Cross References For definition of person, see section 901. 9 Additional matters Sec. 901. Additional matters. Sec. 902. Transition matters. Sec. 903. Wages to be reported to Social Security Administration. Sec. 904. Trust Fund revenue. Sec. 905. Withholding of tax on nonresident aliens and foreign corporations. 901. Additional matters (a) Intangible Property Antiavoidance Rule Notwithstanding section 2(a)(14)(a)(i), the sale of a copyright or trademark shall be treated as the sale of taxable services (within the meaning of section 101(a)) if the substance of the sales of copyright or trademark constituted the sale of the services that produced the copyrighted material or the trademark. (b) De Minimis Payments Up to $400 of gross payments per calendar year shall be exempt from the tax imposed by section 101 if— (1) made by a person not in connection with a trade or business at any time during such calendar year prior to making said gross payments, and (2) made to purchase any taxable property or service which is imported into the United States by such person for use or consumption by such person in the United States. (c) De Minimis Sales Up to $1,200 per calendar year of gross payments shall be exempt from the tax imposed by section 101 if received— (1) by a person not in connection with a trade or business during such calendar year prior to the receipt of said gross payments; and (2) in connection with a casual or isolated sale. (d) De Minimis Sale of Financial Intermediation Services Up to $10,000 per calendar year of gross payments received by a person from the sale of financial intermediation services (as determined in accordance with section 801) shall be exempt from the tax imposed by section 101. The exemption provided by this subsection is in addition to other exemptions afforded by this chapter. The exemption provided by this subsection shall not be available to large sellers (as defined in section 501(e)(3)). (e) Proxy Buying Taxable If a registered person provides taxable property or services to a person either as a gift, prize, reward, or as remuneration for employment, and such taxable property or services were not previously subject to tax pursuant to section 101, then the provision of such taxable property or services by the registered person shall be deemed the conversion of such taxable property or services to personal use subject to tax pursuant to section 103(c) at the tax inclusive fair market value of such taxable property or services. (f) Substance Over Form The substance of a transaction will prevail over its form if the transaction has no bona fide economic purpose and is designed to evade tax imposed by this subtitle. (g) Certain Employee Discounts Taxable (1) Employee discount For purposes of this subsection, the term employee discount means an employer’s offer of taxable property or services for sale to its employees or their families (within the meaning of section 302(b)) for less than the offer of such taxable property or services to the general public. (2) Employee discount amount For purposes of this subsection, the employee discount amount is the amount by which taxable property or services are sold pursuant to an employee discount below the amount for which such taxable property or services would have been sold to the general public. (3) Taxable amount If the employee discount amount exceeds 20 percent of the price that the taxable property or services would have been sold to the general public, then the sale of such taxable property or services by the employer shall be deemed the conversion of such taxable property or services to personal use and tax shall be imposed on the taxable employee discount amount. The taxable employee discount amount shall be— (A) the employee discount amount, minus (B) 20 percent of the amount for which said taxable property or services would have been sold to the general public. (h) Saturday, Sunday, or Legal Holiday When the last day prescribed for performing any act required by this subtitle falls on a Saturday, Sunday, or legal holiday (in the jurisdiction where the return is to be filed), the performance of such act shall be considered timely if it is performed on the next day which is not a Saturday, Sunday, or legal holiday (in the jurisdiction where the return is to be filed). 902. Transition matters (a) Inventory (1) Qualified inventory Inventory held by a trade or business on the close of business on December 31, 2014, shall be qualified inventory if it is sold— (A) before December 31, 2015; (B) by a registered person; and (C) subject to the tax imposed by section 101. (2) Costs For purposes of this section, qualified inventory shall have the cost that it had for Federal income tax purposes for the trade or business as of December 31, 2014 (including any amounts capitalized by reason of section 263A of the Internal Revenue Code of 1986 as in effect on December 31, 2014). (3) Transitional inventory credit The trade or business which held the qualified inventory on the close of business on December 31, 2014, shall be entitled to a transitional inventory credit equal to the cost of the qualified inventory (determined in accordance with paragraph (2)) times the rate of tax imposed by section 101. (4) Timing of credit The credit provided under paragraph (3) shall be allowed with respect to the month when the inventory is sold subject to the tax imposed by this subtitle. Said credit shall be reported as an intermediate and export sales credit and the person claiming said credit shall attach supporting schedules in the form that the Secretary may prescribe. (b) Work-in-Process For purposes of this section, inventory shall include work-in-process. (c) Qualified Inventory Held by Businesses Not Selling Said Qualified Inventory at Retail (1) In general Qualified inventory held by businesses that sells said qualified inventory not subject to tax pursuant to section 102(a) shall be eligible for the transitional inventory credit only if that business (or a business that has successor rights pursuant to paragraph (2)) receives certification in a form satisfactory to the Secretary that the qualified inventory was subsequently sold subject to the tax imposed by this subtitle. (2) Transitional inventory credit right may be sold The business entitled to the transitional inventory credit may sell the right to receive said transitional inventory credit to the purchaser of the qualified inventory that gave rise to the credit entitlement. Any purchaser of such qualified inventory (or property or services into which the qualified inventory has been incorporated) may sell the right to said transitional inventory credit to a subsequent purchaser of said qualified inventory (or property or services into which the qualified inventory has been incorporated). 903. Wages to be reported to Social Security Administration (a) In General Employers shall submit such information to the Social Security Administration as is required by the Social Security Administration to calculate Social Security benefits under title II of the Social Security Act , including wages paid, in a form prescribed by the Secretary. A copy of the employer submission to the Social Security Administration relating to each employee shall be provided to each employee by the employer. (b) Wages For purposes of this section, the term wages means all cash remuneration for employment (including tips to an employee by third parties provided that the employer or employee maintains records documenting such tips) including self-employment income; except that such term shall not include— (1) any insurance benefits received (including death benefits); (2) pension or annuity benefits received; (3) tips received by an employee over $5,000 per year; and (4) benefits received under a government entitlement program (including Social Security benefits and unemployment compensation benefits). (c) Self-Employment Income For purposes of subsection (b), the term self-employment income means gross payments received for taxable property or services minus the sum of— (1) gross payments made for taxable property or services (without regard to whether tax was paid pursuant to section 101 on such taxable property or services), and (2) wages paid by the self-employed person to employees of the self-employed person. 904. Trust Fund revenue (a) Secretary To Make Allocation of Sales Tax Revenue The Secretary shall allocate the revenue received by virtue of the tax imposed by section 101 in accordance with this section. The revenue shall be allocated among— (1) the general revenue, (2) the old-age and survivors insurance trust fund, (3) the disability insurance trust fund, (4) the hospital insurance trust fund, and (5) the Federal supplementary medical insurance trust fund. (b) General Rule (1) General revenue The proportion of total revenue allocated to the general revenue shall be the same proportion as the rate in section 101(b)(4) bears to the combined Federal tax rate percentage (as defined in section 101(b)(3)). (2) The amount of revenue allocated to the old-age and survivors insurance and disability insurance trust funds shall be the same proportion as the old-age, survivors and disability insurance rate (as defined in subsection (d)) bears to the combined Federal tax rate percentage (as defined in section 101(b)(3)). (3) The amount of revenue allocated to the hospital insurance and Federal supplementary medical insurance trust funds shall be the same proportion as the hospital insurance rate (as defined in subsection (e)) bears to the combined Federal tax rate percentage (as defined in section 101(b)(3)). (c) Calendar Year 2015 Notwithstanding subsection (b), the revenue allocation pursuant to subsection (a) for calendar year 2015 shall be as follows: (1) 64.83 percent of total revenue to general revenue, (2) 27.43 percent of total revenue to the old-age and survivors insurance and disability insurance trust funds, and (3) 7.74 percent of total revenue to the hospital insurance and Federal supplementary medical insurance trust funds. (d) Old-Age, Survivors and Disability Insurance Rate The old-age, survivors and disability insurance rate shall be determined by the Social Security Administration. The old-age, survivors and disability insurance rate shall be that sales tax rate which is necessary to raise the same amount of revenue that would have been raised by imposing a 12.4 percent tax on the Social Security wage base (including self-employment income) as determined in accordance with chapter 21 of the Internal Revenue Code most recently in effect prior to the enactment of this Act. The rate shall be determined using actuarially sound methodology and announced at least 6 months prior to the beginning of the Calendar year for which it applies. (e) Hospital Insurance Rate The hospital insurance rate shall be determined by the Social Security Administration. The hospital insurance rate shall be that sales tax rate which is necessary to raise the same amount of revenue that would have been raised by imposing a 2.9 percent tax on the Medicare wage base (including self-employment income) as determined in accordance with chapter 21 of the Internal Revenue Code most recently in effect prior to the enactment of this Act. The rate shall be determined using actuarially sound methodology and announced at least 6 months prior to the beginning of the calendar year for which it applies. (f) Assistance The Secretary shall provide such technical assistance as the Social Security Administration shall require to determine the old-age, survivors and disability insurance rate and the hospital insurance rate. (g) Further Allocations (1) Old-age, survivors and disability insurance The Secretary shall allocate revenue received because of the old-age, survivors and disability insurance rate to the old-age and survivors insurance trust fund and the disability insurance trust fund in accordance with law or, in the absence of other statutory provision, in the same proportion that the old-age and survivors insurance trust fund receipts bore to the sum of the old-age and survivors insurance trust fund receipts and the disability insurance trust fund receipts in calendar year 2014 (taking into account only receipts pursuant to chapter 21 of the Internal Revenue Code). (2) Hospital insurance The Secretary shall allocate revenue received because of the hospital insurance rate to the hospital insurance trust fund and the Federal supplementary medical insurance trust fund in accordance with law or, in the absence of other statutory provision, in the same proportion that hospital insurance trust fund receipts bore to the sum of the hospital insurance trust fund receipts and Federal supplementary medical insurance trust fund receipts in calendar year 2014 (taking into account only receipts pursuant to chapter 21 of the Internal Revenue Code). 905. Withholding of tax on nonresident aliens and foreign corporations (a) In General All persons, in whatever capacity acting (including lessees or mortgagors or real or personal property, fiduciaries, employers, and all officers and employees of the United States) having control, receipt, custody, disposal, or payment of any income to the extent such income constitutes gross income from sources within the United States of any nonresident alien individual, foreign partnership, or foreign corporation shall deduct and withhold from that income a tax equal to 23 percent thereof. (b) Exception No tax shall be required to be deducted from interest on portfolio debt investments. (c) Treaty Countries In the case of payments to nonresident alien individuals, foreign partnerships, or foreign corporations that have a residence in (or the nationality of a country) that has entered into a tax treaty with the United States, then the rate of withholding tax prescribed by the treaty shall govern. . 202. Conforming and technical amendments (a) Repeals The following provisions of the Internal Revenue Code of 1986 are repealed: (1) Subchapter A of chapter 61 of subtitle D (as redesignated by section 104) (relating to information and returns). (2) Sections 6103 through 6116 of subchapter B of chapter 61 of subtitle D (as so redesignated). (3) Section 6157 (relating to unemployment taxes). (4) Section 6163 (relating to estate taxes). (5) Section 6164 (relating to corporate taxes). (6) Section 6166 (relating to estate taxes). (7) Section 6167 (relating to foreign expropriation losses). (8) Sections 6201, 6205, and 6207 (relating to assessments). (9) Subchapter C of chapter 63 of subtitle D (as so redesignated) (relating to tax treatment of partnership items). (10) Section 6305 (relating to collections of certain liabilities). (11) Sections 6314, 6315, 6316, and 6317 (relating to payments of repealed taxes). (12) Sections 6324, 6324A, and 6324B (relating to liens for estate and gift taxes). (13) Section 6344 (relating to cross references). (14) Section 6411 (relating to carrybacks). (15) Section 6413 (relating to employment taxes). (16) Section 6414 (relating to withheld income taxes). (17) Section 6422 (relating to cross references). (18) Section 6425 (relating to overpayment of corporate estimated taxes). (19) Section 6504 (relating to cross references). (20) Section 6652 (relating to failure to file certain information returns). (21) Sections 6654 and 6655 (relating to failure to payment estimated income tax). (22) Section 6662 (relating to penalties). (23) Sections 6677 through 6711 (relating to income tax related penalties). (24) Part II of subchapter B of chapter 68 (relating to certain information returns). (25) Part I of subchapter A of chapter 70 (relating to termination of taxable year). (26) Section 6864 (relating to certain carrybacks). (27) Section 7103 (relating to cross references). (28) Section 7204 (relating to withholding statements). (29) Section 7211 (relating certain statements). (30) Section 7231 (relating to failure to obtain certain licenses). (31) Section 7270 (relating to insurance policies). (32) Section 7404 (relating to estate taxes). (33) Section 7404 (relating to income tax preparers). (34) Section 7408 (relating to income tax shelters). (35) Section 7409 (relating to 501(c)(3) organizations). (36) Section 7427 (relating to income tax preparers). (37) Section 7428 (relating to 501(c)(3) organizations). (38) Section 7476 (relating to declaratory judgments relating to retirement plans). (39) Section 7478 (relating to declaratory judgments relating to certain tax-exempt obligations). (40) Section 7508 (relating to postponing time for certain actions required by the income, estate, and gift tax). (41) Section 7509 (relating to Postal Service payroll taxes). (42) Section 7512 (relating to payroll taxes). (43) Section 7517 (relating to estate and gift tax evaluation). (44) Section 7518 (relating to Merchant Marine tax incentives). (45) Section 7519 (relating to taxable years). (46) Section 7520 (relating to insurance and annuity valuation tables). (47) Section 7523 (relating to reporting Federal income and outlays on Form 1040s). (48) Section 7611 (relating to church income tax exemptions and church unrelated business income tax inquiries). (49) Section 7654 (relating to possessions’ income taxes). (50) Section 7655 (relating to cross references). (51) Section 7701(a)(16). (52) Section 7701(a)(19). (53) Section 7701(a)(20). (54) Paragraphs (32) through (38) of section 7701(a). (55) Paragraphs (41) through (46) of section 7701(a). (56) Section 7701(b). (57) Subsections (e) through (m) of section 7701. (58) Section 7702 (relating to life insurance contracts). (59) Section 7702A (relating to modified endowment contracts). (60) Section 7702B (relating to long-term care insurance). (61) Section 7703 (relating to the determination of marital status). (62) Section 7704 (relating to publicly traded partnerships). (63) Section 7805. (64) Section 7851. (65) Section 7872. (66) Section 7873. (b) Other Conforming and Technical Amendments (1) Section 6151 is amended by striking subsection (b) and by redesignating subsection (c) as subsection (b). (2) Section 6161 is amended to read as follows: 6161. Extension of time for paying tax The Secretary, except as otherwise provided in this title, may extend the time for payment of the amount of the tax shown or required to be shown on any return, report, or declaration required under authority of this title for a reasonable period not to exceed 6 months (12 months in the case of a taxpayer who is abroad). . (3) Section 6211(a) is amended— (A) by striking income, estate and gift taxes imposed by subtitles A and B and , (B) by striking subtitle A or B, or , and (C) by striking , as defined in subsection (b)(2), in paragraph (2). (4) Section 6211(b) is amended to read as follows: (b) Rebate Defined For purposes of subsection (a)(2), the term rebate means so much of an abatement, credit, refund, or other payment, as was made on the ground that the tax imposed by chapter 41, 42, 43, or 44 was less than the excess of the amount specified in subsection (a)(1) over the rebates previously made. . (5) Section 6212(b) is amended to read as follows: (b) Address for Notice of Deficiency In the absence of notice to the Secretary under section 6903 of the existence of a fiduciary relationship, notice of a deficiency in respect of a tax imposed by chapter 42, 43, or 44 if mailed to the taxpayer at his last known address, shall be sufficient for purposes of such chapter and this chapter even if such taxpayer is deceased, or is under a legal disability, or, in the case of a corporation has terminated its existence. . (6) Section 6302(b) is amended by striking 21, . (7) Section 6302 is amended by striking subsections (g) and (i) and by redesignating subsection (h) as subsection (g). (8) Section 6325 is amended by striking subsection (c) and by redesignating subsections (d) through (h) as subsections (c) through (g), respectively. (9) Section 6402(d) is amended by striking paragraph (3). (10) Section 6402 is amended by striking subsection (j) and by redesignating subsection (k) as subsection (j). (11) Section 6501(b) is amended— (A) by striking except tax imposed by chapter 3, 21, or 24, in paragraph (1), and (B) by striking paragraph (2) and by redesignation paragraphs (3) and (4) as paragraphs (2) and (3), respectively. (12) Section 6501(c) is amended by striking paragraphs (5) through (9). (13) Section 6501(e) is amended by striking subsection (c)— and all that follows through subtitle D in paragraph (3) and inserting subsection (c), in the case of a return of a tax imposed under a provision of subtitle B . (14) Section 6501 is amended by striking subsection (f) through (k) and subsections (m) and (n) and by redesignating subsection (1) as subsection (f). (15) Section 6503(a) is amended— (A) by striking paragraph (2), (B) by striking Deficiency .— and all that follows through The running and inserting Deficiency .—The running , and (C) by striking income, estate, gift and . (16) Section 6503 is amended by striking subsections (e), (f), (i), and (k) and by redesignating subsections (g), (h), and (j) as subsections (e), (f), and (g), respectively. (17) Section 6511 is amended by striking subsections (d) and (g) and by redesignating subsections (f) and (h) as subsections (d) and (e), respectively. (18) Section 6512(b)(1) is amended by striking of income tax for the same taxable year, of gift tax for the same calendar year or calendar quarter, of estate tax in respect of the taxable estate of the same decedent or . (19) Section 6513 is amended— (A) by striking (a) Early Return or Advance Payment of Tax .— , (B) by striking subsections (b) and (e). (20) Chapter 67 is amended by striking subchapters A through D and inserting the following: 6601. Interest on overpayments and underpayment (a) Underpayments If any amount of tax imposed by this title is not paid on or before the last date prescribed for payment, interest on such amount at the Federal short-term rate (as defined in section 511(b)) shall be paid from such last date to the date paid. (b) Overpayments Interest shall be allowed and paid upon any overpayment in respect of any internal revenue tax at the Federal short-term rate (as defined in section 511(b)) from 60 days after the date of the overpayment until the date the overpayment is refunded. . (21) Section 6651(a)(1) is amended by striking subchapter A of chapter 61 (other than part III thereof, . (22) Section 6656 is amended by striking subsection (c) and by redesignating subsection (d) as subsection (c). (23) Section 6663 is amended by striking subsection (c). (24) Section 6664(c) is amended— (A) by striking Exception.— and all that follows through No penalty and inserting Exception.—No penalty, and (B) by striking paragraphs (2) and (3). (25) Chapter 72 is amended by striking all matter preceding section 7011. (26) Section 7422 is amended by striking subsections (h) and (i) and by redesignating subsections (j) and (k) as subsections (h) and (i), respectively. (27) Section 7451 is amended to read as follows: 7451. Fee for filing petition The Tax Court is authorized to impose a fee in an amount not in excess of $60 to be fixed by the Tax Court for the filing of any petition for the redetermination of a deficiency. . (28) Section 7454 is amended by striking subsection (b) and by redesignating subsection (c) as subsection (b). (29) Section 7463(a) is amended— (A) by striking paragraphs (2) and (3), (B) by redesignating paragraph (4) as paragraph (2), and (C) by striking D in paragraph (2) (as so redesignated) and inserting B . (30) Section 7463(c) is amended by striking sections 6214(a) and and inserting section . (31) Section 7463(c) is amended by striking , to the extent that the procedures described in subchapter B of chapter 63 apply . (32) Section 7481 is amended by striking subsection (d). (33) Section 7608 is amended by striking subtitle E each place it appears and inserting subtitle C . (34) Section 7651 is amended by striking paragraph (5). (35) Section 7701(a)(29) is amended by striking 1986 and inserting 2013 . (36) Section 7809(c) is amended by striking paragraphs (1) and (4) and by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively. (37) Section 7871(a) is amended by striking paragraphs (1) and (3) through (6) and by redesignating paragraphs (2) and (7) as paragraphs (1) and (2), respectively. (38) Section 7871 is amended by striking subsection (c) and by redesignating subsections (d) and (e) as subsections (c) and (d), respectively. (39) Section 8021 is amended by striking subsection (a) and by redesignating subsections (b) through (f) as subsections (a) through (e), respectively. (40) Section 8022(a)(2)(A) is amended by striking , particularly the income tax . (41) Section 8023 is amended by striking Internal Revenue Service each place it appears and inserting Department of the Treasury . (42) Section 9501(b)(2) is amended by striking subparagraph (C). (43) Section 9702(a) is amended by striking paragraph (4). (44) Section 9705(a) is amended by striking paragraph (4) and by redesignating paragraph (5) as paragraph (4). (45) Section 9706(d)(2)(A) is amended by striking 6103 and inserting 605(e) . (46) Section 9707 is amended by striking subsection (f). (47) Section 9712(d) is amended by striking paragraph (5) and by redesignating paragraph (6) as paragraph (5). (48) Section 9803(a) is amended by striking (as defined in section 414(f)) . III Other Matters 301. Phase-out of administration of repealed Federal taxes (a) Appropriations Appropriations for any expenses of the Internal Revenue Service including processing tax returns for years prior to the repeal of the taxes repealed by title I of this Act, revenue accounting, management, transfer of payroll and wage data to the Social Security Administration for years after fiscal year 2017 shall not be authorized. (b) Records Federal records related to the administration of taxes repealed by title I of this Act shall be destroyed by the end of fiscal year 2017, except that any records necessary to calculate Social Security benefits shall be retained by the Social Security Administration and any records necessary to support ongoing litigation with respect to taxes owed or refunds due shall be retained until final disposition of such litigation. (c) Conforming Amendments Section 7802 is amended— (1) by striking subsections (a) and (b) and by redesignating subsections (c) and (d) as subsections (a) and (b), (2) by striking Internal Revenue Service each place it appears and inserting Department of the Treasury , and (3) by striking Commissioner or Commissioner of Internal Revenue each place they appear and inserting Secretary . (d) Effective Date The amendments made by subsection (c) shall take effect on January 1, 2017. 302. Administration of other Federal taxes (a) In General Section 7801 (relating to the authority of the Department of the Treasury) is amended by adding at the end the following: (d) Excise Tax Bureau There shall be in the Department of the Treasury an Excise Tax Bureau to administer those excise taxes not administered by the Bureau of Alcohol, Tobacco and Firearms. (e) Sales Tax Bureau There shall be in the Department of the Treasury a Sales Tax Bureau to administer the national sales tax in those States where it is required pursuant to section 404, and to discharge other Federal duties and powers relating to the national sales tax (including those required by sections 402, 403, and 405). The Office of Revenue Allocation shall be within the Sales Tax Bureau. . (b) Assistant General Counsels Section 7801(b)(2) is amended to read as follows: (2) Assistant general counsels The Secretary of the Treasury may appoint, without regard to the provisions of the civil service laws, and fix the duties of not more than 5 assistant general counsels. . 303. Sales tax inclusive Social Security benefits indexation Subparagraph (D) of section 215(i)(1) of the Social Security Act (42 U.S.C. 415(i)(1)) (relating to cost-of-living increases in Social Security benefits) is amended to read as follows: (D) (i) the term CPI increase percentage , with respect to a base quarter or cost-of-living quarter in any calendar year, means the percentage (rounded to the nearest one-tenth of 1 percent) by which the Consumer Price Index for that quarter (as prepared by the Department of Labor) exceeds such index for the most recent prior calendar quarter which was a base quarter under subparagraph (A)(ii) or, if later, the most recent cost-of-living computation quarter under subparagraph (B); (ii) if the Consumer Price Index (as so prepared) does not include the national sales tax paid, then the term CPI increase percentage , with respect to a base quarter or cost-of-living quarter in any calendar year, means the percentage (rounded to the nearest one-tenth of 1 percent) by which the product of— (I) the Consumer Price Index for that quarter (as so prepared), and (II) the national sales tax factor, exceeds such index for the most recent prior calendar quarter which was a base quarter under subparagraph (A)(ii) or, if later, the most recent cost of living computation quarter under subparagraph (B); and (iii) the national sales tax factor is equal to one plus the quotient that is— (I) the sales tax rate imposed by section 101 of the Internal Revenue Code of 2013, divided by (II) the quantity that is one minus such sales tax rate. . IV Sunset of Sales Tax if Sixteenth Amendment not Repealed 401. Elimination of sales tax if Sixteenth Amendment not repealed If the Sixteenth Amendment to the Constitution of the United States is not repealed before the end of the 7-year period beginning on the date of the enactment of this Act, then all provisions of, and amendments made by, this Act shall not apply to any use or consumption in any year beginning after December 31 of the calendar year in which or with which such period ends, except that the Sales Tax Bureau of the Department of the Treasury shall not be terminated until 6 months after such December 31.

https://www.govinfo.gov/content/pkg/BILLS-113hr25ih/xml/BILLS-113hr25ih.xml

113-hr-26

I 113th CONGRESS 1st Session H. R. 26 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Ms. Velázquez introduced the following bill; which was referred to the Committee on Oversight and Government Reform , and in addition to the Committee on House Administration , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend chapters 83 and 84 of title 5, United States Code, to provide for the indexation of deferred annuities; to provide that a survivor annuity be provided to the widow or widower of a former employee who dies after separating from Government service with title to a deferred annuity under the Civil Service Retirement System but before establishing a valid claim therefor, and for other purposes. 1. Short title This Act may be cited as the Deferred Benefits Adjustment Act of 2013 . 2. Indexation of deferred annuities (a) Amendments to subchapter III of chapter 83 Section 8338 of title 5, United States Code, is amended— (1) in subsection (d) by striking (d) An and inserting (d) Subject to subsection (e), an ; and (2) by adding at the end the following: (e) (1) The average pay used in the computation of an annuity authorized by this section shall be equal to the average pay described in section 8331(4), increased by the percentage adjustments (compounded) in rates of pay of the General Schedule taking effect during the period— (A) beginning on the day after the date of the separation on which title to annuity is based, and (B) ending on the day before the commencement date of such annuity. (2) In the case of a former employee or Member who dies after having separated from the service with title to an annuity authorized by this section but before having established a valid claim for such annuity, the average pay used in the computation of any survivor annuity payable based on the service of such former employee or Member shall be increased in the manner described in paragraph (1), except that, in applying subparagraph (B) of paragraph (1) for purposes of this paragraph, the commencement date of such survivor annuity shall be used instead of the commencement date of the annuity referred to in such subparagraph. (3) Average pay shall not be increased by reason of any adjustment under this subsection to an amount which exceeds the rate of basic pay that, as of the day before the commencement date of the annuity or survivor annuity involved, is payable for the position that was held by the employee or Member at the time of earning the highest rate of pay taken into account in computing such employee’s or Member’s average pay, as determined under regulations of the Office. . (b) Amendment to chapter 84 Section 8415 of title 5, United States Code, is amended by adding at the end the following: (n) (1) The average pay used in the computation of a deferred annuity under section 8413 shall be equal to the average pay described in section 8401(3), increased by the percentage adjustments (compounded) in rates of pay of the General Schedule taking effect during the period— (A) beginning on the day after the date of the separation on which title to annuity is based, and (B) ending on the day before the commencement date of such annuity. (2) In the case of a former employee or Member who dies after having separated from the service with title to a deferred annuity referred to in paragraph (1) but before having established a valid claim for such annuity, the average pay used in the computation of any survivor annuity payable based on the service of such former employee or Member shall be increased in the manner described in paragraph (1), except that, in applying subparagraph (B) of paragraph (1) for purposes of this paragraph, the commencement date of such survivor annuity shall be used instead of the commencement date of the annuity referred to in such subparagraph. (3) Average pay shall not be increased by reason of any adjustment under this subsection to an amount which exceeds the rate of basic pay that, as of the day before the commencement date of the annuity or survivor annuity involved, is payable for the position that was held by the employee or Member at the time of earning the highest rate of pay taken into account in computing such employee’s or Member’s average pay, as determined under regulations of the Office. . (c) Amendments relating to individuals becoming subject to FERS by election (1) Computation of a deferred annuity Paragraph (6) of section 302(a) of the Federal Employees’ Retirement System Act of 1986 ( 5 U.S.C. 8331 note) is amended by adding at the end the following: (C) In determining average pay under this paragraph for purposes of computing a deferred annuity under section 8413 of such title— (i) the provisions of section 8338(e)(1) and (3) of such title shall apply, to the extent that such annuity is computed under paragraph (4); and (ii) the provisions of section 8415(n)(1) and (3) of such title shall apply, to the extent that such annuity is computed under paragraph (5). . (2) Computation of a survivor annuity Paragraph (9) of such section 302(a) is amended by striking (9) and inserting (9)(A) , and by adding at the end the following: (B) In computing an annuity under paragraph (3) for purposes of determining the amount of a survivor annuity under subchapter IV of chapter 84 of title 5, United States Code, to which the survivor is entitled based on the service of a former employee or Member who dies in the circumstances described in section 8415(n)(2) of such title— (i) paragraph (6)(C)(i) shall apply, to the extent that such annuity is computed under paragraph (4); and (ii) paragraph (6)(C)(ii) shall apply, to the extent that such annuity is computed under paragraph (5). . (d) Conforming amendments (1) Section 8331(10) of title 5, United States Code, is amended by inserting former employee or Member, before or annuitant . (2) Section 8341(h)(1) of title 5, United States Code, is amended by striking or former Member who was separated from the service with title to a deferred annuity under section 8338(b) of this title and inserting or former employee or Member who died after having separated from the service with title to a deferred annuity under section 8338 but before having established a valid claim for annuity, . (3) Clause (iii) of section 8341(h)(2)(B) of title 5, United States Code, is amended by striking a Member and inserting an employee or Member . 3. Amendment to provide that the widow or widower of a deferred annuitant who dies before establishing a valid claim for annuity under CSRS shall be eligible for a survivor annuity in the same way as applies currently under FERS Subsection (f) of section 8341 of title 5, United States Code, is amended to read as follows: (f) If an employee or Member dies after having separated from the service with title to a deferred annuity under section 8338 but before having established a valid claim for annuity, and is survived by a widow or widower to whom married on the date of separation, the widow or widower— (1) is entitled to an annuity equal to 55 percent of the deferred annuity of the employee or Member commencing on the day after the employee or Member dies and terminating on the last day of the month before the widow or widower dies or remarries before age 55; or (2) may elect to receive the lump-sum credit instead of annuity if the widow or widower is the individual who would be entitled to the lump-sum credit and files application therefor with the Office before the award of the annuity. Notwithstanding the preceding sentence, an annuity payable under this subsection to the widow or widower of a former employee or Member may not exceed the difference between— (A) the annuity which would otherwise be payable to such widow or widower under this subsection; and (B) the amount of the survivor annuity payable to any former spouse of such former employee or Member under subsection (h). . 4. Effective dates (a) Amendments Made by Section 2 (1) In general The amendments made by section 2 shall apply to any annuity or survivor annuity commencing before, on, or after the date of the enactment of this Act, subject to paragraph (2). (2) Recomputations In the case of any individual who is entitled to an annuity or survivor annuity based on a separation from service which occurred before the date of the enactment of this Act— (A) such annuity or survivor annuity shall be recomputed to take into account the amendments made by section 2 only if application therefor is made within 12 months after the effective date of regulations prescribed by the Office of Personnel Management to carry out such amendments; and (B) any change in an annuity or survivor annuity resulting from a recomputation under subparagraph (A) shall be effective only with respect to amounts accruing for months beginning on or after the date of the enactment of this Act. (b) Amendment Made by Section 3 The amendment made by section 3 shall take effect as of the date of the enactment of this Act. Upon timely application to the Office of Personnel Management, such amendment shall also apply to the widow or widower of a former employee or Member who died before such date of enactment, except that no amount shall be payable— (1) for any period beginning before such date of enactment; or (2) in any case in which all annuity rights under subchapter III of chapter 83 of title 5, United States Code, have been voided due to the lump-sum credit having been taken. (c) Savings Provision Nothing in section 3 shall affect the right of an individual to a survivor annuity, based on a death occurring on or after the date of the enactment of this Act, if such individual would (upon filing claim therefor) have been entitled to such annuity had section 3 not been enacted. (d) Definitions For purposes of this section— (1) the terms widow and widower have the respective meanings given them by section 8341 of title 5, United States Code; and (2) the term lump-sum credit has the meaning given such term by section 8331(8) of such title.

https://www.govinfo.gov/content/pkg/BILLS-113hr26ih/xml/BILLS-113hr26ih.xml

113-hr-27

I 113th CONGRESS 1st Session H. R. 27 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Ms. Velázquez introduced the following bill; which was referred to the Committee on Energy and Commerce , and in addition to the Committees on Ways and Means , the Judiciary , and Small Business , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend title XVIII of the Social Security Act to repeal the Medicare competitive acquisition program for durable medical equipment and prosthetics, orthotics, and supplies (DMEPOS), and for other purposes. 1. Short title This Act may be cited as the Small Supplier Fairness in Bidding Competition Act of 2013 . 2. Repeal of Medicare DMEPOS competitive acquisition program (a) In general Section 1847 of the Social Security Act (42 U.S.C. 1395w–3) is repealed. (b) Effective date (1) In general The repeal made by subsection (a) shall take effect on the date of the enactment of this Act. (2) Impact on current contracts In the case of any contract awarded under section 1847 of the Social Security Act before the date of the repeal of such section— (A) the contract is terminated; (B) no payment shall be made under title XVIII of such Act on or after the date of the enactment of this Act based on such a contract; and (C) to the extent that any damages may be applicable as a result of the termination of such contracts, such damages shall be payable from the Federal Supplementary Medical Insurance Trust Fund under section 1841 of such Act. (3) Construction Nothing in this subsection shall be construed to provide an independent cause of action or right to administrative or judicial review with regard to the termination provided under this subsection. (c) Report Not later than one year after the date of the enactment of this Act, the Administrator of the Centers for Medicare & Medicaid Services shall submit to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate a report providing an analysis of the impact of competitive bidding on small clinical laboratories. 3. Small business advocacy review panels Section 609(d) of title 5, United States Code, is amended— (1) in paragraph (2), by striking at the end and ; (2) in paragraph (3), by striking the period at the end and inserting ; and ; and (3) by adding at the end the following new paragraph: (4) the Centers for Medicare & Medicaid Services of the Department of Health and Human Services (solely with respect to its capacity to issue rules governing the Medicare part B fee schedule for clinical laboratory services). .

https://www.govinfo.gov/content/pkg/BILLS-113hr27ih/xml/BILLS-113hr27ih.xml

113-hr-28

I 113th CONGRESS 1st Session H. R. 28 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Ms. Velázquez introduced the following bill; which was referred to the Committee on Small Business A BILL To amend the Small Business Act to provide loan guarantees for the acquisition of health information technology by eligible professionals in solo and small group practices, and for other purposes. 1. Short title This Act may be cited as the Working Families’ Access to Health Innovations Act of 2013 . 2. Amendment of small business act The Small Business Act is amended by redesignating section 45 as section 46 and by inserting after section 44 the following: 45. Loan guarantees for health information technology (a) Definitions As used in this section: (1) The term health information technology means computer hardware, software, and related technology (including electronic medical record technology) that— (A) supports the compliance with the meaningful EHR use requirements set forth in section 1848(o)(2)(A) of the Social Security Act ( 42 U.S.C. 1395w–4(o)(2)(A) ); (B) is purchased by an eligible professional to aid in the provision of health care in a health care setting; and (C) provides for— (i) enhancement of continuity of care for patients through electronic storage, transmission, and exchange of relevant personal health data and information, such that this information is accessible at the times and places where clinical decisions will be or are likely to be made; (ii) enhancement of communication between patients and health care providers; (iii) improvement of quality measurement by eligible professionals enabling them to collect, store, measure, and report on the processes and outcomes of individual and population performance and quality of care; (iv) improvement of evidence-based decision support; or (v) enhancement of consumer and patient empowerment. Such term does not include information technology the sole use of which is financial management, maintenance of inventory of basic supplies, or appointment scheduling. (2) The term eligible professional means any of the following: (A) A physician (as defined in section 1861(r) of the Social Security Act (42 U.S.C. 1395x(r))). (B) A practitioner described in section 1842(b)(18)(C) of such Act (42 U.S.C. 1395u(b)(18)(C)). (C) A physical or occupational therapist or a qualified speech-language pathologist. (D) A qualified audiologist (as defined in section 1861(ll)(4)(B) of such Act (42 U.S.C. 1395x(ll)(4)(B))). (E) A State-licensed pharmacist. (F) A State-licensed supplier of durable medical equipment, prosthetics, orthotics, or supplies. (G) A State-licensed, a State-certified, or a nationally accredited home health care provider. (3) The term qualified eligible professional means an eligible professional whose practice— (A) is a small business concern; and (B) (i) is in a medically underserved community (as defined in section 799B(6) of the Public Health Service Act ( 42 U.S.C. 295p(6) )); (ii) serves individuals at least 50 percent of whom are entitled to benefits or enrolled under title XVIII of the Social Security Act; or (iii) serves an area that consists predominantly of low-income families (as defined in section 3 of the United States Housing Act of 1937 ( 42 U.S.C. 1437a )). (b) Loan guarantees for qualified eligible professionals (1) Guarantee percentage Subject to paragraph (2), the Administrator may guarantee up to 90 percent of the amount of the loan made to a qualified eligible professional for the acquisition of health information technology for use in such eligible professional’s medical practice and for the costs associated with the installation of such technology. (2) Limitations on guarantee amounts The maximum amount of loan principal guaranteed under this subsection may not exceed— (A) $350,000 with respect to any single qualified eligible professional; and (B) $2,000,000 with respect to a single group of affiliated qualified eligible professionals. (c) Fees (1) The Administrator may impose a guarantee fee on the borrower in an amount not to exceed 2 percent of the total guaranteed portion of any loan guaranteed under this section. The Administrator may also impose annual servicing fees on lenders not to exceed 0.5 percent of the outstanding balance of the guarantees on lenders’ books. (2) No service fees, processing fees, origination fees, application fees, points, brokerage fees, bonus points, or other fees may be charged to a loan applicant or recipient by a lender in the case of a loan guaranteed under this section. (d) Interest rates The interest rate charged on a loan guaranteed under this section shall not be greater than 25 basis points below the rate provided for a loan under the program under section 7(a). (e) Deferral period Loans guaranteed under this section shall carry a deferral period of not more than 3 years. (f) Terms and conditions for loan guarantees The loans guaranteed under this section shall be subject to the terms and conditions that apply to the program under section 7(a) or other such terms and conditions as are prescribed by the Administrator. . 3. Small business development center duties Section 21(c)(3) of the Small Business Act ( 15 U.S.C. 648(c)(3) ) is amended— (1) by striking and at the end of subparagraph (S); (2) by striking the period at the end of subparagraph (T) and inserting a semicolon; and (3) by adding at the end the following: (U) facilitating the training of medical professionals in health information technology systems; and (V) establishing and providing a network of small health information technology companies available to medical professionals in low-income and underserved areas, as defined by the Secretary of Health and Human Services, for the purpose of aiding medical professionals in such areas to purchase, utilize, and maintain such technology. .

https://www.govinfo.gov/content/pkg/BILLS-113hr28ih/xml/BILLS-113hr28ih.xml

113-hr-29

I 113th CONGRESS 1st Session H. R. 29 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Ms. Velázquez introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To amend the Public Health Service Act to improve the provision of medical services to the homeless. 1. Short title This Act may be cited as the Mobile Medical Homeless Health Improvement Act of 2013 . 2. Findings Congress finds the following: (1) The number of people experiencing homelessness on a single night increased by 1.1 percent from 643,067 in January 2009 to 649,917 in January 2010. California, New York, and Florida accounted for 40 percent of the total homeless population. (2) A total of 79,446 family households, including 241,951 persons in families, were homeless as of January 2010. Since 2009, the number of homeless families increased 1.2 percent, and the number of homeless persons in families increased 1.6 percent. (3) The number of people who were chronically homeless, persons with severe disabilities and long-term homeless histories, decreased 1 percent between 2009 and 2010, from 110,917 to 109,812. (4) Out of those homeless individuals in a shelter, 34.7 percent suffered from substance abuse and 26.2 percent had a serious mental illness. (5) Mobile medical health care services can effectively reach homeless populations and provide primary care, screenings, dental care, medications, behavioral health care, immunizations, lab tests, case management, benefits assistance and assessments, and triage. (6) Mobile medical health care services can provide health care to homeless adults and children in urban, rural, and suburban areas. (7) The average cost of a visit to a provider of mobile medical health care services is significantly below the average cost of an emergency department visit. Visiting a mobile medical health care service instead of the emergency department can result in a cost savings of more than $800 per visit. 3. Improving access of homeless individuals to medical services Subpart I of Part D of title III of the Public Health Service Act ( 42 U.S.C. 254b et seq. ) is amended by adding at the end the following new section: 330M. Partnerships to improve access of homeless individuals to medical services (a) In general The Secretary may award grants, contracts, or cooperative agreements to eligible entities described in subsection (b) to enable such entities to improve access of homeless individuals to mobile medical health care services. (b) Eligible entities To be eligible for a grant, contract, or agreement under this section an entity shall— (1) be a partnership consisting of— (A) one or more hospitals; and (B) one or more other local health care facilities, including clinics, health centers, primary care facilities, mental health centers, pharmacies, or other mobile medical assets (as such term is defined for purposes of section 319C–2), whether or not such a local health care facility is owned (either in whole or in part) by a partnering hospital described in subparagraph (A); and (2) submit to the Secretary, an application at such time, in such manner, and containing such information as the Secretary may require. (c) Use of funds A grant, contract, or agreement awarded under this section may be expended only for activities to increase access of homeless individuals to mobile medical services, including primary health services (as defined in section 330(b)(1)), substance abuse services (as defined in section 330(h)(5)), and mental health counseling. (d) Limitation on awards A hospital or health care facility shall not be eligible for a grant, contract, or agreement under this section with respect to more than one partnership described in subsection (b)(1). (e) Preference In awarding a grant, contract, or agreement under this section, the Secretary shall give priority to any application from a geographic area that has a comparatively high ratio of homeless individuals to non-homeless individuals. (f) Supplement not supplant requirement A grant, contract, or agreement awarded under this section shall be expended to supplement, and not supplant, the expenditures of the eligible entity involved and the value of in kind contributions for the delivery of services to homeless individuals. (g) Temporary continued provision of services to certain former homeless individuals If any grantee under this section has provided services described in this section to a homeless individual under the grant, contract, or agreement awarded under this section, such grantee may, notwithstanding that the individual is no longer homeless as a result of becoming a resident in permanent housing, expend the amount so awarded to continue to provide such services to the individual for not more than 12 months. (h) Definitions For purposes of this section: (1) Homeless individual The term homeless individual has the meaning given such term in section 330(h)(5). (2) Mobile medical health care services The term mobile medical health care service means any health care related service provided in a moveable vehicle or a non-permanent clinic. .

https://www.govinfo.gov/content/pkg/BILLS-113hr29ih/xml/BILLS-113hr29ih.xml

113-hr-30

I 113th CONGRESS 1st Session H. R. 30 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Ms. Velázquez introduced the following bill; which was referred to the Committee on Small Business , and in addition to the Committee on Ways and Means , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Small Business Investment Act of 1958, to provide for a small business early-stage investment program, and for other purposes. 1. Short title This Act may be cited as the Small Business Investment Enhancement and Tax Relief Act . I Small business early-stage investment program 101. Small business early-stage investment program Title III of the Small Business Investment Act of 1958 (15 U.S.C. 681 et seq.) is amended by adding at the end the following: D Small business early-stage investment program 399A. Establishment of program The Administrator shall establish and carry out an early-stage investment program (hereinafter referred to in this part as the program ) to provide equity investment financing to support early-stage small businesses in accordance with this part. 399B. Administration of program The program shall be administered by the Administrator acting through the Associate Administrator described under section 201. 399C. Applications (a) In general Any existing or newly formed incorporated body, limited liability company, or limited partnership organized and chartered or otherwise existing under Federal or State law for the purpose of performing the functions and conducting the activities contemplated under the program and any manager of any small business investment company may submit to the Administrator an application to participate in the program. (b) Requirements for application An application to participate in the program shall include the following: (1) A business plan describing how the applicant intends to make successful venture capital investments in early-stage small businesses and direct capital to small business concerns in targeted industries or other business sectors. (2) Information regarding the relevant venture capital investment qualifications and backgrounds of the individuals responsible for the management of the applicant. (3) A description of the extent to which the applicant meets the selection criteria under section 399D. (c) Applications from managers of small business investment companies The Administrator shall establish an abbreviated application process for applicants that are managers of small business investment companies that are licensed under section 301 and that are applying to participate in the program. Such abbreviated process shall incorporate a presumption that such managers satisfactorily meet the selection criteria under paragraphs (3) and (5) of section 399D(b). 399D. Selection of participating investment companies (a) In general Not later than 90 days after the date on which the Administrator receives an application from an applicant under section 399C, the Administrator shall make a determination to conditionally approve or disapprove such applicant to participate in the program and shall transmit such determination to the applicant in writing. A determination to conditionally approve an applicant shall identify all conditions necessary for a final approval and shall provide a period of not less than one year for satisfying such conditions. (b) Selection criteria In making a determination under subsection (a), the Administrator shall consider each of the following: (1) The likelihood that the applicant will meet the goals specified in the business plan of the applicant. (2) The likelihood that the investments of the applicant will create or preserve jobs, both directly and indirectly. (3) The character and fitness of the management of the applicant. (4) The experience and background of the management of the applicant. (5) The extent to which the applicant will concentrate investment activities on early-stage small businesses. (6) The likelihood that the applicant will achieve profitability. (7) The experience of the management of the applicant with respect to establishing a profitable investment track record. (8) The extent to which the applicant will concentrate investment activities on small business concerns in targeted industries. (c) Final approval For each applicant provided a conditional approval under subsection (a), the Administrator shall provide final approval to participate in the program not later than 90 days after the date the applicant satisfies the conditions specified by the Administrator under such subsection or, in the case of applicants whose partnership or management agreements conform to models approved by the Administrator, the Administrator shall provide final approval to participate in the program not later than 30 days after the date the applicant satisfies the conditions specified under such subsection. If an applicant provided conditional approval under subsection (a) fails to satisfy the conditions specified by the Administrator in the time period designated under such subsection, the Administrator shall revoke the conditional approval. 399E. Equity financings (a) In general The Administrator may make one or more equity financings to a participating investment company. (b) Equity financing amounts (1) Non-Federal capital An equity financing made to a participating investment company under the program may not be in an amount that exceeds the amount of the capital of such company that is not from a Federal source and that is available for investment on or before the date on which an equity financing is drawn upon. Such capital may include legally binding commitments with respect to capital for investment. (2) Limitation on aggregate amount The aggregate amount of all equity financings made to a participating investment company under the program may not exceed $100,000,000. (c) Equity financing process In making an equity financing under the program, the Administrator shall commit an equity financing amount to a participating investment company and the amount of each such commitment shall remain available to be drawn upon by such company— (1) for new-named investments during the 5-year period beginning on the date on which each such commitment is first drawn upon; and (2) for follow-on investments and management fees during the 10-year period beginning on the date on which each such commitment is first drawn upon, with not more than 2 additional 1-year periods available at the discretion of the Administrator. (d) Commitment of funds The Administrator shall make commitments for equity financings not later than 2 years after the date funds are appropriated for the program. 399F. Investments in early-stage small businesses (a) In general As a condition of receiving an equity financing under the program, a participating investment company shall make all of the investments of such company in small business concerns, of which at least 50 percent shall be early-stage small businesses. (b) Evaluation of compliance With respect to an equity financing amount committed to a participating investment company under section 399E, the Administrator shall evaluate the compliance of such company with the requirements under this section if such company has drawn upon 50 percent of such commitment. 399G. Pro rata investment shares Each investment made by a participating investment company under the program shall be treated as comprised of capital from equity financings under the program according to the ratio that capital from equity financings under the program bears to all capital available to such company for investment. 399H. Equity financing interest (a) Equity financing Interest (1) In general As a condition of receiving an equity financing under the program, a participating investment company shall convey an equity financing interest to the Administrator in accordance with paragraph (2). (2) Effect of conveyance The equity financing interest conveyed under paragraph (1) shall have all the rights and attributes of other investors attributable to their interests in the participating investment company, but shall not denote control or voting rights to the Administrator. The equity financing interest shall entitle the Administrator to a pro rata portion of any distributions made by the participating investment company equal to the percentage of capital in the participating investment company that the equity financing comprises. The Administrator shall receive distributions from the participating investment company at the same times and in the same amounts as any other investor in the company with a similar interest. The investment company shall make allocations of income, gain, loss, deduction, and credit to the Administrator with respect to the equity financing interest as if the Administrator were an investor. (b) Manager profits As a condition of receiving an equity financing under the program, the manager profits interest payable to the managers of a participating investment company under the program shall not exceed 20 percent of profits, exclusive of any profits that may accrue as a result of the capital contributions of any such managers with respect to such company. Any excess of this amount, less taxes payable thereon, shall be returned by the managers and paid to the investors and the Administrator in proportion to the capital contributions and equity financings paid in. No manager profits interest (other than a tax distribution) shall be paid prior to the repayment to the investors and the Administrator of all contributed capital and equity financings made. (c) Distribution requirements As a condition of receiving an equity financing under the program, a participating investment company shall make all distributions to all investors in cash and shall make distributions within a reasonable time after exiting investments, including following a public offering or market sale of underlying investments. 399I. Fund There is hereby created within the Treasury a separate fund for equity financings which shall be available to the Administrator subject to annual appropriations as a revolving fund to be used for the purposes of the program. All amounts received by the Administrator, including any moneys, property, or assets derived by the Administrator from operations in connection with the program, shall be deposited in the fund. All expenses and payments, excluding administrative expenses, pursuant to the operations of the Administrator under the program shall be paid from the fund. 399J. Application of other sections To the extent not inconsistent with requirements under this part, the Administrator may apply sections 309, 311, 312, 313, and 314 to activities under this part and an officer, director, employee, agent, or other participant in a participating investment company shall be subject to the requirements under such sections. 399K. Annual reporting The Administrator shall report on the performance of the program in the annual performance report of the Administration. 399L. Definitions In this part, the following definitions apply: (1) Early-stage small business The term early-stage small business means a small business concern that— (A) is domiciled in a State; and (B) has not generated gross annual sales revenues exceeding $15,000,000 in any of the previous 3 years. (2) Participating investment company The term participating investment company means an applicant approved under section 399D to participate in the program. (3) Targeted industries The term targeted industries means any of the following business sectors: (A) Agricultural technology. (B) Energy technology. (C) Environmental technology. (D) Life science. (E) Information technology. (F) Digital media. (G) Clean technology. (H) Defense technology. . II Small business investment 201. Tax credit for small business investment (a) In general Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is amended by inserting after section 25D the following new section: 25E. Small business investment (a) In general In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter an amount equal to 20 percent of the amount paid or incurred for qualified small business investments during the taxable year. (b) Limitation With respect to any qualified small business investment in any corporation or partnership, the amount paid or incurred by any taxpayer which is taken into account under subsection (a) shall not exceed $250,000 ($500,000 in the case of a joint return), reduced by the amount taken into account under such subsection with respect to investments by the taxpayer in such corporation or partnership for all prior taxable years. (c) Qualified small business investment For purposes of this section— (1) In general The term qualified small business investment means any small business stock and any small business partnership interest. (2) Small business stock The term small business stock means any stock in a domestic corporation acquired by the taxpayer at its original issue (directly or through an underwriter) solely in exchange for cash, if— (A) such corporation is an eligible small business (as defined in section 41(b)(3)(D)(ii)); (B) such corporation is engaged primarily in the trade or business of manufacturing, processing, assembling, or researching and developing products or in the trade or business of agriculture, technology, or life science; (C) such corporation has been in existence for less than 5 years as of such acquisition; (D) such corporation has fewer than 75 employees as of such acquisition; (E) more than 50 percent of the corporation’s employees perform substantially all of their services in the United States as of such acquisition; and (F) such stock is designated by the corporation for purposes of this paragraph. For purposes of subparagraph (E), stock shall not be treated as designated if such designation would result in the aggregate amount which may be taken into account under this section with respect to stock issued by such corporation to exceed $750,000, taking into account all taxpayers for all taxable years. (3) Small business partnership interest The term small business partnership interest means any capital or profits interest in a domestic partnership acquired by the taxpayer from the partnership solely in exchange for cash, if— (A) such partnership is an eligible small business (as defined in section 41(b)(3)(D)(ii)); (B) such partnership is engaged primarily in the trade or business of manufacturing, processing, assembling, or researching and developing products or in the trade or business of agriculture, technology, or life science; (C) such partnership has been in existence for less than 5 years as of such acquisition; (D) such partnership has fewer than 75 employees as of such acquisition; (E) more than 50 percent of the partnership’s employees perform substantially all of their services in the United States as of such acquisition; and (F) such capital or profits interest is designated by partnership for purposes of this paragraph. For purposes of subparagraph (E), a capital or profits interest shall not be treated as designated if such designation would result in the aggregate amount which may be taken into account under this section with respect to interests in such partnership to exceed $750,000, taking into account all taxpayers for all taxable years. (d) Carryforward of unused credit If the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section), such excess shall be carried to the succeeding taxable year and added to the credit allowable under this section. Such excess shall not be taken into account under this subsection for such succeeding taxable year or any taxable year succeeding such year. . (b) Clerical amendment The table of sections of such subpart is amended by inserting after the item relating to section 25D the following new item: Sec. 25E. Small business investment. . (c) Report to Congress The Secretary of the Treasury shall conduct a study and report to Congress on the effectiveness of the credit allowed under section 25E of the Internal Revenue Code of 1986 (as added by this section), and similar State tax credits, in providing incentives for investment in qualified small businesses. There are authorized to be appropriated $500,000 to carry out the purposes of this subsection. (d) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

https://www.govinfo.gov/content/pkg/BILLS-113hr30ih/xml/BILLS-113hr30ih.xml

113-hr-31

I 113th CONGRESS 1st Session H. R. 31 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Ms. Velázquez introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Investment Company Act of 1940 to change the asset coverage ratio and treatment of preferred stock for business development companies, to allow business development companies to purchase, otherwise acquire, or hold certain securities, and to direct the Securities and Exchange Commission to revise rules under the Securities Act of 1933 relating to business development companies. 1. Short title This Act may be cited as the Next Steps for Credit Availability Act . 2. Amendments to permit business development companies to own investment advisers Section 60 of the Investment Company Act of 1940 ( 15 U.S.C. 80a–59 ) is amended by striking except that the Commission shall not and inserting the following: except that— (1) section 12 shall not apply to the purchasing, otherwise acquiring, or holding by a business development company of any security issued by, or any other interest in the business of, any person who is an investment adviser registered under title II of this Act or who is an investment adviser to an investment company; and (2) the Commission shall not . 3. Amendments to expand access to capital for business development companies Section 61(a) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–60(a) ) is amended— (1) in paragraph (1), by striking 200 and inserting 150 ; (2) in paragraph (2), by inserting or which is a stock after indebtedness ; and (3) by inserting after paragraph (4) the following new paragraph: (5) Section 18(a)(2) shall not apply to a business development company. . 4. Parity for business development companies regarding offering rules (a) Revision to rules Not later than 180 days after the date of enactment of this Act, the Securities and Exchange Commission shall revise any rules (or any successor rules) to the extent necessary to allow a business development company that has filed an election pursuant to section 54 of the Investment Company Act of 1940 ( 15 U.S.C. 80a–60(a) ) to use the securities offering rules that are available to other issuers that are required to file reports under section 13 or section 15(d) of the Securities Exchange Act of 1934 (Public Law 73–404; 48 Stat. 881). Any action that the Commission takes pursuant to this subsection shall include the following: (1) The Commission shall revise rule 405 under the Securities Act of 1933 (17 C.F.R. 230.405)— (A) to remove the exclusion of a business development company from the definition of a well-known seasoned issuer provided by that rule; and (B) to add registration statements filed on Form N–2 to the definition of automatic shelf registration statement provided by that rule. (2) The Commission shall revise rules 168 and 169 under the Securities Act of 1933 (17 C.F.R. 230.168 and 230.169) to remove the exclusion of a business development company from an issuer that can use the exemptions provided by those rules. (3) The Commission shall revise rules 163 and 163A under the Securities Act of 1933 (17 C.F.R. 230.163 and 230.163A) to remove a business development company from the list of issuers that are ineligible to use the exemptions provided by those rules. (4) The Commission shall revise rule 134 under the Securities Act of 1933 (17 C.F.R. 230.134) to remove the exclusion of a business development company from that rule. (5) The Commission shall revise rules 138 and 139 under the Securities Act of 1933 (17 C.F.R. 230.138 and 230.139) to specifically include a business development company as an issuer to which those rules apply. (6) The Commission shall revise rule 164 under the Securities Act of 1933 (17 C.F.R. 230.164) to remove a business development company from the list of issuers that are excluded from that rule. (7) The Commission shall revise rule 433 under the Securities Act of 1933 (17 C.F.R. 230.433) to specifically include a business development company that is a well-known seasoned issuer as an issuer to which that rule applies. (8) The Commission shall revise rule 415 under the Securities Act of 1933 (17 C.F.R. 230.415)— (A) to state that the registration for securities provided by that rule includes securities registered by a business development company on Form N–2; and (B) to provide an exception for a business development company from the requirement that a Form N–2 registrant must furnish the undertakings required by item 34.4 of Form N–2. (9) The Commission shall revise rule 497 under the Securities Act of 1933 (17 C.F.R. 230.497) to include a process for a business development company to file a form of prospectus that is parallel to the process for filing a form of prospectus under rule 424(b). (10) The Commission shall revise rules 172 and 173 under the Securities Act of 1933 (17 C.F.R. 230.172 and 230.173) to remove the exclusion of an offering of a business development company from those rules. (b) Revision to form N–2 The Commission shall revise Form N–2— (1) to include an item or instruction that is similar to item 12 on Form S–3 to provide that a business development company that meets the requirements of Form S–3 shall incorporate by reference its reports and documents filed under the Securities Exchange Act of 1934 into its registration statement filed on Form N–2; and (2) to include an instruction (that is similar to the instruction regarding automatic shelf offerings by well-known seasoned issuers on Form S–3) to provide that a business development company that is a well-known seasoned issuer may file automatic shelf offerings on Form N–2 (or any successor form).

https://www.govinfo.gov/content/pkg/BILLS-113hr31ih/xml/BILLS-113hr31ih.xml

113-hr-32

I 113th CONGRESS 1st Session H. R. 32 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mr. Wilson of South Carolina (for himself, Mr. Loebsack , Mr. LoBiondo , Mrs. Davis of California , Mr. Runyan , Mr. Heck of Nevada , Mrs. Hartzler , Mr. Turner , Ms. Bordallo , Mr. Fitzpatrick , Mr. Conaway , Mr. Miller of Florida , Mr. Nugent , Mr. Crawford , Mr. King of New York , Mr. Ross , Mr. Schock , Mr. Bachus , Mr. Coffman , and Mr. Wittman ) introduced the following bill; which was referred to the Committee on Armed Services A BILL To amend title 10, United States Code, to repeal the requirement for reduction of survivor annuities under the Survivor Benefit Plan for military surviving spouses to offset the receipt of veterans dependency and indemnity compensation. 1. Short title This Act may be cited as the Military Surviving Spouses Equity Act . 2. Repeal of requirement of reduction of SBP survivor annuities by dependency and indemnity compensation (a) Repeal (1) Repeal Subchapter II of chapter 73 of title 10, United States Code, is amended as follows: (A) In section 1450, by striking subsection (c). (B) In section 1451(c)— (i) by striking paragraph (2); and (ii) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively. (2) Conforming amendments Such subchapter is further amended as follows: (A) In section 1450— (i) by striking subsection (e); and (ii) by striking subsection (k). (B) In section 1451(g)(1), by striking subparagraph (C). (C) In section 1452— (i) in subsection (f)(2), by striking does not apply— and all that follows and inserting does not apply in the case of a deduction made through administrative error. ; and (ii) by striking subsection (g). (D) In section 1455(c), by striking , 1450(k)(2), . (b) Prohibition on Retroactive Benefits No benefits may be paid to any person for any period before the effective date provided under subsection (f) by reason of the amendments made by subsection (a). (c) Prohibition on recoupment of certain amounts previously refunded to SBP recipients A surviving spouse who is or has been in receipt of an annuity under the Survivor Benefit Plan under subchapter II of chapter 73 of title 10, United States Code, that is in effect before the effective date provided under subsection (f) and that is adjusted by reason of the amendments made by subsection (a) and who has received a refund of retired pay under section 1450(e) of title 10, United States Code, shall not be required to repay such refund to the United States. (d) Repeal of authority for optional annuity for dependent children Section 1448(d)(2) of such title is amended— (1) by striking Dependent children .— and all that follows through In the case of a member described in paragraph (1), and inserting Dependent children .—In the case of a member described in paragraph (1), ; and (2) by striking subparagraph (B). (e) Restoration of eligibility for previously eligible spouses The Secretary of the military department concerned shall restore annuity eligibility to any eligible surviving spouse who, in consultation with the Secretary, previously elected to transfer payment of such annuity to a surviving child or children under the provisions of section 1448(d)(2)(B) of title 10, United States Code, as in effect on the day before the effective date provided under subsection (f). Such eligibility shall be restored whether or not payment to such child or children subsequently was terminated due to loss of dependent status or death. For the purposes of this subsection, an eligible spouse includes a spouse who was previously eligible for payment of such annuity and is not remarried, or remarried after having attained age 55, or whose second or subsequent marriage has been terminated by death, divorce or annulment. (f) Effective Date This section and the amendments made by this section shall take effect on the later of— (1) October 1, 2013; and (2) the first day of the first month that begins after the date of the enactment of this Act.

https://www.govinfo.gov/content/pkg/BILLS-113hr32ih/xml/BILLS-113hr32ih.xml

113-hr-33

I 113th CONGRESS 1st Session H. R. 33 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mr. Stockman (for himself and Mr. Broun of Georgia ) introduced the following bill; which was referred to the Committee on Oversight and Government Reform A BILL To amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes. 1. Short title This Act may be cited as the Audit The Fed Act of 2013 . 2. Audit reform and transparency for the Board of Governors of the Federal Reserve System (a) In general Subsection (b) of section 714 of title 31, United States Code, is amended by striking all after shall audit an agency and inserting a period. (b) Audit Section 714 of title 31, United States Code, is amended by adding at the end the following new subsection: (e) Audit and report of the Federal Reserve System (1) In general The audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks under subsection (b) shall be completed before the end of 2014. (2) Report (A) Required A report on the audit referred to in paragraph (1) shall be submitted by the Comptroller General to the Congress before the end of the 90-day period beginning on the date on which such audit is completed and made available to the Speaker of the House, the majority and minority leaders of the House of Representatives, the majority and minority leaders of the Senate, the Chairman and Ranking Member of the committee and each subcommittee of jurisdiction in the House of Representatives and the Senate, and any other Member of Congress who requests it. (B) Contents The report under subparagraph (A) shall include a detailed description of the findings and conclusion of the Comptroller General with respect to the audit that is the subject of the report, together with such recommendations for legislative or administrative action as the Comptroller General may determine to be appropriate. .

https://www.govinfo.gov/content/pkg/BILLS-113hr33ih/xml/BILLS-113hr33ih.xml

113-hr-34

I 113th CONGRESS 1st Session H. R. 34 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mr. Rush introduced the following bill; which was referred to the Committee on the Judiciary A BILL To provide for the implementation of a system of licensing for purchasers of certain firearms and for a record of sale system for those firearms, and for other purposes. 1. Short title; table of contents (a) Short Title This Act may be cited as Blair Holt’s Firearm Licensing and Record of Sale Act of 2013 . (b) Table of Contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Findings and purposes. Sec. 3. Definitions. Title I—LICENSING Sec. 101. Licensing requirement. Sec. 102. Application requirements. Sec. 103. Issuance of license. Sec. 104. Renewal of license. Sec. 105. Revocation of license. Title II—RECORD OF SALE OR TRANSFER Sec. 201. Sale or transfer requirements for qualifying firearms. Sec. 202. Firearm records. Title III—ADDITIONAL PROHIBITIONS Sec. 301. Universal background check requirement. Sec. 302. Failure to maintain or permit inspection of records. Sec. 303. Failure to report loss or theft of firearm. Sec. 304. Failure to provide notice of change of address. Sec. 305. Child access prevention. Title IV—ENFORCEMENT Sec. 401. Criminal penalties. Sec. 402. Regulations. Sec. 403. Inspections. Sec. 404. Orders. Sec. 405. Injunctive enforcement. Title V—FIREARM INJURY INFORMATION AND RESEARCH Sec. 501. Duties of the Attorney General. Title VI—EFFECT ON STATE LAW Sec. 601. Effect on State law. Sec. 602. Certification of State firearm licensing systems and State firearm record of sale systems. Title VII—RELATIONSHIP TO OTHER LAW Sec. 701. Subordination to Arms Export Control Act . Title VIII—INAPPLICABILITY Sec. 801. Inapplicability to governmental authorities. Title IX—EFFECTIVE DATE Sec. 901. Effective date of amendments. 2. Findings and purposes (a) Findings Congress finds that— (1) the manufacture, distribution, and importation of firearms is inherently commercial in nature; (2) firearms regularly move in interstate commerce; (3) to the extent that firearms trafficking is intrastate in nature, it arises out of and is substantially connected with a commercial transaction, which, when viewed in the aggregate, substantially affects interstate commerce; (4) because the intrastate and interstate trafficking of firearms are so commingled, full regulation of interstate commerce requires the incidental regulation of intrastate commerce; (5) gun violence in the United States is associated with the majority of homicides, over half the suicides, and two-thirds of non-fatal violent injuries; and (6) on the afternoon of May 10, 2007, Blair Holt, a junior at Julian High School in Chicago, was killed on a public bus riding home from school when he used his body to shield a girl who was in the line of fire after a young man boarded the bus and started shooting. (b) Sense of the Congress It is the sense of the Congress that— (1) firearms trafficking is prevalent and widespread in and among the States, and it is usually impossible to distinguish between intrastate trafficking and interstate trafficking; and (2) it is in the national interest and within the role of the Federal Government to ensure that the regulation of firearms is uniform among the States, that law enforcement can quickly and effectively trace firearms used in crime, and that firearms owners know how to use and safely store their firearms. (c) Purposes The purposes of this Act and the amendments made by this Act are— (1) to protect the public against the unreasonable risk of injury and death associated with the unrecorded sale or transfer of qualifying firearms to criminals and youth; (2) to ensure that owners of qualifying firearms are knowledgeable in the safe use, handling, and storage of those firearms; (3) to restrict the availability of qualifying firearms to criminals, youth, and other persons prohibited by Federal law from receiving firearms; and (4) to facilitate the tracing of qualifying firearms used in crime by Federal and State law enforcement agencies. 3. Definitions (a) In General In this Act: (1) Firearm; licensed dealer; licensed manufacturer; State The terms firearm , licensed dealer , licensed manufacturer , and State have the meanings given those terms in section 921(a) of title 18, United States Code. (2) Qualifying firearm The term qualifying firearm has the meaning given the term in section 921(a) of title 18, United States Code, as amended by subsection (b) of this section. (b) Amendment to Title 18 , United States Code Section 921(a) of title 18, United States Code, is amended by adding at the end the following: (36) The term qualifying firearm — (A) means— (i) any handgun; or (ii) any semiautomatic firearm that can accept any detachable ammunition feeding device; and (B) does not include any antique. . I LICENSING 101. Licensing requirement Section 922 of title 18, United States Code, is amended by adding at the end the following: (aa) Firearm Licensing Requirement (1) In general It shall be unlawful for any person other than a licensed importer, licensed manufacturer, licensed dealer, or licensed collector to possess a qualifying firearm on or after the applicable date, unless that person has been issued a firearm license— (A) under title I of Blair Holt's Firearm Licensing and Record of Sale Act of 2013, which license has not been invalidated or revoked under that title; or (B) pursuant to a State firearm licensing and record of sale system certified under section 602 of Blair Holt's Firearm Licensing and Record of Sale Act of 2013, which license has not been invalidated or revoked under State law. (2) Applicable date In this subsection, the term applicable date means— (A) with respect to a qualifying firearm that is acquired by the person before the date of the enactment of Blair Holt's Firearm Licensing and Record of Sale Act of 2013, 2 years after such date of enactment; and (B) with respect to a qualifying firearm that is acquired by the person on or after the date of the enactment of Blair Holt's Firearm Licensing and Record of Sale Act of 2013, 1 year after such date of enactment. . 102. Application requirements (a) In General In order to be issued a firearm license under this title, an individual shall submit to the Attorney General (in accordance with the regulations promulgated under subsection (b)) an application, which shall include— (1) a current, passport-sized photograph of the applicant that provides a clear, accurate likeness of the applicant; (2) the name, address, and date and place of birth of the applicant; (3) any other name that the applicant has ever used or by which the applicant has ever been known; (4) a clear thumb print of the applicant, which shall be made when, and in the presence of the entity to whom, the application is submitted; (5) with respect to each category of person prohibited by Federal law, or by the law of the State of residence of the applicant, from obtaining a firearm, a statement that the individual is not a person prohibited from obtaining a firearm; (6) a certification by the applicant that the applicant will keep any firearm owned by the applicant safely stored and out of the possession of persons who have not attained 18 years of age; (7) a certificate attesting to the completion at the time of application of a written firearms examination, which shall test the knowledge and ability of the applicant regarding— (A) the safe storage of firearms, particularly in the vicinity of persons who have not attained 18 years of age; (B) the safe handling of firearms; (C) the use of firearms in the home and the risks associated with such use; (D) the legal responsibilities of firearms owners, including Federal, State, and local laws relating to requirements for the possession and storage of firearms, and relating to reporting requirements with respect to firearms; and (E) any other subjects, as the Attorney General determines to be appropriate; (8) an authorization by the applicant to release to the Attorney General or an authorized representative of the Attorney General any mental health records pertaining to the applicant; (9) the date on which the application was submitted; and (10) the signature of the applicant. (b) Regulations Governing Submission The Attorney General shall promulgate regulations specifying procedures for the submission of applications to the Attorney General under this section, which regulations shall— (1) provide for submission of the application through a licensed dealer or an office or agency of the Federal Government designated by the Attorney General; (2) require the applicant to provide a valid identification document (as defined in section 1028(d)(2) of title 18, United States Code) of the applicant, containing a photograph of the applicant, to the licensed dealer or to the office or agency of the Federal Government, as applicable, at the time of submission of the application to that dealer, office, or agency; and (3) require that a completed application be forwarded to the Attorney General not later than 48 hours after the application is submitted to the licensed dealer or office or agency of the Federal Government, as applicable. (c) Fees (1) In general The Attorney General shall charge and collect from each applicant for a license under this title a fee in an amount determined in accordance with paragraph (2). (2) Fee amount The amount of the fee collected under this subsection shall be not less than the amount determined by the Attorney General to be necessary to ensure that the total amount of all fees collected under this subsection during a fiscal year is sufficient to cover the costs of carrying out this title during that fiscal year, except that such amount shall not exceed $25. 103. Issuance of license (a) In General The Attorney General shall issue a firearm license to an applicant who has submitted an application that meets the requirements of section 102 of this Act, if the Attorney General ascertains that the individual is not prohibited by subsection (g) or (n) of section 922 of title 18, United States Code, from receiving a firearm. (b) Effect of Issuance to Prohibited Person A firearm license issued under this section shall be null and void if issued to a person who is prohibited by subsection (g) or (n) of section 922 of title 18, United States Code, from receiving a firearm. (c) Form of License A firearm license issued under this section shall be in the form of a tamper-resistant card, and shall include— (1) the photograph of the licensed individual submitted with the application; (2) the address of the licensed individual; (3) the date of birth of the licensed individual; (4) a license number, unique to each licensed individual; (5) the expiration date of the license, which shall be the date that is 5 years after the initial anniversary of the date of birth of the licensed individual following the date on which the license is issued (or in the case of a license renewal, following the date on which the license is renewed under section 104); (6) the signature of the licensed individual provided on the application, or a facsimile of the application; and (7) centered at the top of the license, capitalized, and in boldface type, the following: FIREARM LICENSE—NOT VALID FOR ANY OTHER PURPOSE . 104. Renewal of license (a) Application for Renewal (1) In general In order to renew a firearm license issued under this title, not later than 30 days before the expiration date of the license, the licensed individual shall submit to the Attorney General (in accordance with the regulations promulgated under paragraph (3)), in a form approved by the Attorney General, an application for renewal of the license. (2) Contents An application submitted under paragraph (1) shall include— (A) a current, passport-sized photograph of the applicant that provides a clear, accurate likeness of the applicant; (B) current proof of identity of the licensed individual; and (C) the address of the licensed individual. (3) Regulations governing submission The Attorney General shall promulgate regulations specifying procedures for the submission of applications under this subsection. (b) Issuance of Renewed License Upon approval of an application submitted under subsection (a) of this section, the Attorney General shall issue a renewed license, which shall meet the requirements of section 103(c), except that the license shall include the current photograph and address of the licensed individual, as provided in the application submitted under this section, and the expiration date of the renewed license, as provided in section 103(c)(5). 105. Revocation of license (a) In General If an individual to whom a license has been issued under this title subsequently becomes a person who is prohibited by subsection (g) or (n) of section 922 of title 18, United States Code, from receiving a firearm— (1) the license is revoked; and (2) the individual shall promptly return the license to the Attorney General. (b) Administrative Action Upon receipt by the Attorney General of notice that an individual to whom a license has been issued under this title has become a person described in subsection (a), the Attorney General shall ensure that the individual promptly returns the license to the Attorney General. II RECORD OF SALE OR TRANSFER 201. Sale or transfer requirements for qualifying firearms Section 922 of title 18, United States Code, as amended by section 101 of this Act, is amended by adding at the end the following: (bb) Unauthorized Sale or Transfer of a Qualifying Firearm It shall be unlawful for any person to sell, deliver, or otherwise transfer a qualifying firearm to, or for, any person who is not a licensed importer, licensed manufacturer, licensed dealer, or licensed collector, or to receive a qualifying firearm from a person who is not a licensed importer, licensed manufacturer, licensed dealer, or licensed collector, unless, at the time and place of the transfer or receipt— (1) the transferee presents to a licensed dealer a valid firearm license issued to the transferee— (A) under title I of Blair Holt's Firearm Licensing and Record of Sale Act of 2013; or (B) pursuant to a State firearm licensing and record of sale system certified under section 602 of Blair Holt's Firearm Licensing and Record of Sale Act of 2013 established by the State in which the transfer or receipt occurs; (2) the licensed dealer contacts the Attorney General or the head of the State agency that administers the certified system described in paragraph (1)(B), as applicable, and receives notice that the transferee has been issued a firearm license described in paragraph (1) and that the license remains valid; and (3) the licensed dealer records on a document (which, in the case of a sale, shall be the sales receipt) a tracking authorization number provided by the Attorney General or the head of the State agency, as applicable, as evidence that the licensed dealer has verified the validity of the license. . 202. Firearm records (a) Submission of Sale or Transfer Reports Not later than 14 days after the date on which the transfer of qualifying firearm is processed by a licensed dealer under section 922(bb) of title 18, United States Code (as added by section 201 of this Act), the licensed dealer shall submit to the Attorney General (or, in the case of a licensed dealer located in a State that has a State firearm licensing and record of sale system certified under section 602 of this Act, to the head of the State agency that administers that system) a report of that transfer, which shall include information relating to— (1) the manufacturer of the firearm; (2) the model name or number of the firearm; (3) the serial number of the firearm; (4) the date on which the firearm was received by the transferee; (5) the number of a valid firearm license issued to the transferee under title I of this Act; and (6) the name and address of the individual who transferred the firearm to the transferee. (b) Federal Record of Sale System Not later than 9 months after the date of the enactment of this Act, the Attorney General shall establish and maintain a Federal record of sale system, which shall include the information included in each report submitted to the Attorney General under subsection (a). (c) Elimination of Prohibition on Establishment of System of Registration Section 926(a) of title 18, United States Code, is amended by striking the second sentence. III ADDITIONAL PROHIBITIONS 301. Universal background check requirement Section 922 of title 18, United States Code, as amended by sections 101 and 201 of this Act, is amended by adding at the end the following: (cc) Universal Background Check Requirement (1) Requirement Except as provided in paragraph (2), it shall be unlawful for any person other than a licensed importer, licensed manufacturer, licensed dealer, or licensed collector to sell, deliver, or otherwise transfer a firearm to any person other than such a licensee, unless the transfer is processed through a licensed dealer in accordance with subsection (t). (2) Exception Paragraph (1) shall not apply to the infrequent transfer of a firearm by gift, bequest, intestate succession or other means by an individual to a parent, child, grandparent, or grandchild of the individual, or to any loan of a firearm for any lawful purpose for not more than 30 days between persons who are personally known to each other. . 302. Failure to maintain or permit inspection of records Section 922 of title 18, United States Code, as amended by sections 101, 201, and 301 of this Act, is amended by adding at the end the following: (dd) Failure To Maintain or Permit Inspection of Records It shall be unlawful for a licensed manufacturer or a licensed dealer to fail to comply with section 202 of Blair Holt’s Handgun Licensing and Record of Sale Act of 2013, or to maintain such records or supply such information as the Attorney General may require in order to ascertain compliance with such Act and the regulations and orders issued under such Act. . 303. Failure to report loss or theft of firearm Section 922 of title 18, United States Code, as amended by sections 101, 201, 301, and 302 of this Act, is amended by adding at the end the following: (ee) Failure To Report Loss or Theft of Firearm It shall be unlawful for any person who owns a qualifying firearm to fail to report the loss or theft of the firearm to the Attorney General within 72 hours after the loss or theft is discovered. . 304. Failure to provide notice of change of address Section 922 of title 18, United States Code, as amended by sections 101, 201, 301, 302, and 303 of this Act, is amended by adding at the end the following: (ff) Failure To Provide Notice of Change of Address It shall be unlawful for any individual to whom a firearm license has been issued under title I of Blair Holt's Firearm Licensing and Record of Sale Act of 2013 to fail to report to the Attorney General a change in the address of that individual within 60 days of that change of address. . 305. Child access prevention Section 922 of title 18, United States Code, as amended by sections 101, 201, 301, 302, 303, and 304 of this Act, is amended by adding at the end the following: (gg) Child Access Prevention (1) Definition of child In this subsection, the term child means an individual who has not attained the age of 18 years. (2) Prohibition and penalties Except as provided in paragraph (3), it shall be unlawful for any person to keep a loaded firearm, or an unloaded firearm and ammunition for the firearm, any one of which has been shipped or transported in interstate or foreign commerce, within any premises that is under the custody or control of that person, if— (A) that person— (i) knows, or recklessly disregards the risk, that a child is capable of gaining access to the firearm; and (ii) either— (I) knows, or recklessly disregards the risk, that a child will use the firearm to cause the death of, or serious bodily injury (as defined in section 1365 of this title) to, the child or any other person; or (II) knows, or reasonably should know, that possession of the firearm by a child is unlawful under Federal or State law; and (B) a child uses the firearm and the use of that firearm causes the death of, or serious bodily injury to, the child or any other person. (3) Exceptions Paragraph (2) shall not apply if— (A) at the time the child obtained access, the firearm was secured with a secure gun storage or safety device; (B) the person is a peace officer, a member of the Armed Forces, or a member of the National Guard, and the child obtains the firearm during, or incidental to, the performance of the official duties of the person in that capacity; (C) the child uses the firearm in a lawful act of self-defense or defense of one or more other persons; or (D) the person has no reasonable expectation, based on objective facts and circumstances, that a child is likely to be present on the premises on which the firearm is kept. . IV ENFORCEMENT 401. Criminal penalties (a) Failure To Possess Firearm License; Failure To Comply With Qualifying Firearm Sale or Transfer Requirements; Failure To Maintain or Permit Inspection of Records Section 924(a) of title 18, United States Code, is amended by adding at the end the following: (8) Whoever knowingly violates subsection (aa), (bb), or (dd) of section 922 shall be fined under this title, imprisoned not more than 2 years, or both. . (b) Failure To Comply With Universal Background Checks; Failure To Timely Report Loss or Theft of a Qualifying Firearm; Failure To Provide Notice of Change of Address Section 924(a)(5) of such title is amended by striking (s) or (t) and inserting (t), (cc), (ee), or (ff) . (c) Child Access Prevention Section 924(a) of such title, as amended by subsection (a) of this section, is amended by adding at the end the following: (9) Whoever violates section 105(a)(2) of Blair Holt’s Handgun Licensing and Record of Sale Act of 2013, knowingly or having reason to believe that the person is prohibited by subsection (g) or (n) of section 922 of title 18, United States Code, from receiving a firearm, shall be fined under this title, imprisoned not more than 10 years, or both. (10) Whoever violates section 922(gg) shall be fined under this title, imprisoned not more than 5 years, or both. . 402. Regulations (a) In General The Attorney General shall issue regulations governing the licensing of possessors of qualifying firearms and the recorded sale of qualifying firearms, consistent with this Act and the amendments made by this Act, as the Attorney General determines to be reasonably necessary to reduce or prevent deaths or injuries resulting from qualifying firearms, and to assist law enforcement in the apprehension of owners or users of qualifying firearms used in criminal activity. (b) Maximum Interval Between Issuance of Proposed and Final Regulation Not later than 120 days after the date on which the Attorney General issues a proposed regulation under subsection (a) with respect to a matter, the Attorney General shall issue a final regulation with respect to the matter. 403. Inspections In order to ascertain compliance with this Act, the amendments made by this Act, and the regulations and orders issued under this Act, the Attorney General may, during regular business hours, enter any place in which firearms or firearm products are manufactured, stored, or held, for distribution in commerce, and inspect those areas where the products are so manufactured, stored, or held. 404. Orders The Attorney General may issue an order prohibiting the sale or transfer of any firearm that the Attorney General finds has been transferred or distributed in violation of this Act, an amendment made by this Act, or a regulation issued under this Act. 405. Injunctive enforcement The Attorney General may bring an action to restrain any violation of this Act or an amendment made by this Act in the district court of the United States for any district in which the violation has occurred, or in which the defendant is found or transacts business. V FIREARM INJURY INFORMATION AND RESEARCH 501. Duties of the Attorney General (a) In General The Attorney General shall— (1) establish and maintain a firearm injury information clearinghouse to collect, investigate, analyze, and disseminate data and information relating to the causes and prevention of death and injury associated with firearms; (2) conduct continuing studies and investigations of firearm-related deaths and injuries; and (3) collect and maintain current production and sales figures for each licensed manufacturer. (b) Availability of Information Periodically, but not less frequently than annually, the Attorney General shall report to the Congress and make available to the public a report on the activities of the Attorney General under subsection (a). VI EFFECT ON STATE LAW 601. Effect on State law (a) In General This Act and the amendments made by this Act may not be construed to preempt any provision of the law of any State or political subdivision of that State, or prevent a State or political subdivision of that State from enacting any provision of law regulating or prohibiting conduct with respect to firearms, except to the extent that the provision of law is inconsistent with any provision of this Act or an amendment made by this Act, and then only to the extent of the inconsistency. (b) Rule of Interpretation A provision of State law is not inconsistent with this Act or an amendment made by this Act if the provision imposes a regulation or prohibition of greater scope or a penalty of greater severity than a corresponding prohibition or penalty imposed by this Act or an amendment made by this Act. 602. Certification of State firearm licensing systems and State firearm record of sale systems Upon a written request of the chief executive officer of a State, the Attorney General may certify— (1) a firearm licensing system established by a State, if State law requires the system to satisfy the requirements applicable to the Federal firearm licensing system established under title I; or (2) a firearm record of sale system established by a State, if State law requires the head of the State agency that administers the system to submit to the Federal firearm record of sale system established under section 202(b) a copy of each report submitted to the head of the agency under section 202(a), within 7 days after receipt of the report. VII RELATIONSHIP TO OTHER LAW 701. Subordination to Arms Export Control Act In the event of any conflict between any provision of this Act or an amendment made by this Act, and any provision of the Arms Export Control Act ( 22 U.S.C. 2751 ), the provision of the Arms Export Control Act shall control. VIII INAPPLICABILITY 801. Inapplicability to governmental authorities This Act and the amendments made by this Act shall not apply to any department or agency of the United States, of a State, or of a political subdivision of a State, or to any official conduct of any officer or employee of such a department or agency. IX EFFECTIVE DATE 901. Effective date of amendments The amendments made by this Act shall take effect 1 year after the date of the enactment of this Act.

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113-hr-35

I 113th CONGRESS 1st Session H. R. 35 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mr. Stockman (for himself and Mr. Broun of Georgia ) introduced the following bill; which was referred to the Committee on the Judiciary A BILL To restore safety to America's schools. 1. Short title This Act may be cited as the Safe Schools Act of 2013 . 2. Findings and purpose (a) Findings Congress finds— (1) that the Supreme Court has found language nearly identical to the Gun Free School Zones Act to be unconstitutional; (2) that the enactment of the Gun Free School Zones Act has been met with an almost uninterrupted series of horrific and tragic shootings at Columbine, Newtown and in other American schools; (3) that the Gun Free School Zones Act has been a deadly failure. According to research by GeorgiaCarry.org, in the 22 years prior to enactment of the Gun Free School Zones Act there were two school shootings in which four or more people were intentionally murdered in a short period of time, and in the 22 years after the enactment of the Gun Free School Zones Act there have been 10 such school shootings; (4) that American schools had not been plagued with this succession of horrific shootings prior to the enactment of the Gun Free School Zones Act ; (5) that horrific massacres on school campuses in Pearl, Mississippi, and southwestern Virginia, were averted by armed staff and students; (6) that none of the murderers in any of these horrific school shootings were deterred by the fact that, in addition to murder, gun possession was also illegal in those locations; and (7) that the reason that the Gun Free School Zones Act has made American schools unsafe is that shooters now know that they can victimize American school campuses with no fear that victims will be armed. (b) Purpose It is the purpose of this Act to restore safety to America’s schools by allowing staff, teachers, and administrators to defend the children and themselves. 3. Safe schools Subsection (q) of section 922 of Title 18, United States Code, is repealed.

https://www.govinfo.gov/content/pkg/BILLS-113hr35ih/xml/BILLS-113hr35ih.xml

113-hr-36

I 113th CONGRESS 1st Session H. R. 36 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mr. Dent (for himself and Mr. Sessions ) introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To improve access to emergency medical services, and for other purposes. 1. Short title This Act may be cited as the Health Care Safety Net Enhancement Act of 2013 . 2. Constitutional authority The constitutional authority upon which this Act rests is the power of the Congress to provide for the general welfare, to regulate commerce, and to make all laws which shall be necessary and proper for carrying into execution Federal powers, as enumerated in section 8 of article I of the Constitution of the United States. 3. Protection for emergency and related services furnished pursuant to EMTALA Section 224(g) of the Public Health Service Act ( 42 U.S.C. 233(g) ) is amended— (1) in paragraph (4), by striking An entity and inserting Subject to paragraph (6), an entity ; and (2) by adding at the end the following: (6) (A) For purposes of this section— (i) an entity described in subparagraph (B) shall be considered to be an entity described in paragraph (4); and (ii) the provisions of this section shall apply to an entity described in subparagraph (B) in the same manner as such provisions apply to an entity described in paragraph (4), except that— (I) notwithstanding paragraph (1)(B), the deeming of any entity described in subparagraph (B), or of an officer, governing board member, employee, contractor, or on-call provider of such an entity, to be an employee of the Public Health Service for purposes of this section shall apply only with respect to items and services that are furnished to an individual pursuant to section 1867 of the Social Security Act and to post stabilization services (as defined in subparagraph (D)) furnished to such an individual; (II) nothing in paragraph (1)(D) shall be construed as preventing a physician or physician group described in subparagraph (B)(ii) from making the application referred to in such paragraph or as conditioning the deeming of a physician or physician group that makes such an application upon receipt by the Secretary of an application from the hospital or emergency department that employs or contracts with the physician or group, or enlists the physician or physician group as an on-call provider; (III) notwithstanding paragraph (3), this paragraph shall apply only with respect to causes of action arising from acts or omissions that occur on or after January 1, 2014; (IV) paragraph (5) shall not apply to a physician or physician group described in subparagraph (B)(ii); (V) the Attorney General, in consultation with the Secretary, shall make separate estimates under subsection (k)(1) with respect to entities described in subparagraph (B) and entities described in paragraph (4) (other than those described in subparagraph (B)), and the Secretary shall establish separate funds under subsection (k)(2) with respect to such groups of entities, and any appropriations under this subsection for entities described in subparagraph (B) shall be separate from the amounts authorized by subsection (k)(2); (VI) notwithstanding subsection (k)(2), the amount of the fund established by the Secretary under such subsection with respect to entities described in subparagraph (B) may exceed a total of $10,000,000 for a fiscal year; and (VII) subsection (m) shall not apply to entities described in subparagraph (B). (B) An entity described in this subparagraph is— (i) a hospital or an emergency department to which section 1867 of the Social Security Act applies; and (ii) a physician or physician group that is employed by, is under contract with, or is an on-call provider of such hospital or emergency department, to furnish items and services to individuals under such section. (C) For purposes of this paragraph, the term on-call provider means a physician or physician group that— (i) has full, temporary, or locum tenens staff privileges at a hospital or emergency department to which section 1867 of the Social Security Act applies; and (ii) is not employed by or under contract with such hospital or emergency department, but agrees to be ready and available to provide services pursuant to section 1867 of the Social Security Act or post-stabilization services to individuals being treated in the hospital or emergency department with or without compensation from the hospital or emergency department. (D) For purposes of this paragraph, the term post stabilization services means, with respect to an individual who has been treated by an entity described in subparagraph (B) for purposes of complying with section 1867 of the Social Security Act, services that are— (i) related to the condition that was so treated; and (ii) provided after the individual is stabilized in order to maintain the stabilized condition or to improve or resolve the condition of the individual. (E) (i) Nothing in this paragraph (or in any other provision of this section as such provision applies to entities described in subparagraph (B) by operation of subparagraph (A)) shall be construed as authorizing or requiring the Secretary to make payments to such entities, the budget authority for which is not provided in advance by appropriation Acts. (ii) The Secretary shall limit the total amount of payments under this paragraph for a fiscal year to the total amount appropriated in advance by appropriation Acts for such purpose for such fiscal year. If the total amount of payments that would otherwise be made under this paragraph for a fiscal year exceeds such total amount appropriated, the Secretary shall take such steps as may be necessary to ensure that the total amount of payments under this paragraph for such fiscal year does not exceed such total amount appropriated. .

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113-hr-37

I 113th CONGRESS 1st Session H. R. 37 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mr. Barrow introduced the following bill; which was referred to the Committee on Ways and Means , and in addition to the Committees on Energy and Commerce , Rules , House Administration , and Oversight and Government Reform , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To repeal portions of the Patient Protection and Affordable Care Act, to reduce Federal Government spending and to reduce the salaries of Members of Congress, and for other purposes. 1. Short title; Table of contents (a) Short title This Act may be cited as the Business and Government Operations Improvement Act . (b) Table of contents The table of contents of this Act is as follows: Sec. 1. Short title; Table of contents. Title I—Health Care Provisions Sec. 101. Repeal of employer health insurance mandate. Sec. 102. Repeal of individual health insurance mandate. Sec. 103. Repeal of the independent payment advisory board. Title II—Savings and Spending Cuts Sec. 201. Streamline Government Bureaucracy. Sec. 202. Congressional approval for certain obligations exceeding $100,000,000. Sec. 203. Prohibition against funding certain foreign programs, projects, and activities. Sec. 204. Reduction of the number of nonessential vehicles purchased and leased by the Federal Government. Title III—Congressional Pay Cut Sec. 301. Reduction in rates of basic pay for Members of Congress. I Health Care Provisions 101. Repeal of employer health insurance mandate (a) In general Chapter 43 of the Internal Revenue Code of 1986 is amended by striking section 4980H. (b) Repeal of related reporting requirements Subpart D of part III of subchapter A of chapter 61 of such Code is amended by striking section 6056. (c) Conforming amendments (1) Subparagraph (B) of section 6724(d)(1) of such Code is amended by inserting or at the end of clause (xxiii), by striking and at the end of clause (xxiv) and inserting or , and by striking clause (xxv). (2) Paragraph (2) of section 6724(d) of such Code is amended by inserting or at the end of subparagraph (FF), by striking , or at the end of subparagraph (GG) and inserting a period, and by striking subparagraph (HH). (3) The table of sections for chapter 43 of such Code is amended by striking the item relating to section 4980H. (4) The table of sections for subpart D of part III of subchapter A of chapter 61 of such Code is amended by striking the item relating to section 6056. (5) Section 1513 of the Patient Protection and Affordable Care Act is amended by striking subsection (c). (d) Effective dates (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall apply to months and other periods beginning after December 31, 2013. (2) Repeal of study and report The amendment made by subsection (c)(5) shall take effect on the date of the enactment of this Act. 102. Repeal of individual health insurance mandate Section 5000A of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (h) Termination This section shall not apply with respect to any month beginning after the date of the enactment of this subsection. . 103. Repeal of the independent payment advisory board Effective as of the enactment of the Patient Protection and Affordable Care Act ( Public Law 111–148 ), sections 3403 and 10320 of such Act (including the amendments made by such sections, but excluding subsection (d) of section 1899A of the Social Security Act, as added and amended by such sections) are repealed, and any provision of law amended by such sections is hereby restored as if such sections had not been enacted into law. II Savings and Spending Cuts 201. Streamline Government Bureaucracy (a) Findings Congress finds the following: (1) Partially as a result of unnecessary Federal spending, the United States national debt is over $15 trillion. (2) Bureaucratic complexity and redundancy waste time and money for consumers, businesses, and taxpayers. (3) In March 2011, the Government Accountability Office released a report entitled Opportunities to Reduce Potential Duplication in Government Programs, Save Tax Dollars, and Enhance Revenue that identifies areas where greater efficiencies could be found in Government operations. Some of the findings include: (A) Seven different Federal agencies have programs dedicated to meeting the water needs in the United States-Mexico border region. (B) There are 82 Federal programs dedicated to improving teacher quality. (C) There are 56 programs in 20 different Federal agencies designed to target financial literacy. (D) There are 80 Federal programs to boost transportation opportunities for disadvantaged individuals. (E) There are over 20 programs in seven different Federal agencies working to combat homelessness. (4) The Department of Commerce’s core business and trade functions, the Small Business Administration, the Office of the United States Trade Representative, the Export-Import Bank, the Overseas Private Investment Corporation, and the United States Trade and Development Agency all serve important, but sometimes overlapping functions for consumers and businesses in the United States. Consolidating these agencies could save $3 billion and eliminate over 1,000 duplicative Federal jobs while improving the service provided to taxpayers and consumers. (5) The Federal Government provides important services that can be improved while saving money by consolidating and reforming Federal agencies. (b) Consolidation authority (1) Efficiency-Enhancing plan defined Section 902 of title 5, United States Code, is amended— (A) in paragraph (2), by striking and after the semicolon; (B) in paragraph (3), by striking the period and inserting ; and ; and (C) by adding at the end the following: (4) efficiency-enhancing plan means a reorganization plan that the Director of the Office of Management and Budget determines will result in, or is likely to result in— (A) a decrease in the number of agencies; and (B) cost savings in performing the functions that are the subject of that plan. . (2) Modernizing reorganization authority Section 905(a)(1) of title 5, United States Code, is amended by striking the following: or renaming an existing executive department, abolishing or transferring an executive department or independent regulatory agency, or all the functions thereof, or consolidating two or more executive departments or two or more independent regulatory agencies, or all the functions thereof . (c) Duration and scope of authority (1) In general Section 905(b) of title 5, United States Code, is amended by striking if the plan and all that follows and inserting the following: “if the plan is— (1) transmitted to Congress (in accordance with section 903(b)) on or before the date that is 2 years after the date of the enactment of the Business and Government Operations Improvement Act; and (2) an efficiency-enhancing plan. . (2) Exercise of rulemaking power Section 908(1) of title 5, United States Code, is amended by striking December 31, 1984 and inserting the date that is 2 years after the date of the enactment of the Business and Government Operations Improvement Act . 202. Congressional approval for certain obligations exceeding $100,000,000 (a) Approval requirement No Federal department or agency may enter into a contract with, award a grant to, or guarantee a loan for, a private entity in excess of $100,000,000 for a fiscal year, unless the department or agency submits to the Congress a request for approval of such contract, grant, or guarantee, and such approval is subsequently granted by enactment of a joint resolution. (b) Expedited consideration A joint resolution of approval under subsection (a) shall be considered in the House of Representatives and the Senate not later then 30 days after the date of submission of a request under such subsection, under expedited procedures. (c) Effective date This section shall take effect on the date that is 180 days after the date of the enactment of this Act. 203. Prohibition against funding certain foreign programs, projects, and activities Section 103 of the Clean Air Act is amended by adding at the end the following: (l) Prohibition against funding foreign programs, projects, and activities The Administrator shall not award any grant, contract, cooperative agreement, or other financial assistance under this section for any program, project, or activity to occur outside the United States and its territories and possessions. . 204. Reduction of the number of nonessential vehicles purchased and leased by the Federal Government (a) Review of nonessential vehicle purchase The Director of the Office of Management and Budget, in consultation with the head of the relevant Executive agency, shall complete each of the following: (1) Determine the total dollar amount obligated by each Executive agency to purchase civilian vehicles in fiscal year 2010. (2) Determine the total dollar amount obligated by each Executive agency to lease civilian vehicles in fiscal year 2010. (3) Determine the total number of civilian vehicles purchased by each Executive agency in fiscal year 2010. (4) Determine the total number of civilian vehicles leased by each Executive agency in fiscal year 2010. (5) Determine the total dollar amount that would be 20 percent less than the dollar amount determined under paragraphs (1) and (2) for each Executive agency. (b) Reduction of nonessential vehicle purchase For each of fiscal years 2013 through 2017, each Executive agency may not obligate more than the dollar amount identified pursuant to subsection (a)(5) to purchase and lease civilian vehicles. (c) Sharing The Administrator of General Services shall ensure that an Executive agency may share excess or unused vehicles with another Executive agency that may need temporary or long-term use of additional vehicles through the Federal Fleet Management System. (d) National security exception The limits on the purchase and procurement of vehicles provided in this section shall not apply to the purchase or procurement of any vehicle that has been determined by the President to be essential for reasons of national security. (e) Definitions In this section: (1) Civilian vehicle The term civilian vehicle means a vehicle that is not used for purposes of military combat, the training or deployment of uniformed military personnel, or such other uses as determined by the Director of the Office of Management and Budget, in consultation with the Administrator of General Services. (2) Executive agency The term Executive agency has the meaning given that term under section 105 of title 5, United States Code. III Congressional Pay Cut 301. Reduction in rates of basic pay for Members of Congress (a) In general Effective with respect to pay periods beginning after the date of the regularly scheduled general election for Federal office held in November 2014, the rate of basic pay for each Member of Congress shall be reduced by 5 percent, rounded to the nearest multiple of $100 (or, if midway between multiples of $100, to the next higher multiple of $100). (b) Preemption The adjustment under subsection (a) shall be in lieu of any adjustment which (but for this Act) might otherwise take effect, in the rates of basic pay for Members of Congress, with respect to the pay periods referred to in subsection (a). (c) Definition For purposes of this Act, the term Member of Congress means an individual serving in a position under subparagraph (A), (B), or (C) of section 601(a) of the Legislative Reorganization Act of 1946 ( 2 U.S.C. 31 ).

https://www.govinfo.gov/content/pkg/BILLS-113hr37ih/xml/BILLS-113hr37ih.xml

113-hr-38

I 113th CONGRESS 1st Session H. R. 38 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mr. Fleming (for himself and Mr. Barrow ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To allow seniors to file their Federal income tax on a new Form 1040SR. 1. Short title This Act may be cited as the Seniors’ Tax Simplification Act of 2013 . 2. Form 1040SR for seniors (a) In general The Secretary of the Treasury (or the Secretary’s delegate) shall make available a form, to be known as Form 1040SR , for use by individuals to file the return of tax imposed by chapter 1 of the Internal Revenue Code of 1986. Such form shall be as similar as practicable to Form 1040EZ, except that— (1) the form shall be available to individuals who have attained age 65 as of the close of the taxable year, (2) the form may be used even if income for the taxable year includes— (A) social security benefits (as defined in section 86(d) of the Internal Revenue Code of 1986), (B) distributions from qualified retirement plans (as defined in section 4974(c) of such Code), annuities or other such deferred payment arrangements, (C) interest and dividends, or (D) capital gains and losses taken into account in determining adjusted net capital gain (as defined in section 1(h)(3) of such Code), and (3) the form shall be available without regard to the amount of any item of taxable income or the total amount of taxable income for the taxable year. (b) Effective date The form required by subsection (a) shall be made available for taxable years beginning after the date of the enactment of this Act.

https://www.govinfo.gov/content/pkg/BILLS-113hr38ih/xml/BILLS-113hr38ih.xml

113-hr-39

I 113th CONGRESS 1st Session H. R. 39 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mr. Young of Alaska introduced the following bill; which was referred to the Committee on Natural Resources A BILL To reauthorize the African Elephant Conservation Act, the Rhinoceros and Tiger Conservation Act of 1994, and the Asian Elephant Conservation Act of 1997. 1. Short title This Act may be cited as the Multinational Species Conservation Funds Reauthorization Act of 2013 . 2. Reauthorization of African Elephant Conservation Act Section 2306(a) of the African Elephant Conservation Act ( 16 U.S.C. 4245(a) ) is amended by striking 2007 through 2012 and inserting 2014 through 2018 . 3. Reauthorization of Rhinoceros and Tiger Conservation Act of 1994 Section 10(a) of the Rhinoceros and Tiger Conservation Act of 1994 ( 16 U.S.C. 5306(a) ) is amended by striking 2007 through 2012 and inserting 2014 through 2018 . 4. Reauthorization of Asian Elephant Conservation Act of 1997 Section 8(a) of the Asian Elephant Conservation Act of 1997 ( 16 U.S.C. 4266(a) ) is amended by striking 2007 through 2012 and inserting 2014 through 2018 .

https://www.govinfo.gov/content/pkg/BILLS-113hr39ih/xml/BILLS-113hr39ih.xml

113-hr-40

I 113th CONGRESS 1st Session H. R. 40 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mr. Conyers introduced the following bill; which was referred to the Committee on the Judiciary A BILL To acknowledge the fundamental injustice, cruelty, brutality, and inhumanity of slavery in the United States and the 13 American colonies between 1619 and 1865 and to establish a commission to examine the institution of slavery, subsequently de jure and de facto racial and economic discrimination against African-Americans, and the impact of these forces on living African-Americans, to make recommendations to the Congress on appropriate remedies, and for other purposes. 1. Short title This Act may be cited as the Commission to Study Reparation Proposals for African-Americans Act . 2. Findings and purpose (a) Findings The Congress finds that— (1) approximately 4,000,000 Africans and their descendants were enslaved in the United States and colonies that became the United States from 1619 to 1865; (2) the institution of slavery was constitutionally and statutorily sanctioned by the Government of the United States from 1789 through 1865; (3) the slavery that flourished in the United States constituted an immoral and inhumane deprivation of Africans’ life, liberty, African citizenship rights, and cultural heritage, and denied them the fruits of their own labor; and (4) sufficient inquiry has not been made into the effects of the institution of slavery on living African-Americans and society in the United States. (b) Purpose The purpose of this Act is to establish a commission to— (1) examine the institution of slavery which existed from 1619 through 1865 within the United States and the colonies that became the United States, including the extent to which the Federal and State Governments constitutionally and statutorily supported the institution of slavery; (2) examine de jure and de facto discrimination against freed slaves and their descendants from the end of the Civil War to the present, including economic, political, and social discrimination; (3) examine the lingering negative effects of the institution of slavery and the discrimination described in paragraph (2) on living African-Americans and on society in the United States; (4) recommend appropriate ways to educate the American public of the Commission’s findings; (5) recommend appropriate remedies in consideration of the Commission’s findings on the matters described in paragraphs (1) and (2); and (6) submit to the Congress the results of such examination, together with such recommendations. 3. Establishment and duties (a) Establishment There is established the Commission to Study Reparation Proposals for African-Americans (hereinafter in this Act referred to as the Commission ). (b) Duties The Commission shall perform the following duties: (1) Examine the institution of slavery which existed within the United States and the colonies that became the United States from 1619 through 1865. The Commission’s examination shall include an examination of— (A) the capture and procurement of Africans; (B) the transport of Africans to the United States and the colonies that became the United States for the purpose of enslavement, including their treatment during transport; (C) the sale and acquisition of Africans as chattel property in interstate and intrastate commerce; and (D) the treatment of African slaves in the colonies and the United States, including the deprivation of their freedom, exploitation of their labor, and destruction of their culture, language, religion, and families. (2) Examine the extent to which the Federal and State governments of the United States supported the institution of slavery in constitutional and statutory provisions, including the extent to which such governments prevented, opposed, or restricted efforts of freed African slaves to repatriate to their homeland. (3) Examine Federal and State laws that discriminated against freed African slaves and their descendants during the period between the end of the Civil War and the present. (4) Examine other forms of discrimination in the public and private sectors against freed African slaves and their descendants during the period between the end of the Civil War and the present. (5) Examine the lingering negative effects of the institution of slavery and the matters described in paragraphs (1), (2), (3), and (4) on living African-Americans and on society in the United States. (6) Recommend appropriate ways to educate the American public of the Commission’s findings. (7) Recommend appropriate remedies in consideration of the Commission’s findings on the matters described in paragraphs (1), (2), (3), and (4). In making such recommendations, the Commission shall address among other issues, the following questions: (A) Whether the Government of the United States should offer a formal apology on behalf of the people of the United States for the perpetration of gross human rights violations on African slaves and their descendants. (B) Whether African-Americans still suffer from the lingering effects of the matters described in paragraphs (1), (2), (3), and (4). (C) Whether, in consideration of the Commission’s findings, any form of compensation to the descendants of African slaves is warranted. (D) If the Commission finds that such compensation is warranted, what should be the amount of compensation, what form of compensation should be awarded, and who should be eligible for such compensation. (c) Report to Congress The Commission shall submit a written report of its findings and recommendations to the Congress not later than the date which is one year after the date of the first meeting of the Commission held pursuant to section 4(c). 4. Membership (a) Number and appointment (1) The Commission shall be composed of 7 members, who shall be appointed, within 90 days after the date of enactment of this Act, as follows: (A) Three members shall be appointed by the President. (B) Three members shall be appointed by the Speaker of the House of Representatives. (C) One member shall be appointed by the President pro tempore of the Senate. (2) All members of the Commission shall be persons who are especially qualified to serve on the Commission by virtue of their education, training, or experience, particularly in the field of African-American studies. (b) Terms The term of office for members shall be for the life of the Commission. A vacancy in the Commission shall not affect the powers of the Commission and shall be filled in the same manner in which the original appointment was made. (c) First meeting The President shall call the first meeting of the Commission within 120 days after the date of the enactment of this Act or within 30 days after the date on which legislation is enacted making appropriations to carry out this Act, whichever date is later. (d) Quorum Four members of the Commission shall constitute a quorum, but a lesser number may hold hearings. (e) Chair and Vice Chair The Commission shall elect a Chair and Vice Chair from among its members. The term of office of each shall be for the life of the Commission. (f) Compensation (1) Except as provided in paragraph (2), each member of the Commission shall receive compensation at the daily equivalent of the annual rate of basic pay payable for GS–18 of the General Schedule under section 5332 of title 5, United States Code, for each day, including travel time, during which he or she is engaged in the actual performance of duties vested in the Commission. (2) A member of the Commission who is a full-time officer or employee of the United States or a Member of Congress shall receive no additional pay, allowances, or benefits by reason of his or her service to the Commission. (3) All members of the Commission shall be reimbursed for travel, subsistence, and other necessary expenses incurred by them in the performance of their duties to the extent authorized by chapter 57 of title 5, United States Code. 5. Powers of the Commission (a) Hearings and sessions The Commission may, for the purpose of carrying out the provisions of this Act, hold such hearings and sit and act at such times and at such places in the United States, and request the attendance and testimony of such witnesses and the production of such books, records, correspondence, memoranda, papers, and documents, as the Commission considers appropriate. The Commission may request the Attorney General to invoke the aid of an appropriate United States district court to require, by subpoena or otherwise, such attendance, testimony, or production. (b) Powers of subcommittees and members Any subcommittee or member of the Commission may, if authorized by the Commission, take any action which the Commission is authorized to take by this section. (c) Obtaining official data The Commission may acquire directly from the head of any department, agency, or instrumentality of the executive branch of the Government, available information which the Commission considers useful in the discharge of its duties. All departments, agencies, and instrumentalities of the executive branch of the Government shall cooperate with the Commission with respect to such information and shall furnish all information requested by the Commission to the extent permitted by law. 6. Administrative provisions (a) Staff The Commission may, without regard to section 5311(b) of title 5, United States Code, appoint and fix the compensation of such personnel as the Commission considers appropriate. (b) Applicability of certain civil service laws The staff of the Commission may be appointed without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates, except that the compensation of any employee of the Commission may not exceed a rate equal to the annual rate of basic pay payable for GS–18 of the General Schedule under section 5332 of title 5, United States Code. (c) Experts and consultants The Commission may procure the services of experts and consultants in accordance with the provisions of section 3109(b) of title 5, United States Code, but at rates for individuals not to exceed the daily equivalent of the highest rate payable under section 5332 of such title. (d) Administrative support services The Commission may enter into agreements with the Administrator of General Services for procurement of financial and administrative services necessary for the discharge of the duties of the Commission. Payment for such services shall be made by reimbursement from funds of the Commission in such amounts as may be agreed upon by the Chairman of the Commission and the Administrator. (e) Contracts The Commission may— (1) procure supplies, services, and property by contract in accordance with applicable laws and regulations and to the extent or in such amounts as are provided in appropriations Acts; and (2) enter into contracts with departments, agencies, and instrumentalities of the Federal Government, State agencies, and private firms, institutions, and agencies, for the conduct of research or surveys, the preparation of reports, and other activities necessary for the discharge of the duties of the Commission, to the extent or in such amounts as are provided in appropriations Acts. 7. Termination The Commission shall terminate 90 days after the date on which the Commission submits its report to the Congress under section 3(c). 8. Authorization of appropriations To carry out the provisions of this Act, there are authorized to be appropriated $8,000,000.

https://www.govinfo.gov/content/pkg/BILLS-113hr40ih/xml/BILLS-113hr40ih.xml

113-hr-41

I 113th CONGRESS 1st Session H. R. 41 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mr. Garrett (for himself, Mr. Smith of New Jersey , Mr. Frelinghuysen , Mr. Lance , Mr. Grimm , Mr. Hanna , Mr. King of New York , Mr. Meeks , Mrs. Carolyn B. Maloney of New York , Mrs. McCarthy of New York , Mr. Crowley , Mr. Nadler , Mr. Andrews , Mr. Runyan , Mr. LoBiondo , Ms. Meng , Mr. Sean Patrick Maloney of New York , Mr. Pascrell , Mr. Tonko , and Mr. Bishop of New York ) introduced the following bill; which was referred to the Committee on Financial Services , and in addition to the Committee on the Budget , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To temporarily increase the borrowing authority of the Federal Emergency Management Agency for carrying out the National Flood Insurance Program. 1. Temporary increase in borrowing authority for National Flood Insurance Program (a) Section 1309(a) of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4016(a) ) is amended by striking $20,725,000,000 and inserting $30,425,000,000 . (b) The amount provided by this section is designated by the Congress as an emergency requirement pursuant to section 403(a) of S. Con. Res. 13 (111th Congress), the concurrent resolution on the budget for fiscal year 2010, and as an emergency pursuant to section 4(g) of the Statutory Pay-As-You-Go Act of 2010 ( 2 U.S.C. 933(g) ).

https://www.govinfo.gov/content/pkg/BILLS-113hr41ih/xml/BILLS-113hr41ih.xml

113-hr-42

I 113th CONGRESS 1st Session H. R. 42 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mrs. Bachmann introduced the following bill; which was referred to the Committee on Armed Services A BILL To amend title 10, United States Code, to prohibit certain increases in fees for military health care before fiscal year 2016. 1. Short title This Act may be cited as the Military Health Care Affordability Act . 2. Findings and sense of congress (a) Findings Congress finds the following: (1) America’s warriors offer a life of supreme devotion in service to their Nation, and through generations of war-fighting, their dedication has proven honorable, their sacrifice immeasurable, and their record of excellence undeniable. (2) No American goes to war alone—the burden of every Soldier, Sailor, Airman, and Marine is shared, in part, by all of his or her loved ones. (b) Sense of Congress It is the sense of Congress that— (1) so long as the United States sends men and women into battle, the United States will be faithful to care for them upon their return; (2) as the veteran answered the call of duty, so too, is the United States duty-bound to answer the call of the veteran; (3) the Department of Defense and the Department of Veterans Affairs have the tools and ingenuity to provide continued excellent health care without increasing TRICARE payments from the veteran before fiscal year 2014; and (4) in the words of President Abraham Lincoln, let us strive on to finish the work we are in, to bind up the nation's wounds, to care for him who shall have borne the battle and for his widow and his orphan, to do all which may achieve and cherish a just and lasting peace among ourselves and with all nations. . 3. Prohibition on increases of certain health costs and restrictions on health benefit adjustments for members and retirees of the uniformed services and their dependents (a) Prohibition on increase in charges under contracts for medical care Section 1097(e) of title 10, United States Code, is amended— (1) in paragraph (1), by striking September 30, 2011 and inserting September 30, 2015 ; and (2) in paragraph (2), by striking October 1, 2012 and inserting October 1, 2015 . (b) Prohibition on increase in amount of cost sharing requirement under pharmacy benefits program Section 1074g(a)(6)(C)(i) of title 10, United States Code, is amended by striking Beginning October 1, 2013, and inserting the following: The amount of any increase in a cost-sharing amount specified in subparagraph (A) in a year may not be increased during the period beginning on October 1, 2012, and ending on September 30, 2015. Beginning October 1, 2015, . (c) Prohibition on increase in charges for inpatient care Section 1086(b)(3) of title 10, United States Code, is amended by striking September 30, 2011 and inserting September 30, 2015 . (d) Prohibition on increase in premiums under TRICARE coverage for certain members in the Selected Reserve Section 1076d(d)(3) of title 10, United States Code, is amended— (1) in subparagraph (A), by striking The monthly and inserting Except as provided by subparagraph (C), the monthly ; and (2) by adding at the end the following new paragraph: (C) During the period beginning on October 1, 2013, and ending on September 30, 2015, the monthly amount of the premium for TRICARE Standard coverage under this section may not be increased to be more than the amount in effect for the month of September 2013. . (e) Prohibition on increase in premiums under TRICARE coverage for certain members of the Retired Reserve Section 1076e(d) of title 10, United States Code, is amended by adding at the end the following new paragraph: (6) During the period beginning on October 1, 2013, and ending on September 30, 2015, the monthly amount of the premium for TRICARE Standard coverage under this section may not be increased to be more than the amount in effect for the month of September 2013. . (f) Prohibition on increase in premiums under TRICARE coverage for certain dependents Section 1110b(c) of title 10, United States Code, is amended by adding at the end the following new paragraph: (5) During the period beginning on October 1, 2013, and ending on September 30, 2015, the monthly amount of the premium for coverage under the TRICARE program provided pursuant to this section may not be increased to be more than the amount in effect for the month of September 2013. .

https://www.govinfo.gov/content/pkg/BILLS-113hr42ih/xml/BILLS-113hr42ih.xml

113-hr-43

I 113th CONGRESS 1st Session H. R. 43 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mrs. Bachmann (for herself, Mr. Ellison , Mr. Kline , Ms. McCollum , Mr. Nolan , Mr. Paulsen , Mr. Peterson , and Mr. Walz ) introduced the following bill; which was referred to the Committee on Oversight and Government Reform A BILL To designate the facility of the United States Postal Service located at 14 Red River Avenue North in Cold Spring, Minnesota, as the Officer Tommy Decker Memorial Post Office . 1. Officer Tommy Decker Memorial Post Office (a) Designation The facility of the United States Postal Service located at 14 Red River Avenue North in Cold Spring, Minnesota, shall be known and designated as the Officer Tommy Decker Memorial Post Office . (b) References Any reference in a law, map, regulation, document, paper, or other record of the United States to the facility referred to in subsection (a) shall be deemed to be a reference to the Officer Tommy Decker Memorial Post Office .

https://www.govinfo.gov/content/pkg/BILLS-113hr43ih/xml/BILLS-113hr43ih.xml

113-hr-44

I 113th CONGRESS 1st Session H. R. 44 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Ms. Bordallo (for herself, Mr. Andrews , Mrs. Christensen , Mr. Faleomavaega , Ms. Norton , Mr. Pierluisi , Mr. Rahall , Mr. Sablan , Mr. Young of Alaska , Mr. Hoyer , and Mr. Michaud ) introduced the following bill; which was referred to the Committee on Natural Resources A BILL To implement the recommendations of the Guam War Claims Review Commission. 1. Short title This Act may be cited as the Guam World War II Loyalty Recognition Act . 2. Recognition of the suffering and loyalty of the residents of Guam (a) Recognition of the Suffering of the Residents of Guam The United States recognizes that, as described by the Guam War Claims Review Commission, the residents of Guam, on account of their United States nationality, suffered unspeakable harm as a result of the occupation of Guam by Imperial Japanese military forces during World War II, by being subjected to death, rape, severe personal injury, personal injury, forced labor, forced march, or internment. (b) Recognition of the Loyalty of the Residents of Guam The United States forever will be grateful to the residents of Guam for their steadfast loyalty to the United States, as demonstrated by the countless acts of courage they performed despite the threat of death or great bodily harm they faced at the hands of the Imperial Japanese military forces that occupied Guam during World War II. 3. Guam World War II Claims Fund (a) Establishment of fund The Secretary of the Treasury shall establish in the Treasury of the United States a special fund (in this Act referred to as the Claims Fund ) for the payment of claims submitted by compensable Guam victims and survivors of compensable Guam decedents in accordance with sections 4 and 5. (b) Composition of fund The Claims Fund established under subsection (a) shall be composed of amounts deposited into the Claims Fund under subsection (c). (c) Payment of certain duties, taxes, and fees collected from Guam deposited into fund (1) In general Notwithstanding section 30 of the Organic Act of Guam (48 U.S.C. 1421h), the excess of— (A) any amount of duties, taxes, and fees collected under such section after fiscal year 2012, over (B) the amount of duties, taxes, and fees collected under such section during fiscal year 2012, shall be deposited into the Claims Fund. (2) Application Paragraph (1) shall not apply after the date for which the Secretary of the Treasury determines that all payments required to be made under section 4 have been made. (d) Limitation on payments made from fund (1) In general No payment may be made in a fiscal year under section 4 until funds are deposited into the Claims Fund in such fiscal year under subsection (c). (2) Amounts For each fiscal year in which funds are deposited into the Claims Fund under subsection (c), the total amount of payments made in a fiscal year under section 4 may not exceed the amount of funds available in the Claims Fund for such fiscal year. (e) Deductions from fund for administrative expenses The Secretary of the Treasury shall deduct from any amounts deposited into the Claims Fund an amount equal to 5 per cent of such amounts as reimbursement to the Federal Government for expenses incurred by the Foreign Claims Settlement Commission and by the Department of the Treasury in the administration of this Act. The amounts so deducted shall be covered into the Treasury as miscellaneous receipts. 4. Payments for Guam World War II claims (a) Payments for Death, Personal Injury, Forced Labor, Forced March, and Internment After the Secretary of the Treasury receives the certification from the Chairman of the Foreign Claims Settlement Commission as required under section 4(b)(8), the Secretary of the Treasury shall make payments to compensable Guam victims and survivors of a compensable Guam decedents as follows: (1) Compensable Guam victim Before making any payments under paragraph (2), the Secretary shall make payments to compensable Guam victims as follows: (A) In the case of a victim who has suffered an injury described in subsection (c)(2)(A), $15,000. (B) In the case of a victim who is not described in subparagraph (A), but who has suffered an injury described in subsection (c)(2)(B), $12,000. (C) In the case of a victim who is not described in subparagraph (A) or (B), but who has suffered an injury described in subsection (c)(2)(C), $10,000. (2) Survivors of compensable Guam decedents In the case of a compensable Guam decedent, the Secretary shall pay $25,000 for distribution to survivors of the decedent in accordance with subsection (b). The Secretary shall make payments under this paragraph only after all payments are made under paragraph (1). (b) Distribution of Survivor Payments A payment made under subsection (a)(2) to the survivors of a compensable Guam decedent shall be distributed as follows: (1) In the case of a decedent whose spouse is living as of the date of the enactment of this Act, but who had no living children as of such date, the payment shall be made to such spouse. (2) In the case of a decedent whose spouse is living as of the date of the enactment of this Act and who had one or more living children as of such date, 50 percent of the payment shall be made to the spouse and 50 percent shall be made to such children, to be divided among such children to the greatest extent possible into equal shares. (3) In the case of a decedent whose spouse is not living as of the date of the enactment of this Act and who had one or more living children as of such date, the payment shall be made to such children, to be divided among such children to the greatest extent possible into equal shares. (4) In the case of a decedent whose spouse is not living as of the date of the enactment of this Act and who had no living children as of such date, but who— (A) had a parent who is living as of such date, the payment shall be made to the parent; or (B) had two parents who are living as of such date, the payment shall be divided equally between the parents. (5) In the case of a decedent whose spouse is not living as of the date of the enactment of this Act, who had no living children as of such date, and who had no parents who are living as of such date, no payment shall be made. (c) Definitions For purposes of this Act: (1) Compensable Guam decedent The term compensable Guam decedent means an individual determined under section 5 to have been a resident of Guam who died as a result of the attack and occupation of Guam by Imperial Japanese military forces during World War II, or incident to the liberation of Guam by United States military forces, and whose death would have been compensable under the Guam Meritorious Claims Act of 1945 ( Public Law 79–224 ) if a timely claim had been filed under the terms of such Act. (2) Compensable Guam victim The term compensable Guam victim means an individual who is not deceased as of the date of the enactment of this Act and who is determined under section 5 to have suffered, as a result of the attack and occupation of Guam by Imperial Japanese military forces during World War II, or incident to the liberation of Guam by United States military forces, any of the following: (A) Rape or severe personal injury (such as loss of a limb, dismemberment, or paralysis). (B) Forced labor or a personal injury not under subparagraph (A) (such as disfigurement, scarring, or burns). (C) Forced march, internment, or hiding to evade internment. (3) Definitions of severe personal injuries and personal injuries Not later than 180 days after the date of the enactment of this Act, the Foreign Claims Settlement Commission shall promulgate regulations to specify the injuries that constitute a severe personal injury or a personal injury for purposes of subparagraphs (A) and (B), respectively, of paragraph (2). 5. Adjudication (a) Authority of Foreign Claims Settlement Commission (1) In general The Foreign Claims Settlement Commission shall adjudicate claims and determine the eligibility of individuals for payments under section 4. (2) Rules and regulations Not later than 180 days after the date of the enactment of this Act, the Chairman of the Foreign Claims Settlement Commission shall publish in the Federal Register such rules and regulations as may be necessary to enable the Commission to carry out the functions of the Commission under this Act. (b) Claims Submitted for Payments (1) Submittal of claim For purposes of subsection (a)(1) and subject to paragraph (2), the Foreign Claims Settlement Commission may not determine an individual is eligible for a payment under section 4 unless the individual submits to the Commission a claim in such manner and form and containing such information as the Commission specifies. (2) Filing period for claims and notice (A) Filing period An individual filing a claim for a payment under section 4 shall file such claim not later than one year after the date on which the Foreign Claims Settlement Commission publishes the notice described in subparagraph (B). (B) Notice of filing period Not later than 180 days after the date of the enactment of this Act, the Foreign Claims Settlement Commission shall publish a notice of the deadline for filing a claim described in subparagraph (A)— (i) in the Federal Register; and (ii) in newspaper, radio, and television media in Guam. (3) Adjudicatory decisions The decision of the Foreign Claims Settlement Commission on each claim filed under this Act shall— (A) be by majority vote; (B) be in writing; (C) state the reasons for the approval or denial of the claim; and (D) if approved, state the amount of the payment awarded and the distribution, if any, to be made of the payment. (4) Deductions in payment The Foreign Claims Settlement Commission shall deduct, from a payment made to a compensable Guam victim or survivors of a compensable Guam decedent under this section, amounts paid to such victim or survivors under the Guam Meritorious Claims Act of 1945 ( Public Law 79–224 ) before the date of the enactment of this Act. (5) Interest No interest shall be paid on payments made by the Foreign Claims Settlement Commission under section 4. (6) Limited compensation for provision of representational services (A) Limit on compensation Any agreement under which an individual who provided representational services to an individual who filed a claim for a payment under this Act that provides for compensation to the individual who provided such services in an amount that is more than one percent of the total amount of such payment shall be unlawful and void. (B) Penalties Whoever demands or receives any compensation in excess of the amount allowed under subparagraph (A) shall be fined not more than $5,000 or imprisoned not more than one year, or both. (7) Appeals and finality Objections and appeals of decisions of the Foreign Claims Settlement Commission shall be to the Commission, and upon rehearing, the decision in each claim shall be final, and not subject to further review by any court or agency. (8) Certifications for payment After a decision approving a claim becomes final, the Chairman of the Foreign Claims Settlement Commission shall certify such decision to the Secretary of the Treasury for authorization of a payment under section 4. (9) Treatment of affidavits For purposes of section 4 and subject to paragraph (2), the Foreign Claims Settlement Commission shall treat a claim that is accompanied by an affidavit of an individual that attests to all of the material facts required for establishing the eligibility of such individual for payment under such section as establishing a prima facie case of the eligibility of the individual for such payment without the need for further documentation, except as the Commission may otherwise require. Such material facts shall include, with respect to a claim for a payment made under section 4(a), a detailed description of the injury or other circumstance supporting the claim involved, including the level of payment sought. (10) Release of related claims Acceptance of a payment under section 4 by an individual for a claim related to a compensable Guam decedent or a compensable Guam victim shall be in full satisfaction of all claims related to such decedent or victim, respectively, arising under the Guam Meritorious Claims Act of 1945 ( Public Law 79–224 ), the implementing regulations issued by the United States Navy pursuant to such Act (Public Law 79–224), or this Act. 6. Grants program to memorialize the occupation of Guam during World War II (a) Establishment Subject to subsection (b), the Secretary of the Interior shall establish a grant program under which the Secretary shall award grants for research, educational, and media activities for purposes of appropriately illuminating and interpreting the causes and circumstances of the occupation of Guam during World War II and other similar occupations during the war that— (1) memorialize the events surrounding such occupation; or (2) honor the loyalty of the people of Guam during such occupation. (b) Eligibility The Secretary of the Interior may not award a grant under subsection (a) unless the person seeking the grant submits an application to the Secretary for such grant, in such time, manner, and form and containing such information as the Secretary specifies. 7. Authorization of appropriations (a) Guam World War II Claims Payments and Adjudication There are authorized to be appropriated for any fiscal year beginning after the date of the enactment of this Act, such sums as may be necessary to enable the Commission and the Treasury Department to pay their respective administrative expenses incurred in carrying out their functions under sections 4 and 5. Amounts appropriated under this section may remain available until expended. (b) Guam World War II Grants Program For purposes of carrying out section 6, there are authorized to be appropriated $5,000,000 for each fiscal year beginning after the date of the enactment of this Act.

https://www.govinfo.gov/content/pkg/BILLS-113hr44ih/xml/BILLS-113hr44ih.xml

113-hr-45

I 113th CONGRESS 1st Session H. R. 45 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mrs. Bachmann introduced the following bill; which was referred to the Committee on Energy and Commerce , and in addition to the Committees on Education and the Workforce , Ways and Means , the Judiciary , Natural Resources , Rules , House Administration , Appropriations , and the Budget , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To repeal the Patient Protection and Affordable Care Act and health care-related provisions in the Health Care and Education Reconciliation Act of 2010. 1. Repeal of PPACA and health care-related provisions in the Health Care and Education Reconciliation Act of 2010 (a) PPACA Effective as of the enactment of the Patient Protection and Affordable Care Act (Public Law 111–148), such Act (other than subsection (d) of section 1899A of the Social Security Act, as added and amended by sections 3403 and 10320 of such Act) is repealed, and the provisions of law amended or repealed by such Act (other than such subsection (d)) are restored or revived as if such Act had not been enacted. (b) Health care-Related provisions in the Health Care and Education Reconciliation Act of 2010 Effective as of the enactment of the Health Care and Education Reconciliation Act of 2010 ( Public Law 111–152 ), title I and subtitle B of title II of such Act are repealed, and the provisions of law amended or repealed by such title or subtitle, respectively, are restored or revived as if such title and subtitle had not been enacted. 2. Budgetary effects of this Act The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled Budgetary Effects of PAYGO Legislation for this Act, submitted for printing in the Congressional Record by the Chairman of the Committee on the Budget of the House of Representatives, as long as such statement has been submitted prior to the vote on passage of this Act.

https://www.govinfo.gov/content/pkg/BILLS-113hr45ih/xml/BILLS-113hr45ih.xml

113-hr-46

I 113th CONGRESS 1st Session H. R. 46 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mrs. Bachmann introduced the following bill; which was referred to the Committee on Financial Services , and in addition to the Committees on Agriculture , Energy and Commerce , the Judiciary , the Budget , Oversight and Government Reform , Ways and Means , and Small Business , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To repeal the Dodd-Frank Wall Street Reform and Consumer Protection Act. 1. Repeal The Dodd-Frank Wall Street Reform and Consumer Protection Act ( Public Law 111–203 ) is repealed and the provisions of law amended by such Act are revived or restored as if such Act had not been enacted.

https://www.govinfo.gov/content/pkg/BILLS-113hr46ih/xml/BILLS-113hr46ih.xml

113-hr-47

I 113th CONGRESS 1st Session H. R. 47 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mr. Bishop of New York (for himself and Mr. Hanna ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to allow an unlimited exclusion from transfer taxes for certain farmland and land of conservation value, and for other purposes. 1. Short title This Act may be cited as the Farmland Preservation and Land Conservation Act of 2013 . 2. Transfer tax exclusion for certain farmland and land of conservation value (a) Estate tax (1) In general Part IV of subchapter A of chapter 11 of the Internal Revenue Code of 1986 (relating to gross estate) is amended by inserting after section 2058 the following new section: 2059. Farm and conservation land (a) In general For purposes of the tax imposed by section 2001, the value of the taxable estate shall be determined by deducting from the value of the gross estate an amount equal to the adjusted value of the qualified farm or conservation land included in the estate. (b) Estates to which section applies This section shall apply to an estate if— (1) the decedent was (at the date of the decedent’s death) a citizen or resident of the United States, and (2) the executor elects the application of this section and files the agreement referred to in subsection (d)(2) with respect to the qualified farm or conservation land. (c) Definitions For purposes of this section— (1) Qualified farm or conservation land The term qualified farm or conservation land means any real property— (A) which is located in the United States, (B) which, on the date of the decedent’s death, was being used— (i) as a farm for farming purposes (within the meaning of section 2032A(e)), or (ii) exclusively for conservation purposes (within the meaning of section 170(h)), (C) with respect to which there is a recorded covenant which prevents any use of such land which is inconsistent with the uses described in subparagraph (B), and (D) which is designated in the agreement referred to in subsection (d)(2). (2) Adjusted value The term adjusted value means the value of the qualified farm or conservation land for purposes of this chapter, reduced by the amount allowable as a deduction under paragraph (4) of section 2053(a). (d) Election; agreement (1) Election The election under this section shall be made on the return of the tax imposed by section 2001. Such election shall be made in such manner as the Secretary shall by regulations prescribe. Such an election, once made, shall be irrevocable. (2) Agreement The agreement referred to in this paragraph is a written agreement signed by each person in being who has an interest (whether or not in possession) in any property designated in such agreement consenting to the application of subsection (e) with respect to such property. (3) Modification of election and agreement permitted The procedures prescribed under section 2032A(d)(3) shall apply for purposes of this subsection. (e) Tax treatment of dispositions and inconsistent uses In the case of a decedent’s estate which includes qualified farm or conservation land with respect to which there is a covenant described in subsection (c)(1)(C) (including such a covenant made by a prior decedent)— (1) Imposition of additional estate tax If, at any time after the decedent’s death and before the death of the heir— (A) the heir disposes of any interest (other than by a qualified conservation contribution (as defined in section 170(h))) in qualified farm or conservation land and the person acquiring such interest is not subject to the covenant described in subsection (c)(1)(C), or (B) the heir uses such land in any manner which violates the terms of such covenant, then, there is hereby imposed an additional estate tax. (2) Amount of additional tax (A) In general The amount of the additional tax imposed by paragraph (1) with respect to any interest shall be the amount equal to the sum of— (i) the adjusted tax difference with respect to the estate, and (ii) interest at the underpayment rate established under section 6621 on the amount determined under clause (i) for the period beginning on the due date for filing the estate tax return. (B) Adjusted tax difference with respect to estate For purposes of this subsection, the term adjusted tax difference with respect to the estate means the excess of— (i) what would have been the estate tax liability if the fair market value of the interest at the time of the disposition or use described in paragraph (1), over (ii) the estate tax liability. For purposes of this subparagraph, the term estate tax liability means the tax imposed by section 2001 reduced by the credits allowable against such tax. (3) Certain additional rules to apply Rules similar to the rules of paragraphs (2)(D), (2)(E), (3), (4), (5), and (8) of section 2032A(c) shall apply for purposes of this subsection. (4) Income tax treatment of dispositions For purposes of chapter 1, in any case in which an additional tax is imposed by this subsection by reason of any disposition or use of an interest, such interest (if not otherwise disposed of in a transaction in which gain is recognized) shall be treated as sold at its fair market value at the time of the disposition or use, and gain shall be recognized notwithstanding any provision of subtitle A. (f) Basis For purposes of this title, the basis of any qualified farm or conservation land which is included in the estate of a decedent pursuant to subsection (a) shall be the adjusted basis of such qualified farm or conservation land on the date of the decedent’s death. (g) Certain additional rules To apply For purposes of this section, rules similar to the following rules shall apply: (1) Certain real property included Section 2032A(e)(3). (2) Definitions of farm and farming purposes Paragraphs (4) and (5) of section 2032A(e). (3) Property acquired from decedent Section 2032A(e)(9). (4) Community property Section 2032A(e)(10). (5) Bond in lieu of personal liability Section 2032A(e)(11). (6) Special rule for woodlands Section 2032A(e)(13). (7) Statute of limitation Section 2032A(f). (8) Special rules for involuntary conversions of real property Section 2032A(h). (9) Exchanges of qualified real property Section 2032A(i). (h) Cross reference See section 6324C for special lien on farm and conservation land. . (2) Special lien for farm and conservation land Part II of subchapter C of chapter 64 of such Code (relating to liens) is amended by inserting after section 6324B the following new section: 6324C. Special lien on farm and conservation land (a) General rule In the case of qualified farm or conservation land (within the meaning of section 2059(c)(1)) with respect to which an election is in effect under section 2059(b)(2) or section 2524(a) or pursuant to section 2611(b)(2), an amount equal to the adjusted value attributable to such land (within the meaning of section 2059(c)(2)) shall be a lien in favor of the United States on such land. (b) Period of lien The lien imposed by this section shall arise at the time an election is filed under section 2059 and shall continue with respect to such qualified farm or conservation land until the earlier of— (1) such land is transferred to a qualified organization (as defined in section 170(h)(3)), (2) the liability for tax under subsection (e) of section 2059 with respect to such land has been satisfied or has become unenforceable by reason of lapse of time, or (3) it is established to the satisfaction of the Secretary that no further tax liability may arise under section 2059(e) with respect to such land. (c) Certain rules and definitions made applicable (1) In general The rule set forth in paragraphs (1), (3), and (4) of section 6324A(d) shall apply with respect to the lien imposed by this section as if it were a lien imposed by section 6324A. (2) Qualified farm or conservation land For purposes of this section, the term qualified farm or conservation land includes qualified replacement property (within the meaning of section 2032A(h)(3)(B)) and qualified exchange property (within the meaning of section 2032A(i)(3)). (d) Substitution of security for lien To the extent provided in regulations prescribed by the Secretary, the furnishing of security may be substituted for the lien imposed by this section. . (b) Conforming and clerical amendments (1) Section 1016(a) of such Code is amended by striking and at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting , and , and by inserting after paragraph (37) the following new paragraph: (38) to the extent provided in section 2059(f). . (2) The table of sections for part IV of subchapter A of chapter 11 of such Code is amended by inserting after the item relating to section 2058 the following new item: Sec. 2059. Farm and conservation land. . (3) The table of sections for part II of subchapter C of chapter 64 of such Code is amended by inserting after the item relating to section 6324B the following new item: Sec. 6324C. Special lien on farm and conservation land. . (c) Gift tax (1) In general Subchapter C of chapter 12 of subtitle B of such Code (deductions) is amended by redesignating section 2524 as section 2525 and inserting after section 2523 the following new section: 2524. Gift of farm and conservation land (a) In general In computing taxable gifts for the calendar year, there shall be allowed as a deduction in the case of a citizen or resident the adjusted value of all gifts made during such year which are qualified farm or conservation land if the donee elects the application of this section and files the agreement referred to in subsection (c)(2) with respect to the qualified farm or conservation land. (b) Definitions For purposes of this section— (1) Qualified farm or conservation land The term qualified farm or conservation land means any real property— (A) which is located in the United States, (B) which, on the date of the gift, was being used— (i) as a farm for farming purposes (within the meaning of section 2032A(e)), or (ii) exclusively for conservation purposes (within the meaning of section 170(h)), (C) with respect to which there is a recorded covenant which prevents any use of such land which is inconsistent with the uses described in subparagraph (B), and (D) which is designated in the agreement referred to in subsection (c)(2). (2) Adjusted value The term adjusted value means the value of the qualified farm or conservation land for purposes of this chapter, reduced by the amount allowable as a deduction under paragraph (4) of section 2053(a). (c) Election; agreement (1) Election The election under this section shall be made in such manner as the Secretary shall by regulations prescribe. Such an election, once made, shall be irrevocable. (2) Agreement The agreement referred to in this paragraph is a written agreement signed by each person in being who has an interest (whether or not in possession) in any property designated in such agreement consenting to the application of subsection (d) with respect to such property. (3) Modification of election and agreement permitted The procedures prescribed under section 2032A(d)(3) shall apply for purposes of this subsection. (d) Tax treatment of dispositions and inconsistent uses In the case of a decedent’s estate which includes qualified farm or conservation land with respect to which there is a covenant described in subsection (c)(1)(C) (including such a covenant made by a prior decedent)— (1) Imposition of additional gift tax If, at any time after the gift described in subsection (a) and before the death of the donee— (A) the donee disposes of any interest (other than by a qualified conservation contribution (as defined in section 170(h))) in qualified farm or conservation land and the person acquiring such interest is not subject to the covenant described in subsection (b)(1)(C), or (B) the donee uses such land in any manner which violates the terms of such covenant, then, there is hereby imposed an additional gift tax. (2) Amount of additional tax (A) In general The amount of the additional tax imposed by paragraph (1) with respect to any interest shall be the amount equal to the sum of— (i) the adjusted tax difference with respect to the gift, and (ii) interest at the underpayment rate established under section 6621 on the amount determined under clause (i) for the period beginning on the date of such gift. (B) Adjusted tax difference with respect to gift For purposes of this subsection, the term adjusted tax difference with respect to the gift means the excess of— (i) what would have been the gift tax liability if the fair market value of the interest at the time of the disposition or use described in paragraph (1), over (ii) the gift tax liability. For purposes of this subparagraph, the term gift tax liability means the tax imposed by section 2501 reduced by the credits allowable against such tax. (3) Certain additional rules to apply Rules similar to the rules of paragraphs (2)(D), (2)(E), (3), (4), (5), and (8) of section 2032A(c) shall apply for purposes of this subsection. (4) Income tax treatment of dispositions For purposes of chapter 1, in any case in which an additional tax is imposed by this subsection by reason of any disposition or use of an interest, such interest (if not otherwise disposed of in a transaction in which gain is recognized) shall be treated as sold at its fair market value at the time of the disposition or use, and gain shall be recognized notwithstanding any provision of subtitle A. (e) Certain additional rules To apply For purposes of this section, rules similar to the following rules shall apply: (1) Certain real property included Section 2032A(e)(3). (2) Definitions of farm and farming purposes Paragraphs (4) and (5) of section 2032A(e). (3) Bond in lieu of personal liability Section 2032A(e)(11). (4) Special rule for woodlands Section 2032A(e)(12). (5) Statute of limitation Section 2032A(f). (6) Special rules for involuntary conversions of real property Section 2032A(h). (7) Exchanges of qualified real property Section 2032A(i). (f) Cross reference See section 6324C for special lien on farm and conservation land. . (2) Conforming amendment Section 2525 of such Code, as amended by paragraph (1), is amended by striking sections 2522 and 2523 and inserting sections 2522, 2523, and 2524 . (3) Clerical amendment The table of sections for such subchapter is amended by striking the last item and inserting the following new items: Sec. 2524. Gift of farm and conservation land. Sec. 2525. Extent of deductions. . (d) Generation skipping tax (1) Exclusion Subsection (b) of section 2611 of such Code (relating to certain transfers excluded) is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph: (2) any transfer which, if made inter vivos by an individual, would be treated as a deduction under section 2524 (relating to gift of farm and conservation land), or . (2) Applicable rules Subsection (b) of section 2611 of such Code is amended by adding at the end the following flush sentence: For purposes of paragraph (2), rules similar to the rules of section 2524 shall apply. . (e) Effective date The amendments made by this section shall apply to estates of decedents dying, gifts made, and generation-skipping transfers after December 31, 2012.

https://www.govinfo.gov/content/pkg/BILLS-113hr47ih/xml/BILLS-113hr47ih.xml

113-hr-48

I 113th CONGRESS 1st Session H. R. 48 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mr. Bishop of New York (for himself and Mr. Hanna ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to clarify that installment sales treatment shall not fail to apply to property acquired for conservation purposes by a State or local government or certain tax-exempt organizations merely because purchase funds are held in a sinking or similar fund pursuant to State law. 1. Short title This Act may be cited as the Open Space Preservation Promotion Act of 2013 . 2. Findings The Congress finds as follows: (1) Land conservation and farmland preservation is an important national goal that allows farmers to continue to farm on their land, and allows communities to protect invaluable natural resources for future generations. (2) Farmland in metropolitan and frequently high-cost communities is estimated to account for one-third of all farms, and 18 percent of this Nation’s farmland. (3) In many urban fringe areas farmland is rapidly disappearing, and the U.S. Department of Agriculture estimates that approximately 95 million acres of farmland will be taken over by sprawl and urban growth in the coming years. (4) Farmers and landowners generally receive a significantly reduced payment for the sale of development rights and conservation easements than they would receive by selling the land to the private sector for development. In many instances, however, these sales are treated the same under the tax code. (5) In areas where State law requires debt assumed by a municipality to be structured in the form of a sinking fund, farmers and landowners may be discouraged from selling the development rights of their land for conservation purposes. Since sales to State and local governments will be in the form of a sinking fund, a seller may not be able to pay capital gains taxes in full when the seller will not receive cash payments until a future date. (6) In urban fringe areas, many communities have made a concerted effort to purchase development rights to land. The land remains private, but the community gains by preserving open spaces and enjoying environmental benefits. Communities will greatly benefit by the Federal Government taking steps to assist municipalities in the purchase of development rights. 3. Use of sinking fund by State or local government not to prevent installment sales treatment (a) In general Paragraph (3) of section 453(f) of the Internal Revenue Code of 1986 (relating to payment) is amended to read as follows: (3) Payment (A) In general Except as provided in paragraph (4), the term payment does not include the receipt of evidences of indebtedness of the person acquiring the property (whether or not payment of such indebtedness is guaranteed by another person). (B) Treatment of sinking and similar funds required by State law Nothing in this section or the regulations thereunder shall be construed as treating a seller of property to a qualified organization (as defined in section 170(h)(3)) as receiving a payment by reason of the fact that some or all of the funds for such purchase are made (as required by State law) to a sinking or similar fund if the property is being acquired by such organization exclusively for conservation purposes (as defined in section 170(h)(4)). . (b) Effective date The amendment made by this section shall take effect on the date of the enactment of this Act.

https://www.govinfo.gov/content/pkg/BILLS-113hr48ih/xml/BILLS-113hr48ih.xml

113-hr-49

I 113th CONGRESS 1st Session H. R. 49 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mr. Young of Alaska introduced the following bill; which was referred to the Committee on Natural Resources , and in addition to the Committees on Energy and Commerce and Science, Space, and Technology , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To direct the Secretary of the Interior to establish and implement a competitive oil and gas leasing program that will result in an environmentally sound program for the exploration, development, and production of the oil and gas resources of the Coastal Plain of Alaska, and for other purposes. 1. Short title This Act may be cited as the American Energy Independence and Price Reduction Act . 2. Definitions In this Act: (1) Coastal plain The term Coastal Plain means that area described in appendix I to part 37 of title 50, Code of Federal Regulations. (2) Secretary The term Secretary , except as otherwise provided, means the Secretary of the Interior or the Secretary’s designee. 3. Leasing program for lands within the Coastal Plain (a) In General The Secretary shall take such actions as are necessary— (1) to establish and implement, in accordance with this Act and acting through the Director of the Bureau of Land Management in consultation with the Director of the United States Fish and Wildlife Service, a competitive oil and gas leasing program that will result in an environmentally sound program for the exploration, development, and production of the oil and gas resources of the Coastal Plain; and (2) to administer the provisions of this Act through regulations, lease terms, conditions, restrictions, prohibitions, stipulations, and other provisions that ensure the oil and gas exploration, development, and production activities on the Coastal Plain will result in no significant adverse effect on fish and wildlife, their habitat, subsistence resources, and the environment, including, in furtherance of this goal, by requiring the application of the best commercially available technology for oil and gas exploration, development, and production to all exploration, development, and production operations under this Act in a manner that ensures the receipt of fair market value by the public for the mineral resources to be leased. (b) Repeal (1) Repeal Section 1003 of the Alaska National Interest Lands Conservation Act of 1980 (16 U.S.C. 3143) is repealed. (2) Conforming amendment The table of contents in section 1 of such Act is amended by striking the item relating to section 1003. (c) Compliance With Requirements Under Certain Other Laws (1) Compatibility For purposes of the National Wildlife Refuge System Administration Act of 1966 (16 U.S.C. 668dd et seq.), the oil and gas leasing program and activities authorized by this section in the Coastal Plain are deemed to be compatible with the purposes for which the Arctic National Wildlife Refuge was established, and no further findings or decisions are required to implement this determination. (2) Adequacy of the department of the interior’s legislative environmental impact statement The Final Legislative Environmental Impact Statement (April 1987) on the Coastal Plain prepared pursuant to section 1002 of the Alaska National Interest Lands Conservation Act of 1980 (16 U.S.C. 3142) and section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is deemed to satisfy the requirements under the National Environmental Policy Act of 1969 that apply with respect to prelease activities, including actions authorized to be taken by the Secretary to develop and promulgate the regulations for the establishment of a leasing program authorized by this Act before the conduct of the first lease sale. (3) Compliance with nepa for other actions Before conducting the first lease sale under this Act, the Secretary shall prepare an environmental impact statement under the National Environmental Policy Act of 1969 with respect to the actions authorized by this Act that are not referred to in paragraph (2). Notwithstanding any other law, the Secretary is not required to identify nonleasing alternative courses of action or to analyze the environmental effects of such courses of action. The Secretary shall only identify a preferred action for such leasing and a single leasing alternative, and analyze the environmental effects and potential mitigation measures for those two alternatives. The identification of the preferred action and related analysis for the first lease sale under this Act shall be completed within 18 months after the date of enactment of this Act. The Secretary shall only consider public comments that specifically address the Secretary’s preferred action and that are filed within 20 days after publication of an environmental analysis. Notwithstanding any other law, compliance with this paragraph is deemed to satisfy all requirements for the analysis and consideration of the environmental effects of proposed leasing under this Act. (d) Relationship to State and Local Authority Nothing in this Act shall be considered to expand or limit State and local regulatory authority. (e) Special Areas (1) In general The Secretary, after consultation with the State of Alaska, the city of Kaktovik, and the North Slope Borough, may designate up to a total of 45,000 acres of the Coastal Plain as a Special Area if the Secretary determines that the Special Area is of such unique character and interest so as to require special management and regulatory protection. The Secretary shall designate as such a Special Area the Sadlerochit Spring area, comprising approximately 4,000 acres. (2) Management Each such Special Area shall be managed so as to protect and preserve the area’s unique and diverse character including its fish, wildlife, and subsistence resource values. (3) Exclusion from leasing or surface occupancy The Secretary may exclude any Special Area from leasing. If the Secretary leases a Special Area, or any part thereof, for purposes of oil and gas exploration, development, production, and related activities, there shall be no surface occupancy of the lands comprising the Special Area. (4) Directional drilling Notwithstanding the other provisions of this subsection, the Secretary may lease all or a portion of a Special Area under terms that permit the use of horizontal drilling technology from sites on leases located outside the Special Area. (f) Limitation on Closed Areas The Secretary’s sole authority to close lands within the Coastal Plain to oil and gas leasing and to exploration, development, and production is that set forth in this Act. (g) Regulations (1) In general The Secretary shall prescribe such regulations as may be necessary to carry out this Act, including rules and regulations relating to protection of the fish and wildlife, their habitat, subsistence resources, and environment of the Coastal Plain, by no later than 15 months after the date of enactment of this Act. (2) Revision of regulations The Secretary shall periodically review and, if appropriate, revise the rules and regulations issued under subsection (a) to reflect any significant biological, environmental, or engineering data that come to the Secretary’s attention. 4. Lease sales (a) In General Lands may be leased pursuant to this Act to any person qualified to obtain a lease for deposits of oil and gas under the Mineral Leasing Act (30 U.S.C. 181 et seq.). (b) Procedures The Secretary shall, by regulation, establish procedures for— (1) receipt and consideration of sealed nominations for any area in the Coastal Plain for inclusion in, or exclusion (as provided in subsection (c)) from, a lease sale; (2) the holding of lease sales after such nomination process; and (3) public notice of and comment on designation of areas to be included in, or excluded from, a lease sale. (c) Lease Sale Bids (1) In general Bidding for leases under this Act shall be by sealed competitive cash bonus bids, except as provided in paragraph (2). (2) Lease sale bids Lease sales under this Act may be conducted through an Internet leasing program, if the Secretary determines that such a system will result in savings to the taxpayer, an increase in the number of bidders participating, and higher returns than oral bidding or a sealed bidding system. (d) Acreage Minimum in First Sale In the first lease sale under this Act, the Secretary shall offer for lease those tracts the Secretary considers to have the greatest potential for the discovery of hydrocarbons, taking into consideration nominations received pursuant to subsection (b)(1), but in no case less than 200,000 acres. (e) Timing of Lease Sales The Secretary shall— (1) conduct the first lease sale under this Act within 22 months after the date of the enactment of this Act; (2) evaluate the bids in such sale and issue leases resulting from such sale, within 90 days after the date of the completion of such sale; and (3) conduct additional sales so long as sufficient interest in development exists to warrant, in the Secretary’s judgment, the conduct of such sales. 5. Grant of leases by the Secretary (a) In General The Secretary may grant to the highest responsible qualified bidder in a lease sale conducted pursuant to section 4 any lands to be leased on the Coastal Plain upon payment by the lessee of such bonus as may be accepted by the Secretary. (b) Subsequent Transfers No lease issued under this Act may be sold, exchanged, assigned, sublet, or otherwise transferred except with the approval of the Secretary. Prior to any such approval the Secretary shall consult with, and give due consideration to the views of, the Attorney General. 6. Lease terms and conditions (a) In General An oil or gas lease issued pursuant to this Act shall— (1) provide for the payment of a royalty of not less than 12 ½ percent in amount or value of the production removed or sold from the lease, as determined by the Secretary under the regulations applicable to other Federal oil and gas leases; (2) provide that the Secretary may close, on a seasonal basis, portions of the Coastal Plain to exploratory drilling activities as necessary to protect caribou calving areas and other species of fish and wildlife; (3) require that the lessee of lands within the Coastal Plain shall be fully responsible and liable for the reclamation of lands within the Coastal Plain and any other Federal lands that are adversely affected in connection with exploration, development, production, or transportation activities conducted under the lease and within the Coastal Plain by the lessee or by any of the subcontractors or agents of the lessee; (4) provide that the lessee may not delegate or convey, by contract or otherwise, the reclamation responsibility and liability to another person without the express written approval of the Secretary; (5) provide that the standard of reclamation for lands required to be reclaimed under this Act shall be, as nearly as practicable, a condition capable of supporting the uses which the lands were capable of supporting prior to any exploration, development, or production activities, or upon application by the lessee, to a higher or better use as approved by the Secretary; (6) contain terms and conditions relating to protection of fish and wildlife, their habitat, subsistence resources, and the environment as required pursuant to section 3(a)(2); (7) provide that the lessee, its agents, and its contractors use best efforts to provide a fair share, as determined by the level of obligation previously agreed to in the 1974 agreement implementing section 29 of the Federal Agreement and Grant of Right of Way for the Operation of the Trans-Alaska Pipeline, of employment and contracting for Alaska Natives and Alaska Native Corporations from throughout the State; (8) prohibit the export of oil produced under the lease; and (9) contain such other provisions as the Secretary determines necessary to ensure compliance with the provisions of this Act and the regulations issued under this Act. (b) Project Labor Agreements The Secretary, as a term and condition of each lease under this Act and in recognizing the Government’s proprietary interest in labor stability and in the ability of construction labor and management to meet the particular needs and conditions of projects to be developed under the leases issued pursuant to this Act and the special concerns of the parties to such leases, shall require that the lessee and its agents and contractors negotiate to obtain a project labor agreement for the employment of laborers and mechanics on production, maintenance, and construction under the lease. 7. Coastal Plain environmental protection (a) No Significant Adverse Effect Standard To Govern Authorized Coastal Plain Activities The Secretary shall, consistent with the requirements of section 3, administer the provisions of this Act through regulations, lease terms, conditions, restrictions, prohibitions, stipulations, and other provisions that— (1) ensure the oil and gas exploration, development, and production activities on the Coastal Plain will result in no significant adverse effect on fish and wildlife, their habitat, and the environment; (2) require the application of the best commercially available technology for oil and gas exploration, development, and production on all new exploration, development, and production operations; and (3) ensure that the maximum amount of surface acreage covered by production and support facilities, including airstrips and any areas covered by gravel berms or piers for support of pipelines, does not exceed 2,000 acres on the Coastal Plain. (b) Site-Specific Assessment and Mitigation The Secretary shall also require, with respect to any proposed drilling and related activities, that— (1) a site-specific analysis be made of the probable effects, if any, that the drilling or related activities will have on fish and wildlife, their habitat, subsistence resources, and the environment; (2) a plan be implemented to avoid, minimize, and mitigate (in that order and to the extent practicable) any significant adverse effect identified under paragraph (1); and (3) the development of the plan shall occur after consultation with the agency or agencies having jurisdiction over matters mitigated by the plan. (c) Regulations To Protect Coastal Plain Fish and Wildlife Resources, Subsistence Users, and the Environment Before implementing the leasing program authorized by this Act, the Secretary shall prepare and promulgate regulations, lease terms, conditions, restrictions, prohibitions, stipulations, and other measures designed to ensure that the activities undertaken on the Coastal Plain under this Act are conducted in a manner consistent with the purposes and environmental requirements of this Act. (d) Compliance With Federal and State Environmental Laws and Other Requirements The proposed regulations, lease terms, conditions, restrictions, prohibitions, and stipulations for the leasing program under this Act shall require compliance with all applicable provisions of Federal and State environmental law, and shall also require the following: (1) Standards at least as effective as the safety and environmental mitigation measures set forth in items 1 through 29 at pages 167 through 169 of the Final Legislative Environmental Impact Statement (April 1987) on the Coastal Plain. (2) Seasonal limitations on exploration, development, and related activities, where necessary, to avoid significant adverse effects during periods of concentrated fish and wildlife breeding, denning, nesting, spawning, and migration. (3) That exploration activities, except for surface geological studies, be limited to the period between approximately November 1 and May 1 each year and that exploration activities shall be supported, if necessary, by ice roads, winter trails with adequate snow cover, ice pads, ice airstrips, and air transport methods, except that such exploration activities may occur at other times if the Secretary finds that such exploration will have no significant adverse effect on the fish and wildlife, their habitat, and the environment of the Coastal Plain. (4) Design safety and construction standards for all pipelines and any access and service roads, that— (A) minimize, to the maximum extent possible, adverse effects upon the passage of migratory species such as caribou; and (B) minimize adverse effects upon the flow of surface water by requiring the use of culverts, bridges, and other structural devices. (5) Prohibitions on general public access and use on all pipeline access and service roads. (6) Stringent reclamation and rehabilitation requirements, consistent with the standards set forth in this Act, requiring the removal from the Coastal Plain of all oil and gas development and production facilities, structures, and equipment upon completion of oil and gas production operations, except that the Secretary may exempt from the requirements of this paragraph those facilities, structures, or equipment that the Secretary determines would assist in the management of the Arctic National Wildlife Refuge and that are donated to the United States for that purpose. (7) Appropriate prohibitions or restrictions on access by all modes of transportation. (8) Appropriate prohibitions or restrictions on sand and gravel extraction. (9) Consolidation of facility siting. (10) Appropriate prohibitions or restrictions on use of explosives. (11) Avoidance, to the extent practicable, of springs, streams, and river system; the protection of natural surface drainage patterns, wetlands, and riparian habitats; and the regulation of methods or techniques for developing or transporting adequate supplies of water for exploratory drilling. (12) Avoidance or minimization of air traffic-related disturbance to fish and wildlife. (13) Treatment and disposal of hazardous and toxic wastes, solid wastes, reserve pit fluids, drilling muds and cuttings, and domestic wastewater, including an annual waste management report, a hazardous materials tracking system, and a prohibition on chlorinated solvents, in accordance with applicable Federal and State environmental law. (14) Fuel storage and oil spill contingency planning. (15) Research, monitoring, and reporting requirements. (16) Field crew environmental briefings. (17) Avoidance of significant adverse effects upon subsistence hunting, fishing, and trapping by subsistence users. (18) Compliance with applicable air and water quality standards. (19) Appropriate seasonal and safety zone designations around well sites, within which subsistence hunting and trapping shall be limited. (20) Reasonable stipulations for protection of cultural and archeological resources. (21) All other protective environmental stipulations, restrictions, terms, and conditions deemed necessary by the Secretary. (e) Considerations In preparing and promulgating regulations, lease terms, conditions, restrictions, prohibitions, and stipulations under this section, the Secretary shall consider the following: (1) The stipulations and conditions that govern the National Petroleum Reserve-Alaska leasing program, as set forth in the 1999 Northeast National Petroleum Reserve-Alaska Final Integrated Activity Plan/Environmental Impact Statement. (2) The environmental protection standards that governed the initial Coastal Plain seismic exploration program under parts 37.31 to 37.33 of title 50, Code of Federal Regulations. (3) The land use stipulations for exploratory drilling on the KIC–ASRC private lands that are set forth in appendix 2 of the August 9, 1983, agreement between Arctic Slope Regional Corporation and the United States. (f) Facility Consolidation Planning (1) In general The Secretary shall, after providing for public notice and comment, prepare and update periodically a plan to govern, guide, and direct the siting and construction of facilities for the exploration, development, production, and transportation of Coastal Plain oil and gas resources. (2) Objectives The plan shall have the following objectives: (A) Avoiding unnecessary duplication of facilities and activities. (B) Encouraging consolidation of common facilities and activities. (C) Locating or confining facilities and activities to areas that will minimize impact on fish and wildlife, their habitat, and the environment. (D) Utilizing existing facilities wherever practicable. (E) Enhancing compatibility between wildlife values and development activities. (g) Access to Public Lands The Secretary shall— (1) manage public lands in the Coastal Plain subject to subsections (a) and (b) of section 811 of the Alaska National Interest Lands Conservation Act ( 16 U.S.C. 3121 ); and (2) ensure that local residents shall have reasonable access to public lands in the Coastal Plain for traditional uses. 8. Expedited judicial review (a) Filing of Complaint (1) Deadline Subject to paragraph (2), any complaint seeking judicial review of any provision of this Act or any action of the Secretary under this Act shall be filed— (A) except as provided in subparagraph (B), within the 90-day period beginning on the date of the action being challenged; or (B) in the case of a complaint based solely on grounds arising after such period, within 90 days after the complainant knew or reasonably should have known of the grounds for the complaint. (2) Venue Any complaint seeking judicial review of any provision of this Act or any action of the Secretary under this Act may be filed only in the United States Court of Appeals for the District of Columbia. (3) Limitation on scope of certain review Judicial review of a Secretarial decision to conduct a lease sale under this Act, including the environmental analysis thereof, shall be limited to whether the Secretary has complied with the terms of this Act and shall be based upon the administrative record of that decision. The Secretary’s identification of a preferred course of action to enable leasing to proceed and the Secretary’s analysis of environmental effects under this Act shall be presumed to be correct unless shown otherwise by clear and convincing evidence to the contrary. (b) Limitation on Other Review Actions of the Secretary with respect to which review could have been obtained under this section shall not be subject to judicial review in any civil or criminal proceeding for enforcement. 9. Treatment of revenues Notwithstanding any other provision of law, 50 percent of the amount of bonus, rental, and royalty revenues from Federal oil and gas leasing and operations authorized under this Act shall be deposited in the ANWR Alternative Energy Trust Fund established by section 12. 10. Rights-of-way across the Coastal Plain (a) In General The Secretary shall issue rights-of-way and easements across the Coastal Plain for the transportation of oil and gas— (1) except as provided in paragraph (2), under section 28 of the Mineral Leasing Act ( 30 U.S.C. 185 ), without regard to title XI of the Alaska National Interest Lands Conservation Act ( 30 U.S.C. 3161 et seq. ); and (2) under title XI of the Alaska National Interest Lands Conservation Act ( 30 U.S.C. 3161 et seq. ), for access authorized by sections 1110 and 1111 of that Act (16 U.S.C. 3170 and 3171). (b) Terms and Conditions The Secretary shall include in any right-of-way or easement issued under subsection (a) such terms and conditions as may be necessary to ensure that transportation of oil and gas does not result in a significant adverse effect on the fish and wildlife, subsistence resources, their habitat, and the environment of the Coastal Plain, including requirements that facilities be sited or designed so as to avoid unnecessary duplication of roads and pipelines. (c) Regulations The Secretary shall include in regulations under section 3(g) provisions granting rights-of-way and easements described in subsection (a) of this section. 11. Conveyance In order to maximize Federal revenues by removing clouds on title to lands and clarifying land ownership patterns within the Coastal Plain, the Secretary, notwithstanding the provisions of section 1302(h)(2) of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), shall convey— (1) to the Kaktovik Inupiat Corporation the surface estate of the lands described in paragraph 1 of Public Land Order 6959, to the extent necessary to fulfill the Corporation’s entitlement under sections 12 and 14 of the Alaska Native Claims Settlement Act (43 U.S.C. 1611 and 1613) in accordance with the terms and conditions of the Agreement between the Department of the Interior, the United States Fish and Wildlife Service, the Bureau of Land Management, and the Kaktovik Inupiat Corporation effective January 22, 1993; and (2) to the Arctic Slope Regional Corporation the remaining subsurface estate to which it is entitled pursuant to the August 9, 1983, agreement between the Arctic Slope Regional Corporation and the United States of America. 12. ANWR Alternative Energy Trust Fund (a) Establishment of Trust Fund There is established in the Treasury of the United States a trust fund to be known as the ANWR Alternative Energy Trust Fund , consisting of such amounts as may be transferred to the ANWR Alternative Energy Trust Fund as provided in section 9. (b) Expenditures From ANWR Alternative Energy Trust Fund (1) In general Amounts in the ANWR Alternative Energy Trust Fund shall be available without further appropriation to carry out specified provisions of the Energy Policy Act of 2005 ( Public Law 109–58 ; in this section referred to as EPAct2005 ) and the Energy Independence and Security Act of 2007 ( Public Law 110–140 ; in this section referred to as EISAct2007 ), as follows: To carry out the provisions of: The following percentage of annual receipts to the ANWR Alternative Energy Trust Fund, but not to exceed the limit on amount authorized, if any: EPAct2005: Section 210 1.5 percent Section 242 1.0 percent Section 369 2.0 percent Section 401 6.0 percent Section 812 6.0 percent Section 931 19.0 percent Section 942 1.5 percent Section 962 3.0 percent Section 968 1.5 percent Section 1704 6.0 percent EISAct2007: Section 207 15.0 percent Section 607 1.5 percent Title VI, Subtitle B 3.0 percent Title VI, Subtitle C 1.5 percent Section 641 9.0 percent Title VII, Subtitle A 15.0 percent Section 1112 1.5 percent Section 1304 6.0 percent. (2) Apportionment of excess amount Notwithstanding paragraph (1), any amounts allocated under paragraph (1) that are in excess of the amounts authorized in the applicable cited section or subtitle of EPAct2005 and EISAct2007 shall be reallocated to the remaining sections and subtitles cited in paragraph (1), up to the amounts otherwise authorized by law to carry out such sections and subtitles, in proportion to the amounts authorized by law to be appropriated for such other sections and subtitles.

https://www.govinfo.gov/content/pkg/BILLS-113hr49ih/xml/BILLS-113hr49ih.xml

113-hr-50

I 113th CONGRESS 1st Session H. R. 50 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mr. George Miller of California (for himself and Mr. Clyburn ) introduced the following bill; which was referred to the Committee on House Administration A BILL To amend the Help America Vote Act of 2002 to promote early voting in elections for Federal office and to prevent unreasonable waiting times for voters at polling places used in such elections, and for other purposes. 1. Short title This Act may be cited as the Streamlined and Improved Methods at Polling Locations and Early (SIMPLE) Voting Act of 2013 . 2. Minimum requirements for early voting and for reducing waiting times for voters in federal elections (a) Requirements for States (1) In general Subtitle A of title III of the Help America Vote Act of 2002 ( 42 U.S.C. 15481 et seq. ) is amended— (A) by redesignating sections 304 and 305 as sections 306 and 307; and (B) by inserting after section 303 the following new sections: 304. Early voting (a) In general Each State shall allow individuals to vote in an election for Federal office on each day occurring during the 15-day period which ends on the second day immediately preceding the date of the election, in the same manner as voting is allowed on such date. (b) Minimum early voting requirements Each polling place which allows voting prior to the date of a Federal election pursuant to subsection (a) shall— (1) allow such voting for not less than 10 hours on each day; and (2) have uniform hours each day for which such voting occurs. (c) Location of polling places near public transportation To the greatest extent practicable, a State shall ensure that each polling place which allows voting prior to the date of a Federal election pursuant to subsection (a) is located within reasonable walking distance of a stop on a public transportation route. (d) Standards (1) In general The Commission shall issue standards for the administration of voting prior to the date scheduled for a Federal election. Such standards shall include the nondiscriminatory geographic placement of polling places at which such voting occurs. (2) Deviation The standards described in paragraph (1) shall permit States, upon providing adequate public notice, to deviate from any requirement in the case of unforeseen circumstances such as a natural disaster, terrorist attack, or a change in voter turnout. (e) Effective date This section shall apply with respect to elections held on or after January 1, 2014. 305. Preventing unreasonable waiting times for voters (a) Preventing unreasonable waiting times (1) In general Each State shall provide a sufficient number of voting systems, poll workers, and other election resources (including physical resources) at a polling place used in any election for Federal office, including a polling place at which individuals may cast ballots prior to the date of the election, to ensure— (A) a fair and equitable waiting time for all voters in the State; and (B) that no individual will be required to wait longer than one hour to cast a ballot at the polling place. (2) Criteria In determining the number of voting systems, poll workers, and other election resources provided at a polling place for purposes of paragraph (1), the State shall take into account the following factors: (A) The voting age population. (B) Voter turnout in past elections. (C) The number of voters registered. (D) The number of voters who have registered since the most recent Federal election. (E) Census data for the population served by the polling place, such as the proportion of the voting-age population who are under 25 years of age or who are naturalized citizens. (F) The needs and numbers of voters with disabilities and voters with limited English proficiency. (G) The type of voting systems used. (H) The length and complexity of initiatives, referenda, and other questions on the ballot. (I) Such other factors, including relevant demographic factors relating to the population served by the polling place, as the State considers appropriate. (3) Guidelines Not later than 180 days after the date of the enactment of this section, the Commission shall establish and publish guidelines to assist States in meeting the requirements of this subsection. (4) Rule of construction Nothing in this subsection may be construed to authorize a State to meet the requirements of this subsection by closing any polling place, prohibiting an individual from entering a line at a polling place, or refusing to permit an individual who has arrived at a polling place prior to closing time from voting at the polling place. (b) Development and implementation of contingency plans (1) In general Each State shall develop, and implement to the greatest extent practicable, a contingency plan under which the State shall provide additional poll workers, machines, ballots, and other equipment and supplies (as the case may be) on the date of the election to any polling place used in an election for Federal office, including a polling place at which individuals may cast ballots prior to the date of the election, at which waiting times exceed one hour. (2) Approval of plan by Commission The State shall ensure that the contingency plan developed under paragraph (1) is approved by the Commission prior to the date of the election involved, in accordance with such procedures as the Commission may establish. (c) Effective date This section shall apply with respect to elections held on or after January 1, 2014. . (2) Clerical amendment The table of contents of such Act is amended— (A) by redesignating the items relating to sections 304 and 305 as relating to sections 306 and 307; and (B) by inserting after the item relating to section 303 the following new items: Sec. 304. Early voting. Sec. 305. Preventing unreasonable waiting times for voters. . (b) Report by election assistance commission Not later than June 30 of each odd-numbered year, the Election Assistance Commission shall submit to Congress a report assessing the impact of sections 304 and 305 of the Help America Vote Act of 2002 (as added by subsection (a)) on the administration of elections for Federal office during the preceding 2-year period, and shall include in the report such recommendations as the Commission considers appropriate. (c) No effect on authority of state To provide for longer periods of early voting or greater amount of resources at polling places Nothing in this section or in any amendment made by this section may be construed to prohibit a State, with respect to any election for Federal office— (1) from providing (in an equitable and nondiscriminatory manner) a longer period for early voting than the minimum period required under section 304 of the Help America Vote Act of 2002 (as added by subsection (a)); or (2) from providing (in an equitable and nondiscriminatory manner) a greater number of systems, poll workers, and other election resources at any polling place than the minimum number required under section 305 of such Act (as added by subsection (a)). 3. Requirements for counting provisional ballots; establishment of uniform and nondiscriminatory standards (a) In general Section 302 of the Help America Vote Act of 2002 (42 U.S.C. 15482) is amended— (1) by redesignating subsection (d) as subsection (f); and (2) by inserting after subsection (c) the following new subsections: (d) Statewide counting of provisional ballots (1) In general For purposes of subsection (a)(4), notwithstanding the precinct or polling place at which a provisional ballot is cast within the State, the appropriate election official shall count each vote on such ballot for each election in which the individual who cast such ballot is eligible to vote. (2) Effective date This subsection shall apply with respect to elections held on or after January 1, 2014. (e) Uniform and nondiscriminatory standards (1) In general Consistent with the requirements of this section, each State shall establish uniform and nondiscriminatory standards for the issuance, handling, and counting of provisional ballots. (2) Effective date This subsection shall apply with respect to elections held on or after January 1, 2014. . (b) Conforming amendment Section 302(f) of such Act ( 42 U.S.C. 15482(f) ), as redesignated by subsection (a), is amended by striking Each State and inserting Except as provided in subsections (d)(2) and (e)(2), each State . 4. Availability of civil penalties and private rights of action to enforce help america vote act of 2002 (a) Availability of civil penalties and private rights of action Section 401 of the Help America Vote Act of 2002 ( 42 U.S.C. 15511 ) is amended to read as follows: 401. Enforcement (a) Action by Attorney General (1) In general The Attorney General may bring a civil action against any State or jurisdiction in an appropriate United States District Court for such declaratory and injunctive relief (including a temporary restraining order, a permanent or temporary injunction, or other order) as may be necessary to carry out the requirements of subtitle A of title III. (2) Assessment of civil money penalty In a civil action brought under paragraph (1), if the court finds that the State or jurisdiction violated any provision of subtitle A of title III, it may, to vindicate the public interest, assess a civil penalty against the State or jurisdiction— (A) in an amount not to exceed $110,000 for each such violation, in the case of a first violation; or (B) in an amount not to exceed $220,000 for each such violation, for any subsequent violation. (3) Intervention Upon timely application, a person aggrieved by a violation of subtitle A of title III with respect to which a civil action is commenced under paragraph (1) may intervene in such action, and may obtain such appropriate relief as the person could obtain in a civil action under subsection (b) with respect to that violation, along with costs and a reasonable attorney fee. (4) Report to Congress Not later than December 31 of each year, the Attorney General shall submit to Congress an annual report on any civil action brought under paragraph (1) during the preceding year. (b) Private right of action (1) Availability A person who is aggrieved by a State's or jurisdiction’s violation of subtitle A of title III may bring a civil action in an appropriate United States District Court for such declaratory or injunctive relief as may be necessary to carry out the requirements of such subtitle. (2) Costs and attorney fees The court may award to a person aggrieved by a violation of subtitle A of title III who prevails in an action brought under paragraph (1) the costs of the action, including a reasonable attorney fee. . (b) Clerical amendment The table of contents of such Act is amended by amending the item relating to section 401 to read as follows: Sec. 401. Enforcement. . (c) Effective date The amendments made by this section shall apply with respect to violations alleged to have occurred on or after the date of the enactment of this Act.

https://www.govinfo.gov/content/pkg/BILLS-113hr50ih/xml/BILLS-113hr50ih.xml

113-hr-51

I 113th CONGRESS 1st Session H. R. 51 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mr. Fitzpatrick introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to provide for an employment assistance voucher program for the unemployed. 1. Short title This Act may be cited as the Hire Just One Act of 2013 . 2. Treatment of employment assistance voucher programs (a) Use of unemployment fund for employment assistance voucher program (1) State law Section 3304(a)(4) of the Internal Revenue Code of 1986 is amended by striking and at the end of subparagraph (F), by inserting and at the end of subparagraph (G), and by adding at the end the following new subparagraph: (H) during the 120-day period beginning on the date of the enactment of the Hire Just One Act of 2013 , amounts may be withdrawn for the payment of allowances under an employment assistance voucher program (as defined in section 3306(v)); . (2) Permissible expenditures Section 3306(f) of such Code is amended— (A) by striking and at the end of paragraph (5), (B) by redesignating the paragraph relating to the self-employment assistance program as paragraph (6) and striking the period at the end of such paragraph and inserting ; and , and (C) by adding at the end the following new paragraph: (7) during the 120-day period beginning on the date of the enactment of the Hire Just One Act of 2013 , amounts may be withdrawn for the payment of allowances under an employment assistance voucher program (as defined in subsection (v)). . (b) Employment assistance voucher program defined Section 3306 of such Code is amended by adding at the end the following new subsection: (v) Employment assistance voucher program For the purposes of this chapter— (1) In general The term employment assistance voucher program means a program under which— (A) an eligible individual is issued an employment assistance voucher, (B) upon employment with an employer described in paragraph (5)— (i) the eligible individual transfers the employment assistance voucher to the employer, (ii) the individual ceases to receive unemployment compensation and is paid wages by the employer, and (iii) the employer receives payments upon presenting the voucher to the State, and (C) the program meets such other requirements as the Secretary of Labor determines to be appropriate. (2) Rules relating to unemployed individuals For purposes of paragraph (1)— (A) Compensation Compensation pursuant to paragraph (1)(B)(ii) shall— (i) not be less than 200 percent of the unemployment compensation otherwise payable to the individual on the date of the individual’s employment under the employment assistance voucher program, (ii) not be less than the minimum wage (as specified in section 6 of the Fair Labor Standards Act of 1938), (iii) be payable for a period not to exceed the maximum number of remaining weeks of unemployment compensation (including supplemental and emergency) to which the employee would be entitled (but for participating in the employment assistance voucher program), determined as of the date of employment. (B) Termination of employment If, before the end of the period referred to in subparagraph (A)(iii), an individual’s employment with an employer under the employment assistance voucher program is terminated for reasons other than cause, the individual is entitled to the remaining period of entitlement referred to in subparagraph (A)(iii) less the number of weeks of such employment. (C) Certain requirements not to apply State requirements relating to availability for work, active search for work, and refusal to accept work are not applicable to individuals participating in the employment assistance voucher program. (3) Employment assistance voucher The term employment assistance voucher means a voucher— (A) obtained by an eligible individual pursuant to the State law, (B) payable to the employer of the eligible individual— (i) at a rate determined under State law but not to exceed 90 percent of the amount of unemployment compensation to which the eligible individual is entitled, and (ii) on the same schedule as unemployment compensation would be payable to the individual but for employment under the employment assistance voucher program. (4) Eligible individual The term eligible individual means an individual who— (A) is eligible to receive regular unemployment compensation under the State law, extended unemployment, or emergency unemployment or would be eligible to receive such compensation except for the requirements described in paragraph (1)(B), (B) is identified pursuant to a State worker profiling system as an individual likely to exhaust regular unemployment compensation, (C) immediately prior to employment by the eligible employer, was unemployed for not less than 6 months, and (D) is employed by an eligible employer. (5) Eligible employer The term eligible employer means an employer who agrees to the terms and conditions of employment under the unemployment assistance voucher program and who is approved by the State agency. (6) Treatment of participating individuals under Federal and State law Individuals participating in an unemployment assistance voucher program shall be treated as unemployed for the purposes of Federal and State laws applicable to unemployment compensation, except that wages paid to the employee under such program shall be subject to Federal and State taxation to the same extent and in the same manner as wages generally. (7) Cost limiter A State program shall not be treated as an employment assistance voucher program for purposes of this chapter unless the program does not result in any cost to the Unemployment Trust Fund (established by section 904(a) of the Social Security Act) in excess of the cost that would be incurred by such State and charged to such Fund, or to any Federal funds in the system if the State had not participated in such program. (8) Prevention of employment termination to participate in program A State program shall not be treated as an employment assistance voucher program for purposes of this chapter unless the State has in effect measures to prevent employers from terminating employment for purposes of participating in the employment assistance voucher program. (9) Prevention in terminating employees during program A State program shall not be treated as an employment assistance voucher program for purposes of this chapter unless the State has in effect measures to recoup payments made to an employer under the program if the employer has terminated from employment more employees during the 120-day period referred to in section 3304(a)(4)(H) than the employer has hired under the program. . (c) Conforming amendment Section 303(a)(5) of the Social Security Act (42 U.S.C. 503(a)(5)) is amended by striking ; and and inserting : Provided further , That amounts may be withdrawn for the payment of allowances under an employment assistance voucher program (as defined in section 3306(v) of the Internal Revenue Code of 1986); and . (d) State reports Any State operating an employment assistance voucher program approved by the Secretary of Labor pursuant to section 3304(a)(4)(H) of the Internal Revenue Code of 1986 (as added by this section) shall report annually to the Secretary on the number of individuals who participate in the program, the operating costs of the program, compliance with program requirements, and any other relevant aspects of program operations requested by the Secretary. (e) Report to congress Not later than 1 year after the date of the enactment of this Act, the Secretary of Labor shall submit a report to the Congress with respect to the operation of the employment assistance voucher program. Such report shall be based on the reports received from the States pursuant to subsection (d) and include such other information as the Secretary of Labor determines is appropriate. (f) Effective date The provisions of this section and the amendments made by this section shall take effect on the date of the enactment of this Act.

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113-hr-52

I 113th CONGRESS 1st Session H. R. 52 IN THE HOUSE OF REPRESENTATIVES January 3, 2013 Mr. Fitzpatrick introduced the following bill; which was referred to the Committee on House Administration , and in addition to the Committee on Oversight and Government Reform , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend title 5, United States Code, to provide for the termination of further retirement coverage of Members of Congress, except for the right to participate in the Thrift Savings Plan, and for other purposes. 1. Amendments relating to the Civil Service Retirement System (a) In general Subchapter III of chapter 83 of title 5, United States Code, is amended by inserting after section 8335 the following: 8335a. Termination of further retirement coverage of Members of Congress (a) In general Notwithstanding any other provision of this subchapter, effective as of the first day of the first Congress beginning after the date of the enactment of this section— (1) a Member shall not be subject to this subchapter for any further period of time; and (2) no further Government contributions or deductions from basic pay may be made with respect to such Member for deposit in the Treasury of the United States to the credit of the Fund. (b) Prior rights not affected Nothing in subsection (a) shall be considered to nullify, modify, or otherwise affect any right, entitlement, or benefit under this subchapter with respect to any Member covering any period prior to the first day referred to in subsection (a). (c) Right to participate in Thrift Savings Plan not affected Nothing in subsection (a) shall affect the eligibility of a Member to participate in the Thrift Savings Plan in accordance with otherwise applicable provisions of law. (d) Regulations Any regulations necessary to carry out this section may— (1) be prescribed by the Director of the Office of Personnel Management, except with respect to matters under paragraph (2); and (2) with respect to matters relating to the Thrift Savings Plan, be prescribed by the Executive Director (as defined by section 8401(13)). . (b) Clerical amendment The table of sections of chapter 83 of title 5, United States Code, is amended by inserting after the item relating to section 8335 the following: 8335a. Termination of further retirement coverage of Members of Congress. . 2. Amendments relating to the Federal Employees’ Retirement System (a) In general Subchapter II of chapter 84 of title 5, United States Code, is amended by inserting after section 8425 the following: 8425a. Termination of further retirement coverage of Members of Congress (a) In general Notwithstanding any other provision of this chapter, effective as of the first day of the first Congress beginning after the date of the enactment of this section— (1) in the case of an individual who first becomes a Member before such first day— (A) such Member shall not be subject to this chapter for any further period of time after such first day or, if later, the date on which such Member completes at least 5 years of Member service; and (B) no further Government contributions or deductions from basic pay may be made with respect to such Member, for deposit in the Treasury of the United States to the credit of the Fund, after such Member ceases to be subject to this chapter; and (2) in the case of an individual who first becomes a Member on or after such first day— (A) such Member shall not be subject to this chapter; and (B) no Government contributions or deductions from basic pay may be made with respect to such Member for deposit in the Treasury of the United States to the credit of the Civil Service Retirement and Disability Fund. (b) Prior rights not affected Nothing in subsection (a) shall be considered to nullify, modify, or otherwise affect any right, entitlement, or benefit under this chapter with respect to any Member covering any period prior to the first day referred to in subsection (a). (c) Right to participate in Thrift Savings Plan not affected Nothing in subsection (a) shall affect the eligibility of a Member to participate in the Thrift Savings Plan in accordance with otherwise applicable provisions of law. (d) Regulations Any regulations necessary to carry out this section may— (1) be prescribed by the Director of the Office of Personnel Management, except with respect to matters under paragraph (2); and (2) with respect to matters relating to the Thrift Savings Plan, be prescribed by the Executive Director (as defined by section 8401(13)). . (b) Clerical amendment The table of sections of chapter 84 of title 5, United States Code, is amended by inserting after the item relating to section 8425 the following: 8425a. Termination of further retirement coverage of Members of Congress. .

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